New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004

The Office of General Counsel issued the following informal opinion on April 2, 2002, representing the position of the New York State Insurance Department.

RE: Non-domiciliary New York Licensee and Compliance with N.Y. Comp. Codes R. & Regs. tit. 11, §§ 420, 421 (2002)

Question Presented:

Must a foreign authorized insurer comply with N.Y. Comp. Codes R. & Regs. tit. 11, §§ 420, 421 (2002) (Regulation 169 and Regulation 173)?

Conclusion:

Yes. The language of Regulations 169 and 173 provides that all licensees must comply.

Facts:

A foreign authorized insurer wishes to know if it must comply with Regulations 169 and 173. No other facts were provided.

Analysis:

N.Y. Comp. Codes R. & Regs. tit. 11, § 420.1: "governs the treatment of nonpublic personal information about individuals . . . in this State by all licensees of the Insurance Department." (emphasis added). § 421.2 requires each licensee to put into effect a: "comprehensive written information security program that includes administrative, technical and physical safeguards for the protection of customer information."

N.Y. Comp. Codes R. & Regs. tit. 11, § 420.3(p)(1) defines "licensee" as follows:

"Licensee" means a person licensed, or required to be licensed, or authorized, or required to be authorized, or registered, or required to be registered pursuant to the Insurance Law of this State; a health maintenance organization holding, or required to hold, a certificate of authority pursuant to Article 44 of the Public Health Law; or an unauthorized insurer in regard to the excess line business conducted pursuant to section 2118 of the Insurance Law and Part 27 of this Title (Regulation 41); but shall not include a registered service contract provider, charitable annuity society, or a licensed viatical settlement company or viatical settlement broker.

N.Y. Comp. Codes R. & Regs. tit. 11, § 421.1(d) defines "licensee" as: "that term is defined in § 420.3(p)(1) of this Title, except that ‘licensee’ shall not include: a purchasing group; or an unauthorized insurer in regard to the excess line business conducted pursuant to Section 2118 of the Insurance Law and Part 27 of this Title (Regulation 41)."

Accordingly, a Massachusetts domiciled insurance company, licensed in New York State, is within the definition of licensee as defined by Regulations 169 and 173 and must comply with the Regulations.

For further information you may contact Attorney Kristian E. Lynch at the New York City Office.