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 opinion on July 2, 2002, representing the position of the New York State Insurance Department.

RE: Commercial Insurance and Compliance with Regulation 169.

Question Presented:

Is a managing general agent for an insurer that only writes commercial, black car and livery insurance and who possesses nonpublic personal financial information about companies or individuals who obtain products or services for business or commercial purposes, subject to N.Y. Comp. Codes R. & Regs. tit. 11, §§ 420.0-420.25 (2001)(Regulation 169)?

Conclusion:

No. Pursuant to N.Y. Comp. Codes R. & Regs. tit. 11, § 420.1(b)(1) (2001) (Regulation 169), the regulation does not apply to nonpublic personal financial information about companies or individuals who obtain products or services for business, commercial or agricultural purposes. Accordingly, a managing general agent for an insurer that only writes commercial, black car and livery insurance and who possesses nonpublic personal financial information about companies or individuals who obtain products or services for business or commercial purposes, is not subject to N.Y. Comp. Codes R. & Regs. tit. 11, §§ 420.0-420.25 (2001)(Regulation 169).

Facts:

ABC Co. is the managing general agent for an insurance company, located in New York. In connection with its duties as managing general agent, ABC Co. receives nonpublic personal financial information about companies or individuals who seek to obtain commercial, black car and livery insurance. The inquirer believes that due to the nature of the insurance involved, ABC Co. is not subject to Regulation 169.

Analysis:

N.Y. Comp. Codes R. & Regs. tit. 11, § 420.1(b) (2001)(Regulation 169) provides as follows:

(b) Scope. This Part applies to:

(1) Nonpublic personal financial information about individuals who obtain, seek to obtain or are claimants or beneficiaries of products or services primarily for personal, family or household purposes from licensees. This Part does not apply to information about companies or about individuals who obtain products or services for business, commercial, or agricultural purposes. (emphasis supplied)

Accordingly, a managing general agent for an insurer that only writes commercial, black car and livery insurance and who possesses nonpublic personal financial information about companies or individuals who obtain products or services for business or commercial purposes, is not subject to N.Y. Comp. Codes R. & Regs. tit. 11, §§ 420.0-420.25 (2001)(Regulation 169).

For further information, you may contact Attorney Pascale Joasil at the New York City office.