Andrew M. Cuomo
James J. Wrynn
OGC Op. No. 11-09-01
The Office of General Counsel issued the following opinion on September 22, 2011, representing the position of the New York State Insurance Department.
Re: Selling Salary Protection Insurance in the Excess Line Market
May an insurance broker licensed under N.Y. Ins. Law
Yes. An insurance broker licensed under either Insurance Law
The inquiry is of a general nature, without reference to particular facts.
Chapter 626 of the Laws of 2006 added salary protection insurance as a kind of insurance that an insurer may write in New York, and Insurance Law
insurance against financial loss caused by the cessation of earned income due to disability from sickness, ailment or bodily injury, in an amount up to: (A) that portion of an individual’s annual earned income which is in excess of the amount of in force disability insurance as defined in paragraph three of this subsection in an amount not to exceed seventy-five percent of the individual’s annual earned income in total based upon the sum of the in force disability insurance and salary protection insurance when the benefits are payable to the individual or the individual’s beneficiary; or (B) where such underlying disability insurance cannot be obtained by an individual from an authorized insurer, in an amount not to exceed seventy-five percent of the individual’s annual earned income when the benefits are payable to the individual or the individual’s beneficiary. Any insurer licensed to write disability insurance as defined in paragraph three of this subsection may also write salary protection insurance as defined in this paragraph.
The Department considers salary protection insurance to be a type of accident and health insurance, fully encompassed within the definition of accident and health insurance under Insurance Law
(b)(1) Such license shall confer upon the licensee authority to act in this state as insurance broker, and upon every natural person named as sub-licensee in such license authority to act in this state as insurance broker in the name of and on behalf of such licensee, with respect to the following lines of authority:
(A) life insurance, variable life and variable annuity products, accident and health insurance and sickness or any other line of authority deemed to be similar by the superintendent, including for this purpose, health maintenance organization contracts and legal services insurance; or
(B) any and every line of authority, except life insurance and variable life and variable annuity products.
Therefore, a life insurance broker’s license issued under
For further information, you may contact Senior Attorney Joana Lucashuk at the New York City Office.