S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3553
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend  the  insurance  law,  in  relation  to  providing  loss
   prevention programs
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 2324  of  the  insurance  law,  subsection  (a)  as
 amended  by  chapter  291  of  the  laws  of 2012, is amended to read as
 follows:
   § 2324. Rebating and discrimination. (a)  No  authorized  insurer,  no
 licensed  insurance agent, no licensed insurance broker, and no employee
 or other representative of any such insurer, agent or broker shall make,
 procure or negotiate any contract of insurance  other  than  as  plainly
 expressed in the policy or other written contract issued or to be issued
 as evidence thereof, or shall directly or indirectly, by giving or shar-
 ing  a  commission or in any manner whatsoever, pay or allow or offer to
 pay or allow to the insured or to any employee of the insured, either as
 an inducement to the making of insurance or  after  insurance  has  been
 effected,  any rebate from the premium which is specified in the policy,
 or any special favor or advantage in the dividends or other  benefit  to
 accrue  thereon,  or  shall give or offer to give any valuable consider-
 ation or inducement of any kind, directly or indirectly,  which  is  not
 specified  in such policy or contract, other than any valuable consider-
 ation,  including  but  not  limited  to   merchandise   or   periodical
 subscriptions,  not  exceeding  twenty-five  dollars  in value, or shall
 give, sell or purchase, or offer  to  give,  sell  or  purchase,  as  an
 inducement  to  the making of such insurance or in connection therewith,
 any stock, bond or other securities or any dividends or profits  accrued
 thereon,  nor  shall  the insured, his agent or representative knowingly
 receive directly or indirectly, any such  rebate  or  special  favor  or
 advantage,  provided,  however, a licensed insurance agent or a licensed

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04760-01-3
              

 S. 3553                             2
 
 insurance broker may retain the usual commission or underwriting fee  on
 insurance  placed on his own property or risks, if the aggregate of such
 commissions or underwriting fees will not exceed  five  percent  of  the
 total  net  commissions  or  underwriting fees received by such licensed
 insurance agent or insurance broker during the calendar year.
   (b) Within the meaning of subsection (a)  hereof,  the  sharing  of  a
 commission with the insured shall be deemed to include any case in which
 a  licensed  insurance  agent  or a licensed insurance broker which is a
 subsidiary corporation of, or a corporation affiliated with, any  corpo-
 ration  insured, received commissions for the negotiation or procurement
 of any policy or contract of insurance for the insured.
   (c) THIS SECTION SHALL NOT PROHIBIT ANY INSURER FROM OFFERING  PARTIC-
 IPATION  IN  A LOSS PREVENTION PROGRAM THAT PROMOTES AND INCENTIVES SAFE
 DRIVING BEHAVIOR WITH POINTS-BASED REWARDS SO LONG AS  PARTICIPATION  IN
 SUCH PROGRAM IS OFFERED BOTH TO MEMBERS OF THE GENERAL PUBLIC AND TO THE
 INSURER'S POLICYHOLDERS.
   (D)  This  section  shall  not  prohibit  any  insurer  from equitably
 distributing to its policyholders  dividends  payable  from  surplus  on
 earned  premiums, nor prohibit the return at any time during the term or
 at the termination of the contract of insurance of dividends, savings or
 the unused or unabsorbed portion of premiums  and  premium  deposits  to
 policyholders  of  a  mutual  insurer  or to subscribers of a reciprocal
 insurer, nor prohibit any insurer or insurance agent from paying commis-
 sions to a  licensed  insurance  broker  for  negotiating  a  policy  or
 contract  of  insurance, nor prohibit any licensed insurance broker from
 sharing or dividing a commission earned or  received  by  him  with  any
 other  licensed  insurance broker or brokers who shall have aided him in
 respect to the insurance for the negotiation of which the commission has
 been earned or paid.
   [(d)] (E) This section shall not  prohibit  the  making  of  temporary
 contracts  of insurance, either by temporary binders or other memoranda,
 if the premium applicable to the insurance shall be  due  and  shall  be
 paid  for  the  time during which the insurance is in force by virtue of
 the temporary contract.
   [(e)] (F) This section shall not apply to any policy  or  contract  of
 reinsurance  nor  to  any contract or policy of life insurance, accident
 insurance or health insurance which is  subject  to  the  provisions  of
 section  four  thousand  two hundred twenty-four of this chapter, nor to
 any contract or policy of marine  insurance,  other  than  contracts  or
 policies  of automobile insurance, or of marine protection and indemnity
 insurance, nor to any  insurance  contract,  or  rate  of  insurance  in
 connection with any insurance contract either against loss or damage to,
 or  legal  liability  in  connection  with,  any property located wholly
 outside of this state or any activity carried on outside of  this  state
 or any motor vehicle or aircraft principally garaged and used outside of
 this state.
   [(f)]  (G)  Any person or corporation violating the provisions of this
 section shall, in addition to all other penalties provided by  law,  pay
 to the people of this state as a penalty the sum of five hundred dollars
 for each such violation.
   § 2. This act shall take effect immediately.