Electronic Delivery of Insurance Notices in New York

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I’ve been getting questions on who is responsible for providing the following notice from the New York Department of Financial Services. Is it the carrier or the producer?  It is the understanding that the insurance producer must send notice to their clients.  However, if the carrier sends a notice, it is also the responsibility of the producer to send notice.  In certain circumstances the carrier may send a consolidated notice on behalf of the carrier and the producer.  This would relive the producer from needing to send notice.  The producer must contact each carrier he or she represents to determine if the notice the carrier is sending to clients in New York State satisfies this requirement.

Below is the notice from the New York Department of Financial Services:

Guidance to Insurance Producers regarding Electronic Delivery of Notices

Please note that the Department of Financial Services (DFS) has posted guidance to insurance producers to accommodate electronic delivery of notices (and relieve them of the requirement to mail or deliver such notices) pursuant to DFS’s March 30, 2020 Emergency Regulations that created new 11 NYCRR § 229.5(b) and 3 NYCRR § 405.6(b)(4).  The guidance is available on DFS’s website at https://www.dfs.ny.gov/industry_guidance/electronic_notice_obligations

Additionally, to facilitate such notifications, DFS has posted model notices linked at the bottom of the guidance described above that the producers who have not yet sent notices may use.  The text of the model notice for holders of the types of property/casualty insurance policies that are covered under the emergency regulation (as explained below*) can also be found at the bottom of this email.

PRODUCERS MUST ONLY SEND THE APPROPRIATE NOTICE TO THE APPROPRIATE CONSUMERS TO AVOID CONFUSION. 

IMPORTANT REMINDER:  The notices to property/casualty policyholders only apply to certain kinds of policies and therefore may only be sent to holders of those specific kinds of policies to avoid consumer confusion.  The types of policies are explained in general terms in the property/casualty notice.  The precise categories of policies are set forth in detail in the emergency regulation, which is posted at: https://www.dfs.ny.gov/system/files/documents/2020/03/re_consolidated_amend_pt_405_27a_27c_new_216_text.pdf. Specifically, see 11 NYCRR § 229.2(m) in the emergency regulation for the definition of “Property/casualty insurance policy.” 

Statements of fact or opinion are the responsibility of the authors and do not represent an opinion on the part of officers, directors, or staff of the Society of Financial Service Professionals.