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Bill

S 9403

Relates to digital advertisements for insurance agents and brokers

2025 Regular Session Introduced by Jamaal Bailey

The bill lets ads drop the insurer’s full name and principal office from advertising while keeping key protections and disclosure rules for unauthorized and affiliated insurers.

AMENDED ON THIRD READING (T) 9403A
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WeVote Research Nonpartisan
Bill Summary · S 9403

Summary of Bill S.9403 (2025-2026) – New York

Title

Removes requirement for advertisements referring to an insurer to include the insurer's full name and principal office; makes related technical corrections.

Main Purpose and Intent

This bill seeks to modify New York insurance advertising requirements by eliminating the current mandate that advertisements referring to an insurer must include the insurer’s full name and the city, town, or village of its principal office in the United States. It also aligns and clarifies related provisions governing advertising by insurance producers and the activities of unauthorized insurers.

Key Provisions

  1. Advertising by Insurance Producers (Section 2122)

    • The bill continues the prohibition on insurance producers creating advertisements that purport to state an insurer’s financial condition, but it removes the specific requirement that ads must include the insurer’s full name and principal office location.
    • The existing prohibition on drawing attention to unauthorized insurers remains.
    • The current requirement that agents and brokers include in all ads the insurer’s name in full and the city/town/village of its principal US office is removed (see above). This is a substantive change to disclosure in advertising.

  2. Unauthorized Insurer Activities (Section 1101(b)(5))

    • Retains a framework allowing an unauthorized insurer affiliated with a New York-licensed insurer to provide certain services from within New York to support its insurance business (e.g., computer operations, clerical work, underwriting, quoting, policy drafting, claims handling, etc.).
    • Prohibits the unauthorized insurer from marketing, soliciting, or advertising directly to policyholders.
    • Allows such unauthorized insurers to advertise to and solicit through excess line brokers licensed under current law.
    • Requires prominent notice (not smaller than 10-point type) on any document indicating a location in New York that the insurer is not licensed in New York, consistent with regulatory rules.

  3. Support Services by Licensed Insurers to Unauthorized Insurers (Section 2117(i))

    • Allows a licensed insurer to provide certain supportive services from its New York office to an affiliated unauthorized insurer, subject to the same exclusions on direct marketing.
    • Permits advertising and solicitation through excess line brokers from within New York.
    • Maintains that all obligations of the excess line broker licensee remain in effect.
    • Requires prominent 10-point-type notice for any documents indicating New York locations where the unaffiliated insurer operates, stating that the insurer is not licensed by New York.

  4. Effective Date

    • The act takes effect immediately upon enactment.

Who Will Be Affected

  • Insurance Producers and Advertising Practitioners: Advertising rules for insurers and their agents/brokers will change; removal of the full-name and principal office disclosure requirement alters how ads are designed and presented.
  • Unauthorized Insurers (Affiliates): May continue to provide within-state support services for their New York-licensed counterparts and may advertise through excess line brokers, with stringent disclosure requirements about licensing status.
  • Licensed Insurers: Allowed to provide certain support services to affiliated unauthorized insurers from within New York; must comply with same disclosure standards for documents indicating NY operations.
  • Excess Line Brokers: Remains a channel for advertising and solicitation by unauthorized insurers, with continued compliance obligations.

Procedural and Timeline Notes

  • Introduced and referred to the Senate Committee on Insurance on March 10, 2026.
  • Advanced through committee workflow with multiple clauses amended; currently listed as advanced to third reading (as of the latest action history).
  • Effective date stated as immediate upon enactment.

Observations

  • The bill focuses on removing a specific branding/disclosure requirement in insurance advertising while preserving core consumer-protection measures (e.g., prohibition on direct advertising by unauthorized insurers to policyholders and the need for clear licensing notices when operating in New York).
  • It maintains strong oversight around advertising for unaffiliated insurers and clarifies permissible cross-use of services between licensed insurers and affiliated unauthorized insurers, including disclosure obligations.

Compiled from official sources — confirm details with the bill’s official record.

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