The Office of General Counsel issued the following informal opinion on March 15, 2001, representing the position of the New York State Insurance Department.

RE: Doing an Insurance Business Pursuant to N.Y. Ins. Law §1101 (McKinney 2000)

Question Presented:

Is the solicitation, sale, and delivery of a life insurance policy in New Jersey to a New Jersey corporation that will pay premium monies to insure a New York resident, who is a part-owner of the corporation, considered an act of doing business in New York which would require the insurer to be authorized in this state?


No. Since the life insurance policy is solicited, sold, and delivered in New Jersey, the transaction does not constitute the doing of an insurance business in New York. Consequently, the insurer need not be authorized by the Department.


The proposed owner of a life insurance policy is a New Jersey corporation. It wishes to insure a New York resident who owns 25% of the corporation. The corporation and the insured will be solicited in New Jersey, the application will be signed in New Jersey, and the policy will be delivered in New Jersey. The corporation will pay the premiums on the policy.


The transaction described would not constitute an act of doing an insurance business in New York within the meaning of N.Y. Ins. Law § 1101 (McKinney 2000). This is a New Jersey transaction and the insurer need not be authorized by this Department.

For further information you may contact Associate Attorney Jeffrey A. Stonehill at the New York City Office.