The Office of General Counsel issued the following informal opinion on May 14, 2002, representing the position of the New York State Insurance Department.

Re: Effective Date of N.Y. Ins. Law § 1113(a)(16)(D)

Question Presented:

What year did N. Y. Ins. Law § 1113(a)(16)(D) become effective, particularly with regard to charitable organizations?


Pursuant to Section 9 of Chapter 48 of the Laws of 1989, N. Y. Ins. Law § 1113(a)(16)(D) became effective, in its entirety, on May 14, 1989.


The inquiry is general in nature. No specific facts were supplied.


N. Y. Ins. Law § 1113(a)(16)(D) (McKinney 2000) provides:

(a) The kinds of insurance which may be authorized in this state, subject to other provisions of this chapter, and their scope, are set forth in the following paragraphs….

(16) "Fidelity and surety insurance" means:…

(D) An indemnity bond for the benefit of a public body, railroad or charitable organization; a lost security or utility payment bond.

Section 1113(a)(16) was amended by Chapter 48 of the Laws of 1989, which deleted the original language of subparagraph (D) and added the new language above thereto. Chapter 48 was signed into law on April 14, 1989 and became effective as provided in Section 9 thereof, which states:

§ 9. This act shall take effect on the thirtieth day after it shall have become law, provided, however, that the superintendent of insurance may, prior to such date, promulgate such rules and regulations as may be necessary for the timely implementation of this act. (emphasis added).

Based on § 9 above, which provides that the law shall become effective on the "thirtieth day after it shall have become law," and the fact that Chapter 48 was signed into law on April 14, 1989, N.Y. Ins. Law § 1113(a)(16)(D) became effective on May 14, 1989.

The legislative history of Chapter 48 of the Laws of 1989 does not specifically discuss the issue of "charitable organizations." Neither does the Insurance Law have a definition of such term. However, definitions for "charitable organizations" may be found in Section 171-a of N.Y. Executive Law and Section 501 of the Internal Revenue Code. While such definitions are not determinative of the meaning in the Insurance Law, they may be helpful.

For further information you may contact Senior Attorney D. Monica Marsh at the New York City Office.