Big I NY Secures Sponsors to Repeal Outdated Producer Advertising Law
At the urging of Big I New York, State Senator and Insurance Committee Chair Jamaal Bailey this week introduced legislation to repeal an outdated insurance producer advertising law that has recently resulted in fines exceeding $2,000. State Assembly Member Carrie Woerner is expected to introduce companion legislation in the Assembly.
The bill (S.9403) would repeal Section 2122(b) of New York’s insurance law, which requires insurance agents and brokers to include the full name of any referenced insurer and the city, town, or village of the insurer’s principal U.S. office in all advertisements, public announcements, signs, pamphlets, circulars, and cards.
The push to repeal the law comes as the New York State Department of Financial Services has increased enforcement of the provision. Many recent citations have involved producers who displayed insurers’ logos on their websites—often linked directly to the insurers’ own sites—without also listing the insurer’s full name and home office location.
Section 2122(b) dates to a time when advertising through television, radio, billboards, mail, and the internet was far less common. At that time, consumers may have relied on producer advertisements to identify and locate insurers. Today, insurer advertising is widespread, and consumers visiting a producer’s website can easily locate an insurer through an online search.
As a result, the consumer protections envisioned by Section 2122(b) have largely outlived their usefulness. When insurer logos are widely recognized and often directly linked to an insurer’s website, requiring the insurer’s full name and home office location provides little additional consumer benefit. Instead, well-intentioned producers engaging in a common modern practice of displaying insurer logos on their websites may unknowingly violate the law and face penalties, despite causing no consumer harm.
Importantly, introduction of this legislation does not change the current law. Producers should review their websites and advertising materials to ensure compliance with Section 2122(b) of the New York insurance law.
Topics
