One of the great things about this job is that, on a regular basis, I get asked a really interesting question that I never had to think about before. Today's question is one of them; when I think about it, I'm surprised I've never gotten it before.
Question from an IIABNY member: The account I'm working on is located on an Indian reservation in New York. Since reservations are sovereign territories, does my New York State agent's license allow me to write business there?
Answer: I found a 2003 New York Insurance Department opinion that answered the question, "Would a risk located on an Indian reservation physically within New York be considered to be inside New York State?" The questioner pertained to compliance with the laws governing excess lines placements, but I think the principle is the same. The attorney wrote:
The first source for guidance as to whether a risk is considered in or out-of-state is N.Y. State Law §§ 2, 3, 4, 5, 6, and 7,... which establishes the boundaries of New York State. Nothing in the State Law excludes Indian reservations from being included within New York State. Also, Indian reservations are considered municipalities within the state for certain purposes. See N.Y. Exec. Law § 412(4); N.Y. Gen. Mun. Law § 854(3). Moreover, the Indian Law specifically regulates activities pertaining to reservations in New York, which further evinces legislative intent that such reservations are considered within New York.
Accordingly, it is our opinion that the Indian reservation should, for these purposes, be considered an in-state risk...
Based on this, it appears to me that a New York agent's or broker's license gives the holder authority to write business on Indian reservations.
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