N.Y. Comp. Codes R. & Regs. tit. 23 § 500.19

Current through Register Vol. 46, No. 45, November 2, 2024

Section 500.19 - Exemptions

(a) Limited exemption. Each covered entity with:

(1) fewer than 20 employees and independent contractors of the covered entity and its affiliates;

(2) less than $ 7,500,000 in gross annual revenue in each of the last three fiscal years from all business operations of the covered entity and the business operations in this State of the covered entity's affiliates; or

(3) less than $15,000,000 in year-end total assets, calculated in accordance with generally accepted accounting principles, including assets of all affiliates, shall be exempt from the requirements of sections 500.4, 500.5, 500.6, 500.8, 500.10, 500.14 (a)(1), (a)(2), and (b), 500.15 and 500.16 of this Part.

(b) An employee, agent, wholly owned subsidiary, representative or designee of a covered entity, who is itself a covered entity, is exempt from this Part and need not develop its own cybersecurity program to the extent that the employee, agent, wholly owned subsidiary, representative or designee is covered by the cybersecurity program of the covered entity.

(c) A covered entity that does not directly or indirectly operate, maintain, utilize or control any information systems, and that does not, and is not required to, directly or indirectly control, own, access, generate, receive or possess nonpublic information shall be exempt from the requirements of sections 500.2, 500.3, 500.4, 500.5, 500.6, 500.7, 500.8, 500.10, 500.12, 500.14, 500.15 and 500.16 of this Part.

(d) A covered entity under article 70 of the Insurance Law that does not and is not required to directly or indirectly control, own, access, generate, receive or possess nonpublic information other than information relating to its corporate parent company (or affiliates) shall be exempt from the requirements of sections 500.2, 500.3, 500.4, 500.5, 500.6, 500.7, 500.8, 500.10, 500.12, 500.14, 500.15 and 500.16 of this Part.

(e) An individual insurance broker subject to Insurance Law section 2104 who qualifies for the exemption pursuant to section 500.19(c) of this Part and has not, for any compensation, commission or other thing of value, acted or aided in any manner in soliciting, negotiating or selling any policy or contract or in placing risks or taking out insurance on behalf of another person for at least one year shall be exempt from the requirements of this Part, provided such individuals do not otherwise qualify as a covered entity for purposes of this Part.

(f) A covered entity that qualifies for any of the above exemptions pursuant to this section shall file electronically a Notice of Exemption in the form set forth on the department's website within 30 days of the determination that the covered entity is exempt.

(g) The following persons are exempt from the requirements of this Part, provided such persons do not otherwise qualify as a covered entity for purposes of this Part: persons subject to Insurance Law section 1110; persons subject to Insurance Law section 5904; any accredited reinsurer, certified reinsurer or reciprocal jurisdiction reinsurer that has been so recognized pursuant to 11 NYCRR Part 125; individual insurance agents who are placed in inactive status under Insurance Law section 2103; and individual licensees placed in inactive status under Banking Law section 599-i.

(h) In the event that a covered entity ceases to qualify for an exemption, such covered entity shall have 180 days from the date that it ceases to so qualify to comply with all applicable requirements of this Part.

N.Y. Comp. Codes R. & Regs. Tit. 23 § 500.19

Adopted, New York State Register March 1, 2017/Volume XXXIX, Issue 09, eff. 3/1/2017; amended May 31, 2017

Amended New York State Register November 1, 2023/Volume XLV, Issue 44, eff. 11/1/2023