S T A T E   O F   N E W   Y O R K
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                                  5456

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               May 7, 2009
                               ___________

Introduced  by  Sen.  DIAZ  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to third-party  notifica-
  tion prior to termination of health insurance policies for subscribers
  aged sixty-five years or older

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (c) of section 3111 of  the  insurance  law,  as
amended  by  chapter  341  of  the  laws  of 1991, is amended to read as
follows:
  (c) Every insurer, CORPORATION ORGANIZED UNDER ARTICLE FORTY-THREE  OF
THIS CHAPTER OR ORGANIZATION CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF
THE  PUBLIC  HEALTH  LAW  that has in force a HEALTH INSURANCE POLICY OR
medicare supplemental insurance policy as defined in section three thou-
sand two hundred eighteen of this chapter the  premiums  for  which  are
paid  directly to the insurer by the senior citizen insured shall permit
senior citizen insureds to designate a third party to whom  the  insurer
shall  transmit  notices  of  nonpayment  of  premiums  due or notice of
cancellation for nonpayment of premiums, as determined by  the  insurer.
The  senior citizen shall notify the insurer that a third party has been
so designated. Such notification shall be delivered to  the  insurer  by
certified  mail,  return  receipt  requested, and shall be effective not
later than ten business days from the date of receipt  by  the  insurer.
The  notification  must  contain, in writing, an acceptance by the third
party designee to receive such notices of cancellation. Should the third
party designee desire to terminate his or her status as  a  third  party
designee, such designee shall provide written notice to both the insurer
and the senior citizen insured. Should the senior citizen insured desire
to  terminate  the  third  party  designation, the insured shall provide
written notice to the insurer.   The transmission  to  the  third  party
designee  of  any  such notice of cancellation shall be in addition to a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01092-01-9
              

S. 5456                             2

copy of such document transmitted to the senior citizen insured and when
a third party is so designated all such notices shall be  mailed  in  an
envelope  clearly  marked  on  its  face  with the following: "IMPORTANT
INSURANCE  POLICY  INFORMATION:    OPEN IMMEDIATELY".   Designation as a
third party shall not constitute acceptance  of  any  liability  on  the
third  party  for  services provided to such senior citizen. The insurer
shall notify its senior citizen insureds  annually  in  writing  of  the
availability  of  the  third party designee notice procedure and provide
information on how the insured can  commence  this  procedure;  however,
such notice need not be provided once a senior citizen has made a desig-
nation.
  S  2. This act shall take effect on the one hundred eightieth day next
succeeding the date on which it shall have become a law and shall  apply
to  all  policies  issued, renewed, altered or modified on or after such
date.