senate Bill S2894A

Signed by Governor

Allows licensed insurance brokers and agents to develop, implement and administer wellness programs

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 24 / Jan / 2013
    • REFERRED TO INSURANCE
  • 22 / Apr / 2013
    • 1ST REPORT CAL.355
  • 23 / Apr / 2013
    • 2ND REPORT CAL.
  • 24 / Apr / 2013
    • ADVANCED TO THIRD READING
  • 29 / Apr / 2013
    • PASSED SENATE
  • 29 / Apr / 2013
    • DELIVERED TO ASSEMBLY
  • 29 / Apr / 2013
    • REFERRED TO INSURANCE
  • 10 / Jun / 2013
    • SUBSTITUTED FOR A7382
  • 10 / Jun / 2013
    • ORDERED TO THIRD READING CAL.507
  • 13 / Jun / 2013
    • SUBSTITUTION RECONSIDERED
  • 13 / Jun / 2013
    • RECOMMITTED TO INSURANCE
  • 14 / Jun / 2013
    • RECALLED FROM ASSEMBLY
  • 14 / Jun / 2013
    • RETURNED TO SENATE
  • 17 / Jun / 2013
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 17 / Jun / 2013
    • AMENDED ON THIRD READING 2894A
  • 20 / Jun / 2013
    • REPASSED SENATE
  • 20 / Jun / 2013
    • RETURNED TO ASSEMBLY
  • 20 / Jun / 2013
    • REFERRED TO INSURANCE
  • 21 / Jun / 2013
    • SUBSTITUTED FOR A7382A
  • 21 / Jun / 2013
    • ORDERED TO THIRD READING CAL.507
  • 21 / Jun / 2013
    • PASSED ASSEMBLY
  • 21 / Jun / 2013
    • RETURNED TO SENATE
  • 01 / Nov / 2013
    • DELIVERED TO GOVERNOR
  • 13 / Nov / 2013
    • SIGNED CHAP.496

Summary

Allows licensed insurance brokers and agents to develop, implement and administer wellness programs.

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Bill Details

See Assembly Version of this Bill:
A7382A
Versions:
S2894
S2894A
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Amd ยง4224, Ins L
Versions Introduced in 2011-2012 Legislative Cycle:
S4950, A9932, S4950

Sponsor Memo

BILL NUMBER:S2894A

TITLE OF BILL: An act to amend the insurance law, in relation to
exceptions to the general prohibition on rebating

PURPOSE: To modernize the insurance law to allow licensed brokers and
agents to develop, implement, and administer wellness programs.

SUMMARY OF PROVISIONS: This bill would allow insurance agents and
brokers to, without charging a service fee or charging a reduced fee,
develop, implement, and administer wellness programs, if such programs
and services are provided in a fair and nondiscriminatory manner and
are incidental to a policy sold by the agent or broker.

JUSTIFICATION: The fast-paced and competitive insurance marketplace
continues to evolve, and insurance producers must change with it.
Integral to this is the modernization of certain statutory
restrictions that are old and outmoded. Chief amongst these are the
anti-rebating and inducement laws that were originally designed to
protect insurance producers and consumers alike from offering and
accepting illegal inducements for the sale of insurance products. In
today's health insurance market, licensed insurance brokers and agents
must be able to offer wellness programs in order to attract business
and close the sale.

With the recent issuance of federal rules giving employers greater
leeway in how they manage programs that promote healthy behavior and
reduce illness amongst employees, employer groups of all sizes are
increasingly looking not only for traditional advice in selecting
health plan benefits design and coverage options, underwriting to
reduce claims losses, and claims servicing and policyholder advocacy,
but are looking for programs and services that would improve the
health of their employees.

LEGISLATIVE HISTORY: S 4950 of 2011-12

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2894--A
    Cal. No. 355

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 24, 2013
                               ___________

Introduced  by  Sens.  SEWARD,  LANZA, LATIMER -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Insur-
  ance  --  reported favorably from said committee, ordered to first and
  second report, ordered to a third reading, passed by Senate and deliv-
  ered to the Assembly, recalled, vote reconsidered, restored  to  third
  reading,  amended  and  ordered  reprinted, retaining its place in the
  order of third reading

AN ACT to amend the insurance law, in  relation  to  exceptions  to  the
  general prohibition on rebating

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

  Section 1. Subsection (c) of section 4224 of  the  insurance  law,  as
amended  by  chapter  291  of  the  laws  of 2012, is amended to read as
follows:
  (c) Except as permitted by section three thousand two hundred  thirty-
nine  of  this  chapter  OR SUBSECTION (F) OF THIS SECTION, no such life
insurance company and no such savings and insurance bank and no officer,
agent, solicitor or representative thereof and no such insurer doing  in
this state the business of accident and health insurance and no officer,
agent,  solicitor  or  representative thereof, and no licensed insurance
broker and no employee or other  representative  of  any  such  insurer,
agent  or  broker,  shall  pay, allow or give, or offer to pay, allow or
give, directly or indirectly, as an inducement to any person to  insure,
or  shall give, sell or purchase, or offer to give, sell or purchase, as
such inducement, or interdependent with any policy of life insurance  or
annuity contract or policy of accident and health insurance, any stocks,
bonds,  or  other securities, or any dividends or profits accruing or to
accrue thereon, or any valuable consideration or inducement whatever not
specified in such policy or contract other than any  valuable  consider-
ation,   including   but   not  limited  to  merchandise  or  periodical
subscriptions, not exceeding twenty-five dollars in value; nor shall any

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06650-03-3

S. 2894--A                          2

person in this state knowingly receive as such inducement, any rebate of
premium or policy fee or any special favor or advantage in the dividends
or other benefits to accrue on any such policy or contract, or knowingly
receive any paid employment or contract for services of any kind, or any
valuable  consideration or inducement whatever which is not specified in
such policy or contract.
  S 2. Section 4224 of the insurance law is  amended  by  adding  a  new
subsection (f) to read as follows:
  (F)  (1)  THIS  SUBSECTION SHALL APPLY ONLY WITH RESPECT TO A GROUP OR
BLANKET ACCIDENT AND  HEALTH  INSURANCE  POLICY  ISSUED  BY  AN  INSURER
LICENSED TO WRITE ACCIDENT AND HEALTH INSURANCE IN THIS STATE OR A GROUP
CONTRACT   ISSUED   BY  A  CORPORATION  ORGANIZED  PURSUANT  TO  ARTICLE
FORTY-THREE OF THIS CHAPTER, OR A HEALTH MAINTENANCE ORGANIZATION CERTI-
FIED PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
  (2) NOTWITHSTANDING SUBSECTION (C) OF THIS SECTION, A  LICENSED  AGENT
OR  INSURANCE  BROKER  MAY  DEVELOP,  IMPLEMENT, AND ADMINISTER WELLNESS
PROGRAMS ESTABLISHED IN  ACCORDANCE  WITH  SECTION  THREE  THOUSAND  TWO
HUNDRED  THIRTY-NINE  OF THIS CHAPTER WITHOUT CHARGING A SERVICE FEE OR,
IN THE CASE OF A LICENSED INSURANCE BROKER, FOR A  REDUCED  SERVICE  FEE
PURSUANT  TO A WRITTEN MEMORANDUM MADE IN ACCORDANCE WITH SUBSECTION (C)
OF SECTION TWO THOUSAND ONE HUNDRED NINETEEN OF THIS  CHAPTER,  IF  SUCH
PROGRAMS  ARE  PROVIDED IN A FAIR AND NONDISCRIMINATORY MANNER AND INCI-
DENTAL TO A GROUP OR BLANKET POLICY OR CONTRACT SOLD  BY  THE  INSURANCE
AGENT OR INSURANCE BROKER.
  S 3. This act shall take effect immediately.

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