senate Bill S4374

Amended

Relates to required form for exclusion language

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Sponsor

Bill Status


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

  • 25 / Mar / 2013
    • REFERRED TO INSURANCE
  • 08 / Jan / 2014
    • REFERRED TO INSURANCE
  • 28 / May / 2014
    • 1ST REPORT CAL.967
  • 29 / May / 2014
    • 2ND REPORT CAL.
  • 02 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 03 / Jun / 2014
    • AMENDED ON THIRD READING 4374A
  • 12 / Jun / 2014
    • SUBSTITUTED BY A9458A

Summary

Relates to required form for exclusion language; permits superintendent of insurance to establish such form through promulgation of regulations.

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Bill Details

Versions:
S4374
S4374A
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Amd §3201, Ins L

Votes

18
0
18
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Insurance committee vote details

Sponsor Memo

BILL NUMBER:S4374

TITLE OF BILL: An act to amend the insurance law, to allow for
certain life insurance policy provisions to be disclosed in an
alternative, equally prominent manner

PURPOSE:

The purpose of the bill is to amend §3201(c)(4) of the insurance law
to authorize the Superintendent of Financial Services to approve
certain life insurance policy provisions to be disclosed on the
application in an alternative, equally prominent manner. Current law
only allows such disclosure to be put forth in red ink, capital
letters and twelve point font.

SUMMARY OF PROVISIONS:

This bill amends § 3201(c)(4) of the insurance law to add language to
provide that the requisite disclosure on life insurance policy
applications related to any war or travel limitations in the policy
can be put forth in an equally prominent manner to red ink, capital
letters and twelve point type, so long as the alternative, prominent
disclosure has been approved by the Superintendent of the Department
of Financial Services.

EXISTING LAW:

Current law only allows such disclosure to be put forth in red ink,
capital letters and twelve point font.

JUSTIFICATION:

Section 320I(c)(4) of the insurance law provides the disclosure that
must be included on a life insurance policy application if it contains
a limitation or restriction related to war or travel. Such disclosure
is required to be put forth in red ink, capital letters and twelve
point font size At the time that this law was written, life insurance
policy forms were typically printed in mass volume and distributed to
the agent or employer who was marketing the policy_ Since that time,
the use of personal computers and office printers by such entities has
proliferated so that these documents are now oftentimes, particularly
in the group insurance setting, being provided to the employers who
are offering them via computer and then printed out on office printers
for distribution Although the original document may have been sent to
the employer with red ink on the form, the form may not be reproduced
in that manner if, for instance, the employer is not using a color
printer. Life insurers would like to have some flexibility to adjust
the format of this disclosure so as to accommodate these situations.
For instance, insurers may have submitted to the Department of
Financial Services forms that have the disclosure in bold, capital
letters and larger than twelve point type. The Department would find
it necessary to reject these alternatives because the law is very
specific and detailed in how the disclosure should be put forward to
the consumer. This bill would allow the Department the flexibility to
approve alternative disclosure of this type of provision on a life
policy, so long as they determine that it is equally prominent to the
detailed disclosure that is required under the current law.


LEGISLATIVE. HISTORY:

New bill

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:

Immediately.

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

                                  4374

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 25, 2013
                               ___________

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

AN ACT to amend the insurance law, to allow for certain  life  insurance
  policy provisions to be disclosed in an alternative, equally prominent
  manner

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

  Section 1. The opening paragraph of paragraph 4 of subsection  (c)  of
section 3201 of the insurance law is amended to read as follows:
  The  superintendent  shall  not approve any life insurance policy form
containing any war or travel exclusion or restriction, for  delivery  or
issuance  for delivery in this state, unless such policy form shall have
printed or stamped across its face in red and  in  capital  letters  not
smaller  than  twelve  point  type, OR IN AN EQUALLY PROMINENT MANNER AS
APPROVED BY THE SUPERINTENDENT, the following:
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09743-01-3

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