senate Bill S4374A

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

See Assembly Version of this Bill:
A9458A
Versions:
S4374
S4374A
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Amd §3201, Ins L

Sponsor Memo

BILL NUMBER:S4374A

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
develop an alternative to the disclosure requirements for certain life
insurance policy provisions. 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 Superintendent can, at his
discretion, develop a uniform alternative to the requisite disclosure
on life insurance policy applications that is equally prominent manner
to the current requirement that the disclosure be in red ink, capital
letters and twelve point type.

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

JUSTIFICATION: Section 3201(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. This bill
would allow the superintendent to provide life insurers with some
flexibility regarding the format of this disclosure while also
providing for a uniform standard in the marketplace. 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 to develop an alternative uniform
standard.

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--A
    Cal. No. 967

                       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  --  recommitted
  to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
  -- reported favorably from said committee, ordered to first and second
  report,  ordered  to  a  third reading, amended and ordered reprinted,
  retaining its place in the order of third reading

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 ESTAB-
LISHED  AT  THE DISCRETION OF THE SUPERINTENDENT AND PROMULGATED THROUGH
REGULATIONS, 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.
                                                           LBD09743-03-4

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