senate Bill S6672

Signed by Governor Amended

Makes various provisions to provide public awareness of means of financing long term health care

download pdf

Sponsor

Bill Status


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

actions

  • 26 / Feb / 2014
    • REFERRED TO INSURANCE
  • 28 / May / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 09 / Jun / 2014
    • AMEND AND RECOMMIT TO FINANCE
  • 09 / Jun / 2014
    • PRINT NUMBER 6672A
  • 10 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 10 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1261
  • 12 / Jun / 2014
    • PASSED SENATE
  • 12 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2014
    • REFERRED TO WAYS AND MEANS
  • 17 / Jun / 2014
    • SUBSTITUTED FOR A8957A
  • 17 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.286
  • 17 / Jun / 2014
    • PASSED ASSEMBLY
  • 17 / Jun / 2014
    • RETURNED TO SENATE
  • 10 / Nov / 2014
    • DELIVERED TO GOVERNOR
  • 21 / Nov / 2014
    • SIGNED CHAP.465

Summary

Directs the department of financial assistance to establish a public awareness program on the availability of long term health care insurance, the financing thereof and the provision of tax credits for premiums paid therefor; accelerates payment of death benefits and special surrender values upon receipt of the insured of end of life or palliative care.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A8957
Versions:
S6672
S6672A
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Add §342, amd §§1113, 3201 & 3230, 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:S6672

TITLE OF BILL: An act to amend the insurance law, in relation to
establishing a public awareness program on the availability of long
term health care insurance and the tax credits therefor, and
accelerating payment of death benefits or a special surrender value
pursuant to a life insurance policy upon receipt of end of life or
palliative care

PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to
expand upon the provisions of Chapter 563 of the Laws of 2010, which
expanded the types of end of life care that can be financed by an
accelerated death benefit rider attached to a life insurance policy to
include persons who have resided in a nursing home for three months or
more. This bill expands such end of life care that can be financed by
a life insurance accelerated death benefit to include end of life care
provided for by a long term home health care provider, hospice or
adult day care services or palliative care. Such long term care would
need to have been provided for at least three months or more, with the
expectation that such beneficiary will continue to require such
services until death.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Adds Insurance Law section 342 to allow for the
establishment of a coordinated public awareness program to encourage
individuals to purchase life insurance and long term care (LTC)
insurance. Such awareness program shall be a collaborative effort
between the Departments of Health, Financial Services, and Taxation &
Finance, and the Office of the Aging.

Section 2: Amends Insurance Law section 1113(a) to expand the types of
long term care (LTC) and end of life care that can be financed by an
accelerated death benefit payable from an individual's life insurance.
This accelerated death benefit would need to be purchased as an
additional rider attached to a life insurance contract. This
authorization for a new rider was done by expanding the definition of
life insurance.

Section 3: Amends Insurance Law section 3201(11) to add life insurance
policies that have a trigger for payment of benefit upon the recipient
receiving end of life care or palliative care via long term health
care, hospice or adult day care services, or other services as one of
the types of policies that the Department of Financial Services must
approve the policy form for before and insurer can begin to sell such
policy riders to the general public.

Section 4: Amends Insurance Law section 3230(f) to add the payment of
an accelerated payment of a death benefit or special surrender value
upon the insured requiring end of life care as provided for in
Insurance Law section 1113. Such end of life care must. be provided
for at least 3 months or more, with the expectation that such insured
will continue to require such services until death.

JUSTIFICATION: As the general population becomes older, more and more
individuals are looking for affordable ways to pay for the financing
of their nursing home and long term care needs. While there are


available policies that provide payment for long term care, more
products should be authorized under New York law so that consumers
will have more types of insurance coverage available to meet their
specific needs or the needs of their family.

In addition, encouraging more individuals to finance their own long
term care, will help to curtail future expenditures from the State's
Medicaid program, which currently finances the lion's share of the
provision of long term care in this State. This bill is a further
extension of new laws such as Chapter 563 of the Laws of 2010 which
are geared towards encouraging individuals to finance their own long
term care and nursing home care as we all get older.

PRIOR LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: It is the intent of this bill to encourage the
increased use of life insurance to help finance end of life care.
This, in turn, should help to decrease State Medicaid expenditures
that are currently used to finance end of life care.

EFFECTIVE DATE: This act shall take effect on January 1st of the year
next succeeding its date of enactment.

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

                                  6672

                            I N  S E N A T E

                            February 26, 2014
                               ___________

Introduced  by  Sen.  KLEIN  -- 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 establishing a  public
  awareness  program on the availability of long term health care insur-
  ance and the tax credits therefor, and accelerating payment  of  death
  benefits  or  a  special  surrender value pursuant to a life insurance
  policy upon receipt of end of life or palliative care

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

  Section  1.   The insurance law is amended by adding a new section 342
to read as follows:
  S 342. PUBLIC AWARENESS TO FINANCE LONG  TERM  CARE.  THE  DEPARTMENT,
DEPARTMENT  OF  HEALTH,  OFFICE FOR THE AGING AND DEPARTMENT OF TAXATION
AND FINANCE MAY JOINTLY ESTABLISH AND CONDUCT A PUBLIC AWARENESS PROGRAM
ON THE AVAILABILITY AND COVERAGE PROVIDED BY LIFE INSURANCE  AND  HEALTH
INSURANCE  PLANS  FOR  LONG TERM CARE, AND THE PROVISIONS OF VARIOUS TAX
CREDITS THEREFOR.
  S 2. Paragraph 1 of subsection (a) of section 1113  of  the  insurance
law,  as  amended by chapter 563 of the laws of 2010, is amended to read
as follows:
  (1) "Life Insurance," means every insurance upon the  lives  of  human
beings, and every insurance appertaining thereto, including the granting
of  endowment  benefits,  additional  benefits  in the event of death by
accident, additional benefits to  safeguard  the  contract  from  lapse,
accelerated  payments  of  part or all of the death benefit or a special
surrender value upon (A) diagnosis of terminal illness defined as a life
expectancy of twelve months or less, (B) diagnosis of a  medical  condi-
tion  requiring  extraordinary  medical  care or treatment regardless of
life expectancy, (C) certification by a licensed health care practition-
er of any condition which requires continuous care for the remainder  of
the  insured's  life in an eligible facility or at home when the insured
is chronically ill as defined by Section 7702(B) of the Internal Revenue
Code and regulations thereunder, provided the accelerated payments qual-
ify under Section 101(g)(3) of the Internal Revenue Code and  all  other

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14174-01-4

S. 6672                             2

applicable  sections  of  federal law in order to maintain favorable tax
treatment, (D) certification by a licensed health care practitioner that
the insured is chronically ill as defined by Section  7702  (B)  of  the
Internal  Revenue Code and regulations thereunder, provided the acceler-
ated payments qualify under Section 101(g)(3) of  the  Internal  Revenue
Code  and all other applicable sections of federal law in order to main-
tain favorable tax treatment and the insurer that issues such policy  is
a  qualified long term care insurance carrier under Section 4980c of the
Internal Revenue Code or provide a special surrender value,  upon  total
and  permanent  disability of the insured, and optional modes of settle-
ment of proceeds, [or] (E) the insured's having been  a  resident  of  a
nursing  home,  as  defined  in  section twenty-eight hundred one of the
public health law, for a period of three months or more, with an  expec-
tation  that such insured will remain a resident of a nursing home until
death, OR (F) THE INSURED'S HAVING BEEN THE RECIPIENT, FOR A  PERIOD  OF
THREE  MONTHS  OR  MORE, OF LONG TERM HOME HEALTH CARE, HOSPICE OR ADULT
DAY CARE SERVICES, OR OTHER SERVICES,  WHICH  PROVIDE  END  OF  LIFE  OR
PALLIATIVE  CARE  TO THE INSURED, WITH THE EXPECTATION THAT SUCH INSURED
WILL CONTINUE TO REQUIRE SUCH SERVICES UNTIL DEATH.    "Life  insurance"
also  includes  additional  benefits  to  safeguard the contract against
lapse in the event of unemployment of the insured or in  the  event  the
insured  is  a  resident of a nursing home. Amounts paid the insurer for
life insurance and proceeds applied under optional modes  of  settlement
or under dividend options may be allocated by the insurer to one or more
separate accounts pursuant to section four thousand two hundred forty of
this chapter.
  S  3.  Subparagraph  (A)  of paragraph 11 of subsection (c) of section
3201 of the insurance law, as amended by chapter  563  of  the  laws  of
2010, is amended to read as follows:
  (A) The superintendent shall not approve a life insurance policy which
provides  for accelerated payment of death benefits or special surrender
values pursuant to subparagraph (B), (C), (D) [or], (E) OR (F) of  para-
graph one of subsection (a) of section one thousand one hundred thirteen
of this chapter unless it also provides for such accelerated payments or
special  surrender  values pursuant to subparagraph (A) of paragraph one
of subsection (a) of such section.
  S 4. Subsection (f) of section 3230 of the insurance law,  as  amended
by chapter 563 of the laws of 2010, is amended to read as follows:
  (f)  This section shall apply to all life insurance policies or policy
riders or provisions thereof that provide  for  accelerated  payment  of
death  benefits  or  a  special surrender value pursuant to subparagraph
(A), (B), (C) [or], (E) OR (F) of paragraph one  of  subsection  (a)  of
section one thousand one hundred thirteen of this chapter.
  S  5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a  law  and  shall  apply  to
policies  or contracts issued, renewed, modified, altered, or amended on
or after such date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.