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

                                 535--A
                                                         Cal. No. 38

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced by M. of A. DINOWITZ, KAVANAGH -- Multi-Sponsored by -- M. of
  A. BRENNAN, CUSICK -- read once and referred to the Committee on Judi-
  ciary -- reported from committee, advanced to a third reading, amended
  and ordered reprinted, retaining its place on the order of third read-
  ing

AN  ACT  to amend the general obligations law, in relation to onerous or
  unreasonable conditions  in  the  performance  of  disability  related
  contracts

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

  Section 1. The general obligations law is  amended  by  adding  a  new
section 5-336 to read as follows:
  S 5-336. PERFORMANCE OF WRITTEN CONTRACTS FOR BENEFITS IN THE EVENT OF
DISABILITY.  1. NO PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER ENTI-
TY, WHETHER SUCH PERSON OR ENTITY BE AN EMPLOYER OR OTHERWISE, EXCLUDING
WORKERS' COMPENSATION OR NEW YORK STATE DISABILITY INSURANCE, WHO ENTERS
INTO A WRITTEN CONTRACT PROVIDING FOR PAYMENT OF BENEFITS OR THE  WAIVER
OF  OBLIGATIONS  OR BOTH IN THE EVENT OF THE DISABILITY OF A NAMED INDI-
VIDUAL SHALL, BY CONTRACT OR OTHERWISE,  IMPOSE  ON  A  DISABLED  PERSON
ONEROUS  OR UNREASONABLE CONDITIONS FOR THE PAYMENT OR CONTINUED PAYMENT
OF CONTRACTUAL BENEFITS OR THE  WAIVER  OR  CONTINUED  WAIVER  OF  OBLI-
GATIONS.    CONDITIONS ARE "ONEROUS OR UNREASONABLE" IF BY THEIR CONTIN-
UOUS OR REPETITIOUS NATURE THEY  REQUIRE  THE  DISABLED  BENEFICIARY  TO
PERFORM  UNNECESSARY  OR  DUPLICATIVE ACTS IN ORDER TO OBTAIN OR COLLECT
THE BENEFITS TO WHICH HE OR SHE IS OTHERWISE ENTITLED UNDER THE CONTRACT
AND INCLUDE BUT ARE NOT LIMITED TO:
  (A) REQUIRING THE DISABLED PERSON TO UNDERGO  UNREASONABLY  REPETITIVE
MEDICAL EXAMINATIONS; OR
  (B)  REQUIRING THE DISABLED PERSON TO PROVIDE FINELY-DETAILED OR REPE-
TITIOUS MEDICAL DOCUMENTATION OF A DISABLING CONDITION; OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD02560-02-0

A. 535--A                           2

  (C) BARGAINING IN BAD FAITH OR ENGAGING IN ANY OF THE  ACTS  DESCRIBED
IN  THE PARAGRAPHS OF SUBSECTION (A) OF SECTION TWO THOUSAND SIX HUNDRED
ONE OF THE INSURANCE LAW, RELATING TO UNFAIR CLAIM SETTLEMENT PRACTICES.
  2.  ANY  PARTY  TO  THE CONTRACT OR CONTRACT BENEFICIARY INJURED BY AN
ACTION OR FAILURE TO ACT IN VIOLATION OF SUBDIVISION ONE OF THIS SECTION
MAY MAINTAIN AN ACTION TO RECOVER AND, UPON PROOF OF SUCH INJURY DUE  TO
VIOLATION  OF  SUBDIVISION ONE OF THIS SECTION BY A PREPONDERANCE OF THE
EVIDENCE, SHALL RECOVER  ACTUAL  DAMAGES,  INCLUDING  ANY  INTEREST  AND
PENALTIES  INCURRED  DUE  TO  THE  VIOLATION  OF SUBDIVISION ONE OF THIS
SECTION, AND REASONABLE COSTS AND ATTORNEY'S FEES. THE COURT MAY IN  ITS
DISCRETION AWARD EXEMPLARY DAMAGES.
  S 2. This act shall take effect immediately.