S T A T E   O F   N E W   Y O R K
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                                  6933

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 17, 2009
                               ___________

Introduced  by  M.  of  A.  GABRYSZAK  --  read once and referred to the
  Committee on Insurance

AN ACT to amend the insurance law, in relation to third party  notifica-
  tion  of  the renewal, modification, or cancellation of a senior citi-
  zen's health insurance policy

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

  Section  1.  Subsection  (f)  of section 3111 of the insurance law, as
relettered by section 30 of part B of chapter 58 of the laws of 2004, is
relettered subsection (g) and a new subsection (f) is added to  read  as
follows:
  (F) EVERY INSURER THAT HAS IN FORCE ANY POLICY OF INSURANCE SUBJECT TO
THE  PROVISIONS  OF  ARTICLE  THIRTY-TWO  OR FORTY-THREE OF THIS CHAPTER
SHALL PERMIT SENIOR CITIZEN INSUREDS TO DESIGNATE A THIRD PARTY TO  WHOM
THE  INSURER SHALL TRANSMIT NOTICES OF CANCELLATION, NONRENEWAL, MODIFI-
CATION, NON-PAYMENT, AND CONDITIONAL RENEWAL. THE SENIOR CITIZEN INSURED
SHALL NOTIFY THE INSURER THAT A THIRD PARTY HAS BEEN SO DESIGNATED. SUCH
NOTIFICATION SHALL BE DELIVERED TO THE INSURER BY CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, AND SHALL BE EFFECTIVE NOT LATER  THAN  TEN  BUSINESS
DAYS  FROM  THE  DATE  OF RECEIPT BY THE INSURER.  THE NOTIFICATION MUST
CONTAIN, IN WRITING, AN  ACCEPTANCE  BY  THE  THIRD  PARTY  DESIGNEE  TO
RECEIVE  SUCH  NOTICES FROM THE INSURER. SHOULD THE THIRD PARTY DESIGNEE
DESIRE TO TERMINATE HIS OR HER STATUS AS A THIRD  PARTY  DESIGNEE,  SUCH
DESIGNEE SHALL PROVIDE WRITTEN NOTICE TO BOTH THE INSURER AND THE SENIOR
CITIZEN  INSURED.  SHOULD THE SENIOR CITIZEN INSURED DESIRE TO TERMINATE
THE THIRD PARTY DESIGNATION, THE INSURED SHALL PROVIDE WRITTEN NOTICE TO
THE INSURER. THE TRANSMISSION TO THE THIRD PARTY DESIGNEE OF ANY  NOTICE
SHALL  BE  IN  ADDITION  TO  A  COPY OF SUCH DOCUMENT TRANSMITTED TO THE
SENIOR CITIZEN INSURED AND WHEN A THIRD PARTY IS  SO DESIGNATED ALL SUCH
NOTICES SHALL BE MAILED IN AN ENVELOPE CLEARLY MARKED ON ITS  FACE  WITH
THE  FOLLOWING: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATE-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07883-01-9
              

A. 6933                             2

LY". DESIGNATION AS A THIRD PARTY SHALL NOT CONSTITUTE ACCEPTANCE OF ANY
LIABILITY ON THE THIRD PARTY FOR SERVICES PROVIDED TO SUCH SENIOR  CITI-
ZEN.  ON JANUARY FIRST OF EACH YEAR, THE INSURER SHALL NOTIFY ITS SENIOR
CITIZEN  INSUREDS  IN  WRITING  OF  THE  AVAILABILITY OF THE THIRD PARTY
DESIGNEE NOTICE PROCEDURE AND PROVIDE INFORMATION ON HOW THE INSURED CAN
COMMENCE THIS PROCEDURE; HOWEVER, SUCH NOTICE NEED NOT BE PROVIDED  ONCE
A SENIOR CITIZEN HAS MADE A DESIGNATION.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.