S T A T E O F N E W Y O R K
________________________________________________________________________
1695
2009-2010 Regular Sessions
I N S E N A T E
February 5, 2009
___________
Introduced by Sen. KRUGER -- 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 third-party notifica-
tion prior to termination of health insurance policies for subscribers
aged sixty-five years or older
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (c) of section 3111 of the insurance law, as
amended by chapter 341 of the laws of 1991, is amended to read as
follows:
(c) Every insurer, CORPORATION ORGANIZED UNDER ARTICLE FORTY-THREE OF
THIS CHAPTER OR ORGANIZATION CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF
THE PUBLIC HEALTH LAW that has in force a HEALTH INSURANCE POLICY OR
medicare supplemental insurance policy as defined in section three thou-
sand two hundred eighteen of this chapter the premiums for which are
paid directly to the insurer by the senior citizen insured shall permit
senior citizen insureds to designate a third party to whom the insurer
shall transmit notices of nonpayment of premiums due or notice of
cancellation for nonpayment of premiums, as determined by the insurer.
The senior citizen 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 of cancellation. 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 such notice of cancellation shall be in addition to a
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01092-02-9
S. 1695 2
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 IMMEDIATELY". Designation as a
third party shall not constitute acceptance of any liability on the
third party for services provided to such senior citizen. The insurer
shall notify its senior citizen insureds annually 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 desig-
nation.
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 and shall apply to all
policies issued, renewed, altered or modified on or after such date.