Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
May 18, 2010 |
held for consideration in insurance |
Apr 13, 2010 |
referred to insurance |
Assembly Bill A10653
2009-2010 Legislative Session
Sponsored By
MONTESANO
Archive: Last Bill Status - In Assembly Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2009-A10653 (ACTIVE) - Details
- Current Committee:
- Assembly Insurance
- Law Section:
- Insurance Law
- Laws Affected:
- Amd §3221, Ins L
2009-A10653 (ACTIVE) - Summary
Requires group and blanket health and accident insurers to provide 30 days prior written notice to insureds of the termination of such insurance coverage; extends the conversion privilege to forty-five days after notice of termination is received by the employee; requires notice of termination of coverage to be mailed by the insurer to each certificate holder's last known residential address.
2009-A10653 (ACTIVE) - Sponsor Memo
BILL NUMBER:A10653 TITLE OF BILL: An act to amend the insurance law, in relation to requiring insurance carriers to provide persons under a group health insurance policy with thirty days notice of the termination of such policy PURPOSE: This bill would ensure that persons whose health insurance is provided by a group policy have actual notice of any termination of that policy so that alternate coverage may be secured and periods of noncov- erage caused by retroactive cancellation of group health insurance poli- cies eliminated. SUMMARY: This bill would add a new 5 3221(a)(16) to the Insurance Law to require that an insurance carrier directly notify certificate holders upon cancellation of their group health insurance policy. It would also provide that no termination of a group health insurance policy will become effective until thirty days after such notice. The notice of termination must set forth the rights of the certificate holder under the terminating policy as to coverage for illness, accident and treat- ment and such other rights as exist under 53221(e)(1) of the Insurance Law. This bill would also extend the conversion privilege to 45 days after notice of termination is received by the employee. JUSTIFICATION: There is no existing requirement that an insurance carri- er notify covered workers of the termination of their health insurance
2009-A10653 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 10653 I N A S S E M B L Y April 13, 2010 ___________ Introduced by M. of A. MONTESANO -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to requiring insurance carriers to provide persons under a group health insurance policy with thirty days notice of the termination of such policy THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (a) of section 3221 of the insurance law is amended by adding a new paragraph 16 to read as follows: (16) (A) THAT THE INSURER UPON TERMINATION OF A GROUP POLICY OR CONTRACT OF HEALTH, OR ACCIDENT AND HEALTH INSURANCE ISSUED TO A POLICY- HOLDER, COVERING INDIVIDUALS WHO BECAUSE OF THEIR EMPLOYEE OR MEMBERSHIP STATUS ARE CERTIFICATE HOLDERS UNDER A GROUP POLICY, SHALL PROVIDE EACH CERTIFICATE HOLDER WITH WRITTEN NOTICE OF SUCH TERMINATION OF COVERAGE THIRTY DAYS PRIOR TO SUCH TERMINATION, AND NO SUCH TERMINATION SHALL BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER SUCH NOTICE OF TERMINATION. (B) IN ITS NOTICE OF TERMINATION OF COVERAGE, THE INSURER SHALL SET FORTH, IN FULL, THE RIGHTS OF THE CERTIFICATE HOLDER UNDER THE TERMINAT- ING POLICY AS TO COVERAGE FOR ILLNESS, ACCIDENT AND TREATMENT OCCURRING PRIOR TO AND SUBSEQUENT TO THE TERMINATION DATE, AND SUCH OTHER RIGHTS OF CERTIFICATE HOLDERS AS MAY EXIST UNDER THE CONTRACT OR POLICY OR PURSUANT TO PARAGRAPH ONE OF SUBSECTION (E) OF THIS SECTION. (C) NOTICE OF TERMINATION OF COVERAGE SHALL BE MAILED BY THE INSURER TO EACH CERTIFICATE HOLDER'S LAST KNOWN RESIDENTIAL ADDRESS. S 2. Paragraph 1 of subsection (e) of section 3221 of the insurance law, as amended by chapter 306 of the laws of 1987, is amended to read as follows: (1) A group policy providing hospital or surgical expense insurance for other than specific diseases or accident only, shall provide that if the insurance on an employee or member insured under the group policy ceases because of termination of (I) employment or of membership in the class or classes eligible for coverage under the policy or (II) the policy, for any reason whatsoever, unless the policyholder has replaced the group policy with similar and continuous coverage for the same group EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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