S T A T E   O F   N E W   Y O R K
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                                   217

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced by M. of A. LATIMER, MORELLE, SCHROEDER, COLTON, ZEBROWSKI --
  Multi-Sponsored  by  --  M.  of  A. BOYLAND, ENGLEBRIGHT, GALEF, JOHN,
  LUPARDO, MILLMAN, PAULIN, PHEFFER, WEINSTEIN, WEISENBERG -- read  once
  and referred 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

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

                                                           LBD01092-01-9

A. 217                              2

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
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 one hundred eightieth day next
succeeding 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.