Assembly Bill A8545B

Signed By Governor

2009-2010 Legislative Session

Relates to group life and group accident and health insurance policies

download bill text pdf

Archive: Last Bill Status Via S6014 - Signed by Governor

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

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 17, 2010	signed chap.515
Sep 07, 2010	delivered to governor
Jun 23, 2010	returned to senate passed assembly ordered to third reading rules cal.293 substituted for a8545b
Jun 23, 2010	substituted by s6014b rules report cal.293 reported
Jun 17, 2010	amend and recommit to rules 8545b
Jun 16, 2010	reported referred to rules
Jan 06, 2010	referred to insurance
Jun 18, 2009	print number 8545a
Jun 18, 2009	amend and recommit to insurance
May 27, 2009	referred to insurance

Votes

- Jun 18, 2010 - Floor Vote
  S6014
  
  Aye
  
  58
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  4
  
  Abstained
  
  0
  - - Floor Vote: Jun 18, 2010
      
      aye (58)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (4)
      
      Golden
      
      Morahan
      
      Oppenheimer
      
      Schneiderman
  Jun 7, 2010 - Insurance Committee Vote
  S6014
  
  Aye
  
  17
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Insurance Committee Vote: Jun 7, 2010
      
      aye (17)
      
      Alesi
      
      Breslin
      
      Diaz
      
      Espada
      
      Golden
      
      Kruger
      
      LaValle
      
      Larkin
      
      Leibell
      
      McDonald
      
      Parker
      
      Peralta
      
      Sampson
      
      Seward
      
      Stachowski
      
      Thompson
      
      Young
      
      aye wr (1)
      
      Johnson

Bill Amendments

2009-A8545 - Details

See Senate Version of this Bill:: S6014
Law Section:: Insurance Law
Laws Affected:: Amd §§4216 & 4235, Ins L

2009-A8545 - Summary

Relates to group life and group accident and health insurance policies; revises certain provisions relating to minimum participation requirements by employees in group life and certain group accident and health insurance contracts.

2009-A8545 - Bill Text download pdf

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

                                  8545

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 27, 2009
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the insurance law, in relation to group life  and  group
  accident and health insurance policies

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

  Section 1. Paragraph 1 of subsection (b) of section 4216 of the insur-
ance law, as amended by chapter 369 of the laws of 1985, is  amended  to
read as follows:
  (1)  A  policy  issued to an employer or to a trustee or trustees of a
fund established by an employer, which employer  or  trustees  shall  be
deemed the policyholder, insuring with or without evidence of individual
insurability  satisfactory  to  the insurer, employees of such employer,
and insuring, except as hereinafter provided, all of such  employees  or
all  of any class or classes thereof determined by conditions pertaining
to the employment, [or by a combination of such  conditions  and  condi-
tions  pertaining  to the family status of the employee,] for amounts of
insurance on each  person  insured  based  upon  some  plan  which  will
preclude individual selection. [However, such a plan may permit a limit-
ed number of selections by employees if the selections offered utilize a
consistent  pattern  of  grading the amounts of insurance for individual
group members so that the resulting pattern of coverage is  reasonable.]
The  premium  for  the  policy shall be paid by the policyholder, either
wholly from the employer's funds [or funds contributed by him]  or  from
funds  contributed  by  the insured employees, or from funds contributed
jointly by the employer and employees. If all or part of the premium  is
to  be  derived  from  funds  contributed by the insured employees, such
policy must insure not less than [fifty percent of such eligible employ-
ees or, if less, fifty  or  more]  TWO  of  such  employees.  Except  as
provided  in subsection (b) of section four thousand two hundred thirty-
one of this article and in paragraph five of subsection (a)  of  section

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09479-01-9

A. 8545                             2

three  thousand  two  hundred  twenty of this chapter, such policy shall
provide for payment of all benefits thereunder, to the person insured or
to some beneficiary or beneficiaries other than the employer, and  shall
provide for the issuance of a certificate to the policyholder for deliv-
ery  to  the  person insured or to such beneficiary, as evidence of such
insurance.
  S 2. Subparagraph (A) of paragraph 1 of subsection (c) of section 4235
of the insurance law, as separately amended by chapters 369 and  846  of
the laws of 1985, is amended to read as follows:
  (A)  A  policy  issued to an employer or to a trustee or trustees of a
fund established by an employer, which employer or trustee  or  trustees
shall  be  deemed the policyholder, insuring with or without evidence of
insurability satisfactory to the insurer, employees  of  such  employer,
and  insuring,  except as hereinafter provided, all of such employees or
all of any class or classes thereof determined by conditions  pertaining
to  the  employment  [or a combination of such conditions and conditions
pertaining to the family status of the employee,] for insurance coverage
on each person insured based upon some plan which will preclude individ-
ual selection. [However, such a plan may  permit  a  limited  number  of
selections  by  employees  if  the selections offered utilize consistent
plans of coverage for individual group members  so  that  the  resulting
plans  of  coverage are reasonable.] The premium for the policy shall be
paid by the policyholder, either from  the  employer's  funds,  or  from
funds  contributed  by  the insured employees, or from funds contributed
jointly by the employer and employees.  [If]  WHERE  A  POLICY  PROVIDES
HOSPITAL,  MEDICAL,  MAJOR  MEDICAL  OR  SIMILAR  COMPREHENSIVE TYPES OF
EXPENSE REIMBURSED COVERAGE AND all or part of  the  premium  is  to  be
derived from funds contributed by the insured employees, then such poli-
cy  must  insure  not less than fifty percent of such eligible employees
or, if less, fifty or more of such employees. FOR OTHER TYPES OF  COVER-
AGE,  IF ALL OR PART OF THE PREMIUM IS TO BE DERIVED FROM FUNDS CONTRIB-
UTED BY THE INSURED EMPLOYEES, THEN SUCH POLICY  MUST  INSURE  NOT  LESS
THAN TWO OF SUCH EMPLOYEES.
  S 3. This act shall take effect immediately.

multi-Sponsors

2009-A8545A - Details

See Senate Version of this Bill:: S6014
Law Section:: Insurance Law
Laws Affected:: Amd §§4216 & 4235, Ins L

2009-A8545A - Summary

2009-A8545A - Sponsor Memo

                                BILL NUMBER:A8545A

TITLE OF BILL:  An act to amend the insurance law, in relation to group
life and group accident and health insurance policies

PURPOSE OR GENERAL IDEA OF BILL:  This bill would amend 554216 and 4235
of T.he Insurance Law to revise certain provisions relating to requisite
minimum participation requirements by employees in group life and
certain group accident and health insurance contracts.

SUMMARY OF PROVISIONS:  This bill would amend paragraph (1) of
subsection (b) of section 4216 of the Insurance Law to provide certain
group policies for employers with twenty-five or fewer employees,
provided that such policies must insure not less than fifty percent of
such eligible employees or, if less, five or more of such employees.
This bill would also make a similar amendment to subparagraph (A) of
paragraph (1) of subsection (c) of section 4235 of the Insurance Law
relating to group accident and health insurance, with the exception
being that the current minimum group participation requirements will
continue for hospital, medical, major medical or similar comprehensive
type expense reimbursed coverage but will provide that, employers with
twenty-five or fewer employees, must insurer no fewer than fifty percent
or, if less, five or more of such employees for all other types of group
accident and health insurance (disability, long term care, vision,
dental, etc.).

JUSTIFICATION:  In recent years, employee benefits have changed signif-
icantly. There was a time when employers paid a substantial portion or
even all of the cost of employee benefits. Many corporations still do
but, due to the increasing burden of insurance costs, employers of all
sizes have also been forced to reduce their contributions to the benefit
plans offered to their employees, in order to continue to afford such
employee coverage. Employees have increasingly been asked to share.
these costs with their employer. Today, 25% of the group life insurance
market is fully , voluntary, in that the employee elects coverage and
may pay some or all of the premiums for such coverage.  By offering
these voluntary products through an employer group, the employer can
offer their employees the advantage of payroll deduction, limited under-
writing and other efficiencies in administration that can often times
lead to cheaper insurance premiums for the employee.

In looking at how best to meet the demands of the marketplace, in
particular to small businesses, it was determined that certain
restrictions in the group laws of several states, including New York,
created an impediment to a number of otherwise common group offerings.
These provisions, written many years ago for a purpose that no longer
exists (to protect insurers from adverse selection in the underwriting
process), restrict employee access to voluntary coverage. Given the
realities of today's employer group market, these outdated laws are
ill-suited to protect and benefit consumers.

This bill would remove these impediments and create the ability for
insurers to tailor more attractive and available group coverage for
employers and employees in New York. It would allow any employer who
elects to take part in a group life, disability income, long term care,
vision or dental policy by removing the current restriction that the
group must be an arbitrary size to offer such coverage

PRIOR LEGISLATIVE HISTORY: 2008: S.7766

FISCAL IMPLICATIONS:  No known costs to the State are associated with
this bill.

EFFECTIVE DATE:.up off;:  This act shall take effect immediately.

2009-A8545A - Bill Text download pdf

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

                                 8545--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 27, 2009
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on  Insurance  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the insurance law, in relation to group life and group
  accident and health insurance policies

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

  Section 1. Paragraph 1 of subsection (b) of section 4216 of the insur-
ance  law,  as amended by chapter 369 of the laws of 1985, is amended to
read as follows:
  (1) A policy issued to an employer or to a trustee or  trustees  of  a
fund  established  by  an  employer, which employer or trustees shall be
deemed the policyholder, insuring with or without evidence of individual
insurability satisfactory to the insurer, employees  of  such  employer,
and  insuring,  except as hereinafter provided, all of such employees or
all of any class or classes thereof determined by conditions  pertaining
to the employment, or by a combination of such conditions and conditions
pertaining  to  the family status of the employee, for amounts of insur-
ance on each person insured based upon some  plan  which  will  preclude
individual  selection.  However, such a plan may permit a limited number
of selections by employees if the selections offered utilize a  consist-
ent  pattern  of  grading  the amounts of insurance for individual group
members so that the resulting pattern of coverage is  reasonable.    The
premium  for the policy shall be paid by the policyholder, either wholly
from the employer's funds [or funds contributed by him]  or  from  funds
contributed  by the insured employees, or from funds contributed jointly
by the employer and employees. If all or part of the premium  is  to  be
derived  from  funds  contributed  by the insured employees, such policy
must insure not less than fifty percent of such eligible  employees  or,
if  less,  fifty  or more of such employees; PROVIDED THAT FOR EMPLOYERS
WITH TWENTY-FIVE OR FEWER EMPLOYEES AT ISSUE, SUCH  POLICY  MUST  INSURE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09479-04-9

A. 8545--A                          2

NOT LESS THAN FIFTY PERCENT OF SUCH ELIGIBLE EMPLOYEES OR, IF LESS, FIVE
OR  MORE  OF  SUCH  EMPLOYEES.  Except  as provided in subsection (b) of
section four thousand two hundred thirty-one  of  this  article  and  in
paragraph  five  of subsection (a) of section three thousand two hundred
twenty of this chapter, such policy shall provide  for  payment  of  all
benefits  thereunder,  to  the  person insured or to some beneficiary or
beneficiaries other than the employer, and shall provide for  the  issu-
ance  of  a  certificate  to the policyholder for delivery to the person
insured or to such beneficiary, as evidence of such insurance.
  S 2. Subparagraph (A) of paragraph 1 of subsection (c) of section 4235
of the insurance law, as separately amended by chapters 369 and  846  of
the laws of 1985, is amended to read as follows:
  (A)  A  policy  issued to an employer or to a trustee or trustees of a
fund established by an employer, which employer or trustee  or  trustees
shall  be  deemed the policyholder, insuring with or without evidence of
insurability satisfactory to the insurer, employees  of  such  employer,
and  insuring,  except as hereinafter provided, all of such employees or
all of any class or classes thereof determined by conditions  pertaining
to  the  employment  or  a combination of such conditions and conditions
pertaining to the family status of the employee, for insurance  coverage
on each person insured based upon some plan which will preclude individ-
ual  selection.  However,  such  a  plan  may permit a limited number of
selections by employees if the  selections  offered  utilize  consistent
plans  of  coverage  for  individual group members so that the resulting
plans of coverage are reasonable. The premium for the  policy  shall  be
paid  by  the  policyholder,  either  from the employer's funds, or from
funds contributed by the insured employees, or  from  funds  contributed
jointly  by the employer and employees. If all or part of the premium is
to be derived from funds contributed by the insured employees, then such
policy must insure not less than fifty percent of such eligible  employ-
ees  or,  if  less,  fifty  or more of such employees; PROVIDED THAT FOR
EMPLOYERS WITH TWENTY-FIVE OR FEWER EMPLOYEES, A POLICY PROVIDING COVER-
AGE FOR OTHER THAN HOSPITAL, MEDICAL, MAJOR MEDICAL OR  SIMILAR  COMPRE-
HENSIVE  TYPES  OF EXPENSE REIMBURSED COVERAGE MUST INSURE NOT LESS THAN
FIFTY PERCENT OF SUCH ELIGIBLE EMPLOYEES OR, IF LESS, FIVE  OR  MORE  OF
SUCH EMPLOYEES.
  S 3. This act shall take effect immediately.

multi-Sponsors

2009-A8545B (ACTIVE) - Details

See Senate Version of this Bill:: S6014
Law Section:: Insurance Law
Laws Affected:: Amd §§4216 & 4235, Ins L

2009-A8545B (ACTIVE) - Summary

2009-A8545B (ACTIVE) - Bill Text download pdf

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

                                 8545--B

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 27, 2009
                               ___________

Introduced by M. of A. MORELLE -- Multi-Sponsored by -- M. of A. LATIMER
  --  read  once and referred to the Committee on Insurance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee -- recommitted to  the  Committee  on  Insurance  in
  accordance  with  Assembly  Rule 3, sec. 2 -- reported and referred to
  the Committee on Rules -- Rules Committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to the Committee on Rules

AN  ACT  to amend the insurance law, in relation to group life and group
  accident and health insurance policies

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

  Section 1. Paragraph 1 of subsection (b) of section 4216 of the insur-
ance  law,  as amended by chapter 369 of the laws of 1985, is amended to
read as follows:
  (1) A policy issued to an employer or to a trustee or  trustees  of  a
fund  established  by  an  employer, which employer or trustees shall be
deemed the policyholder, insuring with or without evidence of individual
insurability satisfactory to the insurer, employees  of  such  employer,
and  insuring,  except as hereinafter provided, all of such employees or
all of any class or classes thereof determined by conditions  pertaining
to the employment, or by a combination of such conditions and conditions
pertaining  to  the family status of the employee, for amounts of insur-
ance on each person insured based upon some  plan  which  will  preclude
individual  selection.  However, such a plan may permit a limited number
of selections by employees if the selections offered utilize a  consist-
ent  pattern  of  grading  the amounts of insurance for individual group
members so that the resulting pattern of coverage is  reasonable.    The
premium  for the policy shall be paid by the policyholder, either wholly
from the employer's funds [or funds contributed by him]  or  from  funds
contributed  by the insured employees, or from funds contributed jointly
by the employer and employees. If all or part of the premium  is  to  be

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09479-08-0

A. 8545--B                          2

derived  from  funds  contributed  by the insured employees, such policy
must insure [not less than] A MINIMUM OF fifty percent [of such eligible
employees or, if less, fifty or more] OR FIVE of such ELIGIBLE employees
WHICHEVER IS FEWER. Except as provided in subsection (b) of section four
thousand two hundred thirty-one of this article and in paragraph five of
subsection  (a)  of  section  three  thousand two hundred twenty of this
chapter, such policy shall provide for payment of  all  benefits  there-
under,  to  the  person  insured or to some beneficiary or beneficiaries
other than the employer, and shall provide for the issuance of a certif-
icate to the policyholder for delivery to the person insured or to  such
beneficiary, as evidence of such insurance.
  S 2. Subparagraph (A) of paragraph 1 of subsection (c) of section 4235
of  the  insurance law, as separately amended by chapters 369 and 846 of
the laws of 1985, is amended to read as follows:
  (A) A policy issued to an employer or to a trustee or  trustees  of  a
fund  established  by an employer, which employer or trustee or trustees
shall be deemed the policyholder, insuring with or without  evidence  of
insurability  satisfactory  to  the insurer, employees of such employer,
and insuring, except as hereinafter provided, all of such  employees  or
all  of any class or classes thereof determined by conditions pertaining
to the employment or a combination of  such  conditions  and  conditions
pertaining  to the family status of the employee, for insurance coverage
on each person insured based upon some plan which will preclude individ-
ual selection. However, such a plan  may  permit  a  limited  number  of
selections  by  employees  if  the selections offered utilize consistent
plans of coverage for individual group members  so  that  the  resulting
plans  of  coverage  are reasonable. The premium for the policy shall be
paid by the policyholder, either from  the  employer's  funds,  or  from
funds  contributed  by  the insured employees, or from funds contributed
jointly by the employer and employees. If all or part of the premium  is
to be derived from funds contributed by the insured employees, then such
policy  must insure not less than fifty percent of such eligible employ-
ees or, if less, fifty or more of such employees  WHEN  SUCH  POLICY  IS
PROVIDING COVERAGE FOR GROUP HOSPITAL, MEDICAL, MAJOR MEDICAL OR SIMILAR
COMPREHENSIVE  TYPES  OF EXPENSE REIMBURSED INSURANCE AND, FOR ALL OTHER
TYPES OF GROUP ACCIDENT AND HEALTH INSURANCE, MUST INSURE A  MINIMUM  OF
FIFTY PERCENT OR FIVE OF SUCH ELIGIBLE EMPLOYEES, WHICHEVER IS FEWER.
  S 3. This act shall take effect immediately.

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Assembly Bill A8545B

Signed By Governor

Sponsored By

Archive: Last Bill Status Via S6014 - Signed by Governor

Actions

Votes

Jun 18, 2010 - Floor Vote

Floor Vote: Jun 18, 2010

Jun 7, 2010 - Insurance Committee Vote

Insurance Committee Vote: Jun 7, 2010

Bill Amendments

2009-A8545 - Details

2009-A8545 - Summary

2009-A8545 - Bill Text download pdf

multi-Sponsors

2009-A8545A - Details

2009-A8545A - Summary

2009-A8545A - Sponsor Memo

2009-A8545A - Bill Text download pdf

multi-Sponsors

2009-A8545B (ACTIVE) - Details

2009-A8545B (ACTIVE) - Summary

2009-A8545B (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2009-A8545B

Assembly Bill A8545B

Signed By Governor

Share this bill

Sponsored By

MORELLE

Archive: Last Bill Status Via S6014 - Signed by Governor

Actions

Votes

Bill Amendments

2009-A8545 - Details

2009-A8545 - Summary

2009-A8545 - Bill Text download pdf

multi-Sponsors

George Latimer

2009-A8545A - Details

2009-A8545A - Summary

2009-A8545A - Sponsor Memo

2009-A8545A - Bill Text download pdf

multi-Sponsors

George Latimer

2009-A8545B (ACTIVE) - Details

2009-A8545B (ACTIVE) - Summary

2009-A8545B (ACTIVE) - Bill Text download pdf

Comments