Senate Bill S3983

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

                                  3983

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 11, 2011
                               ___________

Introduced  by  Sen.  ADAMS  -- 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  the  suicide  of  a
  police officer due to the stress of such occupation

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

  Section 1. Clause (B) of paragraph 1 of subsection (b) of section 3203
of the insurance law is amended to read as follows:
  (B) suicide within two years from the date of  issue  of  the  policy;
PROVIDED,  HOWEVER,  THAT  THE  SUICIDE OF A POLICE OFFICER SHALL NOT BE
EXCLUDED OR RESTRICTED DURING THE TWO  YEARS  FROM  THE  DATE  THAT  THE
INSURED  BECAME  COVERED UNDER THE POLICY WHEN THE SUICIDE IS RELATED TO
THE STRESS OF SUCH OCCUPATION;
  S 2. Clause (C) of paragraph 5 of subsection (e) of  section  3209  of
the  insurance  law,  as  amended by chapter 616 of the laws of 1997, is
amended to read as follows:
  (C) guaranteed amount payable upon death at the beginning of the poli-
cy year regardless of the cause of death, other than suicide;  PROVIDED,
HOWEVER,  THAT  THE SUICIDE OF A POLICE OFFICER SHALL NOT BE EXCLUDED OR
RESTRICTED UNDER THE POLICY WHEN THE SUICIDE IS RELATED TO THE STRESS OF
SUCH OCCUPATION; or other specifically enumerated exclusions,  which  is
provided  by  the  basic  policy  and each optional rider, with benefits
provided under the basic policy and each rider shown separately;
  S 3. Paragraph 6 of subsection (a) of section 3220  of  the  insurance
law,  as  amended by chapter 287 of the laws of 1997, is amended to read
as follows:
  (6) That if the insurance on an employee or member covered  under  the
policy,  other  than  one  issued  in accordance with paragraph three or
eight of subsection (b) of section four thousand two hundred sixteen  of
this  chapter, (A) ceases because of termination of (i) employment or of
membership in the class or classes eligible for coverage under the poli-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07879-01-1
              

S. 3983                             2

cy, or (ii) the policy, or (B) is reduced (i) in the case  of  a  policy
covering  an  employee  or  union  member  under  a plan arranged by the
insured person's employer or union, on or after the employee's or  union
member's  attainment  of  age sixty in any increment or series of incre-
ments aggregating twenty percent or more of the amount  of  coverage  in
force  before  the  first  reduction on account of such age, (ii) in the
case of a policy covering any member other than as described in item (i)
of this subparagraph, at the time of the first reduction  of  insurance,
(iii)  due  to change in class or (iv) due to an amendment of the policy
to take effect immediately or at any subsequent date, such  employee  or
such  member  shall  be  entitled  to have issued to him by the insurer,
without evidence of insurability, upon application made to  the  insurer
within  thirty-one days after such termination or reduction of insurance
and payment of the premium applicable to the class of risk to  which  he
belongs  and  to  the form and amount of the policy at his then attained
age, a policy of life insurance only, in any one of the forms  customar-
ily issued by such insurer, except term insurance, in an amount equal to
the  amount  of  his protection under such group insurance policy at the
time of such termination or reduction, less any amount of life insurance
remaining in force, except however,  in  the  case  of  a  reduction  in
accordance  with  item (ii) of subparagraph (B) of this paragraph, in an
amount equal to eighty percent of  his  insurance  coverage  under  such
group  policy  immediately prior to such reduction. Under a group policy
issued pursuant to paragraph twelve, thirteen or fourteen of  subsection
(b)  of  section  four  thousand two hundred sixteen of this chapter, an
insured shall be entitled to convert,  just  as  if  he  had  terminated
membership  in  the class or classes eligible for coverage, within thir-
ty-one days after notice from the insurer that, in order to continue his
coverage under the group  policy,  he  must  contribute  more  than  one
hundred  thirty-three  percent of the net premiums computed according to
the Commissioners 1960 Standard Group Mortality Table at  three  percent
interest.  The  group policy may contain a provision that if the policy-
holder or insurer shall terminate the policy, the amount of life  insur-
ance  that  may be converted shall in no event exceed the amount of such
employee's or member's life insurance protection less any amount of life
insurance for which he may be or may become  eligible  under  any  group
policy  issued  or  reinstated  by  the  same  or another insurer within
forty-five days after the date of such cessation. However, at the option
of such employee or member, he shall be entitled to have issued  to  him
in  accordance  with  the  conditions prescribed above, a policy of life
insurance only, in any one of such forms, preceded by term insurance for
a period of one year with the premium payable,  at  the  option  of  the
employee  or  member, in any mode customarily offered by the insurer. In
addition, the group policy shall contain a provision that if the  cover-
age of an employee or member ceases because of termination of employment
due  to  the employee's total and permanent disability or termination of
membership due to the  member's  total  and  permanent  disability,  the
employee  or  member, at the option of such employee or member, shall be
entitled to have issued to him, a policy of life insurance only, in  any
one  of  such forms, preceded by term insurance for a period of one year
with the premium payable, at the option of the employee  or  member,  in
any  mode  customarily  offered  by  the  insurer, in the amount of such
employee's or member's life insurance protection in  effect  immediately
before  termination,  less  the  amount  of  any life insurance which is
replaced with the same or another insurer within forty-five  days  after
cessation of the group life insurance protection.  Each such group poli-

S. 3983                             3

cy  shall  contain a further provision to the effect that upon the death
of any such employee or member during such  thirty-one  day  period  and
before  any  such  individual policy has become effective, the amount of
insurance  for which such employee or member was entitled to make appli-
cation shall be payable as a death benefit  by  the  insurer;  provided,
however, each such policy may contain a provision obligating the policy-
holder to pay a premium to the insurer for coverage extended during such
thirty-one day period in the event the extension of coverage is a direct
result of the policyholder's voluntary termination of the policy and the
policyholder replaces coverage under the policy within six months of its
termination  either  with the insurer or with another insurer. The indi-
vidual conversion policy may provide that  any  statement  made  by  the
person insured under the group policy relating to his insurability under
such  group  policy may be used in contesting the validity of the insur-
ance under the individual conversion policy to the same extent that such
statement could have been used in contesting the validity of his  insur-
ance  under the group policy if his insurance under the group policy had
not ceased.  An  individual  conversion  policy  shall  not  exclude  or
restrict  liability  in  the  event  of suicide of the insured after two
years from the date that the insured  became  covered  under  the  group
policy;  PROVIDED,  HOWEVER,  THAT THE SUICIDE BY A POLICE OFFICER SHALL
NOT BE EXCLUDED OR RESTRICTED DURING THE TWO YEARS FROM  THE  DATE  THAT
THE  INSURED BECAME COVERED UNDER THE POLICY WHEN THE SUICIDE IS RELATED
TO THE STRESS OF SUCH OCCUPATION.   Notwithstanding the  foregoing,  the
superintendent may require conversion or continuation of insurance under
conditions  as  set  forth  in  a regulation for insureds under a policy
issued in accordance with paragraph three of subsection (b)  of  section
four thousand two hundred sixteen of this chapter.
  S  4.  Clause  (D) of paragraph 1 of subsection (b) of section 4510 of
the insurance law is amended to read as follows:
  (D) as a result of suicide within two years from the date of issue  of
the certificate; PROVIDED, HOWEVER, THAT THE SUICIDE OF A POLICE OFFICER
SHALL  NOT  BE EXCLUDED OR RESTRICTED DURING THE TWO YEARS FROM THE DATE
THAT THE INSURED BECAME COVERED UNDER THE POLICY WHEN   THE  SUICIDE  IS
RELATED TO THE STRESS OF SUCH OCCUPATION;
  S  5.  This  act shall take effect on the ninetieth day after it shall
have become a law.