senate Bill S5028

2011-2012 Legislative Session

Requires disclosure of settlement options for life insurance policies

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (10)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to insurance
returned to senate
died in assembly
Jun 13, 2011 referred to insurance
delivered to assembly
passed senate
Jun 06, 2011 advanced to third reading
Jun 02, 2011 2nd report cal.
Jun 01, 2011 1st report cal.899
May 02, 2011 referred to insurance

S5028 - Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd §3213, Ins L

S5028 - Summary

Relates to settlement options for life insurance policies, requires life insurers to provide certain explanations to beneficiaries of such policies.

S5028 - Sponsor Memo

S5028 - Bill Text download pdf

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

                                  5028

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sen.  SEWARD -- 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 disclosure related  to
  the settlement options for life insurance

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

  Section 1. Section 3213 of the insurance law is  amended  to  read  as
follows:
  S  3213.  Payment  of  proceeds. (A) Where the proceeds of a policy of
life insurance delivered or issued for delivery in this state are  paya-
ble, according to its terms, to two or more beneficiaries without desig-
nation of their respective interests, the proceeds shall be paid to such
beneficiaries in equal portions.
  (B)  (1)  AT THE TIME A CLAIM IS MADE, A LIFE INSURER SHALL PROVIDE TO
THE BENEFICIARY OF  A  POLICY  OF  LIFE  INSURANCE  WRITTEN  INFORMATION
DESCRIBING  THE SETTLEMENT OPTIONS AVAILABLE UNDER THE POLICY AND HOW TO
OBTAIN SPECIFIC DETAILS RELEVANT TO THE OPTIONS.
  (2)(A) FOR THE PURPOSES OF THIS PARAGRAPH, THE  TERM  "RETAINED  ASSET
ACCOUNT"  MEANS ANY MECHANISM WHEREBY THE SETTLEMENT OF PROCEEDS PAYABLE
UNDER A LIFE INSURANCE POLICY IS ACCOMPLISHED BY THE LIFE INSURER OR  AN
ENTITY ACTING ON BEHALF OF THE LIFE INSURER PLACING THE PROCEEDS INTO AN
ACCOUNT  WITH CHECK OR DRAFT WRITING PRIVILEGES WHERE THOSE PROCEEDS ARE
RETAINED BY THE LIFE INSURER PURSUANT TO A  SUPPLEMENTARY  CONTRACT  NOT
INVOLVING ANNUITY BENEFITS.
  (B)  IF  THE  LIFE  INSURER  SETTLES BENEFITS THROUGH A RETAINED ASSET
ACCOUNT, SUCH INSURER SHALL PROVIDE THE BENEFICIARY WITH A  SUPPLEMENTAL
CONTRACT  THAT  CLEARLY  DESCRIBES THE RIGHTS OF THE BENEFICIARY AND THE
OBLIGATIONS OF THE LIFE INSURER  UNDER  THE  SUPPLEMENTAL  CONTRACT.  IN
ADDITION,  THE  FOLLOWING  WRITTEN  DISCLOSURES SHALL BE PROVIDED TO THE
BENEFICIARY BEFORE A RETAINED ASSET ACCOUNT IS ESTABLISHED:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10607-02-1

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