S T A T E O F N E W Y O R K
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5600
2013-2014 Regular Sessions
I N A S S E M B L Y
March 4, 2013
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Introduced by M. of A. COOK, GOTTFRIED, JACOBS, ZEBROWSKI -- Multi-Spon-
sored by -- M. of A. BOYLAND -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the general business law, in relation to limited death
benefit life insurance policies for persons aged sixty and over
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new article
30-B to read as follows:
ARTICLE 30-B
FINANCIAL REVIEW REQUIREMENT FOR LIMITED
DEATH BENEFIT LIFE INSURANCE POLICIES FOR
PERSONS AGED SIXTY AND OVER
SECTION 645. FINANCIAL REVIEW OF POLICY.
S 645. FINANCIAL REVIEW OF POLICY. 1. WHENEVER A LIFE INSURANCE POLICY
OR CERTIFICATE OF INSURANCE IS DELIVERED OR ISSUED FOR DELIVERY IN THIS
STATE TO AN APPLICANT AT AGE SIXTY AND OVER, WHICH LIMITS DEATH BENEFITS
DURING A PERIOD FOLLOWING THE INCEPTION DATE OF THE POLICY OR WHERE THE
ACCUMULATED PREMIUMS EXCEED THE DEATH BENEFIT AT ANY POINT DURING THE
FIRST TEN YEARS, THE INSURER SHALL PROVIDE THE INSURED WITH A COPY OF A
"FINANCIAL REVIEW OF POLICY" FORM OF AT LEAST TEN POINT IN SIZE. SUCH
FORM SHALL USE SUBSTANTIALLY THE SAME FORMAT AND TERMINOLOGY SHOWN
BELOW, AND SHALL HAVE COMPLETE INFORMATION PROVIDED FOR ANY AND ALL
BLANK SPACE.
FINANCIAL REVIEW OF POLICY
NOTICE: YOU SHOULD REVIEW THIS FORM AND YOUR POLICY AND
DECIDE IF THE POLICY IS SUITABLE FOR YOU. IF YOU ARE NOT
ENTIRELY SATISFIED, PURSUANT TO NEW YORK STATE LAW, YOU MAY
RETURN THE POLICY WITHIN THIRTY DAYS FROM THE DATE YOU
RECEIVE IT AND OBTAIN A FULL REFUND OF ANY PREMIUMS PAID.
THIS IS A POLICY OFFERED WITHOUT AN ATTEMPT TO CLASSIFY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06645-01-3
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RISKS BY DETERMINING YOUR STATE OF HEALTH. PREMIUMS MAY HAVE
BEEN LOWER IF HEALTH INFORMATION HAD BEEN OBTAINED.
APPLICANT INFORMATION:
NAME: AGE: SEX:
(1) (2) (3) (4) (5)
COL 3
PREM- MINUS
IUMS COL 2
END OF ANNUAL ACCUM- CASH NET
POLICY PREM- ULATING SURREN- GAIN
YEAR IUM INTEREST DEATH DER (NET
AT 5% BENEFITS VALUE LOSS)
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2
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DEFINITIONS. THE FOLLOWING TERMS USED IN THE ABOVE CHART ARE
DEFINED AS:
1. ANNUAL PREMIUM -- AMOUNT YOU MUST PAY EACH YEAR TO KEEP THIS
POLICY IN FORCE.
2. PREMIUMS ACCUMULATING INTEREST AT 5% -- AMOUNT WHICH COULD BE
EARNED IF, INSTEAD OF PURCHASING INSURANCE, THE PREMIUM DOLLARS
PAID TO THE INSURER WERE LEFT TO ACCUMULATE AT 5% INTEREST.
3. DEATH BENEFITS -- AMOUNT THAT WILL BE PAID UPON DEATH, EXCLU-
SIVE OF ANY SUPPLEMENTARY BENEFITS.
4. CASH SURRENDER VALUE -- AMOUNT THE INSURANCE COMPANY WILL PAY
YOU IF YOU SURRENDER YOUR POLICY TO THE COMPANY FOR CASH.
5. NET GAIN OR LOSS -- THIS COLUMN SHOWS WHETHER YOUR MONEY
WOULD HAVE EARNED MORE OR LESS AT 5% INTEREST THAN YOUR LIFE
INSURANCE BENEFIT.
2. ANY CONSUMER INJURED BY A VIOLATION OF THIS SECTION MAY BRING AN
ACTION FOR RECOVERY OF DAMAGES. JUDGMENT SHALL BE ENTERED IN FAVOR OF A
CONSUMER IN AN AMOUNT NOT TO EXCEED THREE TIMES THE ACTUAL DAMAGES OR
ONE HUNDRED DOLLARS WHICHEVER IS GREATER. THE COURT MAY AWARD REASONABLE
ATTORNEY'S FEES TO A PREVAILING PLAINTIFF.
3. IN ADDITION TO THE OTHER REMEDIES PROVIDED, WHENEVER THERE SHALL BE
A VIOLATION OF THIS SECTION, APPLICATION MAY BE MADE BY THE ATTORNEY
GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO A COURT OR
JUSTICE HAVING JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN INJUNC-
TION, AND UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE DAYS, TO
ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS; AND IF IT SHALL
APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE THAT THE DEFENDANT
HAS, IN FACT, VIOLATED THIS ARTICLE, AN INJUNCTION MAY BE ISSUED BY SUCH
COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITH-
OUT REQUIRING PROOF THAT ANY PERSON HAS, IN FACT, BEEN INJURED OR
DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT MAY MAKE ALLOWANCES
TO THE ATTORNEY GENERAL AS PROVIDED IN PARAGRAPH SIX OF SUBDIVISION (A)
OF SECTION EIGHTY-THREE HUNDRED THREE OF THE CIVIL PRACTICE LAW AND
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RULES, AND DIRECT RESTITUTION. WHENEVER THE COURT SHALL DETERMINE THAT A
VIOLATION OF THIS ARTICLE HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL
PENALTY OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR EACH VIOLATION. IN
CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS
AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE RELEVANT FACTS
AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND
RULES.
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.