|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 08, 2014||referred to banks|
|Jan 24, 2013||referred to banks|
senate Bill S2865
Archive: Last Bill Status - In Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S2865 - Details
S2865 - Summary
Fixes the date of cancellation of financed insurance and provides for a mechanism for cancellation by electronic means; provides that the date of cancellation shall be in the cancellation notice.
S2865 - Sponsor Memo
BILL NUMBER:S2865 TITLE OF BILL: An act to amend the banking law, in relation to cancel- lation of an insurance contract upon default PURPOSE: To make fixed and certain the date of cancellation of financed insurance and to provide for a mechanism for cancellation by electronic means. SUMMARY OF PROVISIONS: Section 1 of the bill amends section 571 of the Banking Law to require premium finance agencies to mail notice of a premium finance agreement to the insurance carrier whose premiums are being financed. This provision not only provides notice of the existence of a premium finance agreement but also establishes a line of communication for notices of cancellation if needed at a latex time. Section 2 of the bill amends Section 576 of the tanking Law regarding the process and timing for a premium finance agency to send a cancella- tion notice to an insurance company. The bill would allow the premium finance agency to cancel an agreement by mailing the final notice of such cancellation to the insurer at the address used pursuant to Section 571 of the Banking Law (as established in Section 1 above), with a copy to the insured party, The cancellation shall be effective the later of 12:01 A.M. of the fourth business day following the mailing of such
S2865 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2865 2013-2014 Regular Sessions I N S E N A T E January 24, 2013 ___________ Introduced by Sen. SMITH -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to cancellation of an insurance contract upon default THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 571 of the banking law, as amended by chapter 1142 of the laws of 1969, is amended to read as follows: S 571. Delivery of copy of premium finance agreement. Before the due date of the first instalment payable under a premium finance agreement, the insurance agent or broker or the premium finance agency holding the agreement shall deliver to the insured, or mail to him at his address as shown in the agreement, a copy thereof or, if the agreement contained any blank space when it was signed by the insured and such blank space was subsequently filled in in accordance with subdivision four of section five hundred sixty-seven OF THIS ARTICLE, a copy of the agree- ment, as so filled in. THE PREMIUM FINANCE AGENCY SHALL MAIL NOTICE OF A PREMIUM FINANCE AGREEMENT TO THE INSURANCE CARRIERS WHOSE PREMIUMS ARE BEING FINANCED UNDER SUCH PREMIUM FINANCE AGREEMENT WITHIN TEN DAYS OF THE DATE THAT THE PREMIUM FINANCE AGREEMENT BECOMES A CONTRACT. S 2. Paragraph (d) of subdivision 1 of section 576 of the banking law, as amended by chapter 565 of the laws of 1978, is amended to read as follows: (d) After the notice in paragraph (a) [above] OF THIS SUBDIVISION has expired, the premium finance agency may thereafter, in the name of the insured, cancel such insurance contract by mailing to the insurer a notice of cancellation [stating when thereafter the policy shall be cancelled, and the insurance contract shall be cancelled as if such notice of cancellation had been submitted by the insured himself, but without requiring the return of the insurance contract] TO THE ADDRESS TO WHICH NOTICE OF THE PREMIUM FINANCE AGREEMENT WAS PROVIDED PURSUANT EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07214-01-3
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