senate Bill S2865

2013-2014 Legislative Session

Fixes the date of cancellation of financed insurance and provides for a mechanism for cancellation by electronic means

download bill text pdf

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Archive: Last Bill Status -


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

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Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to banks
Jan 24, 2013 referred to banks

S2865 - Details

Law Section:
Banking Law
Laws Affected:
Amd ยงยง571 & 576, Bank L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3653
2009-2010: S4907

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

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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