senate Bill S3372

2013-2014 Legislative Session

Requires six months notice when cancelling the insurance policy of any small business

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to insurance
Feb 01, 2013 referred to insurance

S3372 - Bill Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Add ยง3114, Ins L
Versions Introduced in 2011-2012 Legislative Session:
S7339

S3372 - Bill Texts

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Requires six months notice when cancelling the insurance policy of any small business.

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BILL NUMBER:S3372

TITLE OF BILL: An act to amend the insurance law, in relation to
requiring six months notice when cancelling the insurance policy of any
small business

PURPOSE: To provide sufficient notice to small businesses when their
health insurance carrier will no longer provide coverage for their
employees.

SUMMARY OF PROVISIONS: Amends the insurance law by adding a new section
3114 to require that any business with 50 employees or less must receive
a minimum of six months notice prior to the cancellation of a policy.

JUSTIFICATION: Many small businesses have had their health insurance
policies cancelled due to no fault of their own. Very often there is
little notice given which leaves these businesses scrambling to find a
carrier that will provide the policy for their employees. Recently,
Empire Blue insurance company withdrew from the small business market
leaving thousands of employees without health insurance. This legis-
lation would require that insurance companies provide six months notice
of cancellation, to provide for adequate time for the company and their
employees to research and secure coverage from another carrier.

LEGISLATIVE HISTORY: 2012: S.7339 Referred to Insurance Committee

FISCAL IMPLICATIONS: None.

LOCAL FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: 120 days after it has become a law.

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

                                  3372

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 1, 2013
                               ___________

Introduced  by  Sen. ADDABBO -- 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 requiring  six  months
  notice when cancelling the insurance policy of any small business

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

  Section 1. The insurance law is amended by adding a new  section  3114
to read as follows:
  S  3114.  CANCELLATION OF SMALL BUSINESS POLICIES. 1. FOR THE PURPOSES
OF THIS SECTION, THE TERM  "SMALL  BUSINESS"  SHALL  MEAN  ANY  BUSINESS
ENTERPRISE RESIDING WITHIN THE STATE THAT HAS FIFTY EMPLOYEES OR LESS.
  2.  BEFORE THE POLICY OF INSURANCE OF ANY SMALL BUSINESS IS CANCELLED,
SUCH SMALL BUSINESS SHALL BE PROVIDED SIX MONTHS NOTICE.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition,  amend-
ment  and/or repeal of any rules or regulations necessary for the imple-
mentation of this act on its effective date are authorized to be made on
or before such date.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08325-01-3

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