senate Bill S4374A

Signed By Governor
2013-2014 Legislative Session

Relates to required form for exclusion language

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Archive: Last Bill Status Via A9458 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 11, 2014 signed chap.275
Aug 01, 2014 delivered to governor
Jun 12, 2014 returned to assembly
passed senate
3rd reading cal.967
substituted for s4374a
Jun 12, 2014 substituted by a9458a
Jun 03, 2014 amended on third reading 4374a
Jun 02, 2014 advanced to third reading
May 29, 2014 2nd report cal.
May 28, 2014 1st report cal.967
Jan 08, 2014 referred to insurance
Mar 25, 2013 referred to insurance

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S4374 - Bill Details

See Assembly Version of this Bill:
A9458A
Law Section:
Insurance Law
Laws Affected:
Amd §3201, Ins L

S4374 - Bill Texts

view summary

Relates to required form for exclusion language; permits superintendent of insurance to establish such form through promulgation of regulations.

view sponsor memo
BILL NUMBER:S4374

TITLE OF BILL: An act to amend the insurance law, to allow for
certain life insurance policy provisions to be disclosed in an
alternative, equally prominent manner

PURPOSE:

The purpose of the bill is to amend §3201(c)(4) of the insurance law
to authorize the Superintendent of Financial Services to approve
certain life insurance policy provisions to be disclosed on the
application in an alternative, equally prominent manner. Current law
only allows such disclosure to be put forth in red ink, capital
letters and twelve point font.

SUMMARY OF PROVISIONS:

This bill amends § 3201(c)(4) of the insurance law to add language to
provide that the requisite disclosure on life insurance policy
applications related to any war or travel limitations in the policy
can be put forth in an equally prominent manner to red ink, capital
letters and twelve point type, so long as the alternative, prominent
disclosure has been approved by the Superintendent of the Department
of Financial Services.

EXISTING LAW:

Current law only allows such disclosure to be put forth in red ink,
capital letters and twelve point font.

JUSTIFICATION:

Section 320I(c)(4) of the insurance law provides the disclosure that
must be included on a life insurance policy application if it contains
a limitation or restriction related to war or travel. Such disclosure
is required to be put forth in red ink, capital letters and twelve
point font size At the time that this law was written, life insurance
policy forms were typically printed in mass volume and distributed to
the agent or employer who was marketing the policy_ Since that time,
the use of personal computers and office printers by such entities has
proliferated so that these documents are now oftentimes, particularly
in the group insurance setting, being provided to the employers who
are offering them via computer and then printed out on office printers
for distribution Although the original document may have been sent to
the employer with red ink on the form, the form may not be reproduced
in that manner if, for instance, the employer is not using a color
printer. Life insurers would like to have some flexibility to adjust
the format of this disclosure so as to accommodate these situations.
For instance, insurers may have submitted to the Department of
Financial Services forms that have the disclosure in bold, capital
letters and larger than twelve point type. The Department would find
it necessary to reject these alternatives because the law is very
specific and detailed in how the disclosure should be put forward to
the consumer. This bill would allow the Department the flexibility to
approve alternative disclosure of this type of provision on a life
policy, so long as they determine that it is equally prominent to the
detailed disclosure that is required under the current law.


LEGISLATIVE. HISTORY:

New bill

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:

Immediately.

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

                                  4374

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 25, 2013
                               ___________

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, to allow for certain  life  insurance
  policy provisions to be disclosed in an alternative, equally prominent
  manner

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

  Section 1. The opening paragraph of paragraph 4 of subsection  (c)  of
section 3201 of the insurance law is amended to read as follows:
  The  superintendent  shall  not approve any life insurance policy form
containing any war or travel exclusion or restriction, for  delivery  or
issuance  for delivery in this state, unless such policy form shall have
printed or stamped across its face in red and  in  capital  letters  not
smaller  than  twelve  point  type, OR IN AN EQUALLY PROMINENT MANNER AS
APPROVED BY THE SUPERINTENDENT, the following:
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09743-01-3

S4374A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9458A
Law Section:
Insurance Law
Laws Affected:
Amd §3201, Ins L

S4374A (ACTIVE) - Bill Texts

view summary

Relates to required form for exclusion language; permits superintendent of insurance to establish such form through promulgation of regulations.

view sponsor memo
BILL NUMBER:S4374A

TITLE OF BILL: An act to amend the insurance law, to allow for
certain life insurance policy provisions to be disclosed in an
alternative, equally prominent manner

PURPOSE: The purpose of the bill is to amend § 3201(c)(4) of the
insurance law to authorize the Superintendent of Financial Services to
develop an alternative to the disclosure requirements for certain life
insurance policy provisions. Current law only allows such disclosure
to be put forth in red ink, capital letters and twelve point font.

SUMMARY OF PROVISIONS: This bill amends § 3201(c)(4) of the insurance
law to add language to provide that the Superintendent can, at his
discretion, develop a uniform alternative to the requisite disclosure
on life insurance policy applications that is equally prominent manner
to the current requirement that the disclosure be in red ink, capital
letters and twelve point type.

EXISTING LAW: Current law only allows such disclosure to be put forth
in red ink, capital letters and twelve point font.

JUSTIFICATION: Section 3201(c)(4) of the insurance law provides the
disclosure that must be included on a life insurance policy
application if it contains a limitation or restriction related to war
or travel. Such disclosure is required to be put forth in red ink,
capital letters and twelve point font size.

At the time that this law was written, life insurance policy forms
were typically printed in mass volume and distributed to the agent or
employer who was marketing the policy. Since that time, the use of
personal computers and office printers by such entities has
proliferated so that these documents are now oftentimes, particularly
in the group insurance setting, being provided to the employers who
are offering them via computer and then printed out on office printers
for distribution.

Although the original document may have been sent to the employer with
red ink on the form, the form may not be reproduced in that manner if,
for instance, the employer is not using a color printer. This bill
would allow the superintendent to provide life insurers with some
flexibility regarding the format of this disclosure while also
providing for a uniform standard in the marketplace. For instance,
insurers may have submitted to the Department of Financial Services
forms that have the disclosure in bold, capital letters and larger
than twelve point type. The Department would find it necessary to
reject these alternatives because the law is very specific and
detailed in how the disclosure should be put forward to the consumer.
This bill would allow the Department to develop an alternative uniform
standard.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.


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

                                 4374--A
    Cal. No. 967

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 25, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance  --  recommitted
  to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
  -- reported favorably from said committee, ordered to first and second
  report,  ordered  to  a  third reading, amended and ordered reprinted,
  retaining its place in the order of third reading

AN ACT to amend the insurance law, to allow for certain  life  insurance
  policy provisions to be disclosed in an alternative, equally prominent
  manner

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

  Section 1. The opening paragraph of paragraph 4 of subsection  (c)  of
section 3201 of the insurance law is amended to read as follows:
  The  superintendent  shall  not approve any life insurance policy form
containing any war or travel exclusion or restriction, for  delivery  or
issuance  for delivery in this state, unless such policy form shall have
printed or stamped across its face in red and  in  capital  letters  not
smaller than twelve point type, OR IN AN EQUALLY PROMINENT MANNER ESTAB-
LISHED  AT  THE DISCRETION OF THE SUPERINTENDENT AND PROMULGATED THROUGH
REGULATIONS, the following:
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09743-03-4

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