senate Bill S6670

2013-2014 Legislative Session

Amending the insurance law by expanding the categories of policies classified as blanket accident policies

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Archive: Last Bill Status - Passed Senate


  • 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
Jun 17, 2014 referred to insurance
delivered to assembly
passed senate
ordered to third reading cal.1445
committee discharged and committed to rules
Feb 25, 2014 referred to insurance

Votes

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S6670 - Bill Details

See Assembly Version of this Bill:
A9981
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง4237, Ins L

S6670 - Bill Texts

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Expands the categories of policies classified as blanket accident policies.

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BILL NUMBER:S6670

TITLE OF BILL: An act to amend the insurance law, in relation to
blanket group accident and health insurance coverage

PURPOSE:

To update the insurance law by expanding existing statutory blanket
group eligibility provisions.

SUMMARY OF PROVISIONS:

Section 1 of the bill expands the listing of types of eligible groups
that could be covered by blanket group accident and health insurance..
These would include, but not be limited to: transportation operators,
first aid and civil defense groups, sports teams or camp operators,
religious, charitable, recreational, educational or civic
organizations, restaurants, hotels, motels, resorts or innkeepers,
HMOs, healthcare providers or arrangers of health services, banks,
associations and financial institutions, travel agencies or travel
service providers, entertainment, theater, arts or event production
companies, or any other risk or class of risks approved as eligible by
the Superintendent of Financial Services.

Section 2 of the bill sets forth the effective date.

JUSTIFICATION:

The bill would modernize the insurance law to address current trends
in the insurance marketplace and correct deficiencies that inhibit the
underwriting of blanket groups in New York. Such updated provisions
would also allow for the underwriting of national blanket group
insurance programs.

New York is one of a few states whose insurance laws do not grant
eligibility for blanket group A&H coverage to religious, charitable,
educational or civic (RCEC) organizations, or contain general grants
of authority to their Commissioners of Insurance to add other eligible
organizations without specificity. This bill would remedy the
situation in New York by providing needed flexibility to address
future marketplace needs, by granting the Superintendent of the
Department of Financial Services discretionary authority to approve
other eligible groups in the future that are not specifically
enumerated in statute.

The bill is entirely consumer-friendly, in that it expands eligibility
to additional worthy organizations that seek blanket group accident
and health insurance coverage for their respective passengers,
employees, workers, members, campers, volunteers, supervisors,
officials, participants, patrons, guests, donors, surrogates,
accountholders, debtors, guarantors, purchasers, travelers, audience,
and contestants, as the case may be. Expanding eligibility to such
enumerated organizations is thus necessary and appropriate, as it
would allow them to obtain needed insurance coverage in the voluntary
market to guard against unforeseen hazards in their various operations
and activities. The bill presents a rare opportunity for a "win-win"
situation, as it is good for the State and its political subdivisions,


its residents and consumers, together with commercial and
not-for-profit organizations, insurance policyholders, carriers and
producers.

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
________________________________________________________________________

                                  6670

                            I N  S E N A T E

                            February 25, 2014
                               ___________

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, in relation to blanket group accident
  and health insurance coverage

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

  Section  1.  Subsection  (a)  of  section  4237  of the insurance law,
subparagraph (F) of paragraph 3 as amended by chapter 369 of the laws of
1985, is amended to read as follows:
  (a) (1) Any policy or contract of insurance against  death  or  injury
resulting  from  accident which insures a group of persons conforming to
the requirements of one of the subparagraphs (A) through  [(F)]  (M)  of
paragraph three hereof shall be deemed a blanket accident policy.
  (2) Any policy or contract which insures a group of persons conforming
to  the  requirements of subparagraph (C), (E) or [(F)] (M) of paragraph
three hereof against total or partial disability, excluding  such  disa-
bility from accident, shall be deemed a blanket health insurance policy.
  (3) Any policy or contract of insurance which combines the coverage of
blanket  accident  insurance  and  of blanket health insurance on such a
group of persons shall be deemed a blanket accident and health insurance
policy:
  (A) Under a policy or contract  issued  to  any  railroad,  steamship,
motorbus  or airplane carrier of passengers OR OWNER, OPERATOR OR LESSEE
OF ANY MEANS OF TRANSPORTATION, which shall be deemed the  policyholder,
a  group  defined  as  all persons who may become such passengers may be
insured against death or bodily injury either while, or as a result  of,
being such passengers.
  (B)  Under  a  policy  or contract issued to an employer, who shall be
deemed the policyholder, covering any  group  of  employees  defined  by
reference  to  [exceptional]  hazards  incident  to [such employment] AN
ACTIVITY, ACTIVITIES, OR OPERATIONS OF THE POLICYHOLDER,  insuring  such
employee  against death or bodily injury resulting while, or from, being
exposed to such [exceptional] hazards.  DEPENDENTS OF THE  EMPLOYEE  AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14141-01-4

S. 6670                             2

GUESTS  OF  THE EMPLOYER OR EMPLOYEES MAY ALSO BE INCLUDED WHERE EXPOSED
TO THE SAME HAZARDS.
  (C)  Under  a policy or contract issued to a college, school, or other
institution of learning or to the head  or  principal  thereof,  who  or
which shall be deemed the policyholder.
  (D) Under a policy or contract issued in the name of
  (i) any county, city, town, village or fire district,
  (ii)  any duly organized fire department, or fire company, of any such
municipal corporation or fire district, FIRST  AID,  CIVIL  DEFENSE,  OR
OTHER  SUCH  GROUP whether or not any such corporation has been incorpo-
rated under any general or special law,
  (iii) any fire  corporation  incorporated  under  or  subject  to  the
provisions  of section one thousand four hundred two of the not-for-pro-
fit corporation law, or any general or special law, if such  corporation
is  by  law under the general control of, or recognized as a fire corpo-
ration by, the  governing  board  of  a  city,  town,  village  or  fire
district,  which  municipal corporation, fire district, fire department,
fire company or fire corporation, as the case may be,  shall  be  deemed
the policyholder, covering all, but not less than twenty-five, volunteer
members  of  such  department, company or corporation. A district corpo-
ration which has the general powers of and operates as a  fire  district
shall  be considered a fire district for the purposes of this paragraph.
A volunteer fireman whose services are offered and accepted pursuant  to
the  provisions  of  section two hundred nine-i of the general municipal
law shall be deemed a volunteer member of any such fire department, fire
company or fire corporation except for the purpose  of  determining  the
minimum number of twenty-five volunteer members for which any such poli-
cy or contract must provide coverage. Any such policy or contract issued
to  a  municipal  corporation or a fire district shall be subject to any
limitations on the amount, coverage or benefits as are set forth in  any
applicable general, special or local law or city or village charter.
  (E)  Under a policy or contract issued to and in the name of an incor-
porated or unincorporated association of persons having a common  inter-
est  or  calling,  which  association  shall be deemed the policyholder,
having not less than fifty members, covering all OR  ANY  GROUP  OF  the
members  of  such  association or if part or all of the premium is to be
derived from funds contributed by the insured members and if the  oppor-
tunity  to  take such insurance is offered to all eligible members, then
such policy must cover not less than seventy-five percent of  any  class
or  classes of members determined by conditions pertaining to membership
in the association.
  (F) UNDER A POLICY OR CONTRACT ISSUED TO A SPORTS TEAM OR TO A CAMP OR
SPONSOR THEREOF, WHICH TEAM, CAMP OR SPONSOR SHALL BE DEEMED THE POLICY-
HOLDER, COVERING MEMBERS, CAMPERS, EMPLOYEES, VOLUNTEERS, SUPERVISORS OR
OFFICIALS.
  (G) UNDER A POLICY OR CONTRACT ISSUED TO ANY INCORPORATED OR  UNINCOR-
PORATED RELIGIOUS, CHARITABLE, RECREATIONAL, EDUCATIONAL OR CIVIC ORGAN-
IZATION, OR BRANCH THEREOF, WHICH ORGANIZATION SHALL BE DEEMED THE POLI-
CYHOLDER,  COVERING  ANY  GROUP  OF MEMBERS, PARTICIPANTS, OR VOLUNTEERS
DEFINED BY REFERENCE TO HAZARDS INCIDENT TO ANY ACTIVITY  OR  ACTIVITIES
OR  OPERATIONS  SPONSORED  OR  SUPERVISED  BY OR ON THE PREMISES OF SUCH
POLICYHOLDER.
  (H) UNDER A POLICY OR CONTRACT ISSUED TO A RESTAURANT,  HOTEL,  MOTEL,
RESORT, INNKEEPER OR OTHER GROUP WITH A HIGH DEGREE OF POTENTIAL CUSTOM-
ER  LIABILITY,  WHICH SHALL BE DEEMED THE POLICYHOLDER, COVERING PATRONS
OR GUESTS.

S. 6670                             3

  (I) UNDER A POLICY OR CONTRACT ISSUED TO A  HEALTH  CARE  PROVIDER  OR
OTHER ARRANGER OF HEALTH SERVICES, WHICH SHALL BE DEEMED THE POLICYHOLD-
ER,  COVERING  PATIENTS,  DONORS, OR SURROGATES PROVIDED THE COVERAGE IS
NOT MADE A CONDITION OF RECEIVING CARE.
  (J)  UNDER  A POLICY OR CONTRACT ISSUED TO A BANK, ASSOCIATION, FINAN-
CIAL OR OTHER INSTITUTION, VENDOR, OR TO A PARENT HOLDING COMPANY, OR TO
THE TRUSTEE, TRUSTEES OR AGENT DESIGNATED BY ONE OR MORE BANKS,  ASSOCI-
ATIONS,  FINANCIAL  OR  OTHER  INSTITUTIONS,  OR VENDORS, WHICH SHALL BE
DEEMED THE POLICYHOLDER, COVERING ACCOUNTHOLDERS, DEBTORS, GUARANTORS OR
PURCHASERS.
  (K) UNDER A POLICY OR CONTRACT ISSUED TO  A  TRAVEL  AGENCY  OR  OTHER
ORGANIZATION  THAT  PROVIDES  TRAVEL  RELATED  SERVICES, WHICH AGENCY OR
ORGANIZATION SHALL BE DEEMED THE POLICYHOLDER, TO COVER ALL OR ANY GROUP
OF PERSONS FOR WHOM TRAVEL RELATED SERVICES ARE PROVIDED.
  (L) AN ENTERTAINMENT, THEATER, ARTS OR  EVENT  PRODUCTION  COMPANY  OR
ORGANIZATION,  WHICH  SHALL  BE DEEMED THE POLICYHOLDER, COVERING ALL OR
ANY GROUP OF PARTICIPANTS, VOLUNTEERS,  AUDIENCE  MEMBERS,  CONTESTANTS,
EMPLOYEES  OR WORKERS ENGAGED IN ANY ACTIVITY, ACTIVITIES, OR OPERATIONS
OF THE POLICYHOLDER.
  (M) Under a policy  or  contract  issued  to  insure;  (i)  any  other
[substantially  similar  group]  RISK  OR CLASS OF RISKS approved by the
superintendent as eligible for insurance under a  blanket  accident  and
health  insurance  policy or contract; THE DISCRETION OF THE SUPERINTEN-
DENT MAY BE EXERCISED ON AN INDIVIDUAL RISK BASIS OR CLASS OF RISKS,  OR
BOTH;  or  (ii)  any  other  group approved by the superintendent upon a
finding that: (I) there is a common enterprise  or  economic  or  social
affinity  or  relationship;  (II) the premiums charged are reasonable in
relation to the benefits provided; and (III) the issuance of the  policy
would  result  in  economies  of acquisition or administration, would be
actuarially sound, and would not be contrary to the best interest of the
public. The superintendent shall promulgate  regulations  setting  forth
any  such  groups that have been accepted as qualifying pursuant to this
subparagraph.
  S 2. This act shall take effect immediately.

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