senate Bill S7300

2013-2014 Legislative Session

Relates to standards for prompt, fair and equitable payments of insurance commissions or other compensation arrangements

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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
May 09, 2014 referred to insurance

S7300 - Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd §2119, add §3224-d, Ins L

S7300 - Summary

Establishes standards for prompt, fair and equitable payments of insurance commissions or other compensation arrangements; provides penalties for failure to meet such standards.

S7300 - Sponsor Memo

S7300 - Bill Text download pdf

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

                                  7300

                            I N  S E N A T E

                               May 9, 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 standards for  prompt,
  fair  and equitable payments of insurance commissions or other compen-
  sation arrangements

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

  Section  1.  Subsection  (d)  of section 2119 of the insurance law, as
amended by chapter 687 of the laws  of  2003,  is  amended  to  read  as
follows:
  (d) (1) No insurance broker shall, in connection with the sale, solic-
itation  or negotiation, issuance, delivery or transfer in this state of
any contract of insurance made or negotiated in this state, directly  or
indirectly  charge,  or receive from, the insured or prospective insured
therein any greater sum than the rate of premium fixed therefor  by  the
insurer  obligated  as  such  therein, unless such broker has a right to
compensation for services created in the manner specified in  subsection
(c) of this section.
  (2)  THE  PROVISIONS  OF  THIS SECTION SHALL APPLY TO ANY PLACEMENT OF
HEALTH INSURANCE COVERAGE BY AN  INSURANCE  BROKER  UNDER  CONTRACTS  OR
AGREEMENTS  ISSUED OR ENTERED INTO PURSUANT TO THIS ARTICLE AND ARTICLES
FORTY-TWO, FORTY-THREE AND  FORTY-SEVEN  OF  THIS  CHAPTER  AND  ARTICLE
FORTY-FOUR  OF  THE  PUBLIC  HEALTH  LAW, INSIDE OR OUTSIDE THE NEW YORK
HEALTH BENEFIT EXCHANGE ESTABLISHED UNDER GOVERNOR'S EXECUTIVE ORDER NO.
42 (2012) TO IMPLEMENT APPLICABLE  PROVISIONS  OF  THE  FEDERAL  PATIENT
PROTECTION  AND  AFFORDABLE CARE ACT, PUBLIC LAW 111-148 (42 USC S 18001
ET SEQ. (2010)).
  S 2. The insurance law is amended by adding a new  section  3224-d  to
read as follows:
  S  3224-D. STANDARDS FOR PROMPT, FAIR AND EQUITABLE PAYMENTS OF INSUR-
ANCE COMMISSIONS OR OTHER COMPENSATION ARRANGEMENTS. NOTWITHSTANDING ANY
OTHER PROVISIONS OF THIS CHAPTER OR ANY OTHER GENERAL OR SPECIAL LAW  TO
THE  CONTRARY,  THIS SECTION IS INTENDED TO PROVIDE FOR PROMPT, FAIR AND
EQUITABLE  PAYMENTS  OF  INSURANCE  COMMISSIONS  OR  OTHER  COMPENSATION

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

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