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Senate Bill S476

2015-2016 Legislative Session

Relates to prohibiting retained asset accounts

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Archive: Last Bill Status - In Senate Committee Insurance Committee

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2015-S476 (ACTIVE) - Details

See Assembly Version of this Bill:
A888
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง3213, Ins L
Versions Introduced in Other Legislative Sessions:
2009-2010: S8469
2011-2012: S504, A683
2013-2014: S13, A638
2017-2018: S4854

2015-S476 (ACTIVE) - Summary

Prohibits insurers from using retained asset accounts to hold proceeds from death benefits.

2015-S476 (ACTIVE) - Sponsor Memo

2015-S476 (ACTIVE) - Bill Text download pdf 

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

                                   476

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen.  DIAZ  --  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 prohibiting  retained-
  asset accounts

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

  Section 1. Section 3213 of the insurance law is  amended  to  read  as
follows:
  S  3213.  Payment  of proceeds.   1. WHERE THE PROCEEDS OF A POLICY OF
LIFE INSURANCE DELIVERED OR ISSUED FOR DELIVERY IN THIS STATE ARE  PAYA-
BLE,  ACCORDING  TO  ITS  TERMS,  SUCH  PROCEEDS  SHALL NOT BE HELD IN A
RETAINED-ASSET ACCOUNT HELD BY THE INSURER. FOR PURPOSES OF THIS SECTION
A "RETAINED-ASSET ACCOUNT" SHALL MEAN AN ACCOUNT NOT GUARANTEED  BY  THE
FEDERAL  DEPOSIT  INSURANCE CORPORATION, THE FUNDS OF WHICH ARE RETAINED
BY THE INSURER, WITH ALL OR A PORTION OF THE INTEREST BEING PAID TO  THE
INSURER, BUT THE FUNDS OF SUCH ACCOUNT ARE PAYABLE TO THE BENEFICIARY OR
BENEFICIARIES BY USE OF A CHECKBOOK.
  2.  Where  the  proceeds  of  a  policy of life insurance delivered or
issued for delivery in this state are payable, according to  its  terms,
to  two  or  more  beneficiaries without designation of their respective
interests, the proceeds shall be paid to  such  beneficiaries  in  equal
portions.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00041-01-5

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