S T A T E O F N E W Y O R K
________________________________________________________________________
1697
2015-2016 Regular Sessions
I N A S S E M B L Y
January 12, 2015
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Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the insurance law, in relation to third party notifica-
tion of the renewal, modification, or cancellation of a senior citi-
zen's health insurance policy
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (f) of section 3111 of the insurance law, as
relettered by section 30 of part B of chapter 58 of the laws of 2004, is
relettered subsection (g) and a new subsection (f) is added to read as
follows:
(F) EVERY INSURER THAT HAS IN FORCE ANY POLICY OF INSURANCE SUBJECT TO
THE PROVISIONS OF ARTICLE THIRTY-TWO OR FORTY-THREE OF THIS CHAPTER
SHALL PERMIT SENIOR CITIZEN INSUREDS TO DESIGNATE A THIRD PARTY TO WHOM
THE INSURER SHALL TRANSMIT NOTICES OF CANCELLATION, NONRENEWAL, MODIFI-
CATION, NON-PAYMENT, AND CONDITIONAL RENEWAL. THE SENIOR CITIZEN INSURED
SHALL NOTIFY THE INSURER THAT A THIRD PARTY HAS BEEN SO DESIGNATED. SUCH
NOTIFICATION SHALL BE DELIVERED TO THE INSURER BY CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, AND SHALL BE EFFECTIVE NOT LATER THAN TEN BUSINESS
DAYS FROM THE DATE OF RECEIPT BY THE INSURER. THE NOTIFICATION MUST
CONTAIN, IN WRITING, AN ACCEPTANCE BY THE THIRD PARTY DESIGNEE TO
RECEIVE SUCH NOTICES FROM THE INSURER. SHOULD THE THIRD PARTY DESIGNEE
DESIRE TO TERMINATE HIS OR HER STATUS AS A THIRD PARTY DESIGNEE, SUCH
DESIGNEE SHALL PROVIDE WRITTEN NOTICE TO BOTH THE INSURER AND THE SENIOR
CITIZEN INSURED. SHOULD THE SENIOR CITIZEN INSURED DESIRE TO TERMINATE
THE THIRD PARTY DESIGNATION, THE INSURED SHALL PROVIDE WRITTEN NOTICE TO
THE INSURER. THE TRANSMISSION TO THE THIRD PARTY DESIGNEE OF ANY NOTICE
SHALL BE IN ADDITION TO A COPY OF SUCH DOCUMENT TRANSMITTED TO THE
SENIOR CITIZEN INSURED AND WHEN A THIRD PARTY IS SO DESIGNATED ALL SUCH
NOTICES SHALL BE MAILED IN AN ENVELOPE CLEARLY MARKED ON ITS FACE WITH
THE FOLLOWING: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATE-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04594-01-5
A. 1697 2
LY". DESIGNATION AS A THIRD PARTY SHALL NOT CONSTITUTE ACCEPTANCE OF ANY
LIABILITY ON THE THIRD PARTY FOR SERVICES PROVIDED TO SUCH SENIOR CITI-
ZEN. ON JANUARY FIRST OF EACH YEAR, THE INSURER SHALL NOTIFY ITS SENIOR
CITIZEN INSUREDS IN WRITING OF THE AVAILABILITY OF THE THIRD PARTY
DESIGNEE NOTICE PROCEDURE AND PROVIDE INFORMATION ON HOW THE INSURED CAN
COMMENCE THIS PROCEDURE; HOWEVER, SUCH NOTICE NEED NOT BE PROVIDED ONCE
A SENIOR CITIZEN HAS MADE A DESIGNATION.
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.