S T A T E   O F   N E W   Y O R K
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                                  3159

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2015
                               ___________

Introduced by M. of A. CROUCH -- read once and referred to the Committee
  on Insurance

AN  ACT  to  amend the insurance law, in relation to criminal background
  checks for navigators

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

  Section 1. Section 2138 of the insurance law, as added by section 37-b
of  part  D  of  chapter  56  of the laws of 2013, is amended to read as
follows:
  S 2138. Health benefit exchange  navigators.  (A)  A  person  who  has
received  a  grant  from  and  has  been certified by the health benefit
exchange established pursuant to section 1311  of  the  affordable  care
act,  42  U.S.C.  S  18031,  to act as a navigator, including any person
employed by a certified navigator, shall not receive,  collect  or  hold
any  funds  that  would constitute fiduciary funds within the meaning of
section two thousand one hundred twenty of this article.
  (B) (1) NO PERSON SHALL SERVE AS A  NAVIGATOR  OR  BE  EMPLOYED  BY  A
CERTIFIED NAVIGATOR UNLESS HE OR SHE HAS:
  (A)  COMPLETED  AN APPLICATION (TO BE DEVELOPED BY THE SUPERINTENDENT)
THAT IS SUBSTANTIALLY SIMILAR  IN  CONTENT  TO  THE  APPLICATION  FOR  A
LICENSE AS AN INSURANCE AGENT WITH RESPECT TO THE LINES OF AUTHORITY FOR
ACCIDENT AND HEALTH INSURANCE;
  (B)  SUBMITTED  THE APPLICATION TO THE DEPARTMENT WITH THE APPROPRIATE
PROCESSING FEE; AND
  (C) BEEN FOUND BY THE DEPARTMENT TO BE OF SUFFICIENT GOOD CHARACTER TO
SERVE AS A NAVIGATOR OR THE EMPLOYEE OF A NAVIGATOR.
  (2) FOR THE PURPOSES OF THIS SUBSECTION, "SUFFICIENT  GOOD  CHARACTER"
SHALL  MEAN  THAT  NOTHING  IN THE APPLICANT'S BACKGROUND WOULD PRECLUDE
THEM FROM LICENSURE AS AN INSURANCE AGENT WITH RESPECT TO THE  LINES  OF
AUTHORITY FOR ACCIDENT AND HEALTH INSURANCE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05097-01-5

              

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  (3)  THE  SUPERINTENDENT  SHALL DETERMINE THE AMOUNT OF THE PROCESSING
FEE ESTABLISHED IN THIS SUBSECTION, WHICH SHALL NOT EXCEED THE  PROCESS-
ING  FEE  FOR A LICENSE ISSUED UNDER SUBSECTION (A) OF SECTION TWO THOU-
SAND ONE HUNDRED THREE OF THIS ARTICLE.
  S  2.  Paragraph 11 of subsection (a) of section 2101 of the insurance
law, as added by section 34 of part D of chapter 56 of the laws of 2013,
is amended to read as follows:
  (11) any person who has received a grant from and has  been  certified
by  the  health benefit exchange established pursuant to section 1311 of
the affordable care act, 42 U.S.C. S 18031, to act as  a  navigator,  as
such term is used in 42 U.S.C. S 18031(i), provided that the person: (A)
has  completed  the training required by the health benefit exchange AND
MET THE REQUIREMENTS ESTABLISHED BY SUBSECTION (B) OF SECTION TWO  THOU-
SAND  ONE HUNDRED THIRTY-EIGHT OF THIS ARTICLE; (B) does not sell insur-
ance; (C) does not engage in any activity with respect to insurance  not
expressly permitted under 42 U.S.C. S 18031(i)(3) and regulations there-
under; and (D) does not receive any compensation for acting as a naviga-
tor  directly  or  indirectly from an insured, insurance producer, or an
insurer.
  S 3. Paragraph 10 of subsection (c) of section 2101 of  the  insurance
law, as added by section 35 of part D of chapter 56 of the laws of 2013,
is amended to read as follows:
  (10)  any  person who has received a grant from and has been certified
by the health benefit exchange established pursuant to section  1311  of
the  affordable  care  act, 42 U.S.C. S 18031, to act as a navigator, as
such term is used in 42 U.S.C. S 18031(i), including any person employed
by a certified navigator, provided that the person:  (A)  has  completed
the  training  required  by  the  health  benefit  exchange  AND MET THE
REQUIREMENTS ESTABLISHED BY SUBSECTION (B) OF SECTION TWO  THOUSAND  ONE
HUNDRED  THIRTY-EIGHT  OF THIS ARTICLE; (B) does not sell insurance; (C)
does not engage in any activity with respect to insurance not  expressly
permitted  under 42 U.S.C. S 18031(i)(3) and regulations thereunder; and
(D) does not receive any compensation for acting as a navigator directly
or indirectly from an insured, insurance producer, or an insurer.
  S 4. Paragraph 11 of subsection (k) of section 2101 of  the  insurance
law, as added by section 36 of part D of chapter 56 of the laws of 2013,
and  as  renumbered  by section 2 of part V of chapter 57 of the laws of
2014 is amended to read as follows:
  (11) any person who has received a grant from and has  been  certified
by  the  health benefit exchange established pursuant to section 1311 of
the affordable care act, 42 U.S.C. S 18031 to act  as  a  navigator,  as
such term is used in 42 U.S.C. S 18031(i), including any person employed
by  a  certified  navigator, provided that the person: (A) has completed
the training required  by  the  health  benefit  exchange  AND  MET  THE
REQUIREMENTS  ESTABLISHED  BY SUBSECTION (B) OF SECTION TWO THOUSAND ONE
HUNDRED THIRTY-EIGHT OF THIS ARTICLE; (B) does not sell  insurance;  (C)
does  not engage in any activity with respect to insurance not expressly
permitted under 42 U.S.C. S 18031 (i) (3)  and  regulations  thereunder;
and  (D)  does  not  receive  any compensation for acting as a navigator
directly or indirectly from an insured, insurance producer, or an insur-
er.
  S 5. Paragraph 5 of subsection (b) of section 2102  of  the  insurance
law, as added by section 37 of part D of chapter 56 of the laws of 2013,
is amended to read as follows:
  (5) Paragraphs one and three of this subsection shall not apply to any
person  who  has  received  a  grant  from and has been certified by the

A. 3159                             3

health benefit exchange established pursuant  to  section  1311  of  the
Affordable  Care  Act, 42 U.S.C. S 18031 (i), including persons employed
by certified navigators; provided that the person: (A) has completed the
training  required  by  the health benefit exchange AND MET THE REQUIRE-
MENTS ESTABLISHED BY SUBSECTION (B) OF SECTION TWO THOUSAND ONE  HUNDRED
THIRTY-EIGHT  OF THIS ARTICLE; (B) does not sell insurance; (C) does not
engage in any activity with respect to insurance not expressly permitted
under 42 U.S.C. S 18031 (i) (3) and regulations thereunder; and (D) does
not receive any compensation for acting as a navigator directly or indi-
rectly from an insured, insurance producer, or an insurer.
  S 6. This act shall take effect immediately; provided,  however,  that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date is authorized to be made on or before such effective date.