S T A T E   O F   N E W   Y O R K
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                                  3334

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2015
                               ___________

Introduced  by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. JAFFEE,
  MONTESANO, MORELLE, PERRY, RIVERA, SALADINO -- read once and  referred
  to the Committee on Insurance

AN  ACT to amend the insurance law, in relation to an extended free look
  period for senior  citizens  purchasing  individual  health  insurance
  policies or contracts

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

  Section 1. Paragraph 10 of subsection  (c)  of  section  3216  of  the
insurance  law,  as amended by section 31 of part B of chapter 58 of the
laws of 2004, is amended to read as follows:
  (10) (A) There is prominently printed on the  first  page  thereof  or
there is attached thereto a notice to the effect that during a specified
period  of  time,  which  shall  not be less than ten days nor more than
twenty days from the date the policy is delivered to  the  policyholder,
it may be surrendered to the insurer together with a written request for
cancellation of the policy and in such event the insurer will refund any
premium  paid  therefor  including  any  policy  fees or other charges[,
provided, however, that this paragraph shall not apply to single premium
nonrenewable policies insuring  against  accidents  only  or  accidental
bodily injuries only; provided, however, that].
  (B)  NOTWITHSTANDING  SUBPARAGRAPH (A) OF THIS PARAGRAPH, a [contract]
POLICY or certificate sold by mail order [and]; a [contract]  POLICY  or
certificate  providing  medicare  supplemental  insurance  COVERING  ANY
INSURED UNDER AGE SIXTY-FIVE ON THE EFFECTIVE DATE  OF  COVERAGE;  or  A
POLICY OR CERTIFICATE PROVIDING long-term care insurance [must] COVERING
ANY INSURED UNDER AGE SIXTY-FIVE ON THE EFFECTIVE DATE OF COVERAGE SHALL
contain a provision, OR SHALL HAVE ATTACHED THERETO A NOTICE, permitting
the [contract] POLICY or certificate holder a thirty day period for such
surrender AS DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
  (C)  NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, A POLICY SOLD
TO ANY INSURED WHO IS AGE SIXTY-FIVE OR OLDER ON THE EFFECTIVE  DATE  OF
COVERAGE  SHALL  HAVE  PROMINENTLY  PRINTED ON THE FIRST PAGE THEREOF OR
ATTACHED THERETO A NOTICE TO THE EFFECT THAT, FOR  A  PERIOD  OF  NINETY

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07307-01-5

A. 3334                             2

DAYS  FROM  THE  DATE  THE  POLICY IS DELIVERED TO THE POLICYHOLDER, THE
POLICY MAY BE SURRENDERED TO THE INSURER TOGETHER WITH A WRITTEN REQUEST
FOR CANCELLATION OF THE POLICY; AND IN  SUCH  EVENT,  THE  INSURER  WILL
REFUND  ANY  PREMIUM  PAID  THEREFOR  INCLUDING ANY POLICY FEES OR OTHER
CHARGES PROVIDED THAT NO CLAIM  FOR  BENEFITS  HAS  BEEN  INCURRED.  THE
NOTICE SHALL ALSO STATE THAT, IN THE EVENT A CLAIM FOR BENEFITS HAS BEEN
INCURRED UNDER THE POLICY WITHIN THE TIME PERIOD FROM THE EFFECTIVE DATE
OF  COVERAGE  UNTIL NINETY DAYS FROM THE DATE THE POLICY IS DELIVERED TO
THE POLICYHOLDER, THE INSURER WILL  REFUND  ANY  PREMIUM  PAID  THEREFOR
INCLUDING  ANY POLICY FEES OR OTHER CHARGES LESS ANY AMOUNTS THE INSURER
HAS PAID ON CLAIMS FOR BENEFITS UNDER THE POLICY.
  (D) THIS PARAGRAPH SHALL NOT  APPLY  TO  SINGLE  PREMIUM  NONRENEWABLE
POLICIES  INSURING  AGAINST ACCIDENTS ONLY OR ACCIDENTAL BODILY INJURIES
ONLY.
  S 2. Subsection (h) of section 4306 of the insurance law,  as  amended
by section 32 of part B of chapter 58 of the laws of 2004, is amended to
read as follows:
  (h)  (1)  a statement on the first page of the contract or in a notice
attached to the contract that during a specified period of  time,  which
shall  not be less than ten days nor more than twenty days from the date
the contract is delivered to the individual, it may  be  surrendered  to
the  corporation together with a written request for cancellation of the
contract and that in such event the corporation will refund any  premium
paid  therefor  including any contract fees or other charges; [provided,
however, that]
  (2) NOTWITHSTANDING PARAGRAPH ONE OF THIS SUBSECTION, a contract  sold
by  mail  order [and]; a contract providing medicare supplemental insur-
ance COVERING ANY INDIVIDUAL UNDER AGE SIXTY-FIVE ON THE EFFECTIVE  DATE
OF  COVERAGE;  or  A  CONTRACT PROVIDING long-term care insurance [must]
COVERING ANY INDIVIDUAL UNDER AGE SIXTY-FIVE ON THE  EFFECTIVE  DATE  OF
COVERAGE  SHALL  contain  a  provision, OR SHALL HAVE ATTACHED THERETO A
NOTICE, permitting the individual a thirty day period for such surrender
AS DESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION;
  (3) NOTWITHSTANDING PARAGRAPH ONE OF THIS SUBSECTION, A CONTRACT  SOLD
TO  ANY  INSURED WHO IS AGE SIXTY-FIVE OR OLDER ON THE EFFECTIVE DATE OF
COVERAGE SHALL HAVE A STATEMENT ON THE FIRST PAGE OF THE CONTRACT OR  IN
A NOTICE ATTACHED TO THE CONTRACT THAT, FOR A PERIOD OF NINETY DAYS FROM
THE  DATE  THE CONTRACT IS DELIVERED TO THE INDIVIDUAL, THE CONTRACT MAY
BE SURRENDERED TO THE CORPORATION TOGETHER WITH A  WRITTEN  REQUEST  FOR
CANCELLATION  OF  THE CONTRACT, AND THAT, IN SUCH EVENT, THE CORPORATION
WILL REFUND ANY PREMIUM PAID THEREFOR INCLUDING  ANY  CONTRACT  FEES  OR
OTHER  CHARGES  PROVIDED  NO  CLAIM  FOR BENEFITS HAS BEEN INCURRED. THE
STATEMENT OR NOTICE SHALL ALSO STATE THAT, IN  THE  EVENT  A  CLAIM  FOR
BENEFITS  HAS  BEEN  INCURRED  UNDER THE CONTRACT WITHIN THE TIME PERIOD
FROM THE EFFECTIVE DATE OF COVERAGE UNTIL NINETY DAYS FROM THE DATE  THE
CONTRACT IS DELIVERED TO THE INDIVIDUAL, THE CORPORATION WILL REFUND ANY
PREMIUM  PAID THEREFOR INCLUDING ANY CONTRACT FEES OR OTHER CHARGES LESS
ANY AMOUNTS THE CORPORATION HAS PAID ON CLAIMS FOR  BENEFITS  UNDER  THE
CONTRACT;
  S 3. This act shall take effect on the one hundred eightieth day after
it  shall  have  become a law and shall apply to all insured individuals
whose effective date of coverage is on or after the  effective  date  of
this act.