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

                                  7167

                            I N  S E N A T E

                              April 5, 2016
                               ___________

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 and the  financial  services  law,  in
  relation  to the establishment of a state insurance advisory board and
  assessments for the funding of the department (Part A); to  amend  the
  insurance  law,  in relation to the establishment of an administrative
  procedure for guidance, regulations, inquiries and examinations by the
  department (Part B); to amend the insurance law, in relation to policy
  form filing procedures (Part  C);  to  amend  the  insurance  law,  in
  relation  to  direct response marketing of life insurance (Part D); to
  amend the insurance law, in relation to the valuation of  life  insur-
  ance  policies and contracts (Part E); and to amend the education law,
  in relation to requiring  secondary  school  students  to  complete  a
  financial literacy and personal finances course (Part F)

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

  Section 1. This act shall be known and  may  be  cited  as  the  "Life
Insurance Market Revitalization Act".
  S  2.  Legislative findings and intent. The legislature finds that the
products offered to the people of this state by life insurance companies
offer important financial protection to those people in crucial times of
need. Life insurance  policies  provide  families  and  businesses  with
important  financial  protection  that  allows  them to carry on after a
personal loss. Annuities provide people with regular income  in  retire-
ment. Disability income insurance protects people from a loss of some or
all  of  their  income resultant from an accident or infirmity that keep
them from work. The  benefits  derived  from  these  types  of  products
provide  the  citizens  of  this  state with vital financial proceeds in
times of need. This protection allows them to  continue  to  meet  their
financial  obligations, such as keeping up on rent or mortgage payments,
paying for a family member's education or paying for daily  expenses  in
retirement,  following a personal loss, an illness or accident or a loss
of employment income. Despite their importance, these types of insurance
products are not required as a matter of law or policy, as is  the  case

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

                                                           LBD14705-02-6

S. 7167                             2

with  other types of insurance products such as automobile or homeowners
insurance. People who purchase these products are choosing to do so with
discretionary income and competing priorities and are also often lacking
a  clear understanding of the importance of the financial protection the
products provide. The legislature further finds it is in the interest of
this state to assist in the promotion of these products,  which  provide
its  citizens  with the tools to protect their own financial futures. In
turn, the purchase of these products by the citizens of this state alle-
viates or reduces their need for public assistance  in  times  of  need,
which  decreases  financial stress on the state. The legislature further
finds that the economic downturn of 2008,  coupled  with  a  challenging
regulatory  environment, particularly in New York, and a decreased focus
on the encouragement of financial literacy by the people of  this  state
has  negatively  impacted  sales of these financial protection products,
which is to the detriment of the citizens of this state.
  The legislature therefore finds that it is in  the  interest  of  this
state to implement into New York law amendments to the insurance, finan-
cial  services  and  education  law that will assist in revitalizing the
market for life insurance products in this  state  and  will,  in  turn,
inure to the benefit of the people of this state.
  S  3.  This  act enacts into law major components of legislation which
are necessary to implement the  "Life  Insurance  Market  Revitalization
Act".    Each  component is wholly contained within a Part identified as
Parts A through F. The effective  date  for  each  particular  provision
contained  within  such  Part  is  set forth in the last section of such
Part. Any provision in any section contained within  a  Part,  including
the  effective  date of the Part, which makes a reference to section "of
this act", when used in connection with that particular component, shall
be deemed to mean and refer to the corresponding section of the Part  in
which  it  is  found.    Section five of this act sets forth the general
effective date of this act.

                                 PART A

  Section 1. The insurance law is amended by adding a new section 201 to
read as follows:
  S 201. STATE INSURANCE ADVISORY BOARD. (A) THERE SHALL BE  WITHIN  THE
DEPARTMENT A STATE INSURANCE ADVISORY BOARD TO WORK WITH THE SUPERINTEN-
DENT  IN  PROMOTING THE DEVELOPMENT AND GROWTH OF THE INSURANCE INDUSTRY
IN THE STATE. THERE SHALL BE FIFTEEN MEMBERS OF THE ADVISORY  BOARD  WHO
SHALL  BE  APPOINTED BY THE SUPERINTENDENT. THE MEMBERSHIP SHALL CONSIST
OF: NINE REPRESENTATIVES  OF  DOMESTIC  INSURANCE  COMPANIES;  AND  FIVE
REPRESENTATIVES OF FOREIGN INSURANCE COMPANIES THAT, TO THE EXTENT PRAC-
TICABLE,  REFLECT  A  RANGE OF SIZE AND GEOGRAPHICAL LOCATION WITHIN THE
STATE. THE MEMBERSHIP SHALL ALSO INCLUDE ONE REPRESENTATIVE  OF  CONSUM-
ERS.  THE  SUPERINTENDENT SHALL MAKE RULES TO GOVERN THE METHOD BY WHICH
INSURERS MAY NOMINATE PERSONS TO THE BOARD AND THE PROCESS FOR SELECTING
SUCH MEMBERS, PROVIDED THAT THE REPRESENTATIVE  OF  CONSUMERS  SHALL  BE
SELECTED BY THE SUPERINTENDENT. THE TERM OF EACH MEMBER OF SUCH ADVISORY
BOARD SHALL BE THREE YEARS, OR UNTIL A SUCCESSOR IS APPOINTED AND VACAN-
CIES  SHALL BE FILLED FOR THE UNEXPIRED TERM ONLY.  THE BOARD SHALL MEET
AT LEAST THREE TIMES ANNUALLY PURSUANT TO THE CALL  OF  THE  SUPERINTEN-
DENT.  THE  MEMBERS  OF THE ADVISORY BOARD SHALL RECEIVE NO COMPENSATION
NOR REIMBURSEMENT FOR EXPENSES. THE ADVISORY BOARD SHALL:
  (1) CONSIDER AND RECOMMEND WAYS TO MAINTAIN  AND  GROW  THE  INSURANCE
INDUSTRY  OF  THE STATE, PARTICULARLY FOCUSING ON THE DOMESTIC INSURANCE

S. 7167                             3

INDUSTRY, INCLUDING BRINGING TO THE SUPERINTENDENT'S ATTENTION ISSUES OF
CONCERN TO THE INSURANCE INDUSTRY;
  (2)  CONSIDER AND RECOMMEND WAYS TO ENCOURAGE AND FACILITATE INSURANCE
INSTITUTIONS IN OFFERING A DIVERSITY OF AFFORDABLE INSURANCE AND  FINAN-
CIAL PRODUCTS THROUGHOUT THE STATE;
  (3)  RECOMMEND TO THE SUPERINTENDENT THE ESTABLISHMENT OF SUCH LAWS AS
MAY BE DEEMED NECESSARY, AND THE AMENDMENT OR REPEAL THEREOF, IN  FURTH-
ERANCE OF THESE GOALS;
  (4)  RECOMMEND  TO THE SUPERINTENDENT THE PROMULGATION OF ANY GUIDANCE
AND REGULATIONS, NOT INCONSISTENT WITH THE LAW, AS MAY BE DEEMED  NECES-
SARY,  AND  THE  AMENDMENT  OR  REPEAL  THEREOF, IN FURTHERANCE OF THESE
GOALS; AND
  (5) REPORT WITHIN THIRTY DAYS AFTER RECEIPT,  ON  ANY  PROPOSED  REGU-
LATIONS,  AMENDMENTS  THERETO,  OR REPEAL THEREOF, PRIOR TO FINAL ACTION
THEREON BY THE SUPERINTENDENT.
  (B) THE ADVISORY BOARD SHALL  HAVE  NO  EXECUTIVE,  ADMINISTRATIVE  OR
APPOINTIVE POWERS OR DUTIES.
  S  2.  Subsection  (a) of section 206 of the financial services law is
amended to read as follows:
  (a) For each fiscal year commencing on or after April first, two thou-
sand [twelve]  SEVENTEEN,  assessments  to  defray  operating  expenses,
including  all  direct  [and  indirect] costs, of the department, except
expenses incurred in the liquidation of banking organizations, shall  be
assessed  by  the  superintendent  in  accordance  with this subsection.
Persons regulated under the insurance  law  shall  be  assessed  by  the
superintendent  for  the  operating  expenses of the department that are
solely attributable to regulating persons under the insurance law, which
shall include any expenses that  were  permissible  to  be  assessed  in
fiscal  year  two  thousand  nine-two thousand ten, with the assessments
allocated pro rata upon all domestic insurers and  all  licensed  United
States  branches  of  alien  insurers domiciled in this state within the
meaning of paragraph four of subsection (b) of  section  seven  thousand
four  hundred  eight  of  the  insurance law, in proportion to the gross
direct premiums and other considerations, written or received by them in
this state during the calendar year ending December  thirty-first  imme-
diately preceding the end of the fiscal year for which the assessment is
made  (less  return premiums and considerations thereon) for policies or
contracts of insurance covering property or risks resident or located in
this state the issuance  of  which  policies  or  contracts  requires  a
license from the superintendent. Persons regulated under the banking law
shall  be  assessed  by the superintendent for the operating expenses of
the department that are solely attributable to regulating persons  under
the  banking  law  in  such proportions as the superintendent shall deem
just and reasonable. Operating expenses of the department not covered by
the assessments set forth above shall be assessed by the  superintendent
in such proportions as the superintendent shall deem just and reasonable
upon  all  domestic  insurers and all licensed United States branches of
alien insurers domiciled in this state within the meaning  of  paragraph
four  of  subsection (b) of section seven thousand four hundred eight of
the insurance law, and upon any regulated person under the banking  law,
other  than  mortgage  loan originators, except as otherwise provided by
sections one hundred fifty-one and two hundred twenty-eight of the work-
ers' compensation law and by section sixty of the  volunteer  firefight-
ers'  benefit law. The provisions of this subsection shall not be appli-
cable to a bank holding company, as that  term  is  defined  in  article
three-A of the banking law. Persons regulated under the banking law will

S. 7167                             4

not  be  assessed  for expenses that the superintendent deems to benefit
solely persons regulated under the insurance law, and persons  regulated
under  the  insurance  law  will  not  be assessed for expenses that the
superintendent deems to benefit solely persons regulated under the bank-
ing law.
  S 3. This act shall take effect immediately.

                                 PART B

  Section  1.  Section  301  of  the insurance law is amended to read as
follows:
  S 301. Regulations by superintendent.  (A)  The  superintendent  shall
have  the power to prescribe and from time to time withdraw or amend, in
writing, regulations, not inconsistent with the provisions of this chap-
ter:
  [(a)] (1) governing the duties assigned to the members of the staff of
the department;
  [(b)] (2) effectuating any power, given to him under the provisions of
this chapter to prescribe forms or otherwise make regulations;
  [(c)] (3) interpreting the provisions of this chapter; and
  [(d)] (4) governing the procedures to be followed in the  practice  of
the department.
  (B)  WHEN  PROPOSING ANY REGULATION, RULE OR GUIDANCE, THE SUPERINTEN-
DENT SHALL CONSIDER AND DETERMINE WHETHER  OR  NOT  SUCH  PROPOSAL  WILL
CAUSE  UNDUE  DELETERIOUS  ECONOMIC  EFFECT OR HAVE AN OVERLY BURDENSOME
IMPACT UPON ANY LICENSED ENTITY UPON WHICH IT IS INTENDED TO BE IMPOSED,
TAKING INTO PARTICULAR ACCOUNT ANY DISPROPORTIONATE IMPACT THAT  IT  MAY
HAVE ON A DOMESTIC LICENSED ENTITY, AND WHETHER OR NOT THE PROPOSAL WILL
NEGATIVELY  IMPACT  THE AFFORDABILITY OR AVAILABILITY OF A PRODUCT BEING
OFFERED BY THE LICENSED ENTITY. IN MAKING THAT DETERMINATION, THE SUPER-
INTENDENT SHOULD SET FOURTH IN  A  WRITTEN  STATEMENT  THE  PURPOSE  OF,
NECESSITY  FOR  AND  EXPECTED  BENEFITS TO BE DERIVED FROM THE PROPOSAL.
SUCH STATEMENT SHALL ALSO DETAIL THE PROJECTED COSTS OF  COMPLYING  WITH
THE PROPOSAL, WHICH SHALL INCLUDE:
  (1)  THE  COSTS  ASSOCIATED  WITH  IMPLEMENTING  THE  PROPOSAL  BY THE
LICENSED ENTITY, INCLUDING BUT NOT LIMITED TO HUMAN RESOURCE, TECHNOLOGY
OR ADMINISTRATIVE COSTS, AND INCLUDING  ANY  ADDITIONAL  COSTS  THAT  IT
MIGHT IMPOSE UPON A DOMESTIC LICENSED ENTITY;
  (2) WHETHER OR NOT THE PROPOSAL COULD NEGATIVELY IMPACT THE PRICING OR
AVAILABILITY OF A PRODUCT BEING OFFERED BY THE LICENSED ENTITY;
  (3)  THE INFORMATION, INCLUDING THE SOURCE OR SOURCES OF SUCH INFORMA-
TION, AND METHODOLOGY UPON WHICH THE COST ANALYSIS IS BASED; OR
  (4) WHERE THE SUPERINTENDENT FINDS THAT  IT  CANNOT  FULLY  PROVIDE  A
STATEMENT  OF  SUCH  COSTS, A STATEMENT SETTING FORTH ITS BEST ESTIMATE,
WHICH SHALL INDICATE THE INFORMATION AND  METHODOLOGY  UPON  WHICH  SUCH
BEST  ESTIMATE  IS  BASED  AND THE REASON OR REASONS WHY A COMPLETE COST
STATEMENT CANNOT BE PROVIDED.
  A COPY OF THE PROPOSED REGULATION, RULE OR GUIDANCE,  ALONG  WITH  THE
WRITTEN  STATEMENT  REQUIRED  PURSUANT TO THIS SUBSECTION, SHALL BE MADE
AVAILABLE TO THE LICENSED ENTITY UPON WHICH THE PROPOSAL WILL BE IMPOSED
PRIOR TO A PROPOSED RULE OR REGULATION'S OFFICIAL  PUBLICATION  PURSUANT
TO  THE  STATE ADMINISTRATIVE PROCEDURE ACT AND PRIOR TO THE ISSUANCE OF
THE GUIDANCE.
  S 2. Paragraph 1 of subsection (a) of section  308  of  the  insurance
law,  amended  by chapter 499 of the laws of 2009, is amended to read as
follows:

S. 7167                             5

  (1) The superintendent may also  address  to  any  health  maintenance
organization,  life settlement provider, life settlement intermediary or
its officers, or any authorized insurer or rate service organization, or
officers thereof, any inquiry in relation to its transactions or  condi-
tion  or  any matter connected therewith. (A) PRIOR TO IMPOSING ANY SUCH
INQUIRY, THE SUPERINTENDENT SHALL CONSIDER AND DETERMINE WHETHER OR  NOT
THE  INQUIRY  WILL  CAUSE  UNDUE  DELETERIOUS ECONOMIC EFFECT OR HAVE ON
OVERLY BURDENSOME IMPACT UPON THE REGULATED PERSON INTENDED FOR  RECEIPT
OF  THE INQUIRY. IN MAKING THAT DETERMINATION, THE SUPERINTENDENT SHOULD
SET FORTH IN A WRITTEN STATEMENT  THE  PURPOSE  OF,  NECESSITY  FOR  AND
EXPECTED  BENEFITS  TO BE DERIVED FROM THE INQUIRY. SUCH STATEMENT SHALL
ALSO DETAIL THE PROJECTED COSTS OF RESPONDING TO THE INQUIRY WHICH SHALL
INCLUDE:
  (I) THE COSTS FOR PREPARING A RESPONSE TO THE INQUIRY BY THE REGULATED
PERSON INTENDED FOR THE RECEIPT OF THE INQUIRY, INCLUDING BUT NOT LIMIT-
ED TO HUMAN RESOURCE, TECHNOLOGY OR ADMINISTRATIVE COSTS;
  (II) THE INFORMATION, INCLUDING THE SOURCE OR SOURCES OF SUCH INFORMA-
TION, AND METHODOLOGY UPON WHICH THE COST ANALYSIS IS BASED; OR
  (III) WHERE THE SUPERINTENDENT FINDS THAT IT CANNOT  FULLY  PROVIDE  A
STATEMENT  OF  SUCH  COSTS, A STATEMENT SETTING FORTH ITS BEST ESTIMATE,
WHICH SHALL INDICATE THE INFORMATION AND  METHODOLOGY  UPON  WHICH  SUCH
BEST  ESTIMATE  IS  BASED  AND THE REASON OR REASONS WHY A COMPLETE COST
STATEMENT CANNOT BE PROVIDED.   THE  WRITTEN  STATEMENT  SHALL  BE  MADE
AVAILABLE  TO  THE  REGULATED PERSON INTENDED FOR RECEIPT OF THE INQUIRY
PRIOR TO THE IMPOSITION OF THE INQUIRY.
  (B) Every corporation or person so addressed shall reply in writing to
such inquiry [promptly and] truthfully AND WITHIN A REASONABLE PERIOD OF
TIME, and such reply  shall  be,  if  required  by  the  superintendent,
subscribed  by  such  individual,  or  by  such officer or officers of a
corporation, as the superintendent shall designate, and affirmed by them
as true under the penalties of perjury.
  S 3. Section 311 of the insurance law is amended to read as follows:
  S 311. Filing of report on  examination.  (a)  Except  as  hereinafter
provided the superintendent may withhold from public inspection for such
time  as  he  deems  proper  any  report on examination made pursuant to
section three hundred ten of this article.
  (b) (1) AN EXAMINATION SHALL BE CONSIDERED CLOSED WHEN THE  REPORT  ON
EXAMINATION  IS  ADOPTED BY THE SUPERINTENDENT. Before adopting any such
report and filing it for public  inspection,  the  superintendent  shall
notify  the  insurer  or  other  person  examined of its contents [and],
WHETHER ANY FINE WILL BE IMPOSED OR ANY REGULATORY ACTION WILL BE  TAKEN
AS  A RESULT OF THE EXAMINATION AND THE AMOUNT OF ANY FINE TO BE IMPOSED
OR NATURE OF ANY REGULATORY ACTION TO BE TAKEN. THE SUPERINTENDENT shall
ALSO afford such insurer or other person  a  reasonable  opportunity  to
obtain  further details and to demand a hearing with reference to facts,
conclusions or recommendations [therein] contained IN THE REPORT, OR ANY
FINE TO BE IMPOSED OR REGULATORY ACTION TO TAKEN  AS  A  RESULT  OF  THE
EXAMINATION.
  (2)  If  a  hearing  is  requested  within ten days after [the giving]
RECEIPT of [such] THE notice REQUIRED PURSUANT TO PARAGRAPH ONE OF  THIS
SUBSECTION,  the  superintendent  shall  give  notice  and  a hearing in
accordance with the provisions of this article. Such  hearing  shall  be
held before the superintendent or a deputy superintendent.
  (c)  The  report  on  examination, with modifications thereof, if any,
shall be [accepted] ADOPTED by the superintendent and filed  for  public
inspection  within  six months after WRITTEN ACCEPTANCE OF THE REPORT BY

S. 7167                             6

THE INSURER OR OTHER PERSON EXAMINED, OR THE final hearing thereon  [and
if  he]. IF THE SUPERINTENDENT deems it in the public interest to do so,
he OR SHE may publish any such report or any excerpt therefrom or summa-
ry thereof, in one or more newspapers in the state.
  (d)  In any action or proceeding in the name of the people against the
insurer or other person examined, or any officer or agent thereof,  such
report,   if   adopted  by  the  superintendent  and  filed  for  public
inspection, shall be admissible in evidence  and  shall  be  presumptive
evidence of the facts stated therein.
  (e)  NO  FINE  MAY BE IMPOSED ON OR REGULATORY ACTION TAKEN AGAINST AN
INSURER AS A RESULT OF AN EXAMINATION UNLESS THE AMOUNT OF THE  FINE  OR
THE NATURE OF THE REGULATORY ACTION WAS DISCLOSED IN THE NOTICE REQUIRED
IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION.
  (F)  Nothing  herein  contained shall preclude the superintendent from
instituting any proceeding under article seventy-four of this chapter at
any time or from using as proof in such proceeding any report  on  exam-
ination or part thereof, whether or not such report has been adopted and
filed.
  (G)  THE  SUPERINTENDENT  SHALL NOT BEGIN AN EXAMINATION OF AN INSURER
UNLESS AND UNTIL ALL PREVIOUS EXAMINATIONS  OF  THE  INSURER  HAVE  BEEN
CLOSED.
  S 4. This act shall take effect immediately.

                                 PART C

  Section  1. Paragraphs 1, 2, 3 and 4 of subsection (c) of section 3201
of the insurance law, the opening paragraph of paragraph 4 as amended by
chapter 275 of the laws of 2014, is amended to read as follows:
  (1) The superintendent may disapprove any policy form for delivery  or
issuance  for  delivery  in  this  state  if he finds [that the same] IT
contains any provision or has any title, heading, backing or other indi-
cation of the contents of any or all of its provisions, which is  likely
to  mislead  the policyholder, contract holder or certificate holder AND
WHICH IS CONTRARY TO LAW OR REGULATION.
  (2) The superintendent may disapprove any life insurance policy  form,
or  any  form  of  annuity contract or group annuity certificate, or any
form of funding agreement for delivery or issuance for delivery in  this
state,  if its issuance would be prejudicial to the interests of policy-
holders or members or it contains provisions which are unjust, unfair or
inequitable AND ITS ISSUANCE WOULD BE CONTRARY TO LAW OR REGULATION.
  (3) The superintendent may disapprove any accident and  health  insur-
ance  policy form for delivery or issuance for delivery in this state if
the benefits provided therein are unreasonable in relation to the premi-
um charged or any such form contains provisions which encourage  misrep-
resentation  or are unjust, unfair, inequitable, misleading[,] OR decep-
tive[, or] AND contrary to law or to the public policy of this state.
  (4) The superintendent shall not approve  any  life  insurance  policy
form containing any war or travel exclusion or restriction, for delivery
or  issuance  for  delivery in this state, unless such policy form shall
have printed or stamped across its face in [red  and  in]  BOLD  capital
letters  not smaller than twelve point type[, or in an equally prominent
manner established at the discretion of the superintendent  and  promul-
gated through regulations,] the following:
  "Read your policy (certificate) carefully.
  "Certain (war, travel) risks are not assumed.
  __________________________________

S. 7167                             7

  (state which or both)
  In case of any doubt write your company (society) for further explana-
tion."
  S 2. This act shall take effect immediately.

                                 PART D

  Section  1.  Section  3209 of the insurance law, as amended by chapter
616 of the laws of 1997, subsection (b) as amended by chapter 170 of the
laws of 2008, subparagraph (H) as amended, subparagraph (I) as added and
subparagraph (J) of paragraph 2 of subsection (b) as relettered by chap-
ter 535 of the laws of 2013, paragraph 1 of subsection (d), paragraph  2
of  subsection  (e)  and  subsection (h) as amended by chapter 13 of the
laws of 2002, is amended to read as follows:
  S 3209. Life insurance, annuities and  funding  agreements  disclosure
requirements. (a) Except as hereafter exempted, this section shall apply
to any solicitation, negotiation or procurement of life insurance, annu-
ities  or  funding  agreements occurring within this state. This section
shall apply to any issuer of life  insurance  or  annuity  contracts  or
funding  agreements,  including fraternal benefit societies and the life
insurance department of a savings and insurance bank.  Unless  otherwise
specifically  included,  this  section  shall  not apply to: credit life
insurance;  group  life  insurance;  life  insurance  policies,  annuity
contracts,  and funding agreements issued in connection with pension and
welfare plans as defined by and to the extent  covered  by  the  federal
Employee  Retirement Income Security Act of 1974 (ERISA); funding agree-
ments issued to other than individuals pursuant  to  subsection  (b)  of
section  three  thousand two hundred twenty-two of this article; and any
group annuity unless at least one certificate is  subject  to  paragraph
two  of subsection (b) of section four thousand two hundred twenty-three
of this chapter.
  (b) (1) No policy of life insurance shall be delivered or  issued  for
delivery  in  this  state  [after  the applicable effective date, as set
forth in subsection (n) of this section,] unless, AT OR PRIOR TO  DELIV-
ERY  TO THE POLICY, the prospective purchaser has been provided with the
following:
  (A) a copy of the most recent  buyer's  guide;  and  [the  preliminary
information  required  by subsection (d) of this section, at or prior to
the time an application is taken. When sales solicitations are  made  by
mail, without the involvement of an agent or broker, each initial solic-
itation  must  include a copy of the buyer's guide unless the policy for
which application is made provides for a period of at least thirty  days
within  which  the  applicant may return the policy for an unconditional
refund of the premiums paid, in which event the buyer's  guide  must  be
delivered  with  the policy or prior to delivery of the policy; in addi-
tion, such solicitation must alert  the  prospective  purchaser  of  the
right  to  receive,  upon  request, a buyer's guide and a policy summary
prior to delivery of the policy; and]
  (B) a policy summary [upon delivery of the policy], PROVIDED THAT  THE
POLICYHOLDER  MAY  RETURN  THE POLICY FOR AN UNCONDITIONAL REFUND OF THE
PREMIUMS PAID WITHIN THE PERIOD OF TIME PROVIDED UNDER PARAGRAPH  ELEVEN
OF  SUBSECTION  (A)  OF SECTION THREE THOUSAND TWO HUNDRED THREE OF THIS
ARTICLE AND PARAGRAPH THIRTEEN OF SUBSECTION (A) OF SECTION  FOUR  THOU-
SAND TWO HUNDRED FORTY OF THIS CHAPTER.
  (2)  No  annuity contract or life insurance policy or certificate with
an equity index account shall be delivered or  issued  for  delivery  in

S. 7167                             8

this  state  unless,  [no  later  than at the time of application] AT OR
PRIOR TO DELIVERY OF THE CONTRACT, the prospective  purchaser  has  been
provided with a disclosure statement containing the following:
  (A)  a  statement  in  bold  type  to the effect that the equity index
account provides benefits linked to an external equity  index  and  does
not participate directly in the equity market;
  (B)  a statement identifying the equity index used in the equity index
formula, together with a description of any alternate index  should  the
initial index no longer be publicly available;
  (C)  a  statement  indicating  whether  paid dividends are included in
changes in the equity index, together with a  description  of  how  such
dividends,  or  lack  thereof,  would  affect  the changes in the equity
index; the statement must provide the average  dividend  rate  over  the
lesser of ten years or the calculable life of the index;
  (D) a statement fully describing the equity index formula;
  (E)  a  statement explaining and illustrating the equity index formula
including any features of the equity index  formula  subject  to  change
after issuance of the contract, policy or certificate;
  (F)  a  statement  identifying the initial minimum guaranteed interest
rate for the minimum accumulation value of an equity index  account  and
any withdrawal charge;
  (G) a statement identifying the initial current and the minimum speci-
fied  participation  rate,  i.e.,  how much of the increase in the index
will be used to calculate the indexed linked interest rate, if any;
  (H) a statement identifying the initial current and the minimum  upper
limit or cap on the indexed linked interest rate, if any;
  (I)  for  a  life  insurance  policy  crediting  additional amounts in
accordance with an equity index less frequently than annually, a  state-
ment  to  the effect that: if the policyholder requests a full surrender
of a policy prior to the expiration of the equity index crediting  peri-
od,  no  additional  interest based on the equity index will be credited
and that only the guaranteed interest will be credited to  the  account;
and  the  policyholder  is  advised  to  consider alternatives to a full
surrender of the policy prior to the  expiration  of  the  equity  index
crediting  period,  such  as  a  policy loan or, if available, a partial
withdrawal of the policy; and
  (J) other disclosure information the superintendent deems appropriate.
  (c) Every insurer must provide, to any policyholder who so requests, a
policy summary for each in-force  premium-paying  policy  for  which  no
policy summary has ever been furnished. The insurer may charge the poli-
cyholder  a  reasonable  fee for preparation of this summary, subject to
guidelines specified in rules promulgated by the superintendent.
  (d) [The preliminary information shall be in writing and  include,  to
the extent applicable, the following:
  (1)  the  name  and address of the insurance agent or broker or, if no
agent or broker is involved, a statement of the procedure to be followed
in order to receive responses to inquiries  concerning  the  preliminary
information;
  (2)  the full name and home office, administrative office or branch or
agency office address of the company in whose name  the  life  insurance
policy is to be written;
  (3)  the date of the preliminary information and the generic name, the
initial amount of insurance and the initial annual premium for the basic
policy;
  (4) the total guaranteed cash surrender values for the  basic  policy,
at  the end of the tenth and twentieth policy years or at the end of the

S. 7167                             9

premium-paying period if earlier. These values may be  shown  on  a  per
thousand or per unit basis;
  (5)  the effective policy loan annual percentage interest rate, if the
policy would contain this provision, and whether this rate is applied in
advance or in arrears, adjustable or fixed;
  (6) for the life insurance policies  described  in  paragraph  one  of
subsection  (n)  of  this  section,  life insurance cost indexes and the
equivalent level annual dividend for the basic policy for ten and twenty
years, but in no case beyond the premium-paying period;
  (7) in addition, the applicant shall be advised that, when the  policy
is  issued, a complete policy summary, including cost data, based on the
benefits, premiums and dividends  of  the  policy  as  issued,  will  be
furnished;  and  that,  following  the  receipt of the policy and policy
summary, there will be a period of not less than ten days  within  which
the  applicant  may return the policy for an unconditional refund of the
premiums paid; and
  (8) notwithstanding the foregoing, no  applicant  for  life  insurance
shall  be  prevented or delayed in effecting or applying for coverage by
the requirements of this section. In such cases where prior to  applica-
tion  it is impractical to provide any items prescribed by this section,
such items may be estimated in good faith or furnished as soon thereaft-
er as practical prior to delivery of policy.
  (e)] A policy summary shall include the following:
  (1) a prominently placed title as follows:
  "STATEMENT OF POLICY COST AND BENEFIT INFORMATION";
  (2) the name and address of the insurance agent or broker, or,  if  no
agent or broker is involved, a statement of the procedure to be followed
in order to receive responses to inquiries regarding the policy summary;
  (3)  the full name and home office, administrative office or branch or
agency office address of the company in whose name  the  life  insurance
policy is to be or has been written;
  (4) the generic name of the basic policy and each rider;
  (5)  [for  the  life  insurance policies described in paragraph one of
subsection (n) of this section,] the following amounts,  where  applica-
ble,  for  the  first  five policy years and representative policy years
thereafter sufficient to clearly  illustrate  the  premium  and  benefit
patterns,  including the years for which life insurance cost indexes are
displayed and at least one age from sixty through sixty-five or  maturi-
ty, whichever is earlier:
  (A) the annual premium for the basic policy;
  (B) the annual premium for each optional rider;
  (C) guaranteed amount payable upon death at the beginning of the poli-
cy  year  regardless  of the cause of death, other than suicide or other
specifically enumerated exclusions, which is provided by the basic poli-
cy and each optional rider, with benefits provided under the basic poli-
cy and each rider shown separately;
  (D) total guaranteed cash surrender values at the end of the year with
values shown separately for the basic policy and each rider;
  (E) cash dividends payable at the end of the year  with  values  shown
separately  for  the  basic policy and each rider. Dividends need not be
displayed beyond the twentieth policy year; and
  (F) guaranteed endowment amounts payable under the  policy  which  are
not included in guaranteed cash surrender values above;
  (6)  the  effective policy loan annual percentage interest rate if the
policy contains this provision, specifying whether this rate is  applied
in  advance or in arrears. If the policy provides for an adjustable loan

S. 7167                            10

interest rate, the policy summary shall so state, shall  set  forth  the
frequency  at  which  the  rate is to be determined for that policy, and
shall describe the index upon which the maximum rate  is  based  at  the
time the policy is issued;
  (7)  [for  the  life  insurance policies described in paragraph one of
subsection (n) of this section:] (A) life insurance cost indexes for ten
and twenty years but in no case beyond the premium-paying period.  Sepa-
rate  indexes  are  to  be  displayed  for the basic policy and for each
optional term life insurance rider.  Such indexes need not  be  included
for  optional  riders  which  are limited to benefits such as accidental
death benefits, disability waiver  of  premium,  preliminary  term  life
insurance coverage of less than twelve months and guaranteed insurabili-
ty  benefits,  nor  for  basic policies or optional riders covering more
than one life;
  (B) the equivalent level annual dividend, in the case of participating
policies and participating optional term life  insurance  riders,  under
the  same  circumstances and for the same durations at which life insur-
ance cost indexes are displayed;
  (8) a policy summary which includes dividends  shall  also  include  a
statement  that  dividends  are  based on the company's current dividend
scale and are not guaranteed; in addition, the summary shall[,  for  the
life  insurance policies described in paragraph one of subsection (n) of
this section,] include a statement in close proximity to the  equivalent
level annual dividend as follows: "An explanation of the intended use of
the equivalent level annual dividend is included in the buyer's guide";
  (9)  a statement in close proximity to the life insurance cost indexes
as follows:
  "AN EXPLANATION OF THE INTENDED USE OF THESE INDEXES  IS  PROVIDED  IN
THE BUYER'S GUIDE"; and
  (10) the date on which the policy summary is prepared.
  [(f)] (E) The policy summary must be a separate document. All informa-
tion required to be disclosed must be set out in such a manner as not to
minimize or render any portion thereof obscure. Any amounts which remain
level for two or more years of the policy may be represented by a single
number  if  it is clearly indicated what amounts are applicable for each
policy year. Amounts in paragraph five of subsection [(e)] (D)  of  this
section  shall  be  listed  in  total, not on a per thousand or per unit
basis. If more than one insured is covered under one  policy  or  rider,
guaranteed death benefits shall be displayed separately for each insured
or for each class of insureds if death benefits do not differ within the
class.    Zero  amounts  shall  be  displayed  as  zero and shall not be
displayed as a blank space.
  [(g)] (F) Every insurer shall maintain, at its home office or  princi-
pal  office,  a complete file containing one copy of each policy summary
form authorized by the insurer for use pursuant to this section.
  [(h)] (G) An agent or broker shall  inform  a  prospective  purchaser,
prior  to  commencing  a  life  insurance sales presentation, that he is
acting as a life insurance agent or broker, and inform  the  prospective
purchaser  of  the full name of the insurer which he is representing. In
sale situations in which an agent or broker is not involved, the insurer
shall identify its full name.
  [(i)] (H) As used in this section, "buyer's guide"  means  a  separate
document  published  and  disseminated by insurers. The language therein
shall be promulgated by the superintendent, and  shall,  to  the  extent
practicable  and in the public interest as determined by the superinten-

S. 7167                            11

dent, be consistent with the  latest  version  of  a  buyer's  guide  as
adopted by the national association of insurance commissioners.
  [(j)]  (I)  For  life  insurance  policies, except term life insurance
policies, which are to be issued to qualify for  special  tax  treatment
under  subsection  (b)  of  section  four  hundred three of the Internal
Revenue Code of 1986, as amended, a written notice shall be delivered to
the proposed insured in a manner satisfactory to the  superintendent  at
or  prior to the time an application is taken and shall read as follows:
"The purchase of a life insurance policy with cash value,  which  quali-
fies  for  special  tax  treatment  under section 403(b) of the Internal
Revenue Code of 1986, as amended, may not be appropriate for individuals
seeking to maximize the accumulation of  funds  for  retirement  or  for
individuals  seeking  life  insurance  coverage  primarily  to provide a
survivorship benefit for the spouse in  the  event  of  death  prior  to
retirement.  If  an  individual needs coverage to continue after retire-
ment, current tax laws require the commencement of taxable distributions
under the tax sheltered annuity plan (TSA) no later than age seventy and
one-half which may necessitate some adjustment in the  cash  value  life
insurance  policy  or  may result in increased insurance costs in future
policy years. You should consult with your tax advisor before purchasing
life insurance with cash value  as  part  of  a  tax  sheltered  annuity
(TSA)."
  [(k)]  (J)  The  superintendent  shall  promulgate  by  regulation the
contents [and], allowable format [of the  preliminary  information]  and
[the]  information  to  appear in the policy summary. The superintendent
shall also promulgate by regulation  standards  governing  the  content,
format  and  use  of illustrations of individual life insurance policies
and certain group life insurance policies and certificates, life  insur-
ance policies subject to section four thousand two hundred thirty-two of
this  chapter,  variable  life  insurance policies under which the death
benefits and cash values vary in accordance  with  the  unit  values  of
investments  held  in a separate account and individual annuities, indi-
vidual  funding  agreements,  variable  annuities,  and  group   annuity
contracts  if  any  certificate  is  issued  to  which  paragraph two of
subsection (b) of section four thousand two hundred twenty-three of this
chapter applies. The illustration regulation shall be consistent, to the
greatest extent practicable and in the public interest as determined  by
the  superintendent, with the illustration regulations as adopted by the
national association of insurance commissioners. The  superintendent  in
developing regulations to govern the content and format of the [prelimi-
nary  information,]  policy  summary and illustrations shall ensure that
such forms are presented in an  easy,  concise  and  meaningful  way  to
enable consumers to understand the operation of the policy or contract.
  [(l)]  (K) An insurer of any life insurance policy or annuity contract
subject to this section shall  notify  the  superintendent  whether  its
policies or contract forms have been or will be marketed with or without
an  illustration.  For  those  policies  and  contracts marketed with an
illustration which complies with the regulations promulgated pursuant to
subsection [(k)] (J) of this section, no  [preliminary  information  or]
policy  summary  shall  be  required.  For  those policies which are not
marketed with an illustration, the [preliminary information and]  policy
summary shall be provided pursuant to the provisions of this section.
  [(m)]  (L)  The  superintendent,  by  regulation,  shall determine the
applicability of the illustration  regulation  promulgated  pursuant  to
subsection  [(k)]  (J)  of this section to group life insurance policies
and group annuities and funding agreements. Such determination shall  be

S. 7167                            12

consistent,  to the greatest extent practicable and in the public inter-
est, with the illustration regulations as adopted by the national  asso-
ciation of insurance commissioners.
  [(n)  The  effective  dates  of this section as applied to policies of
life insurance, annuity contracts, and funding agreements  shall  be  as
follows:
  (1)  for individual life insurance policies, certain group life insur-
ance policies and certificates and life insurance  policies  subject  to
section  four  thousand  two hundred thirty-two of this chapter, January
first, nineteen hundred ninety-eight;
  (2) for annuities and funding agreements, the date of promulgation  of
regulations  by  the  superintendent  pursuant to subsection (k) of this
section but not later than June thirty, nineteen hundred ninety-eight;
  (3) for variable life insurance policies and variable  annuities,  the
date  of promulgation of regulations by the superintendent but not later
than January first, nineteen hundred ninety-nine.
  No less than  three  months  prior  to  promulgating  the  regulations
required  to  implement subsection (k) of this section pursuant to para-
graphs two and three of this subsection, the superintendent  shall  hold
public hearings on such regulations.]
  S  2.  Paragraph  3 of subsection (a) of section 2123 of the insurance
law, as amended by section 37-a of part D of chapter 56 of the  laws  of
2013, is amended and a new paragraph 4 is added to read as follows:
  (3)  Any replacement of individual life insurance policies or individ-
ual annuity contracts of an insurer by an agent, representative  of  the
same  or  different insurer or broker shall conform to standards promul-
gated by regulation by the superintendent. Such regulation shall:
  (A) specify what constitutes the replacement of a life insurance poli-
cy or annuity contract and the proper disclosure and notification proce-
dures to replace a policy or contract;
  (B) require notification of the proposed replacement  to  the  insurer
whose policies or contracts are intended to be replaced;
  (C)  IN  THE CASE OF AN APPLICATION THAT IS INITIATED AS A RESULT OF A
DIRECT RESPONSE SOLICITATION, INCLUDE PROVISIONS RELATING TO THE  DUTIES
OF  INSURERS  WITH  RESPECT  TO  DIRECT  RESPONSE SOLICITATIONS THAT ARE
CONSISTENT WITH THE LIFE INSURANCE AND ANNUITIES REPLACEMENT  REGULATION
AS ADOPTED BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS;
  (D)  require  the timely exchange of illustrative and cost information
required by section three thousand two hundred nine of this chapter  and
necessary  for  completion  of a comparison of the proposed and replaced
coverage; and
  [(D)] (E) provide for a sixty-day period  following  issuance  of  the
replacement  policies  or  contracts during which the policy or contract
owner may return the policies or contracts and  reinstate  the  replaced
policies or contracts.
  (4)  FOR  PURPOSES  OF  PARAGRAPH  THREE  OF  THIS SUBSECTION, "DIRECT
RESPONSE SOLICITATION" MEANS A  SOLICITATION  THROUGH  A  SPONSORING  OR
ENDORSING ENTITY OR INDIVIDUALLY SOLELY THROUGH THE MAIL, TELEPHONE, THE
INTERNET OR OTHER MASS COMMUNICATION MEDIA.
  S  3.  Paragraph  6 of subsection (a) of section 4226 of the insurance
law, as added by chapter 616 of the laws of 1997 is amended  and  a  new
subsection (e) is added to read as follows:
  (6) replace the individual life insurance policies or individual annu-
ity  contracts  of  an  insurer by the same or different insurer without
conforming to the standards promulgated by regulation by the superinten-
dent. Such regulation shall:

S. 7167                            13

  (A) specify what constitutes the replacement of a life insurance poli-
cy or annuity contract and the proper disclosure and notification proce-
dures to replace a policy or contract;
  (B)  require  notification  of the proposed replacement to the insurer
whose policies or contracts are intended to be replaced;
  (C) IN THE CASE OF AN APPLICATION THAT IS INITIATED AS A RESULT  OF  A
DIRECT  RESPONSE SOLICITATION, INCLUDE PROVISIONS RELATING TO THE DUTIES
OF INSURERS WITH RESPECT  TO  DIRECT  RESPONSE  SOLICITATIONS  THAT  ARE
CONSISTENT  WITH THE LIFE INSURANCE AND ANNUITIES REPLACEMENT REGULATION
AS ADOPTED BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS;
  (D) require the timely exchange of illustrative and  cost  information
required  by section three thousand two hundred nine of this chapter and
necessary for completion of a comparison of the  proposed  and  replaced
coverage; and
  [(D)]  (E)  provide  for  a sixty-day period following issuance of the
replacement policies or contracts during which the  policy  or  contract
owner  may  return  the policies or contracts and reinstate the replaced
policies or contracts.
  (E) FOR PURPOSES OF PARAGRAPH SIX OF SUBSECTION (A) OF  THIS  SECTION,
"DIRECT RESPONSE SOLICITATION" MEANS A SOLICITATION THROUGH A SPONSORING
OR  ENDORSING  ENTITY  OR INDIVIDUAL SOLELY THROUGH THE MAIL, TELEPHONE,
THE INTERNET OR OTHER MASS COMMUNICATION MEDIA.
  S 4. This act shall take effect immediately.

                                 PART E

  Section 1. Paragraph 1 of subsection (a) of section 4217 of the insur-
ance law, as amended by chapter 22 of the laws of 1994,  is  amended  to
read as follows:
  (1)  The  superintendent  shall  annually [value, or] cause EVERY LIFE
INSURANCE COMPANY DOING BUSINESS IN THIS STATE to [be valued,] VALUE the
reserve liabilities (hereinafter called reserves) for all ITS  outstand-
ing  insurance  policies  and contracts [of every life insurance company
doing business in this state], except that, in  the  case  of  an  alien
company, such valuation shall be limited to its United States business[,
and  may].  THE  SUPERINTENDENT  SHALL  certify  the  amount of any such
reserves, specifying the mortality table or tables,  rate  or  rates  of
interest  and  methods  (net  level premium method or other) used in the
calculation of such reserves, UNLESS THE SUPERINTENDENT DETERMINES  THAT
THE MEMORANDUM PREPARED PURSUANT TO PARAGRAPH THREE OF SUBSECTION (E) OF
THIS  SECTION  TO  SUPPORT THE ACTUARIAL OPINION OF RESERVES REQUIRED BY
PARAGRAPH ONE OF SUBSECTION (E) OF THIS SECTION FAILS TO MEET THE STAND-
ARDS PRESCRIBED BY REGULATION.    In  calculating  such  reserves,  [the
superintendent]  LIFE  INSURANCE  COMPANIES  may  use  group methods and
approximate averages for fractions of a year or otherwise.
  S 2. Paragraph 1 of subsection (e) of section 4217  of  the  insurance
law,  as  added by chapter 22 of the laws of 1994, is amended to read as
follows:
  (1) General. Every life insurance company doing business in this state
shall annually submit the opinion of a qualified actuary as  to  whether
the reserves and related actuarial items held in support of the policies
and contracts specified by the superintendent by regulation are computed
appropriately,  are  based  on  assumptions  which  satisfy  contractual
provisions, are consistent with prior reported amounts and  comply  with
applicable  laws of this state. The superintendent [by regulation] shall

S. 7167                            14

define the specifics of this opinion and add any other items  deemed  to
be necessary to its scope SOLELY BY REGULATION.
  S 3. Subparagraph (C) of paragraph 4 of subsection (e) of section 4217
of  the  insurance  law,  as added by chapter 22 of the laws of 1994, is
amended to read as follows:
  (C) The opinion shall be based on standards adopted from time to  time
by the Actuarial Standards Board and on such additional standards as the
superintendent  may  by regulation prescribe.   THE SUPERINTENDENT SHALL
NOT PRESCRIBE ANY ASSUMPTIONS OR OTHER ADDITIONAL STANDARDS TO  BE  USED
BY   THE  QUALIFIED  ACTUARY  WHEN  FORMING  THE  OPINION  BEYOND  THOSE
PRESCRIBED BY REGULATION.
  S 4. Paragraph 4 of subsection (f) of section 4217  of  the  insurance
law,  as  added by chapter 22 of the laws of 1994, is amended to read as
follows:
  (4) [Without the specific approval of the  superintendent  subject  to
such  conditions  as  he may prescribe and as provided by regulation, an
insurer shall not] AN INSURER MAY aggregate the reserves referred to  in
[two  or  more  of paragraph] PARAGRAPHS one, two [or] AND three of this
subsection. [Such regulation may prescribe the  conditions  under  which
the  valuation  of  two  or more classes of business of insurance or the
valuation of all of its insurance business to which this section applies
may be combined.] THE SUPERINTENDENT MAY, SOLELY BY REGULATION,  REQUIRE
INSURERS  TO  SHOW  THE  RESULTS  OF  ASSET  ADEQUACY ANALYSIS AS TO THE
ADEQUACY OF RESERVES REFERRED TO IN PARAGRAPHS ONE,  TWO  AND  THREE  OF
THIS SUBSECTION SEPARATELY IN THE ACTUARIAL MEMORANDUM PREPARED PURSUANT
TO  PARAGRAPH  THREE  OF  SUBSECTION  (E)  OF  THIS SECTION, BUT MAY NOT
PROHIBIT INSURERS FROM AGGREGATING THE RESERVES  REFERRED  TO  IN  PARA-
GRAPHS ONE, TWO AND THREE OF THIS SUBSECTION FOR THE PURPOSES OF MEETING
THE  MINIMUM  STANDARDS  FOR  THE  VALUATION OF LIFE INSURANCE POLICIES,
ANNUITIES AND GUARANTEED INVESTMENT CONTRACTS, AND INDIVIDUAL AND  GROUP
ACCIDENT AND HEALTH INSURANCE POLICIES.
  S 5. This act shall take effect immediately.

                                 PART F

  Section 1. Section 305 of the education law is amended by adding a new
subdivision 53-a to read as follows:
  53-A.  THE  COMMISSIONER  IS  AUTHORIZED  AND  DIRECTED  TO DEVELOP AN
CONCISE  COURSE  OF  INSTRUCTION  IN  FINANCIAL  LITERACY  AND  PERSONAL
FINANCES,  AND REQUIRE THAT SUCH COURSE BE COMPLETED BY PUPILS IN GRADES
ELEVEN AND TWELVE. SUCH COURSE OF INSTRUCTION MAY BE  INCORPORATED  INTO
OTHER  CLASS WORK OR COURSES OF INSTRUCTION PROVIDED TO SUCH PUPILS. THE
FINANCIAL LITERACY COURSE MAY  INCLUDE,  BUT  NEED  NOT  BE  LIMITED  TO
INSTRUCTION  ON  USING CHECKING AND SAVINGS ACCOUNTS, OBTAINING SHORT OR
LONG TERM CREDIT, SECURING A LOAN FOR HIGH COST ITEMS SUCH  AS  A  MOTOR
VEHICLE  OR A HOME, OBTAINING AND USING CREDIT AND DEBIT CARDS, PURCHAS-
ING FINANCIAL PROTECTION INSURANCE PRODUCTS  AND  INVESTING  AND  SAVING
MONEY, AND PLANNING FOR RETIREMENT.
  S  2.  This  act  shall  take  effect on the first of September in the
calendar year commencing after the date it shall have become  law;  and,
provided,  however,  that  the  commissioner of education is immediately
authorized and directed to promulgate, amend and/or repeal any rules and
regulations necessary to implement the provisions on  this  act  on  its
effective date.
  S 4. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by a court of compe-

S. 7167                            15

tent jurisdiction to be invalid, such judgement shall not affect, impair
or invalidate the remainder thereof, but shall be confined in its opera-
tion  to  the  clause, sentence, paragraph, subdivision, section or part
thereof  directly  involved  in  the controversy in which such judgement
shall have been rendered. It is hereby declared to be the intent of  the
legislature  that  this act would have been enacted even if such invalid
provisions had not been included herein.
  S 5. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through F of this act shall be
as specifically set forth in the last section of such Parts.