S T A T E   O F   N E W   Y O R K
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                                   1885
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2017
                                ___________
 
 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.
              

                                                            LBD03383-01-7

 A. 1885                             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.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.