S T A T E O F N E W Y O R K
________________________________________________________________________
5428
2017-2018 Regular Sessions
I N A S S E M B L Y
February 9, 2017
___________
Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. JAFFEE,
MONTESANO, MORELLE, PERRY, RIVERA -- 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.
LBD09516-01-7
A. 5428 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.
§ 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;
§ 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.