S T A T E O F N E W Y O R K
________________________________________________________________________
770
2017-2018 Regular Sessions
I N A S S E M B L Y
January 9, 2017
___________
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:
§ 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. § 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.
LBD04644-01-7
A. 770 2
(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.
§ 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. § 18031, to act as a navigator, as
such term is used in 42 U.S.C. § 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. § 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.
§ 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. § 18031, to act as a navigator, as
such term is used in 42 U.S.C. § 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. § 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.
§ 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. § 18031 to act as a navigator, as
such term is used in 42 U.S.C. § 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. § 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.
§ 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. 770 3
health benefit exchange established pursuant to section 1311 of the
Affordable Care Act, 42 U.S.C. § 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. § 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.
§ 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.