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Senate Bill S3283

2017-2018 Legislative Session

Requires persons or entities providing benefits in the event of disability to not impose onerous or unreasonable conditions for the payment of benefits thereunder

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

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2017-S3283 (ACTIVE) - Details

See Assembly Version of this Bill:
A2651
Current Committee:
Senate Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §5-336, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2009-2010: S8201, A535
2011-2012: S1183, A254
2013-2014: S2696, A315
2015-2016: S675, A1923
2019-2020: S4026, A3101
2021-2022: A2191
2023-2024: A1797
2025-2026: A2543

2017-S3283 (ACTIVE) - Summary

Requires persons or entities providing benefits in the event of disability to not impose "onerous or unreasonable conditions" for the payment or continued payment of benefits thereunder, and provides for the enforcement thereof including actual damages, interest and penalties, reasonable costs and attorney's fees, and in the court's discretion, exemplary damages; exempts worker's compensation and NYS disability insurance.

2017-S3283 (ACTIVE) - Sponsor Memo

2017-S3283 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3283
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the general obligations law, in relation to  onerous  or
   unreasonable  conditions  in  the  performance  of  disability related
   contracts

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  obligations  law is amended by adding a new
 section 5-336 to read as follows:
   § 5-336. PERFORMANCE OF WRITTEN CONTRACTS FOR BENEFITS IN THE EVENT OF
 DISABILITY. 1. NO PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER  ENTI-
 TY, WHETHER SUCH PERSON OR ENTITY BE AN EMPLOYER OR OTHERWISE, EXCLUDING
 WORKERS' COMPENSATION OR NEW YORK STATE DISABILITY INSURANCE, WHO ENTERS
 INTO  A WRITTEN CONTRACT PROVIDING FOR PAYMENT OF BENEFITS OR THE WAIVER
 OF OBLIGATIONS OR BOTH IN THE EVENT OF THE DISABILITY OF A  NAMED  INDI-
 VIDUAL  SHALL,  BY  CONTRACT  OR  OTHERWISE, IMPOSE ON A DISABLED PERSON
 ONEROUS OR UNREASONABLE CONDITIONS FOR THE PAYMENT OR CONTINUED  PAYMENT
 OF  CONTRACTUAL  BENEFITS  OR  THE  WAIVER  OR CONTINUED WAIVER OF OBLI-
 GATIONS.  CONDITIONS ARE "ONEROUS OR UNREASONABLE" IF BY  THEIR  CONTIN-
 UOUS  OR  REPETITIOUS  NATURE  THEY  REQUIRE THE DISABLED BENEFICIARY TO
 PERFORM UNNECESSARY OR DUPLICATIVE ACTS IN ORDER TO  OBTAIN  OR  COLLECT
 THE BENEFITS TO WHICH HE OR SHE IS OTHERWISE ENTITLED UNDER THE CONTRACT
 AND INCLUDE BUT ARE NOT LIMITED TO:
   (A)  REQUIRING  THE DISABLED PERSON TO UNDERGO UNREASONABLY REPETITIVE
 MEDICAL EXAMINATIONS; OR
   (B) REQUIRING THE DISABLED PERSON TO PROVIDE FINELY-DETAILED OR  REPE-
 TITIOUS MEDICAL DOCUMENTATION OF A DISABLING CONDITION; OR
   (C)  BARGAINING  IN BAD FAITH OR ENGAGING IN ANY OF THE ACTS DESCRIBED
 IN THE PARAGRAPHS OF SUBSECTION (A) OF SECTION TWO THOUSAND SIX  HUNDRED
 ONE OF THE INSURANCE LAW, RELATING TO UNFAIR CLAIM SETTLEMENT PRACTICES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03551-01-7

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