NY State Senate Bill 2017-S2114A

Senate Bill S2114A

Signed By Governor

2017-2018 Legislative Session

Relates to accelerated life insurance payments for certain chronic conditions; repealer

download bill text pdf

Archive: Last Bill Status Via A7584 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 12, 2017	signed chap.300
Aug 31, 2017	delivered to governor
Jun 15, 2017	returned to assembly passed senate 3rd reading cal.1700 substituted for s2114b
Jun 15, 2017	substituted by a7584b
Jun 14, 2017	ordered to third reading cal.1700
Jun 05, 2017	reported and committed to rules
May 30, 2017	print number 2114b
May 30, 2017	amend (t) and recommit to insurance
May 22, 2017	print number 2114a
May 22, 2017	amend (t) and recommit to insurance
Jan 12, 2017	referred to insurance

Votes

- Jun 15, 2017 - Floor Vote
  A7584
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 15, 2017
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (3)
      
      Bailey
      
      Diaz
      
      Marcellino
  Jun 14, 2017 - Rules Committee Vote
  S2114A
  
  24
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 14, 2017
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Stewart-Cousins
      
      Valesky
      
      absent (1)
      
      Marcellino
  Jun 5, 2017 - Insurance Committee Vote
  S2114A
  
  19
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: Jun 5, 2017
      
      aye (19)
      
      Akshar
      
      Breslin
      
      Brooks
      
      Golden
      
      Hamilton
      
      Jacobs
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Murphy
      
      O'Mara
      
      Parker
      
      Phillips
      
      Rivera
      
      Savino
      
      Serino
      
      Seward

Bill Amendments

Original

B (Active)

co-Sponsors

2017-S2114 - Details

Law Section:: Insurance Law
Laws Affected:: Amd §§1113 & 3230, rpld §3230 sub§ (g), Ins L

2017-S2114 - Summary

Relates to accelerated life insurance payments for certain chronic conditions.

2017-S2114 - Sponsor Memo

2017-S2114 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2114
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 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,  in  relation  to  accelerated  life
   insurance payments for certain chronic conditions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraphs (C) and (D) of paragraph 1 of subsection  (a)
 of  section  1113 of the insurance law, as amended by chapter 465 of the
 laws of 2014, are amended to read as follows:
   (C) certification by a  licensed  health  care  practitioner  [of  any
 condition  which  requires  continuous  care  for  the  remainder of the
 insured's life in an eligible facility or at home] when the  insured  is
 chronically  ill  FOR  A  PERIOD  OF  AT LEAST NINETY DAYS as defined by
 Section 7702(B) of the Internal Revenue Code and regulations thereunder,
 [provided the accelerated payments qualify under  Section  101(g)(3)  of
 the  Internal  Revenue Code and all other applicable sections of federal
 law in order to maintain favorable tax treatment,]
   (D) certification by a licensed  health  care  practitioner  that  the
 insured  is  chronically  ill  FOR  A  PERIOD OF AT LEAST NINETY DAYS as
 defined by Section 7702 (B) of the Internal Revenue Code and regulations
 thereunder, [provided the accelerated  payments  qualify  under  Section
 101(g)(3) of the Internal Revenue Code and all other applicable sections
 of  federal  law  in  order to maintain favorable tax treatment] and the
 insurer that issues such policy is a qualified long term care  insurance
 carrier  under  Section  4980c of the Internal Revenue Code or provide a
 special surrender value, upon total  and  permanent  disability  of  the
 insured, and optional modes of settlement of proceeds,
   § 2. This act shall take effect immediately.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06791-01-7

co-Sponsors

2017-S2114A - Details

Law Section:: Insurance Law
Laws Affected:: Amd §§1113 & 3230, rpld §3230 sub§ (g), Ins L

2017-S2114A - Summary

Relates to accelerated life insurance payments for certain chronic conditions.

2017-S2114A - Sponsor Memo

                                 BILL NUMBER:  S2114A

 TITLE OF BILL :  An act to amend the insurance law, in relation to
principle based reserves; and repealing subsection (g) of section 3730
of the insurance law relating thereto

 PURPOSE :

To provide refined chronic illness triggers for an accelerated death
benefit by conforming New York law to the Internal Revenue Code.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend section 1113(a)(1)(D) of the
insurance law to refine the long term care triggers for qualification
for an accelerated death benefit under a life insurance policy by
removing the reference to the issuer being a qualified long term care
insurance carrier under Section 4980c of the Internal Revenue Code

Section 2 of the bill would amend section 3230 (1) and (g) of the
insurance law to conform with the change made to insurance law section
1113(a)(1)(D) in section 1 of the bill in reference to removing the
language that the issuer be a qualified long term care insurer

Section 3 is the effective date.

 JUSTIFICATION :

This proposal would amend § 1113(a)(1) (D) of the insurance law to
refine the long term care trigger for qualification for an accelerated
death benefit under a life insurance policy. The current standard for
triggering payment of an accelerated death benefit for chronic illness
(i.e., in need of long term care services) under a life insurance
policy offered by a life insurer that is not also a long term care
insurer is more restrictive than the Internal Revenue Code (IRC §
101(g)), as well as other state laws, which require the insured to be
certified as having a chronic illness, but do not require permanent
confinement, as current New York law does. This proposal will enable
life insurers who are not also long term care insurers to offer an
accelerated death benefit rider with a non-permanent confinement
trigger in New York.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S2114A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2114--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by Sens. SEWARD, AKSHAR, KAMINSKY, LATIMER -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Insurance  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the  insurance  law,  in  relation  to  principle  based
   reserves;  and  repealing subsection (g) of section 3730 of the insur-
   ance law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  (1)   of subsection (a) of section 1113 of the
 insurance law, as amended by chapter 465 of the laws of 2014, is amended
 to read as follows:
   (1) "Life Insurance," means every insurance upon the  lives  of  human
 beings, and every insurance appertaining thereto, including the granting
 of  endowment  benefits,  additional  benefits  in the event of death by
 accident, additional benefits to  safeguard  the  contract  from  lapse,
 accelerated  payments  of  part or all of the death benefit or a special
 surrender value upon (A) diagnosis of terminal illness defined as a life
 expectancy of twelve months or less, (B) diagnosis of a  medical  condi-
 tion  requiring  extraordinary  medical  care or treatment regardless of
 life expectancy, (C) certification by a licensed health care practition-
 er of any condition which requires continuous care for the remainder  of
 the  insured's  life in an eligible facility or at home when the insured
 is chronically ill as defined by Section 7702(B) of the Internal Revenue
 Code and regulations thereunder, provided the accelerated payments qual-
 ify under Section 101(g)(3) of the Internal Revenue Code and  all  other
 applicable  sections  of  federal law in order to maintain favorable tax
 treatment, (D) certification by a licensed health care practitioner that
 the insured is chronically ill as defined by Section  7702  (B)  of  the
 Internal  Revenue Code and regulations thereunder, provided the acceler-
 ated payments qualify under Section 101(g)(3) of  the  Internal  Revenue
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06791-03-7

 S. 2114--A                          2
 
 Code  and all other applicable sections of federal law in order to main-
 tain favorable tax treatment [and the insurer that issues such policy is
 a qualified long term care insurance carrier under Section 4980c of  the
 Internal  Revenue  Code or provide a special surrender value, upon total
 and permanent disability of the insured, and optional modes  of  settle-
 ment of proceeds], (E) the insured's having been a resident of a nursing
 home,  as  defined  in  section  twenty-eight  hundred one of the public
 health law, for a period of three months or more,  with  an  expectation
 that  such insured will remain a resident of a nursing home until death,
 or (F) the insured's having been the recipient of end of life or pallia-
 tive care, for a period of three months or more, at a residential health
 care facility as defined in subdivision three  of  section  twenty-eight
 hundred  one  of the public health law, home care services as defined in
 subdivision one of section thirty-six hundred two of the  public  health
 law  or  hospice  as defined in subdivision one of section four thousand
 two of the public health law, with the  expectation  that  such  insured
 will  continue  to  require  such services until death. "Life insurance"
 also includes A SPECIAL SURRENDER VALUE UPON TOTAL AND  PERMANENT  DISA-
 BILITY  OF  THE  INSURED,  OPTIONAL  MODES OF SETTLEMENT OF PROCEEDS AND
 additional benefits to safeguard the contract against lapse in the event
 of unemployment of the insured or in the event the insured is a resident
 of a nursing home.   Amounts paid the insurer  for  life  insurance  and
 proceeds  applied  under  optional modes of settlement or under dividend
 options may be allocated by the insurer to one or more separate accounts
 pursuant to section four thousand two hundred forty of this chapter.
   § 2. Subsection (g) of section 3230 of the insurance law is REPEALED.
   § 3. Subsection (f) of section 3230 of the insurance law,  as  amended
 by chapter 465 of the laws of 2014, is amended to read as follows:
   (f)  This section shall apply to all life insurance policies or policy
 riders or provisions thereof that provide  for  accelerated  payment  of
 death  benefits  or  a  special surrender value pursuant to subparagraph
 (A), (B), (C), (D), (E) or (F) of paragraph one  of  subsection  (a)  of
 section one thousand one hundred thirteen of this chapter.
   § 4. This act shall take effect immediately.

co-Sponsors

2017-S2114B (ACTIVE) - Details

Law Section:: Insurance Law
Laws Affected:: Amd §§1113 & 3230, rpld §3230 sub§ (g), Ins L

2017-S2114B (ACTIVE) - Summary

Relates to accelerated life insurance payments for certain chronic conditions.

2017-S2114B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2114B

 TITLE OF BILL :  An act to amend the insurance law, in relation to
accelerated life insurance payments for certain chronic conditions;
and repealing subsection (g) of section 3230 of the insurance law
relating thereto

 PURPOSE :

To provide refined chronic illness triggers for an accelerated death
benefit by conforming New York law to the Internal Revenue Code.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend section 1113(a)(1) (D) of the
insurance law to refine the long term care triggers for qualification
for an accelerated death benefit under a life insurance policy by
removing the reference to the issuer being a qualified long term care
insurance carrier under Section 4980c of the Internal Revenue Code

Section 2 of the bill would amend section 3230 (f) and (g) of the
insurance law to conform with the change made to insurance law section
1113(a)(1)(D) in section 1 of the bill in reference to removing the
language that the issuer be a qualified long term care insurer

Section 3 is the effective date.

 JUSTIFICATION :

This proposal would amend § 1 113(a)(1) (D) of the insurance law to
refine the long term care trigger for qualification for an accelerated
death benefit under a life insurance policy. The current standard for
triggering payment of an accelerated death benefit for chronic illness
(i.e., in need of long term care services) under a life insurance
policy offered by a life insurer that is not also a long term care
insurer is more restrictive than the Internal Revenue Code (IRC §
101(g)), as well as other state laws, which require the insured to be
certified as having a chronic illness, but do not require permanent
confinement, as current New York law does. This proposal will enable
life insurers who are not also long term care insurers to offer an
accelerated death benefit rider with a non-permanent confinement
trigger in New York.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S2114B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2114--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2017
                                ___________
 
 Introduced  by Sens. SEWARD, AKSHAR, KAMINSKY, LATIMER -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Insurance  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said  committee  --  committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 AN ACT to amend the insurance  law,  in  relation  to  accelerated  life
   insurance  payments  for  certain  chronic  conditions;  and repealing
   subsection (g) of section 3230 of the insurance law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subsection (a) of section 1113 of the insur-
 ance  law,  as amended by chapter 465 of the laws of 2014, is amended to
 read as follows:
   (1) "Life Insurance," means every insurance upon the  lives  of  human
 beings, and every insurance appertaining thereto, including the granting
 of  endowment  benefits,  additional  benefits  in the event of death by
 accident, additional benefits to  safeguard  the  contract  from  lapse,
 accelerated  payments  of  part or all of the death benefit or a special
 surrender value upon (A) diagnosis of terminal illness defined as a life
 expectancy of twelve months or less, (B) diagnosis of a  medical  condi-
 tion  requiring  extraordinary  medical  care or treatment regardless of
 life expectancy, (C) certification by a licensed health care practition-
 er of any condition which requires continuous care for the remainder  of
 the  insured's  life in an eligible facility or at home when the insured
 is chronically ill as defined by Section 7702(B) of the Internal Revenue
 Code and regulations thereunder, provided the accelerated payments qual-
 ify under Section 101(g)(3) of the Internal Revenue Code and  all  other
 applicable  sections  of  federal law in order to maintain favorable tax
 treatment, (D) certification by a licensed health care practitioner that
 the insured is chronically ill as defined by Section  7702  (B)  of  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06791-06-7

 S. 2114--B                          2
 
 Internal  Revenue Code and regulations thereunder, provided the acceler-
 ated payments qualify under Section 101(g)(3) of  the  Internal  Revenue
 Code  and all other applicable sections of federal law in order to main-
 tain favorable tax treatment [and the insurer that issues such policy is
 a  qualified long term care insurance carrier under Section 4980c of the
 Internal Revenue Code or provide a special surrender value,  upon  total
 and  permanent  disability of the insured, and optional modes of settle-
 ment of proceeds], (E) the insured's having been a resident of a nursing
 home, as defined in section  twenty-eight  hundred  one  of  the  public
 health  law,  for  a period of three months or more, with an expectation
 that such insured will remain a resident of a nursing home until  death,
 or (F) the insured's having been the recipient of end of life or pallia-
 tive care, for a period of three months or more, at a residential health
 care  facility  as  defined in subdivision three of section twenty-eight
 hundred one of the public health law, home care services as  defined  in
 subdivision  one  of section thirty-six hundred two of the public health
 law or hospice as defined in subdivision one of  section  four  thousand
 two  of  the  public  health law, with the expectation that such insured
 will continue to require such services  until  death.  "Life  insurance"
 also  includes  A SPECIAL SURRENDER VALUE UPON TOTAL AND PERMANENT DISA-
 BILITY OF THE INSURED, OPTIONAL MODES OF  SETTLEMENT  OF  PROCEEDS,  AND
 additional benefits to safeguard the contract against lapse in the event
 of unemployment of the insured or in the event the insured is a resident
 of  a  nursing  home.    Amounts paid the insurer for life insurance and
 proceeds applied under optional modes of settlement  or  under  dividend
 options may be allocated by the insurer to one or more separate accounts
 pursuant to section four thousand two hundred forty of this chapter.
   § 2. Subsection (g) of section 3230 of the insurance law is REPEALED.
   § 3.  Subsection  (f) of section 3230 of the insurance law, as amended
 by chapter 465 of the laws of 2014, is amended to read as follows:
   (f) This section shall apply to all life insurance policies or  policy
 riders  or  provisions  thereof  that provide for accelerated payment of
 death benefits or a special surrender  value  pursuant  to  subparagraph
 (A),  (B),  (C),  (D),  (E) or (F) of paragraph one of subsection (a) of
 section one thousand one hundred thirteen of this chapter.
   § 4. This act shall take effect immediately.

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Senate Bill S2114A

Share this bill

Sponsored By

Archive: Last Bill Status Via A7584 - Signed by Governor

Bill Amendments

co-Sponsors

2017-S2114 - Details

2017-S2114 - Summary

2017-S2114 - Sponsor Memo

2017-S2114 - Bill Text download pdf

co-Sponsors

2017-S2114A - Details

2017-S2114A - Summary

2017-S2114A - Sponsor Memo

2017-S2114A - Bill Text download pdf

co-Sponsors

2017-S2114B (ACTIVE) - Details

2017-S2114B (ACTIVE) - Summary

2017-S2114B (ACTIVE) - Sponsor Memo

2017-S2114B (ACTIVE) - Bill Text download pdf

Comments