S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3940
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 31, 2019
                                ___________
 
 Introduced  by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. JAFFEE,
   MONTESANO, 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.
                                                            LBD08393-01-9

 A. 3940                             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.