S T A T E   O F   N E W   Y O R K
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                                   5311
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 24, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law, in relation to  limited  death
   benefit life insurance policies for persons aged sixty and over
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 30-B to read as follows:
                               ARTICLE 30-B
                 FINANCIAL REVIEW REQUIREMENT FOR LIMITED
                 DEATH BENEFIT LIFE INSURANCE POLICIES FOR
                        PERSONS AGED SIXTY AND OVER
 SECTION 645. FINANCIAL REVIEW OF POLICY.
   § 645. FINANCIAL REVIEW OF POLICY. 1. WHENEVER A LIFE INSURANCE POLICY
 OR CERTIFICATE OF INSURANCE IS DELIVERED OR ISSUED FOR DELIVERY IN  THIS
 STATE TO AN APPLICANT AT AGE SIXTY AND OVER, WHICH LIMITS DEATH BENEFITS
 DURING  A PERIOD FOLLOWING THE INCEPTION DATE OF THE POLICY OR WHERE THE
 ACCUMULATED PREMIUMS EXCEED THE DEATH BENEFIT AT ANY  POINT  DURING  THE
 FIRST  TEN YEARS, THE INSURER SHALL PROVIDE THE INSURED WITH A COPY OF A
 "FINANCIAL REVIEW OF POLICY" FORM OF AT LEAST TEN POINT  IN  SIZE.  SUCH
 FORM  SHALL  USE  SUBSTANTIALLY  THE  SAME  FORMAT AND TERMINOLOGY SHOWN
 BELOW, AND SHALL HAVE COMPLETE INFORMATION  PROVIDED  FOR  ANY  AND  ALL
 BLANK SPACE.
                        FINANCIAL REVIEW OF POLICY
       NOTICE:  YOU  SHOULD  REVIEW  THIS  FORM AND YOUR POLICY AND
       DECIDE IF THE POLICY IS SUITABLE FOR YOU.  IF  YOU  ARE  NOT
       ENTIRELY  SATISFIED, PURSUANT TO NEW YORK STATE LAW, YOU MAY
       RETURN THE POLICY WITHIN  THIRTY  DAYS  FROM  THE  DATE  YOU
       RECEIVE  IT  AND  OBTAIN A FULL REFUND OF ANY PREMIUMS PAID.
       THIS IS A POLICY OFFERED  WITHOUT  AN  ATTEMPT  TO  CLASSIFY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07987-01-9
              

 S. 5311                             2
 
       RISKS BY DETERMINING YOUR STATE OF HEALTH. PREMIUMS MAY HAVE
       BEEN LOWER IF HEALTH INFORMATION HAD BEEN OBTAINED.
       APPLICANT INFORMATION:
       NAME:                       AGE:        SEX:
 (1)         (2)       (3)           (4)         (5)
                                                             COL 3
                       PREM-                                 MINUS
                       IUMS                                  COL 2
 END OF      ANNUAL    ACCUM-                    CASH        NET
 POLICY      PREM-     ULATING                   SURREN-     GAIN
 YEAR        IUM       INTEREST      DEATH       DER         (NET
                       AT 5%         BENEFITS    VALUE       LOSS)
 __________________________________________________________________
 1     
 2     
 3     
 4     
 5     
 6     
 7     
 8     
 9     
 10    
 
   DEFINITIONS.  THE  FOLLOWING  TERMS  USED IN THE ABOVE CHART ARE
 DEFINED AS:
   1. ANNUAL PREMIUM -- AMOUNT YOU MUST PAY EACH YEAR TO KEEP  THIS
 POLICY IN FORCE.
   2. PREMIUMS ACCUMULATING INTEREST AT 5% -- AMOUNT WHICH COULD BE
 EARNED  IF,  INSTEAD  OF PURCHASING INSURANCE, THE PREMIUM DOLLARS
 PAID TO THE INSURER WERE LEFT TO ACCUMULATE AT 5% INTEREST.
   3. DEATH BENEFITS -- AMOUNT THAT WILL BE PAID UPON DEATH, EXCLU-
 SIVE OF ANY SUPPLEMENTARY BENEFITS.
   4. CASH SURRENDER VALUE -- AMOUNT THE INSURANCE COMPANY WILL PAY
 YOU IF YOU SURRENDER YOUR POLICY TO THE COMPANY FOR CASH.
   5. NET GAIN OR LOSS -- THIS  COLUMN  SHOWS  WHETHER  YOUR  MONEY
 WOULD  HAVE  EARNED  MORE  OR  LESS  AT 5% INTEREST THAN YOUR LIFE
 INSURANCE BENEFIT.
   2. ANY CONSUMER INJURED BY A VIOLATION OF THIS SECTION  MAY  BRING  AN
 ACTION  FOR RECOVERY OF DAMAGES. JUDGMENT SHALL BE ENTERED IN FAVOR OF A
 CONSUMER IN AN AMOUNT NOT TO EXCEED THREE TIMES THE  ACTUAL  DAMAGES  OR
 ONE HUNDRED DOLLARS WHICHEVER IS GREATER. THE COURT MAY AWARD REASONABLE
 ATTORNEY'S FEES TO A PREVAILING PLAINTIFF.
   3. IN ADDITION TO THE OTHER REMEDIES PROVIDED, WHENEVER THERE SHALL BE
 A  VIOLATION  OF  THIS  SECTION, APPLICATION MAY BE MADE BY THE ATTORNEY
 GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO A COURT OR
 JUSTICE HAVING JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN  INJUNC-
 TION,  AND  UPON  NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE DAYS, TO
 ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS; AND IF IT  SHALL
 APPEAR  TO  THE  SATISFACTION OF THE COURT OR JUSTICE THAT THE DEFENDANT
 HAS, IN FACT, VIOLATED THIS ARTICLE, AN INJUNCTION MAY BE ISSUED BY SUCH
 COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITH-
 OUT REQUIRING PROOF THAT ANY  PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR
 DAMAGED  THEREBY.  IN ANY SUCH PROCEEDING, THE COURT MAY MAKE ALLOWANCES
 TO THE ATTORNEY GENERAL AS PROVIDED IN PARAGRAPH SIX OF SUBDIVISION  (A)
 OF  SECTION  EIGHTY-THREE  HUNDRED  THREE  OF THE CIVIL PRACTICE LAW AND

 S. 5311                             3
 
 RULES, AND DIRECT RESTITUTION. WHENEVER THE COURT SHALL DETERMINE THAT A
 VIOLATION OF THIS ARTICLE HAS OCCURRED, THE COURT  MAY  IMPOSE  A  CIVIL
 PENALTY  OF  NOT  MORE  THAN FIVE HUNDRED DOLLARS FOR EACH VIOLATION. IN
 CONNECTION  WITH  ANY SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS
 AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE RELEVANT  FACTS
 AND  TO  ISSUE  SUBPOENAS  IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND
 RULES.
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.