S T A T E O F N E W Y O R K
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3408
2021-2022 Regular Sessions
I N A S S E M B L Y
January 26, 2021
___________
Introduced by M. of A. STIRPE -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to the approval of policy
forms
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 6 of subsection (c) of section 3201 of the insur-
ance law, as amended by chapter 341 of the laws of 2006, is amended to
read as follows:
(6) [(a) The] (A) EXCEPT AS OTHERWISE PROVIDED FOR IN SUBSECTION (E)
OF THIS SECTION, THE superintendent may disapprove any policy form spec-
ified in paragraph two of subsection (b) of this section issued by a
domestic life insurer or fraternal benefit society for delivery outside
the state if its issuance would be prejudicial to the interests of its
policyholders or members.
[(b)] (B) Except for the policy forms specified in paragraph two of
subsection (b) of this section, every domestic life insurer and frater-
nal benefit society shall file annually with the superintendent a list
identifying and describing the policy forms issued by the insurer or
fraternal benefit society for delivery outside the state in a form
prescribed by the superintendent. If the superintendent determines that
the issuance of a policy form has been or may be prejudicial to the
interests of policyholders or members, the superintendent may take any
action he or she deems appropriate, including issuing an order, after a
hearing, to cease and desist issuing the policy form.
(C) ANY INSURER OR FRATERNAL BENEFIT SOCIETY WHO SHALL ISSUE A POLICY
FORM WHICH SHALL BE EXEMPT FROM THE FILING AND APPROVAL REQUIREMENTS OF
PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF THIS SECTION, SHALL FILE
ANNUALLY WITH THE SUPERINTENDENT A LIST IDENTIFYING AND DESCRIBING SUCH
POLICY FORMS IN A MANNER PRESCRIBED BY THE SUPERINTENDENT PURSUANT TO
PARAGRAPH ONE OF SUBSECTION (E) OF THIS SECTION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07510-01-1
A. 3408 2
§ 2. Section 3201 of the insurance law is amended by adding a new
subsection (e) to read as follows:
(E)(1) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
(A) "LARGE GROUP POLICYHOLDER" SHALL MEAN A GROUP WITH A MINIMUM OF
FIVE HUNDRED EMPLOYEES OR MEMBERS THAT EITHER EMPLOY OR CONTRACT WITH A
QUALIFIED BENEFITS MANAGER THAT SHALL SATISFY THE CRITERIA SET FORTH IN
THIS SUBSECTION.
(B) (I) "QUALIFIED BENEFITS MANAGER" MEANS AN INDIVIDUAL THAT:
A. IS A FIDUCIARY UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974 (ERISA);
B. HOLDS A BACHELOR'S DEGREE OR HIGHER FROM AN ACCREDITED COLLEGE OR
UNIVERSITY;
C. HAS A MINIMUM OF FIVE YEARS' EXPERIENCE ANALYZING, DESIGNING, OR
ADVISING GROUPS DEFINED HEREIN REGARDING GROUP BENEFIT PROGRAMS THAT
INCLUDE, BUT ARE NOT LIMITED TO, LIFE INSURANCE, ACCIDENT AND HEALTH
INSURANCE OR ANNUITY PRODUCTS; OR
D. HAS A DESIGNATION AS A CERTIFIED BENEFIT PLAN ADMINISTRATOR, CERTI-
FIED EMPLOYEE BENEFIT SPECIALIST FROM THE INTERNATIONAL FOUNDATION OF
EMPLOYEE BENEFIT PLANS, CERTIFIED BENEFITS PROFESSIONAL FROM WORLD AT
WORK, RETIREMENT PLAN PROFESSIONAL ISSUED BY THE AMERICAN SOCIETY OF
PENSION PROFESSIONALS AND ACTUARIES, ANY OTHER SIMILAR DESIGNATION
ISSUED BY AN ACCREDITED COLLEGE OR UNIVERSITY, CHARTERED LIFE UNDERWRIT-
ER (C.L.U.), OR IS A LICENSED INSURANCE AGENT OR BROKER PURSUANT TO
ARTICLE TWENTY-ONE OF THE THIS CHAPTER; AND
(II) A QUALIFIED BENEFITS MANAGER SHALL NOT INCLUDE AN INDIVIDUAL THAT
SHALL BE EMPLOYED BY THE INSURER OR FRATERNAL BENEFIT SOCIETY ISSUING
THE GROUP POLICY OR ANY PERSON IN THE INSURERS' OR FRATERNAL BENEFIT
SOCIETY'S HOLDING COMPANY SYSTEM.
(2) NOTWITHSTANDING ANYTHING IN THIS SECTION TO THE CONTRARY, POLICY
FORMS DELIVERED OR ISSUED FOR DELIVERY IN THE STATE, POLICY FORMS DEEMED
TO HAVE BEEN DELIVERED IN THE STATE REGARDLESS OF THE PLACE OF ACTUAL
DELIVERY, OR POLICY FORMS SPECIFIED IN PARAGRAPH TWO OF SUBSECTION (B)
OF THIS SECTION WHICH SHALL HAVE BEEN ISSUED TO A LARGE GROUP POLICY-
HOLDER AS DEFINED IN SUBPARAGRAPH (A) OF PARAGRAPH ONE OF THIS
SUBSECTION AND THAT ARE ISSUED TO GROUPS DEFINED IN SECTION THREE THOU-
SAND TWO HUNDRED TWENTY-TWO OF THIS ARTICLE, EXCEPT AN AGREEMENT PROVID-
ING FOR PERIODIC PAYMENTS IN SATISFACTION OF A CLAIM, SECTION FOUR THOU-
SAND TWO HUNDRED SIXTEEN OF THIS CHAPTER, OTHER THAN POLICY FORMS TO BE
ISSUED PURSUANT TO PARAGRAPH THREE OR FOURTEEN OF SUBSECTION (B) OF SUCH
SECTION, AND SECTION FOUR THOUSAND TWO HUNDRED THIRTY-EIGHT OF THIS
CHAPTER ARE EXEMPT FROM FILING AND APPROVAL UNDER PARAGRAPH ONE OF
SUBSECTION (B) OF THIS SECTION AND FILING FOR DELIVERY OUTSIDE THIS
STATE UNDER PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION.
(3) THE SUPERINTENDENT SHALL NOT HAVE THE AUTHORITY TO DISAPPROVE ANY
SUCH POLICY FORM, BUT SHALL HAVE THE AUTHORITY, AFTER NOTICE AND A HEAR-
ING SHALL HAVE BEEN GIVEN TO THE INSURER OR FRATERNAL BENEFIT SOCIETY
WHICH ISSUED ANY SUCH POLICY FORM, TO ISSUE A CEASE AND DESIST ORDER TO
SUCH INSURER OR FRATERNAL BENEFIT SOCIETY IF THE USE OF SUCH FORM IS
CONTRARY TO THE REQUIREMENTS OF THIS CHAPTER OR INCONSISTENT WITH LAW AT
THE TIME OF SUCH ORDER.
(4) THE SUPERINTENDENT SHALL HAVE AUTHORITY TO ISSUE A CEASE AND
DESIST ORDER TO SUCH INSURER OF FRATERNAL BENEFIT SOCIETY IN THE CASE OF
ANY SUCH POLICY FORM:
(A) PERTAINING TO LIFE INSURANCE, ANNUITY CONTRACT, GROUP ANNUITY
CERTIFICATE, OR FUNDING AGREEMENT FOR A POLICY FORM ISSUED FOR DELIVERY
A. 3408 3
OUTSIDE THE STATE, IF ITS ISSUANCE WOULD BE PREJUDICIAL TO THE INTERESTS
OF POLICYHOLDERS OR MEMBERS;
(B) PERTAINING TO LIFE INSURANCE, ANNUITY CONTRACT, GROUP ANNUITY
CERTIFICATE, OR FUNDING AGREEMENT FOR A POLICY FORM DELIVERED OR ISSUED
FOR DELIVERY WITHIN THE STATE, IF SUCH FORM CONTAINS PROVISIONS WHICH
ARE UNJUST, UNFAIR OR INEQUITABLE; OR
(C) PERTAINING TO CERTIFICATES DEEMED TO BE DELIVERED IN THIS STATE
REGARDLESS OF THE PLACE OF ACTUAL DELIVERY, IF SUCH CERTIFICATE FAILS TO
AFFORD INSUREDS PROTECTIONS SUBSTANTIALLY SIMILAR TO THOSE WHICH SHALL
BE PROVIDED BY CERTIFICATES DELIVERED IN THE STATE.
(5) ANY SUCH CEASE AND DESIST ORDER SHALL BE EFFECTIVE NOT LESS THAN
NINETY DAYS AFTER SUCH ORDER IS ISSUED.
(6) NOTWITHSTANDING ANYTHING IN THIS ARTICLE OR ARTICLE FORTY-TWO OF
THIS CHAPTER TO THE CONTRARY, ANY SCHEDULE OF PREMIUM RATES, COMMISSIONS
OR FEES WHICH SHALL RELATE TO A GROUP IDENTIFIED IN THIS SUBSECTION AND
ARE REQUIRED TO BE FILED PURSUANT TO SUCH ARTICLES, MAY IMMEDIATELY BE
USED BY AN INSURER UPON THE MAILING OF SUCH SCHEDULE TO THE SUPERINTEN-
DENT.
(7) NOTWITHSTANDING ANYTHING IN THIS SECTION TO THE CONTRARY, ANY
GROUP POLICY FORM WHICH SHALL BE EXEMPT FROM FILING OR APPROVAL UNDER
PARAGRAPH TWO OF THIS SUBSECTION, MAY CONTAIN PROVISIONS WHICH ARE, AT
THE MINIMUM, AS FAVORABLE AS THE PROVISIONS REQUIRED BY THIS ARTICLE AND
ARTICLE FORTY-TWO OF THIS CHAPTER AS DETERMINED BY THE ISSUER OF SUCH
GROUP POLICY FORM.
(8) EVERY POLICY ISSUED PURSUANT TO THIS SUBSECTION SHALL CONTAIN A
NOTICE TO THE GROUP POLICYHOLDER THAT SUCH POLICY FORMS SHALL NOT BE
SUBJECT TO THE FILING AND APPROVAL REQUIREMENTS OF THE STATE.
§ 3. This act shall take effect on the thirtieth day after it shall
have become a law.