S T A T E O F N E W Y O R K
________________________________________________________________________
7449--A
2021-2022 Regular Sessions
I N A S S E M B L Y
May 10, 2021
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Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Insurance -- recommitted to the Committee on Insurance in
accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the insurance law, in relation to limiting certain regu-
lations or orders promulgated by the superintendent; and providing for
the repeal of certain provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings and intent. The legislature hereby
finds that term life insurance products are a primary vehicle for the
financial security and protection of the families of many New Yorkers.
Furthermore, the legislature finds that New York is trailing behind the
rest of the country in the sale of term life insurance products. There-
fore, it is the intent of the legislature to help to create more oppor-
tunities for the availability of term life insurance policies in New
York.
§ 2. The insurance law is amended by adding a new section 4227 to read
as follows:
§ 4227. LIMITATIONS ON THE SUPERINTENDENT. (A) NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, THE SUPERINTENDENT IS PROHIBITED FROM PROMULGAT-
ING ANY REGULATION, RULE, ADVISORY OR OTHERWISE IMPOSING ANY SUITABIL-
ITY, BEST INTEREST OR FIDUCIARY STANDARD, OR ENFORCING ANY SUCH REGU-
LATION, RULE, ADVISORY OR OTHERWISE, PERTAINING TO THE PROVISION OF
COUNSEL, ADVICE OR A RECOMMENDATION TO A CONSUMER OR POTENTIAL CONSUMER
OF TERM LIFE INSURANCE, BY A LICENSED INSURANCE AGENT OR BROKER, OR A
LIFE INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE, IN
CONJUNCTION WITH THE PURCHASE OF A TERM LIFE INSURANCE POLICY, AS THAT
TERM IS DEFINED IN THIS CHAPTER, OR IN CONJUNCTION WITH THE EXERCISE OF
ANY RIGHT OR CONTRACTUAL OPTION OR AMENDMENT PURSUANT TO THE PROVISIONS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08778-02-2
A. 7449--A 2
OF ANY SUCH POLICY, WHEN THE INSURED FACE AMOUNT OF SUCH POLICY, OR
POTENTIAL POLICY IS OF ONE MILLION DOLLARS OR LESS.
(B) ANY PROVISION OF THE SUPERINTENDENT'S REGULATIONS OR ORDERS IN
EFFECT ON THE EFFECTIVE DATE OF THIS SECTION WHICH MAY BE CONTRARY TO
THIS SECTION SHALL BE DEEMED NULL AND VOID. PARTICULARLY, ANY PROVISION
OF 11 NYCRR PART 224 CONTRARY TO THIS SECTION SHALL BE NULL AND VOID AND
THE SUPERINTENDENT SHALL AMEND SUCH REGULATION ACCORDINGLY, BY THE
CONSENSUS REGULATORY PROCESS.
§ 3. By July 1, 2023, the superintendent of the department of finan-
cial services shall submit to the governor, the temporary president of
the senate and the speaker of the assembly, a report on any effects that
its suitability and best interest in life insurance and annuity trans-
action regulations have had on the term life insurance market, includ-
ing, but not limited to, whether such regulations have contributed to
declining availability of such products.
§ 4. This act shall take effect immediately; provided, however, that
section two of this act shall expire and be deemed repealed on December
31, 2023 or on the one hundred eightieth day after the issuance of the
report described in section three of this act, whichever date is later,
provided that the department of financial services shall notify the
legislative bill drafting commission upon the completion of the report
described in section three of this act in order that the commission may
maintain an accurate and timely effective data base of the official text
of the laws of the state of New York in furtherance of effecting the
provisions of section 44 of the legislative law and section 70-b of the
public officers law.