Assembly Bill A1797

2023-2024 Legislative Session

Requires persons or entities providing benefits in the event of disability to not impose onerous or unreasonable conditions for the payment of benefits thereunder

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


  • 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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2023-A1797 (ACTIVE) - Details

Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §5-338, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2009-2010: A535
2011-2012: A254
2013-2014: A315
2015-2016: A1923
2017-2018: A2651
2019-2020: A3101
2021-2022: A2191

2023-A1797 (ACTIVE) - Summary

Requires persons or entities providing benefits in the event of disability to not impose "onerous or unreasonable conditions" for the payment or continued payment of benefits thereunder, and provides for the enforcement thereof including actual damages, interest and penalties, reasonable costs and attorney's fees, and in the court's discretion, exemplary damages; exempts worker's compensation and NYS disability insurance.

2023-A1797 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1797
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2023
                                ___________
 
 Introduced  by  M.  of  A.  DINOWITZ, WEPRIN, SEAWRIGHT -- read once and
   referred to the Committee on Judiciary
 
 AN ACT to amend the general obligations law, in relation to  onerous  or
   unreasonable  conditions  in  the  performance  of  disability related
   contracts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  obligations  law is amended by adding a new
 section 5-338 to read as follows:
   § 5-338. PERFORMANCE OF WRITTEN CONTRACTS FOR BENEFITS IN THE EVENT OF
 DISABILITY. 1. NO PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER  ENTI-
 TY, WHETHER SUCH PERSON OR ENTITY BE AN EMPLOYER OR OTHERWISE, EXCLUDING
 WORKERS' COMPENSATION OR NEW YORK STATE DISABILITY INSURANCE, WHO ENTERS
 INTO  A WRITTEN CONTRACT PROVIDING FOR PAYMENT OF BENEFITS OR THE WAIVER
 OF OBLIGATIONS OR BOTH IN THE EVENT OF THE DISABILITY OF A  NAMED  INDI-
 VIDUAL  SHALL,  BY  CONTRACT  OR  OTHERWISE, IMPOSE ON A DISABLED PERSON
 ONEROUS OR UNREASONABLE CONDITIONS FOR THE PAYMENT OR CONTINUED  PAYMENT
 OF  CONTRACTUAL  BENEFITS  OR  THE  WAIVER  OR CONTINUED WAIVER OF OBLI-
 GATIONS.  CONDITIONS ARE "ONEROUS OR UNREASONABLE" IF BY  THEIR  CONTIN-
 UOUS  OR  REPETITIOUS  NATURE  THEY  REQUIRE THE DISABLED BENEFICIARY TO
 PERFORM UNNECESSARY OR DUPLICATIVE ACTS IN ORDER TO  OBTAIN  OR  COLLECT
 THE BENEFITS TO WHICH HE OR SHE IS OTHERWISE ENTITLED UNDER THE CONTRACT
 AND INCLUDE BUT ARE NOT LIMITED TO:
   (A)  REQUIRING  THE DISABLED PERSON TO UNDERGO UNREASONABLY REPETITIVE
 MEDICAL EXAMINATIONS; OR
   (B) REQUIRING THE DISABLED PERSON TO PROVIDE FINELY-DETAILED OR  REPE-
 TITIOUS MEDICAL DOCUMENTATION OF A DISABLING CONDITION; OR
   (C)  BARGAINING  IN BAD FAITH OR ENGAGING IN ANY OF THE ACTS DESCRIBED
 IN THE PARAGRAPHS OF SUBSECTION (A) OF SECTION TWO THOUSAND SIX  HUNDRED
 ONE OF THE INSURANCE LAW, RELATING TO UNFAIR CLAIM SETTLEMENT PRACTICES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00816-01-3
 A. 1797                             2
              

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