S T A T E O F N E W Y O R K
________________________________________________________________________
3211
2023-2024 Regular Sessions
I N A S S E M B L Y
February 2, 2023
___________
Introduced by M. of A. HUNTER, STIRPE, BUTTENSCHON -- read once and
referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to prohibitions on rebat-
ing and discrimination
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (c) of section 4224 of the insurance law, as
amended by chapter 496 of the laws of 2013, is amended to read as
follows:
(c) (1) Except as permitted by section three thousand two hundred
thirty-nine of this chapter or subsection (f) of this section, no such
life insurance company and no such savings and insurance bank and no
officer, agent, solicitor or representative thereof and no such insurer
doing in this state the business of accident and health insurance and no
officer, agent, solicitor or representative thereof, and no licensed
insurance broker and no employee or other representative of any such
insurer, agent or broker, shall pay, allow or give, or offer to pay,
allow or give, directly or indirectly, as an inducement to any person to
insure, or shall give, sell or purchase, or offer to give, sell or
purchase, as such inducement, or interdependent with any policy of life
insurance or annuity contract or policy of accident and health insur-
ance, any stocks, bonds, or other securities, or any dividends or
profits accruing or to accrue thereon, or any valuable consideration or
inducement whatever not specified in such policy or contract other than
any valuable consideration, including but not limited to merchandise or
periodical subscriptions, not exceeding twenty-five dollars in value;
nor shall any person in this state knowingly receive as such inducement,
any rebate of premium or policy fee or any special favor or advantage in
the dividends or other benefits to accrue on any such policy or
contract, or knowingly receive any paid employment or contract for
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06684-01-3
A. 3211 2
services of any kind, or any valuable consideration or inducement what-
ever which is not specified in such policy or contract.
(2) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS
SUBSECTION, ANY SERVICES PROVIDED, OR OFFERED TO BE PROVIDED, BY A LIFE
INSURANCE COMPANY OR ANY OFFICER, AGENT, SOLICITOR OR REPRESENTATIVE
THEREOF, OR BY AN INSURER DOING IN THIS STATE THE BUSINESS OF ACCIDENT
AND HEALTH INSURANCE AND AN OFFICER, AGENT, SOLICITOR OR REPRESENTATIVE
THEREOF, OR BY A LICENSED INSURANCE BROKER, AN EMPLOYEE OR OTHER REPRE-
SENTATIVE OF ANY SUCH, INSURER, AGENT OR BROKER; PROVIDED THAT SUCH
SERVICES ARE OFFERED OR DELIVERED AS PART OF THE SALE OR RENEWAL OF AN
INSURANCE POLICY, CONTRACT OR GROUP INSURANCE POLICY AND OFFERED OR
DELIVERED IN A NON-DISCRIMINATORY MANNER TO ALL SIMILARLY SITUATED
INSUREDS OR POTENTIAL INSUREDS, WHETHER OR NOT SUCH SERVICES ARE SPECI-
FIED IN SUCH POLICY OR CONTRACT, SHALL NOT BE CONSIDERED TO BE AN
INDUCEMENT OR REBATE PROHIBITED BY THIS SECTION UNLESS THE SUPERINTEN-
DENT DETERMINES, AFTER A NOTICE AND HEARING, THAT THE OFFER AND SALE OF
SUCH SERVICES CONSTITUTED THE SOLE REASON FOR THE PURCHASE OF SUCH
INSURANCE POLICY, CONTRACT OR GROUP INSURANCE POLICY AND THAT, BUT FOR
THE OFFER OR DELIVERY OF SUCH SERVICE, THE PURCHASE OF SUCH POLICY OR
CONTRACT WOULD NOT HAVE TAKEN PLACE.
§ 2. This act shall take effect on the sixtieth day after it shall
have become a law.