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Assembly Bill A5047A

2023-2024 Legislative Session

Relates to the sale of a non-indemnity legal service plan

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Archive: Last Bill Status - In Assembly Committee

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Bill Amendments

co-Sponsors

2023-A5047 - Details

See Senate Version of this Bill:
S4863
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §1101, Ins L
Versions Introduced in 2025-2026 Legislative Session:
A8006, S3147

2023-A5047 - Summary

Provides that the sale of a non-indemnity legal service plan shall not constitute doing an insurance business in this state; makes related provisions.

2023-A5047 - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5047
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2023
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Insurance
 
 AN  ACT to amend the insurance law, in relation to legal services insur-
   ance
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.    Paragraph  29  of subsection (a) of section 1113 of the
 insurance law, as added by chapter 65 of the laws of 1998, is amended to
 read as follows:
   (29) "Legal  services  insurance"  means  insurance  [providing  legal
 services  or  reimbursement  of the cost of legal services] THAT PAYS OR
 REIMBURSES FOR SPECIFIED LEGAL SERVICES OR SPECIFIED LEGAL EXPENSES,  IN
 CONSIDERATION  OF A SPECIFIED PAYMENT, REGARDLESS OF WHETHER THE PAYMENT
 IS MADE BY THE BENEFICIARIES INDIVIDUALLY OR BY A THIRD PERSON ON  THEIR
 BEHALF.  "LEGAL  SERVICES  INSURANCE" DOES NOT INCLUDE THE FURNISHING OF
 LEGAL ASSISTANCE TO MEMBERS, OR THEIR DEPENDENTS, BY AN ORGANIZATION, IN
 WHICH THE ORGANIZATION CONTRACTS DIRECTLY WITH INDEPENDENT ATTORNEYS FOR
 THE PROVISION OF LEGAL SERVICES, WHERE THE ORGANIZATION PAYS  THE  INDE-
 PENDENT ATTORNEY ONLY AN ADMINISTRATIVE FEE AND THE INDEPENDENT ATTORNEY
 RECEIVES  NO  ADDITIONAL  PAYMENT OR REIMBURSEMENT FROM THE ORGANIZATION
 FOR SPECIFIED LEGAL SERVICES OR SPECIFIED LEGAL EXPENSES.
   § 2.  This act shall take effect on the thirtieth day after  it  shall
 have become a law.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08779-01-3

co-Sponsors

2023-A5047A (ACTIVE) - Details

See Senate Version of this Bill:
S4863
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §1101, Ins L
Versions Introduced in 2025-2026 Legislative Session:
A8006, S3147

2023-A5047A (ACTIVE) - Summary

Provides that the sale of a non-indemnity legal service plan shall not constitute doing an insurance business in this state; makes related provisions.

2023-A5047A (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5047--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2023
                                ___________
 
 Introduced  by M. of A. LAVINE, SHIMSKY, TAPIA, CRUZ, SIMON -- read once
   and referred to the Committee  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 committee

 AN  ACT to amend the insurance law, in relation to the sale of a non-in-
   demnity legal service plan
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subsection  (b)  of  section 1101 of the insurance law is
 amended by adding a new paragraph 9 to read as follows:
   (9)(A) NOTWITHSTANDING THE FOREGOING,  THE  SALE  OF  A  NON-INDEMNITY
 LEGAL  SERVICE  PLAN SHALL NOT CONSTITUTE DOING AN INSURANCE BUSINESS IN
 THIS STATE.
   (B) FOR PURPOSES OF THIS PARAGRAPH, A NON-INDEMNITY LEGAL SERVICE PLAN
 INCLUDES ANY PLAN, REGARDLESS OF THE BENEFITS, WHERE LEGAL SERVICES  ARE
 AVAILABLE  TO MEMBERS, OR THEIR DEPENDENTS, THROUGH AN ORGANIZATION THAT
 CONTRACTS DIRECTLY WITH INDEPENDENT ATTORNEYS FOR THE PROVISION  OF  THE
 LEGAL  SERVICES AND THE ORGANIZATION PAYS THE INDEPENDENT ATTORNEY VIA A
 CAPITATED ARRANGEMENT AND THE INDEPENDENT  ATTORNEY  RECEIVES  NO  ADDI-
 TIONAL  PAYMENT  OR  REIMBURSEMENT  FROM  THE ORGANIZATION FOR SPECIFIED
 LEGAL SERVICES OR SPECIFIED LEGAL EXPENSES.
   § 2.  This act shall take effect on the thirtieth day after  it  shall
 have become a law.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08779-03-4

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