NY State Senate Bill 2023-S2797

Current Bill Status - In Senate Committee Insurance 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Jan 24, 2023	referred to insurance

2023-S2797 (ACTIVE) - Details

See Assembly Version of this Bill:: A4480
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §3245, amd §4224, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S3011, A7609
2017-2018: S1595, A4024
2019-2020: S3521, A3539
2021-2022: S3769, A1697

2023-S2797 (ACTIVE) - Summary

Relates to authorizing non-insurance benefits or services to be offered as part of group life or group or blanket accident or health insurance policies.

2023-S2797 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2797

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to authorizing non-insu-
rance benefits or services to be offered as part of a group life or
group or blanket accident and health insurance policy

 
PURPOSE:

This bill will add a new S 3242 to the Insurance Law to expressly permit
life insurers to include as part of a group life or group or blanket
accident and health insurance policy certain non-insurance benefits such
as: financial and estate planning services; financial counseling for
beneficiaries; travel assistance services; grief counseling services'
funeral planning services; and identity theft services.

 
SUMMARY OF PROVISIONS:

This bill will add a new § 3242 to the Insurance Law to expressly permit
life insurers to include as part of a group life or accident & health

insurance contract certain. non-insurance benefits or services, as
expressly provided or any other benefit or service approved by the
Superintendent. This bill also creates an exception to § 4224 of the
Insurance Law for circumstances where the non-insurance benefits are
permitted under § 3242 of the Insurance Law.

 
JUSTIFICATION:

Section 4224 of the Insurance Law prohibits insurers and their producers
from so-called "rebating" where something- of value is offered for no
charge for the purpose of inducing the purchase of a product. Although
this law was intended to prevent, for instance, insurance producers from
offering merchandise or prizes as an inducement to purchase an insurance
policy, it has been much more broadly interpreted and applied by state
insurance regulators during the policy form filing review process. This
broad interpretation of this section of law has had implications for
insurers which have attempted to have policy form filings approved that
proposed to include certain types of non-insurance benefits and
services, as outlined above, that are routinely offered free of charge
as part of group insurance policies in other states.

If enacted, this bill would expressly permit insurance customers in New
York to benefit from these types of non-insurance benefits & service
that are expressly authorized in the bill and are routinely provided to
such group customers/employees in other states. It also authorizes the
Superintendent of Financial Services to approve any other such benefit
or services that he or she deems appropriate going forward. In addition
to providing express authorization for these types of benefits &
services, this bill will also provide a specific exemption from 9 4224
of the Insurance Law so that it is clear that these types of benefits
and services are not considered to be a rebate. Enactment of this bill
will facilitate life insurers to provide New York employers and employ-
ees who are purchasing group life or accident & health insurance cover-
age with these additional benefits for no charge and will afford them
with the opportunity to take advantage of the services, similarly to
employees in other states.

 
LEGISLATIVE HISTORY:

S.3769 of 2021-22;

S.3521 Of 2019-20;

S.1595 of 2017-18;

S.3011 of 2015-16.

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately.

2023-S2797 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2797
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to authorizing  non-insu-
   rance  benefits  or  services to be offered as part of a group life or
   group or blanket accident and health insurance policy

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The insurance law is amended by adding a new section 3245
 to read as follows:
   § 3245. NON-INSURANCE BENEFITS AND SERVICES AS PART  OF  A  POLICY  OR
 CERTIFICATE OF GROUP LIFE OR GROUP OR BLANKET ACCIDENT AND HEALTH INSUR-
 ANCE.   (A) AN INSURER LICENSED TO WRITE LIFE INSURANCE AND ACCIDENT AND
 HEALTH INSURANCE MAY INCLUDE CERTAIN NON-INSURANCE BENEFITS OR  SERVICES
 IN  CONJUNCTION  WITH ITS ISSUANCE OF A GROUP LIFE INSURANCE OR GROUP OR
 BLANKET ACCIDENT AND HEALTH INSURANCE POLICY. IF INCLUDED, SUCH  NON-IN-
 SURANCE  BENEFITS OR SERVICES SHALL BE MADE AVAILABLE TO SIMILARLY-SITU-
 ATED MEMBERS OF THE GROUP.  ANY NON-INSURANCE BENEFITS OR SERVICES  MADE
 AVAILABLE  UNDER  THE  POLICY  SHALL  BE SET FORTH IN THE POLICY AND THE
 CERTIFICATE.
   (B) NON-INSURANCE BENEFITS AND SERVICES PERMITTED UNDER  THIS  SECTION
 SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
   (1) FINANCIAL AND ESTATE PLANNING SERVICES;
   (2) FINANCIAL COUNSELING FOR BENEFICIARIES;
   (3) TRAVEL ASSISTANCE SERVICES;
   (4) GRIEF COUNSELING SERVICES;
   (5) FUNERAL PLANNING SERVICES;
   (6) IDENTITY THEFT SERVICES; AND
   (7)  ANY  OTHER  BENEFIT OR SERVICE THAT MAY BE APPROVED BY THE SUPER-
 INTENDENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06680-01-3
 S. 2797                             2

   (C) ANY ENTITY PROVIDING NON-INSURANCE BENEFITS OR SERVICES  PERMITTED
 UNDER  THIS SECTION MUST BE APPROPRIATELY LICENSED TO PROVIDE SUCH BENE-
 FITS OR SERVICES.
   (D)  THE  SUPERINTENDENT MAY ADOPT RULES TO REGULATE THE DISCLOSURE IN
 THE POLICY AND CERTIFICATE RELATED  TO  THE  NON-INSURANCE  BENEFITS  OR
 SERVICES PERMITTED UNDER THIS SECTION AND INCLUDED IN THE POLICY.
   §  2.  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) Except as permitted by section three thousand two hundred  thirty-
 nine  OR  THREE  THOUSAND  TWO  HUNDRED  FORTY-FIVE  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 busi-
 ness 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 induce-
 ment, or interdependent with any policy of  life  insurance  or  annuity
 contract  or policy of accident and health insurance, any stocks, bonds,
 or other securities, or any dividends or profits accruing or  to  accrue
 thereon, or any valuable consideration or inducement whatever not speci-
 fied  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 services of any kind, or  any  valu-
 able consideration or inducement whatever which is not specified in such
 policy or contract.
   § 3. This act shall take effect immediately.

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Senate Bill S2797

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

2023-S2797 (ACTIVE) - Details

2023-S2797 (ACTIVE) - Summary

2023-S2797 (ACTIVE) - Sponsor Memo

2023-S2797 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2797

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Sponsored By

Neil D. Breslin

Current Bill Status - In Senate Committee Insurance Committee

2023-S2797 (ACTIVE) - Details

2023-S2797 (ACTIVE) - Summary

2023-S2797 (ACTIVE) - Sponsor Memo

2023-S2797 (ACTIVE) - Bill Text download pdf

Comments