Assembly Bill A11110

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11110
 
                           I N  A S S E M B L Y
 
                              April 24, 2026
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to indexing fixed amounts
   and clarifying compliance for certain life insurance and annuity busi-
   nesses; and to repeal certain provisions of such law relating to obso-
   lete language and unnecessary filing requirements

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (G)  of  paragraph  3  of  subsection  (e)  of
 section 4228 of the insurance law, as amended by chapter 427 of the laws
 of 2025, is amended to read as follows:
   (G)  The  superintendent  shall  [periodically]  adjust the cumulative
 maximum training allowance subsidy limits set forth in this paragraph ON
 JANUARY FIRST OF EACH YEAR BY INCREASING THE PREVIOUS YEAR'S  LIMITS  BY
 THE  PERCENTAGE  ADJUSTMENT  OF  THE  ANNUAL MINIMUM WAGE AS PROVIDED BY
 SUBDIVISION ONE-B OF SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW. The
 superintendent may also, at any time, approve training allowance  subsi-
 dies with cumulative maximum amounts that exceed the limits set forth in
 this paragraph.
   §  2.  Paragraph  6 of subsection (e) of section 4228 of the insurance
 law, as amended by chapter 427 of the laws of 2025, is amended  to  read
 as follows:
   (6) A company, including any person, firm or corporation on its behalf
 or  under  any agreement with it, may pay or award, or permit to be paid
 or awarded, prizes and awards to agents and brokers pursuant to  a  plan
 of  agent or broker compensation, provided that no single prize or award
 may exceed a value of five hundred dollars, and that the total value  of
 such  prizes  and awards paid or awarded to any agent or broker within a
 calendar year may not exceed two thousand dollars.  Notwithstanding  the
 foregoing,  a  company  may  also  pay or award not more frequently than
 monthly a prize or award valued at not  more  than  fifty  dollars.  The
 costs  of  all  such prizes and awards shall not be included in applying
 the limits established in subsection (d) of  this  section.  The  super-
 intendent  may authorize higher limits on the value of prizes and awards
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15636-01-6
 A. 11110                            2
 
 than those set forth herein. ON AND AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-SEVEN,  THE  SUPERINTENDENT  SHALL AUTHORIZE HIGHER LIMITS ON THE
 VALUE OF PRIZES AND AWARDS UNDER THIS SECTION ON JANUARY FIRST  OF  EACH
 YEAR  BY INCREASING THE PREVIOUS YEAR'S LIMITS BY THE PERCENTAGE ADJUST-
 MENT OF THE ANNUAL MINIMUM WAGE AS  PROVIDED  BY  SUBDIVISION  ONE-B  OF
 SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW.
   § 3. Subparagraph (E) of paragraph 1 of subsection (f) of section 4228
 of  the  insurance  law, as added by chapter 616 of the laws of 1997, is
 amended to read as follows:
   (E) All filings and related correspondence shall  be  proprietary  and
 confidential, and not disclosed by the superintendent. NOTHING CONTAINED
 IN  THIS  SECTION OR ANY OTHER PROVISION OF LAW SHALL PROHIBIT A COMPANY
 FROM MAKING CHANGES TO ANY COMPENSATION PAYABLE ON POLICIES OR CONTRACTS
 THAT ARE IN FORCE AND SUBJECT TO AN EXISTING  PLAN,  PROVIDED  THAT  THE
 CHANGED  COMPENSATION  MEETS  THE APPLICABLE REQUIREMENTS OF SUBSECTIONS
 (D) AND (E) OF THIS SECTION. A COMPANY SHALL BE PERMITTED TO  MAKE  SUCH
 CHANGES,  AND  CHANGES  WHOSE EFFECT IS TO INCREASE OR OTHERWISE CHANGE,
 BUT NOT REDUCE, THE COMPENSATION  SHALL  BE  SET  FORTH  PURSUANT  TO  A
 COMPENSATION PLAN THAT IS FILED IN ACCORDANCE WITH THE SAME REQUIREMENTS
 OF THIS SECTION THAT WOULD APPLY IF SUCH COMPENSATION APPLIED ONLY PROS-
 PECTIVELY TO NEW BUSINESS.
 Changes whose effect is to reduce or not increase the compensation paya-
 ble  to  every  individual  covered by the arrangement in each and every
 year, need not be filed with the superintendent, but must be  maintained
 in the company's records for at least six years.
   § 4. Subsection (g) of section 4228 of the insurance law is REPEALED.
   § 5. Subparagraph (A) of paragraph 1 of subsection (f) of section 4228
 of the insurance law is REPEALED.
   §  6.  Paragraph  2 of subsection (c) of section 4228 of the insurance
 law, as added by chapter 616 of the laws of 1997, subparagraphs (D)  and
 (F)  as amended by chapter 427 of the laws of 2025 and subparagraphs (E)
 and (G) as amended by chapter 13 of the laws of 2002, is amended to read
 as follows:
   (2) Total  selling  expenses  shall  include  the  following  expenses
 incurred directly or indirectly by the company, without regard to wheth-
 er  they  are  incurred  in  the  company's home office or in a field or
 regional office:
   (A) commissions;
   (B) the increase during the year in the amount of outstanding advances
 and loans to agents, including any accrued and unpaid interest  thereon,
 and  including  amounts  charged  off  by  the company, however, if such
 amount is negative, it shall be treated as a reduction of the amount  of
 total selling expenses;
   (C)  [the  expense  of  direct  solicitation  advertising  that either
 includes an application or solicits a response to obtain an  application
 for a policy or contract regulated under this section;
   (D)]  distribution,  marketing  and  sales  support  expenses directly
 related to the procurement of new business[, which includes but  is  not
 limited to]:
   (i)  recruiting  and training of agents, including related recordkeep-
 ing;
   (ii) sales management and supervision; and
   (iii) clerical functions in sales offices;
   [(E)] (D) any expense allowance paid to the agent  or  broker  by  the
 company or any expenses of the agent, agency or broker, assumed or reim-
 bursed by the company;
 A. 11110                            3
 
   [(F)] (E) the travel expenses, meals and entertainment paid for by the
 company; and
   [(G)] (F) all other compensation paid to or expense incurred on behalf
 of  active  and  retired  agents  and brokers, including the cost of any
 security benefits, BUT EXCLUDING ANY ANNUAL  MARKETING  OR  DISTRIBUTION
 FEE  ON  A  MUTUAL  FUND  OR ANY PORTION THEREOF RECEIVED BY THE COMPANY
 PURSUANT TO RULE 12B-1 UNDER THE INVESTMENT  COMPANY  ACT  OF  1940,  17
 C.F.R.  270.12B-1,  WHICH  IS  THEN  PAID BY THE COMPANY TO THE AGENT OR
 BROKER.
   § 7. This act shall take effect immediately.