NY State Senate Bill 2025-S5341

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 20, 2025	referred to insurance

2025-S5341 (ACTIVE) - Details

See Assembly Version of this Bill:: A2006
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3201, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5432, A7661
2021-2022: S3564, A3408
2023-2024: S3543, A4446

2025-S5341 (ACTIVE) - Summary

Identifies certain group policies, group contracts and certificates issued thereunder exempting them from filing and approval requirements.

2025-S5341 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5341

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to the approval of policy
forms

 
SUMMARY OF PROVISIONS:

Section one amends section 3201 of the Insurance Law to add a provision
which identifies certain group policies, group contracts and certif-
icates issued thereunder, exempting them from the filing and approval
requirements. in the section. The provision sets forth the standards by
which the superintendent shall have the authority to issue a cease and
desist order with regard to the issue of such exempted policy forms.
There is also authority granted to the issuer of the group policy form
to include provisions in these policies, contracts and certificates
which are at least as favorable as the standard provisions required in
the law.

Sections two sets forth the effective date.

 
JUSTIFICATION:

This bill would allow New York licensed life insurers to market group
life and group annuities to large employer groups without the require-
ment to obtain prior approval of the policy language from the Department
of Financial Services. This legislation would enable life insurers to
respond to the timeframes demanded by the national large group insurance
marketplace, yet maintain the statutory standards for the protection of
policyholders and insureds set forth in the Insurance Law. New York
property and casualty insurers currently have the ability to market
policies to large commercial clients without the Department's prior
approval through the Department's Free Trade Zone; this legislation
would extend similar authority to life insurers. The current law
provides a system of policy form filing requirements. This legislation
would allow life insurers to obtain relief from these procedural
requirements, but still require the policy and contract forms to meet
the substantive provisions in the Insurance Law governing the content,
benefits and other coverage requirements for group life insurance and
annuities. An exemption from filing requirements would enhance the abil-
ity c New York authorized insurers to respond quickly to requests fo r
coverage, and to tailor the policy language to the particular needs of
the institutional customer. Such policies would however continue to
remain subject to all other applicable provisions of the Insurance Law.
This legislation would only apply to groups with 500 or more employees
or members who have a "qualified benefits manager" as defined in the
legislation, and the group policyholder would be notified that the poli-
cy is not subject to the Department's filing and approval requirements.
The filing exemption set forth in this legislation would not impact, nor
be available for policies sold to individual consumers.

 
PRIOR LEGISLATIVE HISTORY:

S5432 - 19/20

S3564 - 21/22

S3543- 23/24

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
30th day after it shall have become a law

2025-S5341 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5341
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 20, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 the approval of policy
   forms
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph 6 of subsection (c) of section 3201 of the insur-
 ance  law,  as amended by chapter 341 of the laws of 2006, is amended to
 read as follows:
   (6) [(a) The] (A) EXCEPT AS OTHERWISE PROVIDED FOR IN  SUBSECTION  (E)
 OF THIS SECTION, THE superintendent may disapprove any policy form spec-
 ified  in  paragraph  two  of subsection (b) of this section issued by a
 domestic life insurer or fraternal benefit society for delivery  outside
 the  state  if its issuance would be prejudicial to the interests of its
 policyholders or members.
   [(b)] (B) Except for the policy forms specified in  paragraph  two  of
 subsection  (b) of this section, every domestic life insurer and frater-
 nal benefit society shall file annually with the superintendent  a  list
 identifying  and  describing  the  policy forms issued by the insurer or
 fraternal benefit society for delivery  outside  the  state  in  a  form
 prescribed  by the superintendent. If the superintendent determines that
 the issuance of a policy form has been or  may  be  prejudicial  to  the
 interests  of  policyholders or members, the superintendent may take any
 action [he or she]  SUCH  SUPERINTENDENT  deems  appropriate,  including
 issuing an order, after a hearing, to cease and desist issuing the poli-
 cy form.
   (C)  ANY INSURER OR FRATERNAL BENEFIT SOCIETY WHO SHALL ISSUE A POLICY
 FORM WHICH SHALL BE EXEMPT FROM THE FILING AND APPROVAL REQUIREMENTS  OF
 PARAGRAPHS  ONE  AND  TWO  OF SUBSECTION (B) OF THIS SECTION, SHALL FILE
 ANNUALLY WITH THE SUPERINTENDENT A LIST IDENTIFYING AND DESCRIBING  SUCH

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03535-01-5
 S. 5341                             2

 
 POLICY  FORMS  IN  A MANNER PRESCRIBED BY THE SUPERINTENDENT PURSUANT TO
 PARAGRAPH ONE OF SUBSECTION (E) OF THIS SECTION.
   §  2.  Section  3201  of  the insurance law is amended by adding a new
 subsection (e) to read as follows:
   (E)(1) FOR PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE
 THE FOLLOWING MEANINGS:
   (A)  "LARGE  GROUP  POLICYHOLDER" SHALL MEAN A GROUP WITH A MINIMUM OF
 FIVE HUNDRED EMPLOYEES OR MEMBERS THAT EITHER EMPLOY OR CONTRACT WITH  A
 QUALIFIED  BENEFITS MANAGER THAT SHALL SATISFY THE CRITERIA SET FORTH IN
 THIS SUBSECTION.
   (B) (I) "QUALIFIED BENEFITS MANAGER" MEANS AN INDIVIDUAL THAT:
   A. IS A FIDUCIARY UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
 1974 (ERISA);
   B. HOLDS A BACHELOR'S DEGREE OR HIGHER FROM AN ACCREDITED  COLLEGE  OR
 UNIVERSITY;
   C.  HAS  A  MINIMUM OF FIVE YEARS' EXPERIENCE ANALYZING, DESIGNING, OR
 ADVISING GROUPS DEFINED HEREIN REGARDING  GROUP  BENEFIT  PROGRAMS  THAT
 INCLUDE,  BUT  ARE  NOT  LIMITED TO, LIFE INSURANCE, ACCIDENT AND HEALTH
 INSURANCE OR ANNUITY PRODUCTS; OR
   D. HAS A DESIGNATION AS A CERTIFIED BENEFIT PLAN ADMINISTRATOR, CERTI-
 FIED EMPLOYEE BENEFIT SPECIALIST FROM THE  INTERNATIONAL  FOUNDATION  OF
 EMPLOYEE  BENEFIT  PLANS,  CERTIFIED BENEFITS PROFESSIONAL FROM WORLD AT
 WORK, RETIREMENT PLAN PROFESSIONAL ISSUED BY  THE  AMERICAN  SOCIETY  OF
 PENSION  PROFESSIONALS  AND  ACTUARIES,  ANY  OTHER  SIMILAR DESIGNATION
 ISSUED BY AN ACCREDITED COLLEGE OR UNIVERSITY, CHARTERED LIFE UNDERWRIT-
 ER (C.L.U.), OR IS A LICENSED INSURANCE  AGENT  OR  BROKER  PURSUANT  TO
 ARTICLE TWENTY-ONE OF THE THIS CHAPTER; AND
   (II) A QUALIFIED BENEFITS MANAGER SHALL NOT INCLUDE AN INDIVIDUAL THAT
 SHALL  BE  EMPLOYED  BY THE INSURER OR FRATERNAL BENEFIT SOCIETY ISSUING
 THE GROUP POLICY OR ANY PERSON IN THE  INSURERS'  OR  FRATERNAL  BENEFIT
 SOCIETY'S HOLDING COMPANY SYSTEM.
   (2)  NOTWITHSTANDING  ANYTHING IN THIS SECTION TO THE CONTRARY, POLICY
 FORMS DELIVERED OR ISSUED FOR DELIVERY IN THE STATE, POLICY FORMS DEEMED
 TO HAVE BEEN DELIVERED IN THE STATE REGARDLESS OF THE  PLACE  OF  ACTUAL
 DELIVERY,  OR  POLICY FORMS SPECIFIED IN PARAGRAPH TWO OF SUBSECTION (B)
 OF THIS SECTION WHICH SHALL HAVE BEEN ISSUED TO A  LARGE  GROUP  POLICY-
 HOLDER  AS  DEFINED  IN  SUBPARAGRAPH  (A)  OF  PARAGRAPH  ONE  OF  THIS
 SUBSECTION AND THAT ARE ISSUED TO GROUPS DEFINED IN SECTION THREE  THOU-
 SAND TWO HUNDRED TWENTY-TWO OF THIS ARTICLE, EXCEPT AN AGREEMENT PROVID-
 ING FOR PERIODIC PAYMENTS IN SATISFACTION OF A CLAIM, SECTION FOUR THOU-
 SAND  TWO HUNDRED SIXTEEN OF THIS CHAPTER, OTHER THAN POLICY FORMS TO BE
 ISSUED PURSUANT TO PARAGRAPH THREE OR FOURTEEN OF SUBSECTION (B) OF SUCH
 SECTION, AND SECTION FOUR THOUSAND  TWO  HUNDRED  THIRTY-EIGHT  OF  THIS
 CHAPTER  ARE  EXEMPT  FROM  FILING  AND  APPROVAL UNDER PARAGRAPH ONE OF
 SUBSECTION (B) OF THIS SECTION AND  FILING  FOR  DELIVERY  OUTSIDE  THIS
 STATE UNDER PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION.
   (3)  THE SUPERINTENDENT SHALL NOT HAVE THE AUTHORITY TO DISAPPROVE ANY
 SUCH POLICY FORM, BUT SHALL HAVE THE AUTHORITY, AFTER NOTICE AND A HEAR-
 ING SHALL HAVE BEEN GIVEN TO THE INSURER OR  FRATERNAL  BENEFIT  SOCIETY
 WHICH  ISSUED ANY SUCH POLICY FORM, TO ISSUE A CEASE AND DESIST ORDER TO
 SUCH INSURER OR FRATERNAL BENEFIT SOCIETY IF THE USE  OF  SUCH  FORM  IS
 CONTRARY TO THE REQUIREMENTS OF THIS CHAPTER OR INCONSISTENT WITH LAW AT
 THE TIME OF SUCH ORDER.
   (4)  THE  SUPERINTENDENT  SHALL  HAVE  AUTHORITY  TO ISSUE A CEASE AND
 DESIST ORDER TO SUCH INSURER OF FRATERNAL BENEFIT SOCIETY IN THE CASE OF
 ANY SUCH POLICY FORM:
 S. 5341                             3
 
   (A) PERTAINING TO LIFE  INSURANCE,  ANNUITY  CONTRACT,  GROUP  ANNUITY
 CERTIFICATE,  OR FUNDING AGREEMENT FOR A POLICY FORM ISSUED FOR DELIVERY
 OUTSIDE THE STATE, IF ITS ISSUANCE WOULD BE PREJUDICIAL TO THE INTERESTS
 OF POLICYHOLDERS OR MEMBERS;
   (B)  PERTAINING  TO  LIFE  INSURANCE,  ANNUITY CONTRACT, GROUP ANNUITY
 CERTIFICATE, OR FUNDING AGREEMENT FOR A POLICY FORM DELIVERED OR  ISSUED
 FOR  DELIVERY  WITHIN  THE STATE, IF SUCH FORM CONTAINS PROVISIONS WHICH
 ARE UNJUST, UNFAIR OR INEQUITABLE; OR
   (C) PERTAINING TO CERTIFICATES DEEMED TO BE DELIVERED  IN  THIS  STATE
 REGARDLESS OF THE PLACE OF ACTUAL DELIVERY, IF SUCH CERTIFICATE FAILS TO
 AFFORD  INSUREDS  PROTECTIONS SUBSTANTIALLY SIMILAR TO THOSE WHICH SHALL
 BE PROVIDED BY CERTIFICATES DELIVERED IN THE STATE.
   (5) ANY SUCH CEASE AND DESIST ORDER SHALL BE EFFECTIVE NOT  LESS  THAN
 NINETY DAYS AFTER SUCH ORDER IS ISSUED.
   (6)  NOTWITHSTANDING  ANYTHING IN THIS ARTICLE OR ARTICLE FORTY-TWO OF
 THIS CHAPTER TO THE CONTRARY, ANY SCHEDULE OF PREMIUM RATES, COMMISSIONS
 OR FEES WHICH SHALL RELATE TO A GROUP IDENTIFIED IN THIS SUBSECTION  AND
 ARE  REQUIRED  TO BE FILED PURSUANT TO SUCH ARTICLES, MAY IMMEDIATELY BE
 USED BY AN INSURER UPON THE MAILING OF SUCH SCHEDULE TO THE  SUPERINTEN-
 DENT.
   (7)  NOTWITHSTANDING  ANYTHING  IN  THIS  SECTION TO THE CONTRARY, ANY
 GROUP POLICY FORM WHICH SHALL BE EXEMPT FROM FILING  OR  APPROVAL  UNDER
 PARAGRAPH  TWO  OF THIS SUBSECTION, MAY CONTAIN PROVISIONS WHICH ARE, AT
 THE MINIMUM, AS FAVORABLE AS THE PROVISIONS REQUIRED BY THIS ARTICLE AND
 ARTICLE FORTY-TWO OF THIS CHAPTER AS DETERMINED BY THE  ISSUER  OF  SUCH
 GROUP POLICY FORM.
   (8)  EVERY  POLICY  ISSUED PURSUANT TO THIS SUBSECTION SHALL CONTAIN A
 NOTICE TO THE GROUP POLICYHOLDER THAT SUCH POLICY  FORMS  SHALL  NOT  BE
 SUBJECT TO THE FILING AND APPROVAL REQUIREMENTS OF THE STATE.
   §  3.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

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Senate Bill S5341

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

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2025-S5341 (ACTIVE) - Details

2025-S5341 (ACTIVE) - Summary

2025-S5341 (ACTIVE) - Sponsor Memo

2025-S5341 (ACTIVE) - Bill Text download pdf

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Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Insurance Committee

Actions

2025-S5341 (ACTIVE) - Details

2025-S5341 (ACTIVE) - Summary

2025-S5341 (ACTIVE) - Sponsor Memo

2025-S5341 (ACTIVE) - Bill Text download pdf

Comments