S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7286
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 8, 2025
                                ___________
 
 Introduced  by  Sen.  BAILEY -- 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  term  life  insurance
   suitability  information  and  the  limiting of certain regulations or
   orders promulgated by the superintendent related thereto

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings  and intent. The legislature hereby
 finds that term life insurance products are a primary  vehicle  for  the
 financial  security  and protection of the families of many New Yorkers.
 Furthermore, the legislature finds that New York is trailing behind  the
 rest  of the country in the sale of term life insurance products. There-
 fore, it is the intent of the legislature to help to create more  oppor-
 tunities  for  the  availability  of term life insurance policies in New
 York.
   § 2. The insurance law is amended by adding two new sections 4227  and
 4227-a to read as follows:
   §  4227.  TERM  LIFE  INSURANCE  SUITABILITY INFORMATION. FOR A POLICY
 SOLELY PROVIDING TERM LIFE INSURANCE, AS DEFINED IN THIS  CHAPTER,  WITH
 NO  CASH VALUE, THE INFORMATION THAT IS REASONABLY APPROPRIATE TO DETER-
 MINE THE SUITABILITY OF A RECOMMENDATION COMMENSURATE WITH THE MATERIAL-
 ITY OF THE TRANSACTION TO A CONSUMER'S FINANCIAL SITUATION AT  THE  TIME
 OF  THE RECOMMENDATION AND THE COMPLEXITY OF THE TRANSACTION RECOMMENDED
 SHALL BE LIMITED TO AGE AND ANNUAL INCOME.
   § 4227-A. LIMITATIONS ON THE SUPERINTENDENT. (A)  NOTWITHSTANDING  ANY
 OTHER PROVISION OF LAW, THE SUPERINTENDENT IS PROHIBITED FROM PROMULGAT-
 ING ANY REGULATION, RULE, ADVISORY OR OTHERWISE IMPOSING ANY SUITABILITY
 STANDARD, OR ENFORCING ANY SUCH REGULATION, RULE, ADVISORY OR OTHERWISE,
 IN  CONJUNCTION  WITH  THE  PURCHASE OF A TERM LIFE INSURANCE POLICY, AS
 THAT TERM IS DEFINED IN THIS CHAPTER, OR IN CONJUNCTION WITH  THE  EXER-
 CISE  OF  ANY  RIGHT  OR CONTRACTUAL OPTION OR AMENDMENT PURSUANT TO THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10416-03-5
              

 S. 7286                             2
 
 PROVISIONS OF ANY SUCH POLICY, THAT WOULD INCLUDE  SUITABILITY  INFORMA-
 TION  NOT DESCRIBED IN SECTION FOUR THOUSAND TWO HUNDRED TWENTY-SEVEN OF
 THIS ARTICLE.
   (B)  ANY  PROVISION  OF  THE SUPERINTENDENT'S REGULATIONS OR ORDERS IN
 EFFECT ON THE EFFECTIVE DATE OF THIS SECTION WHICH MAY  BE  CONTRARY  TO
 THIS  SECTION SHALL BE DEEMED NULL AND VOID. PARTICULARLY, ANY PROVISION
 OF 11 NYCRR PART 224 CONTRARY TO THIS SECTION SHALL BE NULL AND VOID AND
 THE SUPERINTENDENT SHALL  AMEND  SUCH  REGULATION  ACCORDINGLY,  BY  THE
 CONSENSUS REGULATORY PROCESS.
   § 3. This act shall take effect immediately.