S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8201

                            I N  S E N A T E

                              June 16, 2010
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the general obligations law, in relation to  onerous  or
  unreasonable  conditions  in  the  performance  of  disability related
  contracts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  general  obligations  law is amended by adding a new
section 5-336 to read as follows:
  S 5-336. PERFORMANCE OF WRITTEN CONTRACTS FOR BENEFITS IN THE EVENT OF
DISABILITY. 1. NO PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER  ENTI-
TY, WHETHER SUCH PERSON OR ENTITY BE AN EMPLOYER OR OTHERWISE, EXCLUDING
WORKERS' COMPENSATION OR NEW YORK STATE DISABILITY INSURANCE, WHO ENTERS
INTO  A WRITTEN CONTRACT PROVIDING FOR PAYMENT OF BENEFITS OR THE WAIVER
OF OBLIGATIONS OR BOTH IN THE EVENT OF THE DISABILITY OF A  NAMED  INDI-
VIDUAL  SHALL,  BY  CONTRACT  OR  OTHERWISE, IMPOSE ON A DISABLED PERSON
ONEROUS OR UNREASONABLE CONDITIONS FOR THE PAYMENT OR CONTINUED  PAYMENT
OF  CONTRACTUAL  BENEFITS  OR  THE  WAIVER  OR CONTINUED WAIVER OF OBLI-
GATIONS.  CONDITIONS ARE "ONEROUS OR UNREASONABLE" IF BY  THEIR  CONTIN-
UOUS  OR  REPETITIOUS  NATURE  THEY  REQUIRE THE DISABLED BENEFICIARY TO
PERFORM UNNECESSARY OR DUPLICATIVE ACTS IN ORDER TO  OBTAIN  OR  COLLECT
THE BENEFITS TO WHICH HE OR SHE IS OTHERWISE ENTITLED UNDER THE CONTRACT
AND INCLUDE BUT ARE NOT LIMITED TO:
  (A)  REQUIRING  THE DISABLED PERSON TO UNDERGO UNREASONABLY REPETITIVE
MEDICAL EXAMINATIONS; OR
  (B) REQUIRING THE DISABLED PERSON TO PROVIDE FINELY-DETAILED OR  REPE-
TITIOUS MEDICAL DOCUMENTATION OF A DISABLING CONDITION; OR
  (C)  BARGAINING  IN BAD FAITH OR ENGAGING IN ANY OF THE ACTS DESCRIBED
IN THE PARAGRAPHS OF SUBSECTION (A) OF SECTION TWO THOUSAND SIX  HUNDRED
ONE OF THE INSURANCE LAW, RELATING TO UNFAIR CLAIM SETTLEMENT PRACTICES.
  2.  ANY  PARTY  TO  THE CONTRACT OR CONTRACT BENEFICIARY INJURED BY AN
ACTION OR FAILURE TO ACT IN VIOLATION OF SUBDIVISION ONE OF THIS SECTION
MAY MAINTAIN AN ACTION TO RECOVER AND, UPON PROOF OF SUCH INJURY DUE  TO
VIOLATION  OF  SUBDIVISION ONE OF THIS SECTION BY A PREPONDERANCE OF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD02560-04-0

S. 8201                             2

EVIDENCE, SHALL RECOVER  ACTUAL  DAMAGES,  INCLUDING  ANY  INTEREST  AND
PENALTIES  INCURRED  DUE  TO  THE  VIOLATION  OF SUBDIVISION ONE OF THIS
SECTION, AND REASONABLE COSTS AND ATTORNEY'S FEES. THE COURT MAY IN  ITS
DISCRETION AWARD EXEMPLARY DAMAGES.
  S 2. This act shall take effect immediately.