Senate Bill S8469

2009-2010 Legislative Session

Relates to prohibiting retained asset accounts

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules 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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2009-S8469 (ACTIVE) - Details

Current Committee:
Senate Rules
Law Section:
Insurance Law
Laws Affected:
Amd ยง3213, Ins L
Versions Introduced in Other Legislative Sessions:
2011-2012: S504
2013-2014: S13
2015-2016: S476
2017-2018: S4854

2009-S8469 (ACTIVE) - Summary

Prohibits insurers from using retained asset accounts to hold proceeds from death benefits.

2009-S8469 (ACTIVE) - Sponsor Memo

2009-S8469 (ACTIVE) - Bill Text download pdf 

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

                                  8469

                            I N  S E N A T E

                             August 6, 2010
                               ___________

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

AN ACT to amend the insurance law, in relation to prohibiting  retained-
  asset accounts

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

  Section 1. Section 3213 of the insurance law is  amended  to  read  as
follows:
  S  3213.  Payment  of proceeds.   1. WHERE THE PROCEEDS OF A POLICY OF
LIFE INSURANCE DELIVERED OR ISSUED FOR DELIVERY IN THIS STATE ARE  PAYA-
BLE,  ACCORDING  TO  ITS  TERMS,  SUCH  PROCEEDS  SHALL NOT BE HELD IN A
RETAINED-ASSET ACCOUNT HELD BY THE INSURER. FOR PURPOSES OF THIS SECTION
A "RETAINED-ASSET ACCOUNT" SHALL MEAN AN ACCOUNT NOT GUARANTEED  BY  THE
FEDERAL  DEPOSIT  INSURANCE CORPORATION, THE FUNDS OF WHICH ARE RETAINED
BY THE INSURER, WITH ALL OR A PORTION OF THE INTEREST BEING PAID TO  THE
INSURER, BUT THE FUNDS OF SUCH ACCOUNT ARE PAYABLE TO THE BENEFICIARY OR
BENEFICIARIES BY USE OF A CHECKBOOK.
  2.  Where  the  proceeds  of  a  policy of life insurance delivered or
issued for delivery in this state are payable, according to  its  terms,
to  two  or  more  beneficiaries without designation of their respective
interests, the proceeds shall be paid to  such  beneficiaries  in  equal
portions.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD18065-01-0

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