Senate Bill S8201

2009-2010 Legislative Session

Requires persons or entities providing benefits in the event of disability to not impose onerous or unreasonable conditions for the payment of benefits thereunder

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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-S8201 (ACTIVE) - Details

See Assembly Version of this Bill:
A535
Current Committee:
Senate Rules
Law Section:
General Obligations Law
Laws Affected:
Add ยง5-336, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2011-2012: S1183, A254
2013-2014: S2696, A315
2015-2016: S675, A1923
2017-2018: S3283, A2651
2019-2020: S4026, A3101
2021-2022: A2191
2023-2024: A1797

2009-S8201 (ACTIVE) - Summary

Requires persons or entities providing benefits in the event of disability to not impose "onerous or unreasonable conditions" for the payment or continued payment of benefits thereunder, and provides for the enforcement thereof including actual damages, interest and penalties, reasonable costs and attorney's fees, and in the court's discretion, exemplary damages; exempts worker's compensation and NYS disability insurance.

2009-S8201 (ACTIVE) - Sponsor Memo

2009-S8201 (ACTIVE) - Bill Text download pdf

                            
                    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.
              

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