S T A T E   O F   N E W   Y O R K
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                                  6804

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 31, 2011
                               ___________

Introduced by M. of A. COOK, GOTTFRIED, JACOBS, ZEBROWSKI -- Multi-Spon-
  sored  by  --  M.  of  A.    BOYLAND,  PHEFFER, TOWNS -- read once and
  referred to the Committee on Insurance

AN ACT to amend the general business law, in relation to  limited  death
  benefit life insurance policies for persons aged sixty and over

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

  Section 1. The general business law is amended by adding a new article
30-B to read as follows:
                              ARTICLE 30-B
                FINANCIAL REVIEW REQUIREMENT FOR LIMITED
                DEATH BENEFIT LIFE INSURANCE POLICIES FOR
                       PERSONS AGED SIXTY AND OVER
SECTION 645. FINANCIAL REVIEW OF POLICY.
  S 645. FINANCIAL REVIEW OF POLICY. 1. WHENEVER A LIFE INSURANCE POLICY
OR CERTIFICATE OF INSURANCE IS DELIVERED OR ISSUED FOR DELIVERY IN  THIS
STATE TO AN APPLICANT AT AGE SIXTY AND OVER, WHICH LIMITS DEATH BENEFITS
DURING  A PERIOD FOLLOWING THE INCEPTION DATE OF THE POLICY OR WHERE THE
ACCUMULATED PREMIUMS EXCEED THE DEATH BENEFIT AT ANY  POINT  DURING  THE
FIRST  TEN YEARS, THE INSURER SHALL PROVIDE THE INSURED WITH A COPY OF A
"FINANCIAL REVIEW OF POLICY" FORM OF AT LEAST TEN POINT  IN  SIZE.  SUCH
FORM  SHALL  USE  SUBSTANTIALLY  THE  SAME  FORMAT AND TERMINOLOGY SHOWN
BELOW, AND SHALL HAVE COMPLETE INFORMATION  PROVIDED  FOR  ANY  AND  ALL
BLANK SPACE.
                       FINANCIAL REVIEW OF POLICY
      NOTICE:  YOU  SHOULD  REVIEW  THIS  FORM AND YOUR POLICY AND
      DECIDE IF THE POLICY IS SUITABLE FOR YOU.  IF  YOU  ARE  NOT
      ENTIRELY  SATISFIED, PURSUANT TO NEW YORK STATE LAW, YOU MAY
      RETURN THE POLICY WITHIN  THIRTY  DAYS  FROM  THE  DATE  YOU
      RECEIVE  IT  AND  OBTAIN A FULL REFUND OF ANY PREMIUMS PAID.
      THIS IS A POLICY OFFERED  WITHOUT  AN  ATTEMPT  TO  CLASSIFY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02339-01-1
              

A. 6804                             2

      RISKS BY DETERMINING YOUR STATE OF HEALTH. PREMIUMS MAY HAVE
      BEEN LOWER IF HEALTH INFORMATION HAD BEEN OBTAINED.
      APPLICANT INFORMATION:
      NAME:                       AGE:        SEX:
(1)         (2)       (3)           (4)         (5)
                                                            COL 3
                      PREM-                                 MINUS
                      IUMS                                  COL 2
END OF      ANNUAL    ACCUM-                    CASH        NET
POLICY      PREM-     ULATING                   SURREN-     GAIN
YEAR        IUM       INTEREST      DEATH       DER         (NET
                      AT 5%         BENEFITS    VALUE       LOSS)
__________________________________________________________________
1
2
3
4
5
6
7
8
9
10

  DEFINITIONS.  THE  FOLLOWING  TERMS  USED IN THE ABOVE CHART ARE
DEFINED AS:
  1. ANNUAL PREMIUM -- AMOUNT YOU MUST PAY EACH YEAR TO KEEP  THIS
POLICY IN FORCE.
  2. PREMIUMS ACCUMULATING INTEREST AT 5% -- AMOUNT WHICH COULD BE
EARNED  IF,  INSTEAD  OF PURCHASING INSURANCE, THE PREMIUM DOLLARS
PAID TO THE INSURER WERE LEFT TO ACCUMULATE AT 5% INTEREST.
  3. DEATH BENEFITS -- AMOUNT THAT WILL BE PAID UPON DEATH, EXCLU-
SIVE OF ANY SUPPLEMENTARY BENEFITS.
  4. CASH SURRENDER VALUE -- AMOUNT THE INSURANCE COMPANY WILL PAY
YOU IF YOU SURRENDER YOUR POLICY TO THE COMPANY FOR CASH.
  5. NET GAIN OR LOSS -- THIS  COLUMN  SHOWS  WHETHER  YOUR  MONEY
WOULD  HAVE  EARNED  MORE  OR  LESS  AT 5% INTEREST THAN YOUR LIFE
INSURANCE BENEFIT.
  2. ANY CONSUMER INJURED BY A VIOLATION OF THIS SECTION  MAY  BRING  AN
ACTION  FOR RECOVERY OF DAMAGES. JUDGMENT SHALL BE ENTERED IN FAVOR OF A
CONSUMER IN AN AMOUNT NOT TO EXCEED THREE TIMES THE  ACTUAL  DAMAGES  OR
ONE HUNDRED DOLLARS WHICHEVER IS GREATER. THE COURT MAY AWARD REASONABLE
ATTORNEY'S FEES TO A PREVAILING PLAINTIFF.
  3. IN ADDITION TO THE OTHER REMEDIES PROVIDED, WHENEVER THERE SHALL BE
A  VIOLATION  OF  THIS  SECTION, APPLICATION MAY BE MADE BY THE ATTORNEY
GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO A COURT OR
JUSTICE HAVING JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN  INJUNC-
TION,  AND  UPON  NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE DAYS, TO
ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS; AND IF IT  SHALL
APPEAR  TO  THE  SATISFACTION OF THE COURT OR JUSTICE THAT THE DEFENDANT
HAS, IN FACT, VIOLATED THIS ARTICLE, AN INJUNCTION MAY BE ISSUED BY SUCH
COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITH-
OUT REQUIRING PROOF THAT ANY  PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR
DAMAGED  THEREBY.  IN ANY SUCH PROCEEDING, THE COURT MAY MAKE ALLOWANCES
TO THE ATTORNEY GENERAL AS PROVIDED IN PARAGRAPH SIX OF SUBDIVISION  (A)
OF  SECTION  EIGHTY-THREE  HUNDRED  THREE  OF THE CIVIL PRACTICE LAW AND

A. 6804                             3

RULES, AND DIRECT RESTITUTION. WHENEVER THE COURT SHALL DETERMINE THAT A
VIOLATION OF THIS ARTICLE HAS OCCURRED, THE COURT  MAY  IMPOSE  A  CIVIL
PENALTY  OF  NOT  MORE  THAN FIVE HUNDRED DOLLARS FOR EACH VIOLATION. IN
CONNECTION  WITH  ANY SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS
AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE RELEVANT  FACTS
AND  TO  ISSUE  SUBPOENAS  IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND
RULES.
  S 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.