S T A T E   O F   N E W   Y O R K
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                                  6279

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 11, 2011
                               ___________

Introduced  by M. of A. LANCMAN -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the insurance law, in relation to accelerated payment of
  the death benefit rider under a life insurance policy

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

  Section  1.   Section 3230 of the insurance law is amended by adding a
new subsection (h) to read as follows:
  (H)(1) AN INSURED WHO HOLDS AN  ACCELERATED  PAYMENT  RIDER  SHALL  BE
ENTITLED  TO  AN  ACCELERATED  PAYMENT OF A DEATH BENEFIT IF IT IS SHOWN
THAT SUCH INSURED HAS MET ONE OF THE CONDITIONS STATED  IN  SUBPARAGRAPH
(C),  (D) OR (E) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOU-
SAND ONE HUNDRED THIRTEEN OF THIS CHAPTER.
  (2) THE AMOUNT OF THE BENEFIT TO WHICH THE INSURED IS  ENTITLED  SHALL
BE  DETERMINED  IN  AN ACTUARIALLY APPROPRIATE MANNER BY CONSIDERING THE
LENGTH THE POLICY HAS BEEN IN EFFECT, THE AMOUNT THAT HAS BEEN PAID UPON
THE POLICY, THE CASH VALUE OF THE POLICY, AND THE AMOUNT  OF  THE  DEATH
BENEFIT.
  (3) THE SUPERINTENDENT SHALL ESTABLISH, THROUGH GUIDELINES, AN ACTUAR-
IALLY  APPROPRIATE METHOD FOR CALCULATING THE AMOUNT OF BENEFIT TO WHICH
AN INSURED HOLDING AN ACCELERATED BENEFIT RIDER SHALL BE  ENTITLED.  THE
SUPERINTENDENT  SHALL  ALSO ESTABLISH A MINIMUM LENGTH OF TIME FOR WHICH
THE POLICY HAD TO HAVE BEEN IN EFFECT IN ORDER FOR THE POLICY HOLDER  TO
RECEIVE A BENEFIT PURSUANT TO THIS SUBSECTION.
  (4)  IF  A POLICY HOLDER HAS PAID A MINIMUM OF TWO HUNDRED FIFTY THOU-
SAND DOLLARS OF A DEATH BENEFIT FOR LONG-TERM CARE  SERVICES,  THEN  ANY
BENEFIT  RECEIVED PURSUANT TO THIS SUBSECTION SHALL NOT BE CONSIDERED AN
ASSET FOR PURPOSES OF MEDICAL ASSISTANCE ELIGIBILITY PURSUANT  TO  TITLE
ELEVEN OF ARTICLE FIVE OF THE SOCIAL SERVICES LAW.
  (5) EVERY INSURER PROVIDING LIFE INSURANCE IN THIS STATE SHALL OFFER A
RIDER  ENTITLING  THE  INSURED TO ACCELERATED PAYMENT OF A DEATH BENEFIT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04449-02-1
              

A. 6279                             2

PURSUANT TO THIS SUBSECTION. WITHIN ONE YEAR OF THE  EFFECTIVE  DATE  OF
THIS SUBSECTION, EACH INSURER SHALL OFFER EVERY INSURED OF A LIFE INSUR-
ANCE  POLICY,  IN EFFECT BEFORE THE EFFECTIVE DATE OF THIS SUBSECTION, A
WRITTEN OFFERING FOR THE ACCELERATED PAYMENT OF A DEATH BENEFIT RIDER BY
MAIL.
  S  2.  This  act  shall  take effect on the two hundred seventieth day
after it shall have become a law and shall apply to life insurance poli-
cies issued,  altered,  amended  or  renewed  on  or  after  such  date;
provided,  that,  effective  immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of the
provisions of this act on its effective date are authorized and directed
to be made and completed on or before such date.