Senate Bill S7661

2015-2016 Legislative Session

Relates to prohibitions on rebating and discrimination in rates and payments under insurance policies

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance 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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2015-S7661 (ACTIVE) - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยงยง2324 & 4224, Ins L
Versions Introduced in Other Legislative Sessions:
2017-2018: S2302
2019-2020: S3524
2021-2022: S3771
2023-2024: S2795

2015-S7661 (ACTIVE) - Summary

Relates to prohibitions on rebating and discrimination in rates and payments under insurance policies; provides that certain services shall not be considered to be an inducement or rebate unless the superintendent determines that the offer and sale of such services constituted the sole reason for the purchase of such insurance policy.

2015-S7661 (ACTIVE) - Sponsor Memo

2015-S7661 (ACTIVE) - Bill Text download pdf

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

                                  7661

                            I N  S E N A T E

                              May 12, 2016
                               ___________

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

AN ACT to amend the insurance law, in relation to prohibitions on rebat-
  ing and discrimination

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

  Section  1.  Section  2324 of the insurance law is amended by adding a
new subsection (g) to read as follows:
  (G) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A) OF THIS  SECTION,
ANY  SERVICES  PROVIDED,  OR  OFFERED  TO  BE PROVIDED, BY AN AUTHORIZED
INSURER, LICENSED INSURANCE  AGENT,  LICENSED  INSURANCE  BROKER  OR  AN
EMPLOYEE  OR  OTHER  REPRESENTATIVE  OF  ANY  SUCH  AUTHORIZED  INSURER,
LICENSED INSURANCE AGENT OR LICENSED  INSURANCE  BROKER;  PROVIDED  THAT
SUCH SERVICES ARE OFFERED OR DELIVERED AS PART OF THE SALE OR RENEWAL OF
AN  INSURANCE  POLICY, CONTRACT OR GROUP INSURANCE POLICY AND OFFERED OR
DELIVERED IN A  NON-DISCRIMINATORY  MANNER  TO  ALL  SIMILARLY  SITUATED
INSUREDS  OR POTENTIAL INSUREDS, WHETHER OR NOT SUCH SERVICES ARE SPECI-
FIED IN SUCH POLICY OR CONTRACT;  SHALL  NOT  BE  CONSIDERED  TO  BE  AN
INDUCEMENT  OR  REBATE PROHIBITED BY THIS SECTION UNLESS THE SUPERINTEN-
DENT DETERMINES, AFTER A NOTICE AND HEARING, THAT THE OFFER AND SALE  OF
SUCH  SERVICES  CONSTITUTED  THE  SOLE  REASON  FOR THE PURCHASE OF SUCH
INSURANCE POLICY, CONTRACT OR GROUP INSURANCE POLICY AND THAT,  BUT  FOR
THE  OFFER  OR  DELIVERY OR SUCH SERVICE, THE PURCHASE OF SUCH POLICY OR
CONTRACT WOULD NOT HAVE TAKEN PLACE.
  S 2. Subsection (c) of section 4224 of the insurance law,  as  amended
by chapter 496 of the laws of 2013, is amended to read as follows:
  (c)  (1)  Except  as  permitted  by section three thousand two hundred
thirty-nine of this chapter or subsection (f) of this section,  no  such
life  insurance  company  and  no such savings and insurance bank and no
officer, agent, solicitor or representative thereof and no such  insurer
doing in this state the business of accident and health insurance and no
officer,  agent,  solicitor  or  representative thereof, and no licensed
insurance broker and no employee or other  representative  of  any  such
insurer,  agent  or  broker,  shall pay, allow or give, or offer to pay,

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

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