S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2074
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2017
                                ___________
 
 Introduced   by   M.   of   A.   COOK,   ORTIZ,   GOTTFRIED,  ZEBROWSKI,
   PEOPLES-STOKES, HOOPER, BLAKE -- Multi-Sponsored by -- M. of A.  HYND-
   MAN, MAGEE, MOSLEY, SIMON, SKARTADOS, TITONE -- 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.
   § 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05629-01-7

 A. 2074                             2
 
       THIS  IS  A  POLICY  OFFERED  WITHOUT AN ATTEMPT TO CLASSIFY
       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)

 A. 2074                             3
 
 OF  SECTION  EIGHTY-THREE  HUNDRED  THREE  OF THE CIVIL PRACTICE LAW AND
 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.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.