S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6844
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 21, 2019
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred 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. 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,
 allow or give, directly or indirectly, as an inducement to any person to
 insure,  or  shall  give,  sell  or  purchase, or offer to give, sell or
 purchase, as such inducement, or interdependent with any policy of  life
 insurance  or  annuity  contract or policy of accident and health insur-
 ance, any stocks, bonds,  or  other  securities,  or  any  dividends  or
 profits  accruing or to accrue thereon, or any valuable consideration or
 inducement whatever not specified in such policy or contract other  than
 any  valuable consideration, including but not limited to merchandise or
 periodical subscriptions, not exceeding twenty-five  dollars  in  value;
 nor shall any person in this state knowingly receive as such inducement,
 any rebate of premium or policy fee or any special favor or advantage in
 the  dividends  or  other  benefits  to  accrue  on  any  such policy or
 contract, or knowingly receive  any  paid  employment  or  contract  for

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09663-01-9
              

 A. 6844                             2
 
 services  of any kind, or any valuable consideration or inducement what-
 ever which is not specified in such policy or contract.
   (2)   NOTWITHSTANDING   THE   PROVISIONS  OF  PARAGRAPH  ONE  OF  THIS
 SUBSECTION, ANY SERVICES PROVIDED, OR OFFERED TO BE PROVIDED, BY A  LIFE
 INSURANCE  COMPANY  OR  ANY  OFFICER, AGENT, SOLICITOR OR REPRESENTATIVE
 THEREOF, OR BY AN INSURER DOING IN THIS STATE THE BUSINESS  OF  ACCIDENT
 AND  HEALTH INSURANCE AND AN OFFICER, AGENT, SOLICITOR OR REPRESENTATIVE
 THEREOF, OR BY A LICENSED INSURANCE BROKER, AN EMPLOYEE OR OTHER  REPRE-
 SENTATIVE  OF  ANY  SUCH,  INSURER,  AGENT OR 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 OF SUCH SERVICE, THE PURCHASE OF SUCH POLICY OR
 CONTRACT WOULD NOT HAVE TAKEN PLACE.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.