S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3408
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2021
                                ___________
 
 Introduced by M. of A. STIRPE -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to the approval of policy
   forms
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph 6 of subsection (c) of section 3201 of the insur-
 ance law, as amended by chapter 341 of the laws of 2006, is  amended  to
 read as follows:
   (6)  [(a)  The] (A) EXCEPT AS OTHERWISE PROVIDED FOR IN SUBSECTION (E)
 OF THIS SECTION, THE superintendent may disapprove any policy form spec-
 ified in paragraph two of subsection (b) of this  section  issued  by  a
 domestic  life insurer or fraternal benefit society for delivery outside
 the state if its issuance would be prejudicial to the interests  of  its
 policyholders or members.
   [(b)]  (B)  Except  for the policy forms specified in paragraph two of
 subsection (b) of this section, every domestic life insurer and  frater-
 nal  benefit  society shall file annually with the superintendent a list
 identifying and describing the policy forms issued  by  the  insurer  or
 fraternal  benefit  society  for  delivery  outside  the state in a form
 prescribed by the superintendent. If the superintendent determines  that
 the  issuance  of  a  policy  form has been or may be prejudicial to the
 interests of policyholders or members, the superintendent may  take  any
 action  he or she deems appropriate, including issuing an order, after a
 hearing, to cease and desist issuing the policy form.
   (C) ANY INSURER OR FRATERNAL BENEFIT SOCIETY WHO SHALL ISSUE A  POLICY
 FORM  WHICH SHALL BE EXEMPT FROM THE FILING AND APPROVAL REQUIREMENTS OF
 PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF  THIS  SECTION,  SHALL  FILE
 ANNUALLY  WITH THE SUPERINTENDENT A LIST IDENTIFYING AND DESCRIBING SUCH
 POLICY FORMS IN A MANNER PRESCRIBED BY THE  SUPERINTENDENT  PURSUANT  TO
 PARAGRAPH ONE OF SUBSECTION (E) OF THIS SECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07510-01-1

 A. 3408                             2
 
   §  2.  Section  3201  of  the insurance law is amended by adding a new
 subsection (e) to read as follows:
   (E)(1)  FOR  PURPOSES  OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (A) "LARGE GROUP POLICYHOLDER" SHALL MEAN A GROUP WITH  A  MINIMUM  OF
 FIVE  HUNDRED EMPLOYEES OR MEMBERS THAT EITHER EMPLOY OR CONTRACT WITH A
 QUALIFIED BENEFITS MANAGER THAT SHALL SATISFY THE CRITERIA SET FORTH  IN
 THIS SUBSECTION.
   (B) (I) "QUALIFIED BENEFITS MANAGER" MEANS AN INDIVIDUAL THAT:
   A. IS A FIDUCIARY UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
 1974 (ERISA);
   B.  HOLDS  A BACHELOR'S DEGREE OR HIGHER FROM AN ACCREDITED COLLEGE OR
 UNIVERSITY;
   C. HAS A MINIMUM OF FIVE YEARS' EXPERIENCE  ANALYZING,  DESIGNING,  OR
 ADVISING  GROUPS  DEFINED  HEREIN  REGARDING GROUP BENEFIT PROGRAMS THAT
 INCLUDE, BUT ARE NOT LIMITED TO, LIFE  INSURANCE,  ACCIDENT  AND  HEALTH
 INSURANCE OR ANNUITY PRODUCTS; OR
   D. HAS A DESIGNATION AS A CERTIFIED BENEFIT PLAN ADMINISTRATOR, CERTI-
 FIED  EMPLOYEE  BENEFIT  SPECIALIST FROM THE INTERNATIONAL FOUNDATION OF
 EMPLOYEE BENEFIT PLANS, CERTIFIED BENEFITS PROFESSIONAL  FROM  WORLD  AT
 WORK,  RETIREMENT  PLAN  PROFESSIONAL  ISSUED BY THE AMERICAN SOCIETY OF
 PENSION PROFESSIONALS  AND  ACTUARIES,  ANY  OTHER  SIMILAR  DESIGNATION
 ISSUED BY AN ACCREDITED COLLEGE OR UNIVERSITY, CHARTERED LIFE UNDERWRIT-
 ER  (C.L.U.),  OR  IS  A  LICENSED INSURANCE AGENT OR BROKER PURSUANT TO
 ARTICLE TWENTY-ONE OF THE THIS CHAPTER; AND
   (II) A QUALIFIED BENEFITS MANAGER SHALL NOT INCLUDE AN INDIVIDUAL THAT
 SHALL BE EMPLOYED BY THE INSURER OR FRATERNAL  BENEFIT  SOCIETY  ISSUING
 THE  GROUP  POLICY  OR  ANY PERSON IN THE INSURERS' OR FRATERNAL BENEFIT
 SOCIETY'S HOLDING COMPANY SYSTEM.
   (2) NOTWITHSTANDING ANYTHING IN THIS SECTION TO THE  CONTRARY,  POLICY
 FORMS DELIVERED OR ISSUED FOR DELIVERY IN THE STATE, POLICY FORMS DEEMED
 TO  HAVE  BEEN  DELIVERED IN THE STATE REGARDLESS OF THE PLACE OF ACTUAL
 DELIVERY, OR POLICY FORMS SPECIFIED IN PARAGRAPH TWO OF  SUBSECTION  (B)
 OF  THIS  SECTION  WHICH SHALL HAVE BEEN ISSUED TO A LARGE GROUP POLICY-
 HOLDER  AS  DEFINED  IN  SUBPARAGRAPH  (A)  OF  PARAGRAPH  ONE  OF  THIS
 SUBSECTION  AND THAT ARE ISSUED TO GROUPS DEFINED IN SECTION THREE THOU-
 SAND TWO HUNDRED TWENTY-TWO OF THIS ARTICLE, EXCEPT AN AGREEMENT PROVID-
 ING FOR PERIODIC PAYMENTS IN SATISFACTION OF A CLAIM, SECTION FOUR THOU-
 SAND TWO HUNDRED SIXTEEN OF THIS CHAPTER, OTHER THAN POLICY FORMS TO  BE
 ISSUED PURSUANT TO PARAGRAPH THREE OR FOURTEEN OF SUBSECTION (B) OF SUCH
 SECTION,  AND  SECTION  FOUR  THOUSAND  TWO HUNDRED THIRTY-EIGHT OF THIS
 CHAPTER ARE EXEMPT FROM FILING  AND  APPROVAL  UNDER  PARAGRAPH  ONE  OF
 SUBSECTION  (B)  OF  THIS  SECTION  AND FILING FOR DELIVERY OUTSIDE THIS
 STATE UNDER PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION.
   (3) THE SUPERINTENDENT SHALL NOT HAVE THE AUTHORITY TO DISAPPROVE  ANY
 SUCH POLICY FORM, BUT SHALL HAVE THE AUTHORITY, AFTER NOTICE AND A HEAR-
 ING  SHALL  HAVE  BEEN GIVEN TO THE INSURER OR FRATERNAL BENEFIT SOCIETY
 WHICH ISSUED ANY SUCH POLICY FORM, TO ISSUE A CEASE AND DESIST ORDER  TO
 SUCH  INSURER  OR  FRATERNAL  BENEFIT SOCIETY IF THE USE OF SUCH FORM IS
 CONTRARY TO THE REQUIREMENTS OF THIS CHAPTER OR INCONSISTENT WITH LAW AT
 THE TIME OF SUCH ORDER.
   (4) THE SUPERINTENDENT SHALL HAVE  AUTHORITY  TO  ISSUE  A  CEASE  AND
 DESIST ORDER TO SUCH INSURER OF FRATERNAL BENEFIT SOCIETY IN THE CASE OF
 ANY SUCH POLICY FORM:
   (A)  PERTAINING  TO  LIFE  INSURANCE,  ANNUITY CONTRACT, GROUP ANNUITY
 CERTIFICATE, OR FUNDING AGREEMENT FOR A POLICY FORM ISSUED FOR  DELIVERY

 A. 3408                             3
 
 OUTSIDE THE STATE, IF ITS ISSUANCE WOULD BE PREJUDICIAL TO THE INTERESTS
 OF POLICYHOLDERS OR MEMBERS;
   (B)  PERTAINING  TO  LIFE  INSURANCE,  ANNUITY CONTRACT, GROUP ANNUITY
 CERTIFICATE, OR FUNDING AGREEMENT FOR A POLICY FORM DELIVERED OR  ISSUED
 FOR  DELIVERY  WITHIN  THE STATE, IF SUCH FORM CONTAINS PROVISIONS WHICH
 ARE UNJUST, UNFAIR OR INEQUITABLE; OR
   (C) PERTAINING TO CERTIFICATES DEEMED TO BE DELIVERED  IN  THIS  STATE
 REGARDLESS OF THE PLACE OF ACTUAL DELIVERY, IF SUCH CERTIFICATE FAILS TO
 AFFORD  INSUREDS  PROTECTIONS SUBSTANTIALLY SIMILAR TO THOSE WHICH SHALL
 BE PROVIDED BY CERTIFICATES DELIVERED IN THE STATE.
   (5) ANY SUCH CEASE AND DESIST ORDER SHALL BE EFFECTIVE NOT  LESS  THAN
 NINETY DAYS AFTER SUCH ORDER IS ISSUED.
   (6)  NOTWITHSTANDING  ANYTHING IN THIS ARTICLE OR ARTICLE FORTY-TWO OF
 THIS CHAPTER TO THE CONTRARY, ANY SCHEDULE OF PREMIUM RATES, COMMISSIONS
 OR FEES WHICH SHALL RELATE TO A GROUP IDENTIFIED IN THIS SUBSECTION  AND
 ARE  REQUIRED  TO BE FILED PURSUANT TO SUCH ARTICLES, MAY IMMEDIATELY BE
 USED BY AN INSURER UPON THE MAILING OF SUCH SCHEDULE TO THE  SUPERINTEN-
 DENT.
   (7)  NOTWITHSTANDING  ANYTHING  IN  THIS  SECTION TO THE CONTRARY, ANY
 GROUP POLICY FORM WHICH SHALL BE EXEMPT FROM FILING  OR  APPROVAL  UNDER
 PARAGRAPH  TWO  OF THIS SUBSECTION, MAY CONTAIN PROVISIONS WHICH ARE, AT
 THE MINIMUM, AS FAVORABLE AS THE PROVISIONS REQUIRED BY THIS ARTICLE AND
 ARTICLE FORTY-TWO OF THIS CHAPTER AS DETERMINED BY THE  ISSUER  OF  SUCH
 GROUP POLICY FORM.
   (8)  EVERY  POLICY  ISSUED PURSUANT TO THIS SUBSECTION SHALL CONTAIN A
 NOTICE TO THE GROUP POLICYHOLDER THAT SUCH POLICY  FORMS  SHALL  NOT  BE
 SUBJECT TO THE FILING AND APPROVAL REQUIREMENTS OF THE STATE.
   §  3.  This  act shall take effect on the thirtieth day after it shall
 have become a law.