S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3564
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2021
                                ___________
 
 Introduced  by  M.  of  A.  HUNTER, STIRPE, BUTTENSCHON -- 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.
                                                            LBD05964-01-1
              

 A. 3564                             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.