S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7449--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 10, 2021
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Insurance -- recommitted  to  the  Committee  on  Insurance  in
   accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 AN ACT to amend the insurance law, in relation to limiting certain regu-
   lations or orders promulgated by the superintendent; and providing for
   the repeal of certain provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Legislative findings and intent.  The  legislature  hereby
 finds  that  term  life insurance products are a primary vehicle for the
 financial security and protection of the families of many  New  Yorkers.
 Furthermore,  the legislature finds that New York is trailing behind the
 rest of the country in the sale of term life insurance products.  There-
 fore,  it is the intent of the legislature to help to create more oppor-
 tunities for the availability of term life  insurance  policies  in  New
 York.
   § 2. The insurance law is amended by adding a new section 4227 to read
 as follows:
   §  4227.  LIMITATIONS  ON  THE SUPERINTENDENT. (A) NOTWITHSTANDING ANY
 OTHER PROVISION OF LAW, THE SUPERINTENDENT IS PROHIBITED FROM PROMULGAT-
 ING ANY REGULATION, RULE, ADVISORY OR OTHERWISE IMPOSING  ANY  SUITABIL-
 ITY,  BEST  INTEREST  OR FIDUCIARY STANDARD, OR ENFORCING ANY SUCH REGU-
 LATION, RULE, ADVISORY OR OTHERWISE,  PERTAINING  TO  THE  PROVISION  OF
 COUNSEL,  ADVICE OR A RECOMMENDATION TO A CONSUMER OR POTENTIAL CONSUMER
 OF TERM LIFE INSURANCE, BY A LICENSED INSURANCE AGENT OR  BROKER,  OR  A
 LIFE  INSURANCE  COMPANY  AUTHORIZED  TO  DO  BUSINESS IN THIS STATE, IN
 CONJUNCTION WITH THE PURCHASE OF A TERM LIFE INSURANCE POLICY,  AS  THAT
 TERM  IS DEFINED IN THIS CHAPTER, OR IN CONJUNCTION WITH THE EXERCISE OF
 ANY RIGHT OR CONTRACTUAL OPTION OR AMENDMENT PURSUANT TO THE  PROVISIONS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08778-02-2
              

 A. 7449--A                          2
 
 OF  ANY  SUCH  POLICY,  WHEN  THE INSURED FACE AMOUNT OF SUCH POLICY, OR
 POTENTIAL POLICY IS OF ONE MILLION DOLLARS OR LESS.
   (B)  ANY  PROVISION  OF  THE SUPERINTENDENT'S REGULATIONS OR ORDERS IN
 EFFECT ON THE EFFECTIVE DATE OF THIS SECTION WHICH MAY  BE  CONTRARY  TO
 THIS  SECTION SHALL BE DEEMED NULL AND VOID. PARTICULARLY, ANY PROVISION
 OF 11 NYCRR PART 224 CONTRARY TO THIS SECTION SHALL BE NULL AND VOID AND
 THE SUPERINTENDENT SHALL  AMEND  SUCH  REGULATION  ACCORDINGLY,  BY  THE
 CONSENSUS REGULATORY PROCESS.
   §  3.  By July 1, 2023, the superintendent of the department of finan-
 cial services shall submit to the governor, the temporary  president  of
 the senate and the speaker of the assembly, a report on any effects that
 its  suitability  and best interest in life insurance and annuity trans-
 action regulations have had on the term life insurance  market,  includ-
 ing,  but  not  limited to, whether such regulations have contributed to
 declining availability of such products.
   § 4. This act shall take effect immediately; provided,  however,  that
 section  two of this act shall expire and be deemed repealed on December
 31, 2023 or on the one hundred eightieth day after the issuance  of  the
 report  described in section three of this act, whichever date is later,
 provided that the department of  financial  services  shall  notify  the
 legislative  bill  drafting commission upon the completion of the report
 described in section three of this act in order that the commission  may
 maintain an accurate and timely effective data base of the official text
 of  the  laws  of  the state of New York in furtherance of effecting the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.