Senate Bill S4863

2023-2024 Legislative Session

Relates to the sale of a non-indemnity legal service plan

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Votes

Bill Amendments

co-Sponsors

2023-S4863 - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §1101, Ins L

2023-S4863 - Summary

Provides that the sale of a non-indemnity legal service plan shall not constitute doing an insurance business in this state; makes related provisions.

2023-S4863 - Sponsor Memo

2023-S4863 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4863
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 16, 2023
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to legal services  insur-
   ance
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1.  Paragraph 29 of subsection (a)  of  section  1113  of  the
 insurance law, as added by chapter 65 of the laws of 1998, is amended to
 read as follows:
   (29)  "Legal  services  insurance"  means  insurance  [providing legal
 services or reimbursement of the cost of legal services]  THAT  PAYS  OR
 REIMBURSES  FOR SPECIFIED LEGAL SERVICES OR SPECIFIED LEGAL EXPENSES, IN
 CONSIDERATION OF A SPECIFIED PAYMENT, REGARDLESS OF WHETHER THE  PAYMENT
 IS  MADE BY THE BENEFICIARIES INDIVIDUALLY OR BY A THIRD PERSON ON THEIR
 BEHALF. "LEGAL SERVICES INSURANCE" DOES NOT INCLUDE  THE  FURNISHING  OF
 LEGAL ASSISTANCE TO MEMBERS, OR THEIR DEPENDENTS, BY AN ORGANIZATION, IN
 WHICH THE ORGANIZATION CONTRACTS DIRECTLY WITH INDEPENDENT ATTORNEYS FOR
 THE  PROVISION  OF LEGAL SERVICES, WHERE THE ORGANIZATION PAYS THE INDE-
 PENDENT ATTORNEY ONLY AN ADMINISTRATIVE FEE AND THE INDEPENDENT ATTORNEY
 RECEIVES NO ADDITIONAL PAYMENT OR REIMBURSEMENT  FROM  THE  ORGANIZATION
 FOR SPECIFIED LEGAL SERVICES OR SPECIFIED LEGAL EXPENSES.
   §  2.   This act shall take effect on the thirtieth day after it shall
 have become a law.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08779-01-3



              

co-Sponsors

2023-S4863A (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §1101, Ins L

2023-S4863A (ACTIVE) - Summary

Provides that the sale of a non-indemnity legal service plan shall not constitute doing an insurance business in this state; makes related provisions.

2023-S4863A (ACTIVE) - Sponsor Memo

2023-S4863A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4863--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 16, 2023
                                ___________
 
 Introduced  by Sens. COONEY, SCARCELLA-SPANTON -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Insur-
   ance  --  recommitted to the Committee on Insurance in accordance with
   Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 AN  ACT to amend the insurance law, in relation to the sale of a non-in-
   demnity legal service plan
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subsection  (b)  of  section 1101 of the insurance law is
 amended by adding a new paragraph 9 to read as follows:
   (9)(A) NOTWITHSTANDING THE FOREGOING,  THE  SALE  OF  A  NON-INDEMNITY
 LEGAL  SERVICE  PLAN SHALL NOT CONSTITUTE DOING AN INSURANCE BUSINESS IN
 THIS STATE.
   (B) FOR PURPOSES OF THIS PARAGRAPH, A NON-INDEMNITY LEGAL SERVICE PLAN
 INCLUDES ANY PLAN, REGARDLESS OF THE BENEFITS, WHERE LEGAL SERVICES  ARE
 AVAILABLE  TO MEMBERS, OR THEIR DEPENDENTS, THROUGH AN ORGANIZATION THAT
 CONTRACTS DIRECTLY WITH INDEPENDENT ATTORNEYS FOR THE PROVISION  OF  THE
 LEGAL  SERVICES AND THE ORGANIZATION PAYS THE INDEPENDENT ATTORNEY VIA A
 CAPITATED ARRANGEMENT AND THE INDEPENDENT  ATTORNEY  RECEIVES  NO  ADDI-
 TIONAL  PAYMENT  OR  REIMBURSEMENT  FROM  THE ORGANIZATION FOR SPECIFIED
 LEGAL SERVICES OR SPECIFIED LEGAL EXPENSES.
   § 2.  This act shall take effect on the thirtieth day after  it  shall
 have become a law.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08779-02-4



              

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