Bill Text: NY A03673 | 2023-2024 | General Assembly | Introduced

---

Bill Title: Limits certain regulations or orders promulgated by the superintendent; provides that the department of financial services shall issue a report on the effects that its suitability and best interest in life insurance and annuity transaction regulations have had on the term life insurance market.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to insurance [A03673 Detail]

Download: New_York-2023-A03673-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          3673

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 3, 2023
                                       ___________

        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Insurance

        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:

     1    Section  1.    Legislative findings and intent. The legislature hereby
     2  finds that term life insurance products are a primary  vehicle  for  the
     3  financial  security  and protection of the families of many New Yorkers.
     4  Furthermore, the legislature finds that New York is trailing behind  the
     5  rest  of the country in the sale of term life insurance products. There-
     6  fore, it is the intent of the legislature to help to create more  oppor-
     7  tunities  for  the  availability  of term life insurance policies in New
     8  York.
     9    § 2. The insurance law is amended by adding a new section 4227 to read
    10  as follows:
    11    § 4227. Limitations on the  superintendent.  (a)  Notwithstanding  any
    12  other provision of law, the superintendent is prohibited from promulgat-
    13  ing  any  regulation, rule, advisory or otherwise imposing any suitabil-
    14  ity, best interest or fiduciary standard, or enforcing  any  such  regu-
    15  lation,  rule,  advisory  or  otherwise,  pertaining to the provision of
    16  counsel, advice or a recommendation to a consumer or potential  consumer
    17  of  term  life  insurance, by a licensed insurance agent or broker, or a
    18  life insurance company authorized to  do  business  in  this  state,  in
    19  conjunction  with  the purchase of a term life insurance policy, as that
    20  term is defined in this chapter, or in conjunction with the exercise  of
    21  any  right or contractual option or amendment pursuant to the provisions
    22  of any such policy, when the insured face  amount  of  such  policy,  or
    23  potential policy is of one million dollars or less.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08344-01-3
        A. 3673                             2

     1    (b)  Any  provision  of  the superintendent's regulations or orders in
     2  effect on the effective date of this section which may  be  contrary  to
     3  this  section shall be deemed null and void. Particularly, any provision
     4  of 11 NYCRR Part 224 contrary to this section shall be null and void and
     5  the  superintendent  shall  amend  such  regulation  accordingly, by the
     6  consensus regulatory process.
     7    § 3. By July 1, 2024, the superintendent of the department  of  finan-
     8  cial  services  shall submit to the governor, the temporary president of
     9  the senate and the speaker of the assembly, a report on any effects that
    10  its suitability and best interest in life insurance and  annuity  trans-
    11  action  regulations  have had on the term life insurance market, includ-
    12  ing, but not limited to, whether such regulations  have  contributed  to
    13  declining availability of such products.
    14    §  4.  This act shall take effect immediately; provided, however, that
    15  section two of this act shall expire and be deemed repealed on  December
    16  31,  2024  or on the one hundred eightieth day after the issuance of the
    17  report described in section three of this act, whichever date is  later,
    18  provided  that  the  department  of  financial services shall notify the
    19  legislative bill drafting commission upon the completion of  the  report
    20  described  in section three of this act in order that the commission may
    21  maintain an accurate and timely effective data base of the official text
    22  of the laws of the state of New York in  furtherance  of  effecting  the
    23  provisions  of section 44 of the legislative law and section 70-b of the
    24  public officers law.