Bill Text: NY A04536 | 2019-2020 | General Assembly | Introduced

Bill Title: Requires the terms and conditions of any individual life insurance policy loan to be in writing, be signed by the insured and the agent and contain a signed statement that the agent has explained the terms to the policyholder.

Spectrum: Partisan Bill (Democrat 20-0)

Status: (Introduced) 2019-02-04 - referred to insurance [A04536 Detail]

Download: New_York-2019-A04536-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 4, 2019
        Introduced  by  M. of A. COOK, PEOPLES-STOKES, DenDEKKER, D'URSO, ORTIZ,
          BLAKE, WRIGHT -- Multi-Sponsored by -- M. of A. HYNDMAN, MOSLEY, SIMON
          -- read once and referred to the Committee on Insurance
        AN ACT to amend the insurance  law,  in  relation  to  requirements  for
          making of policy loans
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph 8 of subsection (a) of section 3203 of the insur-
     2  ance law is amended by adding two new subparagraphs (K) and (L) to  read
     3  as follows:
     4    (K) that the agent has fully explained all of the terms and conditions
     5  of the policy loan to the policyholder;
     6    (L)  all  of  the  terms and conditions of any policy loan shall be in
     7  writing in at least ten point type and shall be signed  by  the  insured
     8  and the agent of the insurer;
     9    §  2.  This  act  shall take effect on the sixtieth day after it shall
    10  have become a law and shall apply to all policies  issued,  reviewed  or
    11  modified on or after such effective date.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.