Bill Text: NY A05428 | 2017-2018 | General Assembly | Introduced
Bill Title: Extends the free look period for senior citizens purchasing individual health insurance policies or contracts.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2018-01-03 - referred to insurance [A05428 Detail]
Download: New_York-2017-A05428-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5428 2017-2018 Regular Sessions IN ASSEMBLY February 9, 2017 ___________ Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. JAFFEE, MONTESANO, MORELLE, PERRY, RIVERA -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to an extended free look period for senior citizens purchasing individual health insurance policies or contracts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 10 of subsection (c) of section 3216 of the 2 insurance law, as amended by section 31 of part B of chapter 58 of the 3 laws of 2004, is amended to read as follows: 4 (10) (A) There is prominently printed on the first page thereof or 5 there is attached thereto a notice to the effect that during a specified 6 period of time, which shall not be less than ten days nor more than 7 twenty days from the date the policy is delivered to the policyholder, 8 it may be surrendered to the insurer together with a written request for 9 cancellation of the policy and in such event the insurer will refund any 10 premium paid therefor including any policy fees or other charges[,11provided, however, that this paragraph shall not apply to single premium12nonrenewable policies insuring against accidents only or accidental13bodily injuries only; provided, however, that]. 14 (B) Notwithstanding subparagraph (A) of this paragraph, a [contract] 15 policy or certificate sold by mail order [and]; a [contract] policy or 16 certificate providing medicare supplemental insurance covering any 17 insured under age sixty-five on the effective date of coverage; or a 18 policy or certificate providing long-term care insurance [must] covering 19 any insured under age sixty-five on the effective date of coverage shall 20 contain a provision, or shall have attached thereto a notice, permitting 21 the [contract] policy or certificate holder a thirty day period for such 22 surrender as described in subparagraph (A) of this paragraph. 23 (C) Notwithstanding subparagraph (A) of this paragraph, a policy sold 24 to any insured who is age sixty-five or older on the effective date of 25 coverage shall have prominently printed on the first page thereof or 26 attached thereto a notice to the effect that, for a period of ninety EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09516-01-7A. 5428 2 1 days from the date the policy is delivered to the policyholder, the 2 policy may be surrendered to the insurer together with a written request 3 for cancellation of the policy; and in such event, the insurer will 4 refund any premium paid therefor including any policy fees or other 5 charges provided that no claim for benefits has been incurred. The 6 notice shall also state that, in the event a claim for benefits has been 7 incurred under the policy within the time period from the effective date 8 of coverage until ninety days from the date the policy is delivered to 9 the policyholder, the insurer will refund any premium paid therefor 10 including any policy fees or other charges less any amounts the insurer 11 has paid on claims for benefits under the policy. 12 (D) This paragraph shall not apply to single premium nonrenewable 13 policies insuring against accidents only or accidental bodily injuries 14 only. 15 § 2. Subsection (h) of section 4306 of the insurance law, as amended 16 by section 32 of part B of chapter 58 of the laws of 2004, is amended to 17 read as follows: 18 (h) (1) a statement on the first page of the contract or in a notice 19 attached to the contract that during a specified period of time, which 20 shall not be less than ten days nor more than twenty days from the date 21 the contract is delivered to the individual, it may be surrendered to 22 the corporation together with a written request for cancellation of the 23 contract and that in such event the corporation will refund any premium 24 paid therefor including any contract fees or other charges; [provided,25however, that] 26 (2) notwithstanding paragraph one of this subsection, a contract sold 27 by mail order [and]; a contract providing medicare supplemental insur- 28 ance covering any individual under age sixty-five on the effective date 29 of coverage; or a contract providing long-term care insurance [must] 30 covering any individual under age sixty-five on the effective date of 31 coverage shall contain a provision, or shall have attached thereto a 32 notice, permitting the individual a thirty day period for such surrender 33 as described in paragraph one of this subsection; 34 (3) notwithstanding paragraph one of this subsection, a contract sold 35 to any insured who is age sixty-five or older on the effective date of 36 coverage shall have a statement on the first page of the contract or in 37 a notice attached to the contract that, for a period of ninety days from 38 the date the contract is delivered to the individual, the contract may 39 be surrendered to the corporation together with a written request for 40 cancellation of the contract, and that, in such event, the corporation 41 will refund any premium paid therefor including any contract fees or 42 other charges provided no claim for benefits has been incurred. The 43 statement or notice shall also state that, in the event a claim for 44 benefits has been incurred under the contract within the time period 45 from the effective date of coverage until ninety days from the date the 46 contract is delivered to the individual, the corporation will refund any 47 premium paid therefor including any contract fees or other charges less 48 any amounts the corporation has paid on claims for benefits under the 49 contract; 50 § 3. This act shall take effect on the one hundred eightieth day after 51 it shall have become a law and shall apply to all insured individuals 52 whose effective date of coverage is on or after the effective date of 53 this act.
