Bill Text: NY A06280 | 2023-2024 | General Assembly | Introduced

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Bill Title: Extends the free look period for senior citizens purchasing individual health insurance policies or contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to insurance [A06280 Detail]

Download: New_York-2023-A06280-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6280

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      April 3, 2023
                                       ___________

        Introduced by M. of A. WEPRIN -- 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[,
    11  provided, however, that this paragraph shall not apply to single premium
    12  nonrenewable policies insuring  against  accidents  only  or  accidental
    13  bodily 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09640-01-3
        A. 6280                             2

     1  coverage  shall  have  prominently  printed on the first page thereof or
     2  attached thereto a notice to the effect that, for  a  period  of  ninety
     3  days  from  the  date  the  policy is delivered to the policyholder, the
     4  policy may be surrendered to the insurer together with a written request
     5  for  cancellation  of  the  policy;  and in such event, the insurer will
     6  refund any premium paid therefor including  any  policy  fees  or  other
     7  charges  provided  that  no  claim  for  benefits has been incurred. The
     8  notice shall also state that, in the event a claim for benefits has been
     9  incurred under the policy within the time period from the effective date
    10  of coverage until ninety days from the date the policy is  delivered  to
    11  the  policyholder,  the  insurer  will  refund any premium paid therefor
    12  including any policy fees or other charges less any amounts the  insurer
    13  has paid on claims for benefits under the policy.
    14    (D)  This  paragraph  shall  not  apply to single premium nonrenewable
    15  policies insuring against accidents only or accidental  bodily  injuries
    16  only.
    17    §  2.  Subsection (h) of section 4306 of the insurance law, as amended
    18  by section 32 of part B of chapter 58 of the laws of 2004, is amended to
    19  read as follows:
    20    (h) (1) a statement on the first page of the contract or in  a  notice
    21  attached  to  the contract that during a specified period of time, which
    22  shall not be less than ten days nor more than twenty days from the  date
    23  the  contract  is  delivered to the individual, it may be surrendered to
    24  the corporation together with a written request for cancellation of  the
    25  contract  and that in such event the corporation will refund any premium
    26  paid therefor including any contract fees or other  charges;  [provided,
    27  however, that]
    28    (2)  notwithstanding paragraph one of this subsection, a contract sold
    29  by mail order [and]; a contract providing medicare  supplemental  insur-
    30  ance  covering any individual under age sixty-five on the effective date
    31  of coverage; or a contract providing  long-term  care  insurance  [must]
    32  covering  any  individual  under age sixty-five on the effective date of
    33  coverage shall contain a provision, or shall  have  attached  thereto  a
    34  notice, permitting the individual a thirty day period for such surrender
    35  as described in paragraph one of this subsection;
    36    (3)  notwithstanding paragraph one of this subsection, a contract sold
    37  to any insured who is age sixty-five or older on the effective  date  of
    38  coverage  shall have a statement on the first page of the contract or in
    39  a notice attached to the contract that, for a period of ninety days from
    40  the date the contract is delivered to the individual, the  contract  may
    41  be  surrendered  to  the corporation together with a written request for
    42  cancellation of the contract, and that, in such event,  the  corporation
    43  will  refund  any  premium  paid therefor including any contract fees or
    44  other charges provided no claim for  benefits  has  been  incurred.  The
    45  statement  or  notice  shall  also  state that, in the event a claim for
    46  benefits has been incurred under the contract  within  the  time  period
    47  from  the effective date of coverage until ninety days from the date the
    48  contract is delivered to the individual, the corporation will refund any
    49  premium paid therefor including any contract fees or other charges  less
    50  any  amounts  the  corporation has paid on claims for benefits under the
    51  contract;
    52    § 3. This act shall take effect on the one hundred eightieth day after
    53  it shall have become a law and shall apply to  all  insured  individuals
    54  whose  effective  date  of coverage is on or after the effective date of
    55  this act.