Bill Text: NY A06844 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to prohibitions on rebating and discrimination in rates and payments under insurance policies; provides that certain services shall not be considered to be an inducement or rebate unless the superintendent determines that the offer and sale of such services constituted the sole reason for the purchase of such insurance policy.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2020-01-08 - referred to insurance [A06844 Detail]

Download: New_York-2019-A06844-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6844
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 21, 2019
                                       ___________
        Introduced by M. of A. HUNTER -- read once and referred to the Committee
          on Insurance
        AN ACT to amend the insurance law, in relation to prohibitions on rebat-
          ing and discrimination
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subsection (c) of section 4224 of  the  insurance  law,  as
     2  amended  by  chapter  496  of  the  laws  of 2013, is amended to read as
     3  follows:
     4    (c) (1) Except as permitted by  section  three  thousand  two  hundred
     5  thirty-nine  of  this chapter or subsection (f) of this section, no such
     6  life insurance company and no such savings and  insurance  bank  and  no
     7  officer,  agent, solicitor or representative thereof and no such insurer
     8  doing in this state the business of accident and health insurance and no
     9  officer, agent, solicitor or representative  thereof,  and  no  licensed
    10  insurance  broker  and  no  employee or other representative of any such
    11  insurer, agent or broker, shall pay, allow or give,  or  offer  to  pay,
    12  allow or give, directly or indirectly, as an inducement to any person to
    13  insure,  or  shall  give,  sell  or  purchase, or offer to give, sell or
    14  purchase, as such inducement, or interdependent with any policy of  life
    15  insurance  or  annuity  contract or policy of accident and health insur-
    16  ance, any stocks, bonds,  or  other  securities,  or  any  dividends  or
    17  profits  accruing or to accrue thereon, or any valuable consideration or
    18  inducement whatever not specified in such policy or contract other  than
    19  any  valuable consideration, including but not limited to merchandise or
    20  periodical subscriptions, not exceeding twenty-five  dollars  in  value;
    21  nor shall any person in this state knowingly receive as such inducement,
    22  any rebate of premium or policy fee or any special favor or advantage in
    23  the  dividends  or  other  benefits  to  accrue  on  any  such policy or
    24  contract, or knowingly receive  any  paid  employment  or  contract  for
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09663-01-9
        A. 6844                             2
     1  services  of any kind, or any valuable consideration or inducement what-
     2  ever which is not specified in such policy or contract.
     3    (2)   Notwithstanding   the   provisions  of  paragraph  one  of  this
     4  subsection, any services provided, or offered to be provided, by a  life
     5  insurance  company  or  any  officer, agent, solicitor or representative
     6  thereof, or by an insurer doing in this state the business  of  accident
     7  and  health insurance and an officer, agent, solicitor or representative
     8  thereof, or by a licensed insurance broker, an employee or other  repre-
     9  sentative  of  any  such,  insurer,  agent or broker; provided that such
    10  services are offered or delivered as part of the sale or renewal  of  an
    11  insurance  policy,  contract  or  group  insurance policy and offered or
    12  delivered in a  non-discriminatory  manner  to  all  similarly  situated
    13  insureds  or potential insureds, whether or not such services are speci-
    14  fied in such policy or contract,  shall  not  be  considered  to  be  an
    15  inducement  or  rebate prohibited by this section unless the superinten-
    16  dent determines, after a notice and hearing, that the offer and sale  of
    17  such  services  constituted  the  sole  reason  for the purchase of such
    18  insurance policy, contract or group insurance policy and that,  but  for
    19  the  offer  or  delivery of such service, the purchase of such policy or
    20  contract would not have taken place.
    21    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    22  have become a law.