Bill Text: NY S04863 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Provides that the sale of a non-indemnity legal service plan shall not constitute doing an insurance business in this state; makes related provisions.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed) 2024-05-16 - referred to insurance [S04863 Detail]

Download: New_York-2023-S04863-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4863

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 16, 2023
                                       ___________

        Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance

        AN ACT to amend the insurance law, in relation to legal services  insur-
          ance

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1.  Paragraph 29 of subsection (a)  of  section  1113  of  the
     2  insurance law, as added by chapter 65 of the laws of 1998, is amended to
     3  read as follows:
     4    (29)  "Legal  services  insurance"  means  insurance  [providing legal
     5  services or reimbursement of the cost of legal services]  that  pays  or
     6  reimburses  for specified legal services or specified legal expenses, in
     7  consideration of a specified payment, regardless of whether the  payment
     8  is  made by the beneficiaries individually or by a third person on their
     9  behalf. "Legal services insurance" does not include  the  furnishing  of
    10  legal assistance to members, or their dependents, by an organization, in
    11  which the organization contracts directly with independent attorneys for
    12  the  provision  of legal services, where the organization pays the inde-
    13  pendent attorney only an administrative fee and the independent attorney
    14  receives no additional payment or reimbursement  from  the  organization
    15  for specified legal services or specified legal expenses.
    16    §  2.   This act shall take effect on the thirtieth day after it shall
    17  have become a law.



         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08779-01-3