Bill Text: NY S06812 | 2011-2012 | General Assembly | Amended

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Bill Title: Provides that an insurer may offer valuable consideration, including merchandise or periodical subscriptions of a value of $25 or less to an insured.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-06-04 - SUBSTITUTED BY A9702A [S06812 Detail]

Download: New_York-2011-S06812-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        6812--A
                                   I N  S E N A T E
                                    March 23, 2012
                                      ___________
       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be committed to the Committee  on  Insurance  --  committee
         discharged, bill amended, ordered reprinted as amended and recommitted
         to said committee
       AN  ACT  to  amend  the  insurance  law,  in  relation  to anti-rebating
         provisions for insurers
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Subsection  (a)  of section 2324 of the insurance law, as
    2  amended by chapter 482 of the laws  of  2000,  is  amended  to  read  as
    3  follows:
    4    (a)  No  authorized  insurer, no licensed insurance agent, no licensed
    5  insurance broker, and no employee or other representative  of  any  such
    6  insurer,  agent  or broker shall make, procure or negotiate any contract
    7  of insurance other than as plainly expressed  in  the  policy  or  other
    8  written  contract  issued  or to be issued as evidence thereof, or shall
    9  directly or indirectly, by giving or sharing  a  commission  or  in  any
   10  manner  whatsoever, pay or allow or offer to pay or allow to the insured
   11  or to any employee of the insured, either as an inducement to the making
   12  of insurance or after insurance has been effected, any rebate  from  the
   13  premium which is specified in the policy, or any special favor or advan-
   14  tage  in the dividends or other benefit to accrue thereon, or shall give
   15  or offer to give any valuable consideration or inducement of  any  kind,
   16  directly  or  indirectly,  which  is  not  specified  in  such policy or
   17  contract, other than any [article of] VALUABLE CONSIDERATION,  INCLUDING
   18  BUT  NOT LIMITED TO merchandise OR PERIODICAL SUBSCRIPTIONS, not exceed-
   19  ing [fifteen] TWENTY-FIVE dollars in value [which shall  have  conspicu-
   20  ously stamped or printed thereon the advertisement of the insurer, agent
   21  or  broker],  or shall give, sell or purchase, or offer to give, sell or
   22  purchase, as an inducement  to  the  making  of  such  insurance  or  in
   23  connection  therewith,  any stock, bond or other securities or any divi-
   24  dends or profits accrued thereon, nor shall the insured,  his  agent  or
   25  representative knowingly receive directly or indirectly, any such rebate
   26  or  special  favor or advantage, provided, however, a licensed insurance
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15149-03-2
       S. 6812--A                          2
    1  agent or a licensed insurance broker may retain the usual commission  or
    2  underwriting  fee  on  insurance placed on his own property or risks, if
    3  the aggregate of such commissions or underwriting fees will  not  exceed
    4  five  percent of the total net commissions or underwriting fees received
    5  by such licensed insurance agent or insurance broker during the calendar
    6  year.
    7    S 2.  Subsection (c) of section 4224 of the insurance law, as  amended
    8  by chapter 592 of the laws of 2008, is amended to read as follows:
    9    (c)  Except as permitted by section three thousand two hundred thirty-
   10  nine of this chapter, no such life insurance company and no such savings
   11  and insurance bank and no officer, agent,  solicitor  or  representative
   12  thereof and no such insurer doing in this state the business of accident
   13  and  health insurance and no officer, agent, solicitor or representative
   14  thereof, and no licensed insurance  broker  and  no  employee  or  other
   15  representative of any such insurer, agent or broker, shall pay, allow or
   16  give,  or  offer  to  pay,  allow or give, directly or indirectly, as an
   17  inducement to any person to insure, or shall give, sell or purchase,  or
   18  offer  to  give, sell or purchase, as such inducement, or interdependent
   19  with any policy of life insurance or annuity contract or policy of acci-
   20  dent and health insurance, any stocks, bonds, or  other  securities,  or
   21  any  dividends or profits accruing or to accrue thereon, or any valuable
   22  consideration or inducement whatever not specified  in  such  policy  or
   23  contract OTHER THAN ANY VALUABLE CONSIDERATION, INCLUDING BUT NOT LIMIT-
   24  ED TO MERCHANDISE OR PERIODICAL SUBSCRIPTIONS, NOT EXCEEDING TWENTY-FIVE
   25  DOLLARS  IN  VALUE; nor shall any person in this state knowingly receive
   26  as such inducement, any rebate of premium or policy fee or  any  special
   27  favor  or  advantage in the dividends or other benefits to accrue on any
   28  such policy or contract, or knowingly receive  any  paid  employment  or
   29  contract  for  services  of  any  kind, or any valuable consideration or
   30  inducement whatever which is not specified in such policy or contract.
   31    S 3. This act shall take effect immediately.