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Who cares
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Sponsors
1 Co-sponsor
History
- Approval memo.34
- Signed chap.563
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.541
- Substituted for A10876A
- Referred to insurance
- Delivered to assembly
- Passed senateVote 58–0
- Amended on third reading 7196a
- Advanced to third reading
Show 3 earlier actions
- 2nd report cal.
- 1st report cal.753
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prohibits accelerated payment of death benefits or special surrender value pursuant to a life insurance policy because of residency in a nursing home
Assembly Floor Calendar · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7196A
Title of bill
An act to amend the insurance law, in relation to prohibiting accelerated payment of death benefits or a special surrender value pursuant to a life insurance policy upon residency in a nursing home for three months or more by the person whose life is insured
Purpose
The purpose of this bill is to expand the definition of the term "life insurance" so that it may include the coverage of persons and have payouts made to such persons at times other than death. Under this bill, a life insurer may be able to write life insurance products where the payment will be available upon such insured residing in a nursing home for three months, with the expectation that such insured will remain a resident of a nursing home until death.
Summary of provisions
Section 1: Amends Insurance Law section 1113 (a) (1) to expand the definition of life insurance to include the coverage of persons who have been a resident of a nursing home for three months or more and to make such event an insurable event under a life insurance policy.
Section 2: Amends Insurance Law section 3201(c) (11) to add life insurance policies that have a trigger for payment of the benefit upon residing in a nursing home for three months or more as one of the types of policies that the Insurance Department must approve the policy form for before an insurer can begin to sell such a product to the general public.
Section 3: Amends Insurance Law section 3230(f) to add the payment of an accelerated payment of a death benefit or special surrender value upon the insured residing in a nursing home for over three months.
Justification
As the general population becomes older, more and more individuals are looking for affordable ways to pay for the financing of their nursing home care. While there are available policies that provide payment for long term home health care, more products should be authorized under New York Law so that consumers will have more types of insurance coverage available to meet their specific needs or the needs of their family.
This bill expands the definition of "life insurance" so that policies can be written in New York that provide financing for those who have been in nursing home care for at least three months, with the expectation that such persons will remain in a nursing home until death. Currently, 49 other states offer life insurers the ability to write this type of coverage in the United states, but not New York. This bill takes care of this discrepancy
Legislative history
New Bill.
Fiscal implications
None.
Effective date
January 1, next succeeding the date upon which it is signed into law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.