Allows third party notification by insurance carriers in regard to long term care policies

BILL NUMBER:S6935

Title of bill

An act to amend the insurance law, in relation to third party notification by insurance carriers in certain instances in regard to long term care policies; prohibiting the inclusion of certain goods and services in the sale of certain insurance policies without the insured's informed consent, and providing a specific penalty for violation of such prohibition

Purpose or general idea of bill

This bill would require a long-term care insurance carrier to permit senior citizen policy holders to designate a party to which the insurer would transmit notices of premiums due and notices of cancellation. The bill would also prohibit any insurer from including any other insurance policy or product without obtaining the informed consent of the insured. Penalty for such a practice would be one thousand dollars for each violation.

Summary of specific provisions

Subsection (f) of section 3111 of the insurance law is re-lettered subsection (g) and a new subsection (f) is added to provide for third-party notification option for senior citizens.

Subsection (a) of section 2324 and subsection (c) of section 4224 of the insurance law are amended to prohibit any insurer from including any other insurance policy or product without obtaining the informed consent of the insured.

Subsection (f) of section 2324 is amended and a new subsection (f) is added to section 4224 of the insurance law to provide the one thousand dollar penalty for the above practice.

Effects of present law which this bill would alter

Existing insurance law does not require long-term care insurance carriers to allow senior citizens the option of third-party notification, nor does it prohibit the inclusion of additional policies or products in the sale of a specific policy.

Justification

Under certain circumstances unascribable to their own negligence, a senior may be unable to address his or her billings or other notices in a timely fashion. Affording senior citizens the option of selecting.a third party to receive such notices would provide an adequate measure against certain notification procedures and other practices allowed under existing insurance law.

Legislative history

Same As: A.168 Cahill

Fiscal implications

None.

Effective date

Immediately, except that section one of this act shall take effect on the first January next succeeding the date on which it shall have become a law and shall apply to policies issued or renewed on or after such date.