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No co-sponsors yet.
History
- Referred to insurance
- 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.
Relates to prohibiting retained asset accounts
In Assembly Committee · Insurance · Sponsor Michael G. Miller
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S13
Title of bill
An act to amend the insurance law, in relation to prohibiting retained-asset accounts
Purpose or general idea of bill
Bans retained-asset accounts.
Summary of specific provisions
Section 1. Amends section 3213 of the Insurance Law. Prohibits proceeds from a life insurance policy to be held in a retained-asset account held by the insurer. Defines a retained-asset account.
Section 2. Effective Date
Existing law
None.
Justification
A news report in Bloomberg News (July 28, 2010) told the story of a twenty-four year old Army sergeant who had been killed by a bomb in Afghanistan and his $400,000 life insurance policy held by Prudential Financial, Inc. Unfortunately, the money wasn't deposited in a bank account guaranteed by the Federal Deposit Insurance Corporation. It was held in a general corporate account - a retained-asset account controlled by Prudential, where it continued to earn investment income. While Prudential earned 4.8% on income held in retained-asset accounts, it usually paid the survivors only 1% interest.
This legislation would prohibit retained asset accounts. Life insurance policies should be paid in full upon the death of a beneficiary and not retained in an account controlled by the insurer. Corporations like Prudential must not be allowed to earn millions of dollars on its insurance policies while at the same time only paying out a fraction to the survivors.
Prior legislative history
2012: S.504 - Referred to Insurance/A.683 - Referred to Insurance 2011: S.504 - Defeated in Insurance/A.683 - Referred to Insurance 2010: S.8469 - Referred to Rules
Fiscal implications
None to state.
Effective date
Sixty days after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.