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History
- Referred to insurance
- Referred to insurance
Companion bill
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Allows third party notification by insurance carriers in regard to long term care policies
In Assembly Committee · Insurance · Sponsor Kevin Cahill
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S531
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
2011-12: S.6935/A.168 Referred to Insurance
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.