Authorizes an insured to designate a third party to receive cancellation notification

BILL NUMBER:S6638

Title of bill

An act to amend the insurance law, in relation to the designation of third parties to receive notification of cancellation

Purpose

This bill would allow the prospective insured to designate a third party who will receive a copy of a notice of cancellation that is sent to the prospective insured.

Summary of provisions

Section one provides paragraph 6 of subsection (b) of section 1117 of the insurance law is amended through the addition of a new subparagraph (F) which would allow the prospective insured who is 65 years of age or older to designate a third party who will receive a copy of the notice of cancellation sent to the prospective insured.

Section two of this bill amends subsection (e) of section 3111 of the insurance law to allow senior citizens who purchases long-term care insurance as defined in section 1117 of this chapter and for which the senior citizen pays for directly to the insurer shall permit the senior citizen to designate a third whom the insurer shall send a copy of the notice of cancellation prior to the effective date of the cancellation and proscribes the manner in which the senior citizen shall notify the insurer of the chosen designated third party. Additionally this section will now provide that if a senior citizen has not made a third party designation the insurer shall include a copy of the third party designation form with each premium statement sent to the senior citizen. This subsection now requires the insurer to confirm that the third party designee's contact information is correct. If the insurer receives designation or termination of a designation the insurer shall verify such action in the manner prescribed.

Section three provides that this act shall take effect on the sixtieth day after it becomes law.

Justification

This bill is designed to protect the senior citizens who are insured in a long-term care health insurance plan from inadvertent cancellation of their policy due to nonpayment. Section one of the bill provides that a senior citizen insured by a longterm care plan has a right to designate a third party to whom a copy of any notice of cancellation due to nonpayment may be sent to, this provision would ensure that individuals who are connected to the senior citizen can protect and help the senior citizen in such an event. Section two of the bill proscribes the manner in which a third party designee may be chosen and the process the insurer may use to confirm designation or termination of designation and requires the insurer to confirm that the contact information of the third party designate is correct.

Legislative history

New Bill

Fiscal implications

None

Effective date

This act shall take effect immediately.