Amending the insurance law by expanding the categories of policies classified as blanket accident policies

BILL NUMBER:S6670

Title of bill

An act to amend the insurance law, in relation to blanket group accident and health insurance coverage

Purpose

To update the insurance law by expanding existing statutory blanket group eligibility provisions.

Summary of provisions

Section 1 of the bill expands the listing of types of eligible groups that could be covered by blanket group accident and health insurance.. These would include, but not be limited to: transportation operators, first aid and civil defense groups, sports teams or camp operators, religious, charitable, recreational, educational or civic organizations, restaurants, hotels, motels, resorts or innkeepers, HMOs, healthcare providers or arrangers of health services, banks, associations and financial institutions, travel agencies or travel service providers, entertainment, theater, arts or event production companies, or any other risk or class of risks approved as eligible by the Superintendent of Financial Services.

Section 2 of the bill sets forth the effective date.

Justification

The bill would modernize the insurance law to address current trends in the insurance marketplace and correct deficiencies that inhibit the underwriting of blanket groups in New York. Such updated provisions would also allow for the underwriting of national blanket group insurance programs.

New York is one of a few states whose insurance laws do not grant eligibility for blanket group A&H coverage to religious, charitable, educational or civic (RCEC) organizations, or contain general grants of authority to their Commissioners of Insurance to add other eligible organizations without specificity. This bill would remedy the situation in New York by providing needed flexibility to address future marketplace needs, by granting the Superintendent of the Department of Financial Services discretionary authority to approve other eligible groups in the future that are not specifically enumerated in statute.

The bill is entirely consumer-friendly, in that it expands eligibility to additional worthy organizations that seek blanket group accident and health insurance coverage for their respective passengers, employees, workers, members, campers, volunteers, supervisors, officials, participants, patrons, guests, donors, surrogates, accountholders, debtors, guarantors, purchasers, travelers, audience, and contestants, as the case may be. Expanding eligibility to such enumerated organizations is thus necessary and appropriate, as it would allow them to obtain needed insurance coverage in the voluntary market to guard against unforeseen hazards in their various operations and activities. The bill presents a rare opportunity for a "win-win" situation, as it is good for the State and its political subdivisions,

its residents and consumers, together with commercial and not-for-profit organizations, insurance policyholders, carriers and producers.

Legislative history

New bill.

Fiscal implications

None.

Effective date

Immediately.