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S6960Senate2013-2014 SessionSame asA9208

Allows for the use of an affiliate company to meet certain obligations of an insurer

Sponsor James L. SewardSD-51Affects Finance
Status
Signed by Governor
Impact
Pending
Outcome
Signed into law

Bill progress

Signed into law

What's happening

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Who cares

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Sponsors

Primary sponsor
James L. Seward

Senator · Senate District 51

Chair, Insurance

No co-sponsors yet.

History

  1. Signed chap.388
  2. Delivered to governor
  3. Returned to senate
  4. Passed assembly
  5. Ordered to third reading cal.584
  6. Substituted for A9208
  7. Referred to insurance
  8. Delivered to assembly
  9. Passed senateVote 58–0
  10. Advanced to third reading
  11. 2nd report cal.
  12. 1st report cal.493
Show 1 earlier action
  1. 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.

A9208Assembly

Allows for the use of an affiliate company to meet certain obligations of an insurer

Assembly Floor Calendar · Sponsor Kevin Cahill

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S6960 REVISED MEMO 05/06/2014

Title of bill

An act to amend the insurance law, in relation to allowing for the use of an affiliate company to meet certain obligations of an insurer

Purpose

The purpose of this bill is to grant authority to the Superintendent of Financial Services to allow an insurer to use an affiliate company to meet certain obligations of the insurer.

Summary of provisions

This legislation would allow the Superintendent of the Department of Financial Services to, upon consideration of the public interest, approve requests made by health insurers to satisfy the requirements that they issue replacement coverage in the case of a class discontinuance of individual coverage and issue individual conversion coverage through another entity within the insurer's holding company system.

Justification

This bill would provide health insurers with greater flexibility when offering policies while still ensuring that consumers are able to access quality, affordable coverage that meets their needs. Currently, insurers that discontinue a class of coverage in the individual market are required to offer policyholders replacement coverage; in addition, insurers are required to offer individuals a conversion policy when they are no longer able to access group coverage in certain circumstances. In last year's budget, we allowed the Department of Financial Services (DFS) to exempt Health Maintenance Organizations (HMOs) from these requirements, provided that another insurer within a HMO's holding company offers the same policy with the same consumer protections. However, due to a technical glitch this language only works one way; DFS cannot exempt an insurer from these requirements, even if the insurer has a HMO in its holding company system. This bill would make technical changes to the Insurance Law to address this. All policies would still have to be in compliance with the Affordable Care Act and all applicable New York State laws.

Legislative history

New bill.

Fiscal implications

None.

Effective date

Immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.