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Who cares
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Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1103
- 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 life, accident and health insurance; discrimination and rebating; prohibited inducements and independent sales
In Assembly Committee · Insurance · Sponsor Andrew Hevesi
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7299
Title of bill
An act to amend the insurance law, in relation to life, accident and health insurance; discriminating and rebating; prohibited inducements and independent sales
Purpose
To modernize the insurance law to allow licensed brokers, agents and benefit consultants to assist insurers and employers in the interpretation, management and communication of the insurance policy and its resulting costs, and to assist insurers and employers in the development and implementation of care coordination services and other incidental or ancillary programs and services.
Summary of provisions
Section 1 of the bill would amend subsection (f) of § 4224 of the insurance law by adding a new paragraph (3) thereto, to allow licensed insurance producers without charging a service fee, or in the case of licensed insurance brokers for a separate service fee, to provide certain services to assist insurers and, policyholders in the interpretation, management and communication of health insurance policies and plans and their costs, including risk assessment, insurance consultation and advice, insurance-related regulatory & legislative updates, claims assistance services, tax preparations services related to IRS Form 5500 Schedule A (Annual Return/Report of Employee Benefit Plan), insurance plan information, forms, administration, employee & subscriber enrollment services, website links/employee benefit portals, answers to FAQs, COBRA administration services, and HIPAA compliance services.
Section 2 of the bill would provide for an immediate effective date.
Justification
The fast-paced and competitive insurance marketplace continues to evolve, and insurance producers must change with it. Integral to this is the modernization of certain statutory restrictions that are old and outmoded. Chief amongst these are the anti-rebating and inducement laws that were originally designed to protect insurance producers and consumers alike from offering and accepting illegal inducements for the sale of insurance products. In today's sophisticated health insurance market, licensed insurance producers, including brokers, agents and benefits consultants, must be able to offer a full value-added services platform, such as providing benefits concierge, employee communications, benefits web sites and help desks, benefits statements, compliance support, in order to attract business and close the sale. Employer groups of all sizes are increasingly looking not only for traditional advice in selecting health plan benefits design and coverage options, underwriting to reduce claims losses, and claims servicing and policyholder advocacy, but are also demanding back-office human resources support.
The statutory exceptions and allowanced prescribed in this bill would modernize the insurance law with respect to health insurance, and allow insurance producers to keep abreast of the market by lawfully providing such services within the scope of their licensure and practice, without charging a service fee, or in the case of licensed insurance brokers for a separate service fee.
Moreover, this bill would codify the incidental services excepted from the insurance anti-rebating and inducement laws listed in NYS
Insurance Department Circular Letter No. 9 (2009) http://www.ins.state.ny.us/circltr/2009/c109 09.htm
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.