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History
- Referred to insurance
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7300
Title of bill
An act to amend the insurance law, in relation to standards for prompt, fair and equitable payments of insurance commissions or other compensation arrangements
Purpose
To modernize the insurance law to ensure that licensed health insurance producers, including brokers, agents and benefit consultants, are promptly paid compensation earned for placement of health insurance coverage.
Summary of provisions
Section 1 of the bill would amend subsection (d) of § 2219 of the insurance law by adding a new paragraph (2) thereto, to ensure that the provisions of such section are applied to health insurance plans and policies placed by licensed insurance brokers inside or outside the New York State of Health Benefit Exchange established pursuant to Governor's Executive Order No. 42 (2012).
Section 2 of the bill would add a new § 3224-d to the Insurance Law, to establish standards for prompt, fair and equitable payments of insurance commissions or other compensation arrangements earned, to licensed health insurance producers, including brokers, agents and benefit consultants, for placement of health insurance coverage. Such prompt payments would be made by health plans within 45 days of receipt of payment of premium or other charge.
Section 3 of the bill would provide for an immediate effective date.
Justification
With the establishment of the New York State of Health Benefit Exchange and the attendant implementation of the federal Patient Protection and Affordable Care Act (PPACA) in the state, licensed insurance producers have experienced extremely slow payments from health plans & carriers for placement of health insurance coverage, inside and outside the Exchange. In order to remain competitive and economically viable in the fast-paced and competitive insurance marketplace as it continues to evolve, insurance producers must have positive cash flow to operate their insurance agencies and consulting businesses.
This bill is wholly modeled upon existing law requiring prompt payment of healthcare providers by health plans after provision of medical or other healthcare services to covered patients/insureds/subscribers (see Insurance Law § 3224-a). It is only fair that licensed insurance producers be promptly paid upon the placement of health insurance coverage, in a manner similar to healthcare providers upon the rendering of medical or other healthcare services.
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.