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Who cares
Headline styles
Sponsors
1 Co-sponsor
History
- Referred to insurance
- 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 non-insurance benefits
In Assembly Committee · Insurance · Sponsor J. Gary Pretlow
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S3011
Title of bill
An act to amend the insurance law, in relation to authorizing non-insurance benefits or services to be offered as part of a group life or group or blanket accident and health insurance policy
Purpose
This bill will add a new § 3242 to the Insurance Law to expressly permit life insurers to include as part of a group life or group or blanket accident and health insurance policy certain non-insurance benefits such as: financial and estate planning services; financial counseling for beneficiaries; travel assistance services; grief counseling services' funeral planning services; and identity theft services
Summary of provisions
This bill will add a new § 3242 to the Insurance Law to expressly permit life insurers to include as part of a group life or accident & health insurance contract certain non-insurance benefits or services, as expressly provided or any other benefit or service approved by the Superintendent. This bill also creates an exception to § 4224 of the Insurance Law for circumstances where the non-insurance benefits are permitted under § 3242 of the Insurance Law.
Justification
Section 4224 of the Insurance Law prohibits insurers and their producers from so-called "rebating" where something of value is offered for no charge for the purpose of inducing the purchase of a product. Although this law was intended to prevent, for instance, insurance producers from offering merchandise or prizes as an inducement to purchase an insurance policy, it has been much more broadly interpreted and applied by state insurance regulators during the policy form filing review process. This broad interpretation of this section of law has had implications for insurers which have attempted to have policy form filings approved that proposed to include certain types of non-insurance benefits and services, as outlined above, that are routinely offered free of charge as part of group insurance policies in other states.
If enacted, this bill would expressly permit insurance customers in New York to benefit from these types of non-insurance benefits & service that are expressly authorized in the bill and are routinely provided to such group customers/employees in other states. It also authorizes the Superintendent of Financial Services to approve any other such benefit or services that he or she deems appropriate going forward In addition to providing express authorization for these types of benefits & services, this bill will also provide a specific exemption from § 4224 of the Insurance Law so that it is clear that these types of benefits and services are not considered to be a rebate.
Enactment of this bill will facilitate life insurers to provide New York employers and employees who are purchasing group life or accident
& health insurance coverage with these additional benefits for no charge and will afford them with the opportunity to take advantage of the services, similarly to employees in other states.
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.