 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4854
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                      March 3, 2017
                                       ___________
 
        Introduced  by  Sen.  DIAZ  --  read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance
 
        AN ACT to amend the insurance law, in relation to prohibiting  retained-
          asset accounts
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 3213 of the insurance law is  amended  to  read  as
     2  follows:
     3    §  3213.  Payment  of proceeds.   1. Where the proceeds of a policy of
     4  life insurance delivered or issued for delivery in this state are  paya-
     5  ble,  according  to  its  terms,  such  proceeds  shall not be held in a
     6  retained-asset account held by the insurer. For purposes of this section
     7  a "retained-asset account" shall mean an account not guaranteed  by  the
     8  federal  deposit  insurance corporation, the funds of which are retained
     9  by the insurer, with all or a portion of the interest being paid to  the
    10  insurer, but the funds of such account are payable to the beneficiary or
    11  beneficiaries by use of a checkbook.
    12    2.  Where  the  proceeds  of  a  policy of life insurance delivered or
    13  issued for delivery in this state are payable, according to  its  terms,
    14  to  two  or  more  beneficiaries without designation of their respective
    15  interests, the proceeds shall be paid to  such  beneficiaries  in  equal
    16  portions.
    17    §  2.  This  act  shall take effect on the sixtieth day after it shall
    18  have become a law.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07296-01-7
Relates to prohibiting retained asset accounts

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