What's happening
The bill allows New York residents to receive group property/casualty insurance certificates from out-of-state employer policies, exempt from New York regulation.
Why it matters
Allows New Yorkers to receive insurance coverage through their out-of-state employer’s group policy, even if that policy does not meet New York’s regulatory standards. This could expand access to employer-provided insurance benefits, especially for residents working for national or regional companies headquartered elsewhere.
Specifies that such insurance certificates must be provided at no cost to the New York resident. This restriction may help ensure that New Yorkers are not charged for coverage that lacks the usual state consumer protections.
Requires a disclosure that the insurance is not regulated by New York and does not include state-mandated consumer protections. This transparency aims to inform recipients about the potential risks and differences compared to in-state regulated policies, affecting their recourse options if issues arise.
Could impact the regulatory authority of New York’s Department of Financial Services over insurance products offered to residents. Over time, this exemption might set a precedent for more out-of-state insurance offerings, potentially weakening New York’s consumer protection standards in the group insurance market.
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Who cares
Headline styles
Out-of-State Employer Insurance Access
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Held for consideration in insurance
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3372
2017-2018 Regular Sessions
IN ASSEMBLY
January 27, 2017
Introduced by M. of A. BARCLAY, FINCH, WALTER -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to group property/casualty insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3435 of the insurance law is amended by adding a new subsection (e) to read as follows:
(e) Neither the provisions of this section nor any other provisions of this chapter shall serve to prevent the issuance of a certificate of group property/casualty or liability insurance issued to a resident of this state when such certificate is issued under a master policy procured by an employer based in another state, provided (i) the policy is an approved policy issued by an insurer licensed in such state, (ii) the policy has been approved for sale in such state, and (iii) provided the certificate is issued without cost to the New York resident. Any such certificate issued to a New York resident shall state that the insurance provided thereunder is not regulated by the state of New York and not subject to consumer protections otherwise afforded by this chapter.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05391-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.