What's happening
This bill reduces the required prior written notice for discontinuing a class of insurance contract from five months to ninety days.
Why it matters
Shortens the advance notice insurers must give before discontinuing a class of insurance contracts. , which could lead to less time for policyholders, employers, and individuals to seek alternative coverage or make informed decisions.
Maintains protections requiring insurers to act uniformly. they cannot single out individuals based on health status when discontinuing coverage, preserving fairness and avoiding discrimination.
Requires insurers discontinuing a class of coverage to offer all other available health plans they currently provide. to affected subscribers or groups, ensuring that some options remain accessible even with less notice.
Allows regulatory flexibility. by permitting the insurance superintendent to approve alternative coverage arrangements within the same holding company, potentially smoothing transitions for affected policyholders but also introducing more discretion into the process.
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Who cares
Headline styles
Shorten Insurance Notice Period
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by S5723
- Ordered to third reading rules cal.405
- Rules report cal.405
- Reported
- Reported referred to rules
- 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.
Shorten Insurance Notice Period
Signed by Governor · Sponsor James L. Seward
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7737
2017-2018 Regular Sessions
IN ASSEMBLY
May 11, 2017
Introduced by M. of A. CAHILL -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to conforming changes to discontinuance notices
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Item (i) of subparagraph (C) of paragraph 2 of subsection (c) of section 4304 of the insurance law, as amended by chapter 388 of the laws of 2014, is amended to read as follows:
(i) Discontinuance of a class of contract upon not less than [five months'] ninety days' prior written notice. In exercising the option to discontinue coverage pursuant to this item, the corporation must act uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for such coverage and must offer to subscribers or group remitting agents, as may be appropriate, the option to purchase all other individual health insurance coverage currently being offered by the corporation to applicants in that market. Provided, however, the superintendent may, after giving due consideration to the public interest, approve a request made by a corporation for the corporation to satisfy the requirements of this item through the offering of contracts at each level of coverage as defined in section 1302(d) of the affordable care act, 42 U.S.C. § 18022(d) that contains the benefits described in paragraph one of subsection (b) of section four thousand three hundred twenty-eight of this chapter by another corporation, insurer or health maintenance organization within the corporation's same holding company system, as defined in article fifteen of 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.
LBD11235-01-7
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.