What's happening
This bill allows courts to require parties in family law cases to purchase or maintain disability insurance to ensure continued support.
Why it matters
Helps guarantee financial support even if the paying party (the obligor) becomes disabled. , addressing a common gap where support payments might stop due to an accident or illness.
Reduces financial risk for dependents. , such as children or ex-spouses, by making sure there’s an insurance-backed source of income if the obligor can no longer work.
Gives courts more flexibility in tailoring support orders. , allowing them to require disability insurance in addition to the existing options for life, health, and accident insurance, depending on the family's specific needs.
May lead to extra costs for the obligor. , since purchasing or maintaining disability insurance can be expensive, but this is balanced against the goal of ensuring continued support for vulnerable family members.
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Who cares
Headline styles
Require Disability Insurance for Support
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2272
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
Introduced by Sen. HANNON -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the family court act and the domestic relations law, in relation to the purchase or maintenance of a policy of disability insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The section heading and subdivision (b) of section 416 of the family court act, as amended by chapter 624 of the laws of 2002, are amended to read as follows:
Elements of support; provisions for accident, life, disability and health insurance benefits.
(b) The court may also order a party to purchase, maintain, or assign a policy of accident insurance or insurance on the life of either party and designate in the case of life insurance, the person or persons on whose behalf the petition is brought or in the case of accident insurance, the insured party as irrevocable beneficiaries during a period of time fixed by the court. In addition, the court may also order an obligor party to purchase or maintain a policy of disability insurance as a means of ensuring continued support by an obligor party during a period of time fixed by the court. The obligation to provide such insurance shall cease upon the termination of such party's duty to provide support.
§ 2. Paragraph a of subdivision 8 of part B of section 236 of the domestic relations law, as amended by chapter 275 of the laws of 1999, is amended to read as follows:
a. In any matrimonial action the court may order a party to purchase, maintain or assign a policy of insurance providing benefits for health and hospital care and related services for either spouse or children of the marriage not to exceed such period of time as such party shall be obligated to provide maintenance, child support or make payments of a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02904-01-7
S. 2272 2
distributive award. The court may also order a party to purchase, maintain or assign a policy of accident insurance or insurance on the life of either spouse, and to designate in the case of life insurance, either spouse or children of the marriage, or in the case of accident insurance, the insured spouse as irrevocable beneficiaries during a period of time fixed by the court. In addition, the court may also order an obligor party to purchase or maintain a policy of disability insurance as a means of ensuring continued support by an obligor party during a period of time fixed by the court. The obligation to provide such insurance shall cease upon the termination of the spouse's duty to provide maintenance, child support or a distributive award. A copy of such order shall be served, by registered mail, on the home office of the insurer specifying the name and mailing address of the spouse or children, provided that failure to so serve the insurer shall not affect the validity of the order.
§ 3. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the family court act and the domestic relations law, in relation to the purchase or maintenance of a policy of disability insurance
Purpose
Authorizes a court to order an obligor spouse to purchase or maintain disability insurance to ensure continued payment of court ordered support.
Summary of provisions
Section 1. Amends subdivision (b) of section 416 of the Family Court Act, to add disability provisions as elements of support. Under this subdivision, a court will now be allowed to order an obligor party to purchase or maintain a policy of disability insurance as a means of ensuring continued support by an obligor party during a period of time fixed by the court.
Section 2. Amends paragraph a of subdivision 8 of part B of section 236 of the Domestic Relations Law permitting the court to order, in any matrimonial action, an obligor party to purchase or maintain a policy of disability insurance as a means of ensuring continued support by an obligor party during a period of time fixed by the court.
Section 3. Provides for an effective date.
Existing law
Currently, under Domestic Relations Law section 236 a family court judge may order, in his discretion, an obligor spouse to obtain a life insurance policy for his spouse or child.
Justification
According to the latest statistics, in 2012, approximately 58,833 divorces were legalized in New York State. When an obligor spouse becomes disabled, the possibility for economic hardship on both a beneficiary spouse, and in particular, dependent children, is significant. This bill will provide more discretion to judges in matrimonial actions so that they may order a person to obtain disability insurance to preserve family stability and economic protection. Such court orders ensure that contracts of support made between obligor spouses and their beneficiaries are honored despite disability. Without this provision, obligor spouses have the opportunity to avoid payment of spousal support by declaring disability. This bill will prevent delinquent and fraudulent cases from becoming exempt under law, and also honor obligations made to family units upon divorce.
Legislative history
2015-2016: S.823 - Passed Senate, died in Assembly (both years) 2013-2014: S.2938 2011-2012: S.1922
Fiscal implications
None.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.