What's happening
This bill prohibits contracts from imposing onerous or unreasonable requirements on disabled persons seeking disability benefits, and allows for legal remedies if such conditions are imposed.
Why it matters
Prevents insurance providers and other entities (except workers' comp and state disability insurance) from demanding excessive or repetitive medical exams or documentation from disabled beneficiaries, targeting practices that delay or discourage legitimate claims.
Defines “onerous or unreasonable” conditions in contracts, making it clear that requiring unnecessary or duplicative actions by disabled individuals is not allowed—this provides a legal standard to challenge such practices.
Empowers disabled individuals or their representatives to sue for actual damages (plus interest, penalties, legal costs, and possibly exemplary damages) if they have been harmed by these restrictive contractual demands, creating a financial deterrent for companies that engage in unfair practices.
References and extends protections similar to those in insurance law regarding unfair claim settlement practices, helping to close loopholes and align contract law with consumer protection standards.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Stop Disability Benefit Hurdles
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
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.
Stop Unfair Disability Benefit Barriers
Assembly Floor Calendar · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3283
2017-2018 Regular Sessions
IN SENATE
January 20, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to onerous or unreasonable conditions in the performance of disability related contracts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general obligations law is amended by adding a new section 5-336 to read as follows:
§ 5-336. Performance of written contracts for benefits in the event of disability. 1. No person, firm, association, corporation or other entity, whether such person or entity be an employer or otherwise, excluding workers' compensation or New York state disability insurance, who enters into a written contract providing for payment of benefits or the waiver of obligations or both in the event of the disability of a named individual shall, by contract or otherwise, impose on a disabled person onerous or unreasonable conditions for the payment or continued payment of contractual benefits or the waiver or continued waiver of obligations. Conditions are "onerous or unreasonable" if by their continuous or repetitious nature they require the disabled beneficiary to perform unnecessary or duplicative acts in order to obtain or collect the benefits to which he or she is otherwise entitled under the contract and include but are not limited to:
(a) Requiring the disabled person to undergo unreasonably repetitive medical examinations; or
(b) Requiring the disabled person to provide finely-detailed or repetitious medical documentation of a disabling condition; or
(c) Bargaining in bad faith or engaging in any of the acts described in the paragraphs of subsection (a) of section two thousand six hundred one of the insurance law, relating to unfair claim settlement practices.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03551-01-7
S. 3283 2
2. Any party to the contract or contract beneficiary injured by an action or failure to act in violation of subdivision one of this section may maintain an action to recover and, upon proof of such injury due to violation of subdivision one of this section by a preponderance of the evidence, shall recover actual damages, including any interest and penalties incurred due to the violation of subdivision one of this section, and reasonable costs and attorney's fees. The court may in its discretion award exemplary damages.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general obligations law, in relation to onerous or unreasonable conditions in the performance of disability related contracts
Purpose or general idea of bill
The bill would require persons or entities providing benefits in the event of disability to do so in good faith by not requiring onerous or unreasonable conditions for payment of benefits and provides for enforcement thereof.
Summary of specific provisions
The General Obligations law is amended by adding a new section 5-336
Justification
The intent of this bill is to protect disabled persons from "bad faith" practices which require the disabled person to undergo continuous medical examinations and/or provide detailed and often repetitious medical documentation of disabling conditions in order to receive payment of benefits.
Prior legislative history
2015-16: S.675/A.1923 - Referred to Judiciary 2013-14: S.2696/A.315 - to Judiciary/Passed Assembly; 2011-12: S.1183/A.254 - Referred to Judiciary/Passed the Assembly 2009-10: S.8201/A.535A - Referred to Rules/Passes the Assembly 2007-08: A.480 Passed Assembly 2005-06: A.1118 Passed Assembly/S.3127 - Referred to Judiciary 2003-04: A.4825 Passed Assembly 2001-02: A.375 Passed Assembly 1999-00: A.299 Passed Assembly 1997-98: A.4373 Passed Assembly
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.