What's happening
This bill extends deadlines for insurance payments and bars policy cancellations for individuals and small businesses facing COVID-19 financial hardship.
Why it matters
Provides extended financial relief for policyholders experiencing hardship due to COVID-19. , ensuring that individuals and small businesses have additional time to pay insurance premiums without facing immediate loss of coverage.
Requires insurance companies to continue covering claims during the extended grace period. , prohibiting them from retroactively terminating policies for non-payment during the COVID-19 emergency, which offers critical protection for health and life insurance policyholders.
Prevents insurers from canceling, non-renewing, or conditionally renewing policies for those facing pandemic-related financial struggles. , helping to stabilize coverage for individuals and small businesses when they may be most vulnerable to losing insurance benefits.
Links these protections directly to the ongoing status of pandemic-related business and gathering restrictions. , meaning the relief and protections will remain in place until all such restrictions are lifted in a given area, offering adaptive support tied to the public health situation.
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Pause Debt and Payment Collections
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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.
Pause COVID Debt Collections
In Senate Committee · Rules · Sponsor James Skoufis
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10696
IN ASSEMBLY
July 1, 2020
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Gottfried) -- read once and referred to the Committee on Insurance
AN ACT extending certain payments and debt collections for the COVID-19 covered period
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. For the purposes of this act, "COVID-19 covered period" means March 7, 2020 until the date on which none of the provisions that closed or otherwise restricted public or private businesses or places of public accommodation, or required postponement or cancellation of all non-essential gatherings of individuals of any size for any reason in executive orders 202.3, 202.4, 202.5, 202.6, 202.7, 202.8, 202.10, 202.11, 202.13 or 202.14, as extended by executive orders 202.28 and 202.31 and as further extended by any future executive order, issued in response to the COVID-19 pandemic continue to apply in the county of the insurer or debtors residence.
§ 2. Notwithstanding any provision of law to the contrary, the grace period for insurance policies covered under sections 3203 and 4510 of the insurance law for the deferral of payment of premiums and fees shall be extended to the end of the COVID-19 covered period, for any life insurance policyholder or fraternal benefit society certificate holder, as those terms are used in such sections, facing a financial hardship as a result of the COVID-19 pandemic.
§ 3. Notwithstanding any provision of law to the contrary and subject to the consideration by the superintendent of financial services of the liquidity and solvency of the applicable insurer, corporations subject to article 43 of the insurance law, or health maintenance organizations certified pursuant to article 44 of the public health law, covered under subparagraph (c) of paragraph 1 of subsection (d) of section 3216 and subsection (g) of section 4306 of the insurance law shall:
(1) extend the period for the deferral of payment of premiums to the end of the COVID-19 covered period for any comprehensive health insurance policy holder or contract holder under an individual policy or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16654-02-0
A. 10696 2
contract, as those terms are used in such sections, who is facing a financial hardship as a result of the COVID-19 pandemic; and
(2) require that the applicable insurer, corporation subject to article 43 of the insurance law, or health maintenance organization certified pursuant to article 44 of the public health law shall be responsible for the payment of claims during such period and shall not retroactively terminate the insurance policy or contract for non-payment of premium during such period.
§ 4. Notwithstanding any provision of law to the contrary, no insurer covered under paragraphs 16, 17, 20, 21, 24, 26, and 30 of subsection (a) of section 1113, section 1116 and articles 34, 53, 54, and 55 of the insurance law and sections 54 and 226 of the workers' compensation law shall cancel, not renew, or conditionally renew any insurance policy issued to an individual or small business, or, in the case of a group insurance policy, insuring certificate holders that are individuals or small businesses, until the end of the COVID-19 covered period, for any policyholder, or in the case of a group insurance policy, group policyholder or certificate holder, facing financial hardship as a result of the COVID-19 pandemic. The foregoing relief shall also apply to the kinds of insurance set forth in the insurance law.
§ 5. This act shall take effect immediately.
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.