What's happening
This bill requires insurance agents to fully explain and document policy loan terms in writing, signed by both agent and policyholder.
Why it matters
Strengthens consumer protection. by ensuring policyholders fully understand the financial implications and obligations of taking out a policy loan, potentially reducing confusion or future disputes over loan terms.
Increases accountability for insurance agents. , as they must now provide a written, signed record confirming they have clearly explained all terms—making it harder for agents to misrepresent or omit information.
Standardizes documentation practices. across insurance companies, as all policy loan terms must be presented in writing with a clear minimum font size, making the information more readable and accessible for consumers.
Applies to both new and modified policies. , meaning current policyholders who review or alter their coverage are also protected by these enhanced disclosure requirements—not just new customers.
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Who cares
Headline styles
Require Clear Policy Loan Terms
Plain English, a few words. Used as the page title.
Sponsors
14 Co-sponsors
History
- Referred to insurance
- 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.
Require Clear Policy Loan Terms
In Senate Committee · Insurance · Sponsor Leroy Comrie
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4536
2019-2020 Regular Sessions
IN ASSEMBLY
February 4, 2019
Introduced by M. of A. COOK, PEOPLES-STOKES, DenDEKKER, D'URSO, ORTIZ, BLAKE, WRIGHT -- Multi-Sponsored by -- M. of A. HYNDMAN, MOSLEY, SIMON -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to requirements for making of policy loans
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 8 of subsection (a) of section 3203 of the insurance law is amended by adding two new subparagraphs (K) and (L) to read as follows:
(K) that the agent has fully explained all of the terms and conditions of the policy loan to the policyholder;
(L) all of the terms and conditions of any policy loan shall be in writing in at least ten point type and shall be signed by the insured and the agent of the insurer;
§ 2. This act shall take effect on the sixtieth day after it shall have become a law and shall apply to all policies issued, reviewed or modified on or after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07988-01-9
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.