What's happening
This bill allows insurers to offer non-insurance benefits or services, like counseling or financial planning, with group life or health policies.
Why it matters
Expands what insurers can offer. By permitting non-insurance benefits like financial counseling, travel assistance, and identity theft services, the bill modernizes what group policyholders can expect, potentially making group life or health coverage more attractive and holistic.
Consumer protection through transparency. Requires that all offered non-insurance benefits or services be clearly listed in both the insurance policy and certificate, helping consumers understand exactly what they’re entitled to and reducing the risk of confusion or misleading sales practices.
Regulatory oversight and quality assurance. All third-party providers of these non-insurance services must be properly licensed, and the Superintendent of Insurance is empowered to regulate disclosures, ensuring that the quality and legitimacy of ancillary services meet state standards.
Promotes innovation and competitive offerings. By allowing insurers to seek approval for additional non-insurance benefits not specifically listed in the law, the bill encourages the development of new, value-added services that could better address evolving policyholder needs and preferences.
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Who cares
Headline styles
Allow Extra Insurance Perks
Plain English, a few words. Used as the page title.
Sponsors
2 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.
Let Insurers Offer Extra Services
In Assembly Committee · Insurance · Sponsor J. Gary Pretlow
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3521
2019-2020 Regular Sessions
IN SENATE
February 8, 2019
Introduced by Sens. BRESLIN, SEWARD, KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to authorizing non-insurance benefits or services to be offered as part of a group life or group or blanket accident and health insurance policy
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The insurance law is amended by adding a new section 3242 to read as follows:
§ 3242. Non-insurance benefits and services as part of a policy or certificate of group life or group or blanket accident and health insurance. (a) An insurer licensed to write life insurance and accident and health insurance may include certain non-insurance benefits or services in conjunction with its issuance of a group life insurance or group or blanket accident and health insurance policy. If included, such non-insurance benefits or services shall be made available to similarly-situated members of the group. Any non-insurance benefits or services made available under the policy shall be set forth in the policy and the certificate.
(b) Non-insurance benefits and services permitted under this section shall include, but not be limited to, the following:
(1) financial and estate planning services;
(2) financial counseling for beneficiaries;
(3) travel assistance services;
(4) grief counseling services;
(5) funeral planning services;
(6) identity theft services; and
(7) any other benefit or service that may be approved by the superintendent.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07778-01-9
S. 3521 2
(c) Any entity providing non-insurance benefits or services permitted under this section must be appropriately licensed to provide such benefits or services.
(d) The superintendent may adopt rules to regulate the disclosure in the policy and certificate related to the non-insurance benefits or services permitted under this section and included in the policy.
§ 2. Subsection (c) of section 4224 of the insurance law, as amended by chapter 496 of the laws of 2013, is amended to read as follows:
(c) Except as permitted by section three thousand two hundred thirtynine or three thousand two hundred forty-two of this chapter or subsection (f) of this section, no such life insurance company and no such savings and insurance bank and no officer, agent, solicitor or representative thereof and no such insurer doing in this state the business of accident and health insurance and no officer, agent, solicitor or representative thereof, and no licensed insurance broker and no employee or other representative of any such insurer, agent or broker, shall pay, allow or give, or offer to pay, allow or give, directly or indirectly, as an inducement to any person to insure, or shall give, sell or purchase, or offer to give, sell or purchase, as such inducement, or interdependent with any policy of life insurance or annuity contract or policy of accident and health insurance, any stocks, bonds, or other securities, or any dividends or profits accruing or to accrue thereon, or any valuable consideration or inducement whatever not specified in such policy or contract other than any valuable consideration, including but not limited to merchandise or periodical subscriptions, not exceeding twenty-five dollars in value; nor shall any person in this state knowingly receive as such inducement, any rebate of premium or policy fee or any special favor or advantage in the dividends or other benefits to accrue on any such policy or contract, or knowingly receive any paid employment or contract for services of any kind, or any valuable consideration or inducement whatever which is not specified in such policy or contract.
§ 3. 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 insurance law, in relation to authorizing non-insurance benefits or services to be offered as part of a group life or group or blanket accident and health insurance policy
Purpose
This bill will add a new § 3242 to the Insurance Law to expressly permit life insurers to include as part of a group life or group or blanket accident and health insurance policy certain non-insurance benefits such as: financial and estate planning services; financial counseling for beneficiaries; travel assistance services; grief counseling services' funeral planning services; and identity theft services.
Summary of provisions
This bill will add a new § 3242 to the Insurance Law to expressly permit life insurers to include as part of a group life or accident & health insurance contract certain non-insurance benefits or services, as expressly provided or any other benefit or service approved by the Superintendent. This bill also creates an exception to § 4224 of the Insurance Law for circumstances where the non-insurance benefits are permitted under § 3242 of the Insurance Law.
Justification
Section 4224 of the Insurance Law prohibits insurers and their producers from so-called "rebating" where something of value is offered for no charge for the purpose of inducing the purchase of a product. Although this law was intended to prevent, for instance, insurance producers from offering merchandise or prizes as an inducement to purchase an insurance policy, it has been much more broadly interpreted and applied by state insurance regulators during the policy form filing review process. This broad interpretation of this section of law has had implications for insurers which have attempted to have policy form filings approved that proposed to include certain types of non-insurance benefits and services, as outlined above, that are routinely offered free of charge as part of group insurance policies in other states.
If enacted, this bill would expressly permit insurance customers in New York to benefit from these types of non-insurance benefits & service that are expressly authorized in the bill and are routinely provided to such group customers/employees in other states. It also authorizes the Superintendent of Financial Services to approve any other such benefit or services that he or she deems appropriate going forward. In addition to providing express authorization for these types of benefits & services, this bill will also provide a specific exemption from § 4224 of the Insurance Law so that it is clear that these types of benefits and services are not considered to be a rebate. Enactment of this bill will facilitate life insurers to provide New York employers and employ- ees who are purchasing group life or accident & health insurance cover- age with these additional benefits for no charge and will afford them with the opportunity to take advantage of the services, similarly to employees in other states.
Legislative history
S.1595 of 2017-18; S.3011 of 2015-16.
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.