NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7689
SPONSOR: Cook TITLE OF BILL:
An act to amend the insurance law, in relation to the cancellation of
life insurance policies
PURPOSE OR GENERAL IDEA OF BILL:
To prohibit the insurer of life insurance from cancelling life insurance
policies based on a medical condition that was disclosed in the applica-
tion for insurance.
SUMMARY OF SPECIFIC PROVISIONS:
The insurance law is amended by adding a new section 3242.
JUSTIFICATION:
The law would eliminate arbitrary rejection of application and/or
cancellation of policies by the insurer and/or its agent based on acts
of omission or failure to disclose medical information on the part of
the agent withheld for the purpose of writing an insurance policy. It
will also eliminate the propensity of the insurer to cancel an insurance
policy based on what its agent did or did not disclose when the applica-
tion was accepted and policy issued.
PRIOR LEGISLATIVE HISTORY:
Previously introduced; 2017/18 A.2061; 2019/20 A.4542; 2021/22 A.3420;
2023/24 A.5998
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7689
2025-2026 Regular Sessions
IN ASSEMBLY
April 4, 2025
___________
Introduced by M. of A. COOK, PEOPLES-STOKES, WEPRIN, DINOWITZ, SIMON,
COLTON, BICHOTTE HERMELYN, EPSTEIN, HYNDMAN, TAYLOR, REYES, BUTTENS-
CHON, WILLIAMS, JACKSON, LUNSFORD, LAVINE -- read once and referred to
the Committee on Insurance
AN ACT to amend the insurance law, in relation to the cancellation of
life insurance policies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The insurance law is amended by adding a new section 3246
2 to read as follows:
3 § 3246. Cancellation of life insurance policies. Notwithstanding any
4 provision of law to the contrary, any person who makes application for a
5 policy of life insurance issued under the provisions of this chapter
6 shall submit to the insurer or an agent of the insurer, at the time of
7 such application, a statement from a physician licensed to practice
8 medicine under the laws of this state, or the medical records of such
9 person, which contain the medical history of such person. If the insurer
10 or such insurer's agent accepts an application from a person who has
11 provided such a statement or such medical records, then the insurer
12 and/or such insurer's agent shall be prohibited from subsequently
13 rejecting such application or cancelling any policy issued on the
14 grounds that the insured has a certain medical condition provided that
15 such condition was disclosed in the statement or medical records submit-
16 ted.
17 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09347-01-5
