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A02063 Summary:

A02063 Actions:

A02063 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A2063
 
SPONSOR: Cook (MS)

 
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.
 
 
FISCAL IMPLICATIONS:
 
None
 
 
EFFECTIVE DATE:
This act shall take effect immediately.

A02063 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2063
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 17, 2017
                                       ___________
 
        Introduced  by  M.  of A. COOK, ORTIZ, DINOWITZ, CRESPO, JAFFEE, COLTON,
          WEPRIN, HOOPER, SIMON, BICHOTTE -- Multi-Sponsored  by  --  M.  of  A.
          ARROYO,  AUBRY,  HYNDMAN,  MOSLEY, TITONE -- 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  3242
     2  to read as follows:
     3    §  3242.  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 his agent accepts an application from a person who has provided  such
    11  a  statement  or such medical records, then the insurer and/or his agent
    12  shall be prohibited from  subsequently  rejecting  such  application  or
    13  cancelling  any  policy  issued  on  the  grounds that the insured has a
    14  certain medical condition provided that such condition was disclosed  in
    15  the statement or medical records submitted.
    16    § 2. This act shall take effect immediately.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05651-01-7