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A10008 Summary:

BILL NO    A10008 

SAME AS    SAME AS S07300

SPONSOR    Rules (Hevesi)

COSPNSR    

MLTSPNSR   

Amd S2119, add S3224-d, Ins L

Establishes standards for prompt, fair and equitable payments of insurance
commissions or other compensation arrangements; provides penalties for failure
to meet such standards.
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A10008 Memo:

BILL NUMBER:A10008

TITLE OF BILL:  An act to amend the insurance law, in relation to
standards for prompt, fair and equitable payments of insurance
commissions or other compensation arrangements

PURPOSE:

To modernize the insurance law to ensure that licensed health
insurance producers, including brokers, agents and benefit
consultants, are promptly paid compensation earned for placement of
health insurance coverage.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend subsection (d) of S 2219 of the
insurance law by adding a new paragraph (2) thereto, to ensure that
the provisions of such section are applied to health insurance plans
and policies placed by licensed insurance brokers inside or outside
the New York State of Health Benefit Exchange established pursuant to
Governor's Executive Order No. 42 (2012).

Section 2 of the bill would add a new S 3224-d to the Insurance Law,
to establish standards for prompt, fair and equitable payments of
insurance commissions or other compensation arrangements earned, to
licensed health insurance producers, including brokers, agents and
benefit consultants, for placement of health insurance coverage. Such
prompt payments would be made by health plans within 45 days of
receipt of payment of premium or other charge.

Section 3 of the bill would provide for an immediate effective date.

JUSTIFICATION:

With the establishment of the New York State of Health Benefit
Exchange and the attendant implementation of the federal Patient
Protection and Affordable Care Act (PPACA) in the state, licensed
insurance producers have experienced extremely slow payments from
health plans & carriers for placement of health insurance coverage,
inside and outside the Exchange. In order to remain competitive and
economically viable in the fast-paced and competitive insurance
marketplace as it continues to evolve, insurance producers must have
positive cash flow to operate their insurance agencies and consulting
businesses.

This bill is wholly modeled upon existing law requiring prompt payment
of healthcare providers by health plans after provision of medical or
other healthcare services to covered patients/insureds/subscribers
[see Insurance Law S 3224-a]. It is only fair that licensed insurance
producers be promptly paid upon the placement of health insurance
coverage, in a manner similar to healthcare providers upon the
rendering of medical or other healthcare services.

LEGISLATIVE HISTORY:

New bill.


FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.
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