S04191 Summary:

BILL NOS04191
 
SAME ASNo Same As
 
SPONSORCOMRIE
 
COSPNSR
 
MLTSPNSR
 
Amd §§3216, 3221, 3425, 4304 & 4305, Ins L
 
Requires health and motor vehicle insurance policies to notify policyholders of cancellation, discontinuance or major changes to their policy via email and to offer paperless notification upon the issuance of such policies.
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S04191 Actions:

BILL NOS04191
 
02/02/2021REFERRED TO INSURANCE
01/05/2022REFERRED TO INSURANCE
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S04191 Committee Votes:

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S04191 Floor Votes:

There are no votes for this bill in this legislative session.
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S04191 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4191
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                    February 2, 2021
                                       ___________
 
        Introduced  by  Sen.  COMRIE -- 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 requiring  health  and
          motor  vehicle insurance policies to notify policyholders of cancella-
          tion, discontinuance or major changes to their policy via email and to
          offer paperless notification upon the issuance of such policies
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The opening paragraph of subparagraph (H) of paragraph 2 of
     2  subsection (d) of section 3216 of the insurance law, as amended by chap-
     3  ter 344 of the laws of 1994, is amended to read as follows:
     4    CANCELLATION:  Within  the  first ninety days after the date of issue,
     5  the insurer may cancel this policy by written notice  delivered  to  the
     6  insured, or sent by first class mail to his or her last address as shown
     7  by  the records of the insurer, and shall also give such notice by email
     8  if the insurer has the insured's email address on file stating when, not
     9  less than ten days thereafter, such cancellation shall be effective.  In
    10  the event of cancellation, the insurer will return promptly the pro-rata
    11  unearned  portion  of  any  premium  paid. Cancellation shall be without
    12  prejudice to any claim  originating  prior  to  the  effective  date  of
    13  cancellation.
    14    § 2. Subsection (c) of section 3216 of the insurance law is amended by
    15  adding a new paragraph 15 to read as follows:
    16    (15)  That  the insurer offers the person applying for such policy the
    17  option to receive all notifications required by this  section  electron-
    18  ically.
    19    § 3. Subparagraph (A) of paragraph 1 of subsection (d) of section 3216
    20  of  the  insurance law, as amended by chapter 13 of the laws of 2002, is
    21  amended to read as follows:
    22    (A) ENTIRE CONTRACT; CHANGES: This policy, including the  endorsements
    23  and  the  attached  papers,  if  any, constitutes the entire contract of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08754-01-1

        S. 4191                             2
 
     1  insurance. No change in this policy shall be valid until approved by  an
     2  executive  officer  of  the insurer and unless such approval be endorsed
     3  hereon or attached hereto. No agent or broker has  authority  to  change
     4  this policy or to waive any of its provisions.  The insurer shall notify
     5  the  insured  of  any  major change made to this policy via email if the
     6  insurer has the insured's email address on file.
     7    § 4. Subparagraph (B) of paragraph 3 of subsection (g) of section 3216
     8  of the insurance law, as added by chapter 661 of the laws  of  1997,  is
     9  amended to read as follows:
    10    (B)  the  insurer  provides written notice of such discontinuance, and
    11  notice via email if the insurer has the insured's email address on file,
    12  to each covered individual at least one hundred eighty days prior to the
    13  date of termination of such coverage;
    14    § 5. Subparagraph (B) of paragraph 2 of subsection (g) of section 3216
    15  of the insurance law, as added by chapter 661 of the laws  of  1997,  is
    16  amended to read as follows:
    17    (B)  the  insurer  provides written notice of such discontinuance, and
    18  notice via email if the insurer has the insured's email address on file,
    19  to each covered individual at least ninety days prior  to  the  date  of
    20  discontinuance of such coverage;
    21    §  6.  Paragraph  2 of subsection (a) of section 3221 of the insurance
    22  law is amended to read as follows:
    23    (2) That no agent has authority to change the policy or waive  any  of
    24  its  provisions  and  that no change in the policy shall be valid unless
    25  approved by an officer of the insurer and evidenced  by  endorsement  on
    26  the policy, or by amendment to the policy signed by the policyholder and
    27  the  insurer.    The insurer shall notify the insured of any significant
    28  change made to the policy via email if the  insurer  has  the  insured's
    29  email address on file.
    30    §  7.  The  opening paragraph of item (i) of subparagraph (A) of para-
    31  graph 3 of subsection (p) of section  3221  of  the  insurance  law,  as
    32  amended  by  chapter  398  of  the  laws  of 2010, is amended to read as
    33  follows:
    34    the insurer provides written  notice  to  each  policyholder  provided
    35  coverage  of  this class in such market (and to all employees and member
    36  insureds covered under such coverage) of such  discontinuance  at  least
    37  ninety  days  prior  to  the  date  of  discontinuance of such coverage,
    38  provided, however, the insurer shall also provide such notice via  email
    39  if the insurer has the email addresses of the policyholders on file.  In
    40  addition to any other information required of notices by the superinten-
    41  dent, this written notice shall conspicuously include an explanation, in
    42  plain  language,  of the policyholder's and covered employee's or member
    43  insured's rights under this subparagraph  and  (B)  of  this  paragraph,
    44  including:
    45    §  8. Item (i) of subparagraph (E) of paragraph 3 of subsection (p) of
    46  section 3221 of the insurance law, as amended by chapter 398 of the laws
    47  of 2010, is amended to read as follows:
    48    (i) the insurer provides written notice to the superintendent  and  to
    49  each  policyholder  (and all employees and member insureds covered under
    50  such coverage) of such discontinuance at least one hundred  eighty  days
    51  prior  to  the  date  of  the discontinuance of such coverage, provided,
    52  however, the insurer shall also provide such notice  via  email  if  the
    53  insurer has the email addresses of the policyholders on file;
    54    § 9. Subsection (a) of section 3221 of the insurance law is amended by
    55  adding a new paragraph 17 to read as follows:

        S. 4191                             3
 
     1    (17)  That  the insurer offers the person applying for such policy the
     2  option to receive all notifications required by this  section  electron-
     3  ically.
     4    §  10.  Paragraph 1 of subsection (h) of section 3425 of the insurance
     5  law, as amended by chapter 675 of the laws of 2003, is amended and a new
     6  paragraph 4 is added to read as follows:
     7    (1) Proof of mailing of a notice of cancellation, reduction of limits,
     8  substitution of  policy  form,  elimination  of  coverages,  conditioned
     9  renewal  or  of  intention  not to renew, or proof of the mailing of the
    10  reasons therefor, to the named insured at the address shown in the poli-
    11  cy, shall be sufficient proof of the giving of notice and the giving  of
    12  reasons  required  by this section.   Provided, however, with respect to
    13  automobile insurance if the insurer has the insured's email  address  on
    14  file  the  insurer  shall  send  a  notice of cancellation, reduction of
    15  limits, substitution of policy form, elimination  of  coverages,  condi-
    16  tional  renewal  or  of intention not to renew, or notice of the reasons
    17  therefor to the insured via email.
    18    (4) The insurer of any automobile  insurance  shall,  when  issuing  a
    19  covered  policy,  offer  the insured the option of opting into paperless
    20  communication to receive all notification  regarding  any  cancellation,
    21  reduction  of limits, substitution of policy form, elimination of cover-
    22  ages, conditioned renewal or of intention not to renew, or notice of the
    23  reasons therefor.
    24    § 11. Items (i) and  (ii)  of  subparagraph  (C)  of  paragraph  2  of
    25  subsection (c) of section 4304 of the insurance law, item (i) as amended
    26  by  section  31 of subpart B of part J of chapter 57 of the laws of 2019
    27  and item (ii) as amended by chapter 661 of the laws of 1997, are amended
    28  to read as follows:
    29    (i) Discontinuance of a class of contract upon not  less  than  ninety
    30  days'  prior written notice, and notice via email if the corporation has
    31  the enrolled individual's email  address  on  file.  In  exercising  the
    32  option  to  discontinue  coverage pursuant to this item, the corporation
    33  must act uniformly without regard to any health status-related factor of
    34  enrolled individuals or individuals who may  become  eligible  for  such
    35  coverage and must offer to subscribers or group remitting agents, as may
    36  be  appropriate,  the  option  to  purchase  all other individual health
    37  insurance coverage currently being offered by the corporation to  appli-
    38  cants  in  that market. Provided, however, the superintendent may, after
    39  giving due consideration to the public interest, approve a request  made
    40  by a corporation for the corporation to satisfy the requirements of this
    41  item  through  the  offering  of  contracts at each level of coverage as
    42  defined in subsection (b) of section four thousand three  hundred  six-h
    43  of  this  article  that  contains  the essential health benefits package
    44  described in paragraph three of subsection (e) of section four  thousand
    45  three  hundred  six-h of this article by another corporation, insurer or
    46  health maintenance organization within the  corporation's  same  holding
    47  company system, as defined in article fifteen of this chapter.
    48    (ii)  Discontinuance  of  all  hospital,  surgical  or medical expense
    49  coverage in the individual direct payment  market  in  this  state  upon
    50  written  notice  to  the  superintendent and to each subscriber not less
    51  than one hundred eighty days prior to the date of the expiration of such
    52  coverage, and notice via email if the corporation has  the  subscriber's
    53  email address on file.  In the event of such a withdrawal from the indi-
    54  vidual  direct  payment  market,  the  corporation must also provide the
    55  superintendent with a written plan to minimize potential  disruption  in
    56  the  marketplace  occasioned by such withdrawal. In addition, the corpo-

        S. 4191                             4
 
     1  ration may not provide for the issuance of  any  hospital,  surgical  or
     2  medical expense coverage in the individual direct payment market in this
     3  state  during  the five-year period beginning on the date of the discon-
     4  tinuance of the last health insurance coverage not so renewed.
     5    §  12.  The opening paragraph of item (i) of subparagraph (A) and item
     6  (i) of subparagraph (E) of paragraph 3 of subsection (j) of section 4305
     7  of the insurance law, as amended by chapter 398 of the laws of 2010, are
     8  amended to read as follows:
     9    the corporation provides written notice to each contract  holder,  and
    10  notice  via  email  if  the  corporation has the contract holder's email
    11  address on file, provided coverage of this class in such market (and  to
    12  all  employees  and member insureds covered under such coverage) of such
    13  discontinuance at least ninety days prior to the date of  discontinuance
    14  of  such  coverage.    In  addition to any other information required of
    15  notices by the superintendent, this written notice  shall  conspicuously
    16  include  an explanation, in plain language, of the contract holder's and
    17  covered employee's or member insured's rights  under  this  subparagraph
    18  and subparagraph (B) of this paragraph, including:
    19    (i)  the corporation provides written notice to the superintendent and
    20  to each contract holder (and all employees and member  insureds  covered
    21  under  such  coverage),  and notice via email if the corporation has the
    22  contract holder's email address on file, of such discontinuance at least
    23  one hundred eighty days prior to the date of the discontinuance of  such
    24  coverage;
    25    §  13.  This  act shall take effect immediately and shall apply to all
    26  policies or contracts issued, renewed, modified, altered or  amended  on
    27  and after such effective date.
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