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A07449 Summary:

Add §4227, Ins L
Limits certain regulations or orders promulgated by the superintendent; provides that the department of financial services shall issue a report on the effects that its suitability and best interest in life insurance and annuity transaction regulations have had on the term life insurance market.
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A07449 Actions:

05/10/2021referred to insurance
01/05/2022referred to insurance
05/26/2022amend (t) and recommit to insurance
05/26/2022print number 7449a
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A07449 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                      May 10, 2021
        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Insurance -- recommitted  to  the  Committee  on  Insurance  in
          accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-

        AN ACT to amend the insurance law, in relation to limiting certain regu-
          lations or orders promulgated by the superintendent; and providing for
          the repeal of certain provisions upon expiration thereof
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1.  Legislative findings and intent.  The  legislature  hereby
     2  finds  that  term  life insurance products are a primary vehicle for the
     3  financial security and protection of the families of many  New  Yorkers.
     4  Furthermore,  the legislature finds that New York is trailing behind the
     5  rest of the country in the sale of term life insurance products.  There-
     6  fore,  it is the intent of the legislature to help to create more oppor-
     7  tunities for the availability of term life  insurance  policies  in  New
     8  York.
     9    § 2. The insurance law is amended by adding a new section 4227 to read
    10  as follows:
    11    §  4227.  Limitations  on  the superintendent. (a) Notwithstanding any
    12  other provision of law, the superintendent is prohibited from promulgat-
    13  ing any regulation, rule, advisory or otherwise imposing  any  suitabil-
    14  ity,  best  interest  or fiduciary standard, or enforcing any such regu-
    15  lation, rule, advisory or otherwise,  pertaining  to  the  provision  of
    16  counsel,  advice or a recommendation to a consumer or potential consumer
    17  of term life insurance, by a licensed insurance agent or  broker,  or  a
    18  life  insurance  company  authorized  to  do  business in this state, in
    19  conjunction with the purchase of a term life insurance policy,  as  that
    20  term  is defined in this chapter, or in conjunction with the exercise of
    21  any right or contractual option or amendment pursuant to the  provisions
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 7449--A                          2
     1  of  any  such  policy,  when  the insured face amount of such policy, or
     2  potential policy is of one million dollars or less.
     3    (b)  Any  provision  of  the superintendent's regulations or orders in
     4  effect on the effective date of this section which may  be  contrary  to
     5  this  section shall be deemed null and void. Particularly, any provision
     6  of 11 NYCRR Part 224 contrary to this section shall be null and void and
     7  the superintendent shall  amend  such  regulation  accordingly,  by  the
     8  consensus regulatory process.
     9    §  3.  By July 1, 2023, the superintendent of the department of finan-
    10  cial services shall submit to the governor, the temporary  president  of
    11  the senate and the speaker of the assembly, a report on any effects that
    12  its  suitability  and best interest in life insurance and annuity trans-
    13  action regulations have had on the term life insurance  market,  includ-
    14  ing,  but  not  limited to, whether such regulations have contributed to
    15  declining availability of such products.
    16    § 4. This act shall take effect immediately; provided,  however,  that
    17  section  two of this act shall expire and be deemed repealed on December
    18  31, 2023 or on the one hundred eightieth day after the issuance  of  the
    19  report  described in section three of this act, whichever date is later,
    20  provided that the department of  financial  services  shall  notify  the
    21  legislative  bill  drafting commission upon the completion of the report
    22  described in section three of this act in order that the commission  may
    23  maintain an accurate and timely effective data base of the official text
    24  of  the  laws  of  the state of New York in furtherance of effecting the
    25  provisions of section 44 of the legislative law and section 70-b of  the
    26  public officers law.
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