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S06369 Summary:

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S06369 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6369
 
                    IN SENATE
 
                                     January 7, 2016
                                       ___________
 
        Introduced  by  Sens. KLEIN, CARLUCCI, VALESKY -- read twice and ordered
          printed, and when printed to be committed to the Committee on Investi-
          gations and Government Operations
 
        AN ACT to amend the tax law and the insurance law, in relation to  cred-
          its for premiums paid for long-term care insurance policies
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1.  Subdivision 1 of section 190 of the tax law, as amended by
     2  section 102 of part A of chapter 59 of the laws of 2014, is  amended  to
     3  read as follows:
     4    1.  General.  A  taxpayer  shall  be  allowed a credit against the tax
     5  imposed by this article equal to twenty  percent  of  the  premium  paid
     6  during  the  taxable  year  for long-term care insurance or for a policy
     7  rider to a life insurance policy issued pursuant  to  subparagraph  (C),
     8  (D),  (E) or (F) of paragraph one of subsection (a) of section one thou-
     9  sand one hundred thirteen of the insurance law.
    10    In order to qualify for such credit, the  taxpayer's  premium  payment
    11  must be for the purchase of or for continuing coverage under a long-term
    12  care insurance policy that qualifies for such credit pursuant to section
    13  one thousand one hundred seventeen of the insurance law.
    14    §  2. Paragraph (a) of subdivision 14 of section 210-B of the tax law,
    15  as added by section 17 of part A of chapter 59 of the laws of  2014,  is
    16  amended to read as follows:
    17    (a)  General.  A  taxpayer  shall  be allowed a credit against the tax
    18  imposed by this article equal to twenty  percent  of  the  premium  paid
    19  during  the  taxable  year  for long-term care insurance or for a policy
    20  rider to a life insurance policy issued pursuant  to  subparagraph  (C),
    21  (D),  (E) or (F) of paragraph one of subsection (a) of section one thou-
    22  sand one hundred thirteen of the insurance law.
    23    In order to qualify for such credit, the  taxpayer's  premium  payment
    24  must be for the purchase of or for continuing coverage under a long-term
    25  care insurance policy that qualifies for such credit pursuant to section
    26  one thousand one hundred seventeen of the insurance law.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13304-01-5
        S. 6369                             2
 
     1    §  3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as
     2  amended by section 1 of part P of chapter 61 of the  laws  of  2005,  is
     3  amended to read as follows:
     4    (1)  Residents.  A  taxpayer shall be allowed a credit against the tax
     5  imposed by this article equal to twenty  percent  of  the  premium  paid
     6  during  the  taxable  year  for long-term care insurance or for a policy
     7  rider to a life insurance policy issued pursuant  to  subparagraph  (C),
     8  (D),  (E) or (F) of paragraph one of subsection (a) of section one thou-
     9  sand one hundred thirteen of the insurance law.
    10    In order to qualify for such credit, the  taxpayer's  premium  payment
    11  must be for the purchase of or for continuing coverage under a long-term
    12  care insurance policy that qualifies for such credit pursuant to section
    13  one  thousand  one hundred seventeen of the insurance law. If the amount
    14  of the credit allowable under this subsection for any taxable year shall
    15  exceed the taxpayer's tax for such year, the excess may be carried  over
    16  to  the  following year or years and may be deducted from the taxpayer's
    17  tax for such year or years.
    18    § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as
    19  amended by section 21 of part B of chapter 58 of the laws  of  2004,  is
    20  amended to read as follows:
    21    (1)  A  taxpayer  shall be allowed a credit against the tax imposed by
    22  this article equal to twenty percent of  the  premium  paid  during  the
    23  taxable  year  for  long-term  care insurance or for a policy rider to a
    24  life insurance policy issued pursuant to subparagraph (C), (D),  (E)  or
    25  (F)  of  paragraph  one  of  subsection  (a) of section one thousand one
    26  hundred thirteen of the insurance law.
    27    In order to qualify for such credit, the  taxpayer's  premium  payment
    28  must be for the purchase of or for continuing coverage under a long-term
    29  care insurance policy that qualifies for such credit pursuant to section
    30  one thousand one hundred seventeen of the insurance law.
    31    §  5.  Paragraphs  1  and  2  of subsection (g) of section 1117 of the
    32  insurance law, paragraph 1 as amended by chapter  417  of  the  laws  of
    33  2001,  paragraph  2  as amended by section 12 of part E of chapter 63 of
    34  the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended
    35  by chapter 311 of the laws of 2002, are amended to read as follows:
    36    (1) Except for certain group contracts described in paragraph four  of
    37  this subsection, in order for premium payments for long-term care insur-
    38  ance,  or  for a policy rider to a life insurance policy issued pursuant
    39  to subparagraph (C), (D), (E) or (F) of paragraph one of subsection  (a)
    40  of section one thousand one hundred thirteen of this article, to qualify
    41  for  purposes of section one hundred ninety, subdivision [twenty-five-a]
    42  fourteen of section two hundred [ten] ten-B, subsection (aa) of  section
    43  six  hundred  six[,  subsection (k) of section one thousand four hundred
    44  fifty-six] and subsection (m) of section one thousand five hundred elev-
    45  en of the tax law, the long-term care insurance  or  such  policy  rider
    46  must  be  approved  by  the  superintendent pursuant to this subsection.
    47  Prior to approving any such insurance or policy rider,  the  superinten-
    48  dent  shall  conclude that it meets minimum standards, including minimum
    49  loss ratio standards under this section or section  three  thousand  two
    50  hundred  twenty-nine  of  this chapter and is a qualified long-term care
    51  insurance contract as defined in section 7702B of the  internal  revenue
    52  code.
    53    (2)  (A)  No  insurer,  agent, broker, person, business or corporation
    54  doing business in or into this state shall in any manner  state,  adver-
    55  tise  or claim that a long-term care insurance policy, or a policy rider
    56  to a life insurance policy issued pursuant  to  subparagraph  (C),  (D),
        S. 6369                             3
 
     1  (E),  or  (F) of paragraph one of subsection (a) of section one thousand
     2  one hundred thirteen of this article,  qualifies  for  purposes  of  the
     3  above-referenced provisions of the tax law unless either: (i) the super-
     4  intendent has issued a letter or other written instrument to the insurer
     5  stating  that  the policy or policy rider has been determined to qualify
     6  under this subsection, or (ii) the  policy  or  policy  rider  qualifies
     7  under paragraph four of this subsection without the need for approval by
     8  the superintendent.
     9    (B)  Any policy or policy rider which is held out or purported to be a
    10  long-term care insurance policy by any insurer, agent,  broker,  person,
    11  business  or  corporation doing business in or into this state which has
    12  not been determined by the superintendent to qualify and which does  not
    13  qualify  under  paragraph  four  of  this subsection for purposes of the
    14  above referenced provisions of the tax law shall so state clearly, legi-
    15  bly and in close physical proximity to any description of the policy  or
    16  policy  rider  as  a long-term care insurance policy that it does not so
    17  qualify. This subsection shall also be deemed to  cover  any  statement,
    18  advertisement  or  claim  concerning  such policy by any insurer, agent,
    19  broker, person, business or corporation doing business in or  into  this
    20  state.
    21    (C)  Violation  of  this  paragraph shall be considered a misrepresen-
    22  tation under section [twenty-one] two thousand one hundred  twenty-three
    23  of this chapter.
    24    §  6. This act shall take effect on the first of April next succeeding
    25  the date on which it shall have become a law.