S07773 Summary:
BILL NO | S07773A |
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SAME AS | SAME AS A11268-A |
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SPONSOR | BRESLIN |
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COSPNSR | |
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MLTSPNSR | |
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Amd S3445, add S3454, Ins L | |
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Enacts provisions providing sponsored group personal insurance and allows such insurance to be written by authorized insurers. |
S07773 Actions:
BILL NO | S07773A | |||||||||||||||||||||||||||||||||||||||||||||||||
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05/07/2010 | REFERRED TO INSURANCE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2010 | 1ST REPORT CAL.755 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/08/2010 | 2ND REPORT CAL. | |||||||||||||||||||||||||||||||||||||||||||||||||
06/09/2010 | AMENDED 7773A | |||||||||||||||||||||||||||||||||||||||||||||||||
06/09/2010 | ADVANCED TO THIRD READING | |||||||||||||||||||||||||||||||||||||||||||||||||
06/22/2010 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
06/22/2010 | DELIVERED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
06/22/2010 | referred to insurance | |||||||||||||||||||||||||||||||||||||||||||||||||
06/22/2010 | substituted for a11268a | |||||||||||||||||||||||||||||||||||||||||||||||||
06/22/2010 | ordered to third reading rules cal.270 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/22/2010 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
06/22/2010 | returned to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
09/20/2010 | DELIVERED TO GOVERNOR | |||||||||||||||||||||||||||||||||||||||||||||||||
10/01/2010 | SIGNED CHAP.544 |
S07773 Floor Votes:
Yes
Abbate
Yes
Carrozza
Yes
Gabryszak
Yes
Kolb
Yes
Murray
Yes
Saladino
Yes
Alessi
Yes
Castelli
Yes
Galef
Yes
Koon
Yes
Nolan
Yes
Sayward
Yes
Alfano
ER
Castro
Yes
Gantt
Yes
Lancman
Yes
Oaks
Yes
Scarborough
Yes
Amedore
ER
Christensen
Yes
Gianaris
Yes
Latimer
Yes
O'Donnell
Yes
Schimel
Yes
Arroyo
Yes
Clark
Yes
Gibson
Yes
Lavine
Yes
O'Mara
Yes
Schimminger
Yes
Aubry
Yes
Colton
Yes
Giglio
Yes
Lentol
Yes
Ortiz
Yes
Schroeder
Yes
Bacalles
Yes
Conte
Yes
Glick
Yes
Lifton
Yes
Parment
Yes
Scozzafava
Yes
Ball
ER
Cook
Yes
Gordon
Yes
Lopez PD
Yes
Paulin
Yes
Skartados
Yes
Barclay
Yes
Corwin
Yes
Gottfried
Yes
Lopez VJ
Yes
Peoples
Yes
Spano
Yes
Barra
ER
Crespo
Yes
Gunther
Yes
Lupardo
Yes
Perry
Yes
Stirpe
Yes
Barron
Yes
Crouch
Yes
Hawley
Yes
Magee
Yes
Pheffer
Yes
Sweeney
Yes
Benedetto
Yes
Cusick
Yes
Hayes
Yes
Magnarelli
ER
Powell
Yes
Tedisco
Yes
Benjamin
Yes
Cymbrowitz
Yes
Heastie
Yes
Maisel
Yes
Pretlow
Yes
Thiele
Yes
Bing
Yes
DelMonte
ER
Hevesi
Yes
Markey
Yes
Quinn
Yes
Titone
Yes
Boyland
Yes
DenDekker
Yes
Hikind
Yes
Mayersohn
Yes
Rabbitt
Yes
Titus
Yes
Boyle
Yes
Destito
Yes
Hooper
Yes
McDonough
Yes
Raia
Yes
Tobacco
Yes
Brennan
Yes
Dinowitz
Yes
Hoyt
Yes
McEneny
Yes
Ramos
Yes
Towns
Yes
Brodsky
Yes
Duprey
Yes
Hyer Spencer
Yes
McKevitt
Yes
Reilich
Yes
Townsend
Yes
Brook Krasny
Yes
Englebright
Yes
Jacobs
Yes
Meng
Yes
Reilly
Yes
Weinstein
Yes
Burling
Yes
Errigo
Yes
Jaffee
ER
Miller JM
Yes
Rivera J
Yes
Weisenberg
Yes
Butler
Yes
Espaillat
Yes
Jeffries
Yes
Miller MG
Yes
Rivera N
Yes
Weprin
Yes
Cahill
Yes
Farrell
Yes
John
Yes
Millman
Yes
Rivera PM
Yes
Wright
Yes
Calhoun
Yes
Fields
Yes
Jordan
Yes
Molinaro
Yes
Robinson
Yes
Zebrowski
Yes
Camara
Yes
Finch
Yes
Kavanagh
Yes
Montesano
Yes
Rosenthal
Yes
Mr. Speaker
Yes
Canestrari
Yes
Fitzpatrick
Yes
Kellner
Yes
Morelle
Yes
Russell
‡ Indicates voting via videoconference
S07773 Memo:
Memo not availableGo to top
S07773 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 7773--A Cal. No. 755 IN SENATE May 7, 2010 ___________ Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- reported favorably from said committee, ordered to first and second report, amended on second report, ordered to a third reading, and to be reprinted as amended, retaining its place in the order of third read- ing AN ACT to amend the insurance law, in relation to sponsored group personal excess insurance The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 3445 of the insurance law, as added by chapter 528 2 of the laws of 1998, is renumbered section 3453 and paragraphs 3, 6 and 3 7 of subsection (a) and subsections (c) and (d) of such section are 4 amended to read as follows: 5 (3) "Employee" means a director of the employer, or an individual or 6 partner who receives or has received income, wages or salaries from the 7 employer. 8 (6) "Group member" means a designated active or retired employee 9 insured under this section and also may include the employee's domestic 10 partner or any person related to the employee by blood, marriage, 11 adoption, or operation of law, who resides in the same household 12 (including a ward or foster child) or who is a dependent child away at 13 school. 14 (7) "Group policy" means employer sponsored group personal excess 15 insurance written for the designated employees of an employer or other 16 group members as defined in this section. 17 (c) The premium for the group policy may be paid by the employer from 18 funds contributed: 19 (1) wholly by the employer; 20 (2) wholly by the employees or group members; or 21 (3) jointly by the employer and employees or group members. 22 (d) An employee or group member shall have the right to refuse cover- 23 age offered by an employer under this section. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD17135-05-0S. 7773--A 2 1 § 2. The insurance law is amended by adding a new section 3454 to read 2 as follows: 3 § 3454. Sponsored group personal insurance. (a) For purposes of this 4 section, the following definitions shall apply: 5 (1) "Certificate" or "certificate of insurance" means any policy, 6 contract or other evidence of insurance, or rider or endorsement there- 7 to, issued to a group member under a group policy. 8 (2) "Conditional renewal" means any change of limits, change in type 9 of coverage, reduction or elimination of coverage, increased deductible 10 or addition of exclusion, or increased premiums in excess of ten percent 11 (exclusive of any premium increase generated as a result of experience 12 rating, loss rating or retrospective rating). 13 (3) "Personal excess insurance" means insurance as defined in para- 14 graph thirteen or fourteen of subsection (a) of section one thousand one 15 hundred thirteen of this chapter, written as an excess insurance policy. 16 (4) "Personal property floater insurance" means insurance as defined 17 in subparagraph (C) of paragraph seven of subsection (a) of section one 18 thousand one hundred thirteen of this chapter. 19 (5) "Group policy" means a group insurance policy providing personal 20 excess insurance, personal property floater insurance, renters' insur- 21 ance, and vintage vehicle insurance, or any combination thereof, insur- 22 ing sponsor group members. 23 (6) "Group policyholder" means a sponsor. 24 (7) "Renters' insurance" means insurance insuring residential property 25 tenants, housing cooperative shareholders, or condominium owners against 26 the contingencies described in subparagraphs (A), (B) and (C), or (B) 27 and (C) of paragraph two of subsection (a) of section three thousand 28 four hundred twenty-five of this article. 29 (8) "Vintage vehicle insurance" means insurance insuring against loss- 30 es or liabilities arising out of the ownership, operation, or use of a 31 motor vehicle, and covering a motor vehicle that is antique, classic, or 32 made from a kit. For the purposes of this paragraph: 33 (A) an "antique" motor vehicle means a private passenger motor vehicle 34 that is at least twenty-five years old, and is maintained primarily for 35 use in exhibitions, club activities, parades, or other functions of 36 public interest, and occasionally used for other purposes; and 37 (B) a "classic" motor vehicle is a private passenger motor vehicle 38 that is at least ten years old, may be used on a regular basis, and the 39 motor vehicle's value is significantly higher than the average value of 40 other motor vehicles of the same make and model year. 41 (9) "Sponsor" means: 42 (A) an association, organization, labor union, federation, fraternity, 43 club or similar entity: 44 (i) in which the members are engaged in a common pursuit or enter- 45 prise; 46 (ii) that was formed for purposes other than obtaining insurance; 47 (iii) that has been in existence for more than three years; 48 (iv) that has twenty-five or more members; and 49 (v) that has adopted by-laws or similar governance rules, and a method 50 to enroll or register members; or 51 (B) a bank, corporation, partnership, trust company, or trustee of a 52 trust that owns twenty-five or more residential properties or living 53 units or a tenants' association, condominium association, or similar 54 organization, with respect to renters' insurance sold to lessees or 55 occupants of residential properties or living units owned by the bank,S. 7773--A 3 1 corporation, partnership or trust, or who are members of the tenants' 2 association, condominium association, or similar organization. 3 (10) "Sponsor group member" means: 4 (A) an enrolled member, officer, or director of a sponsor; 5 (B) any domestic partner of the enrolled member, officer, or director; 6 (C) any person related to the enrolled member, officer, or director by 7 blood, marriage, adoption, or operation of law, who resides in the same 8 household (including a ward or foster child) or who is a dependent child 9 away at school; or 10 (D) a lessee or occupant of a residential property or living unit 11 owned by a bank, corporation, partnership or trust when the bank, corpo- 12 ration, partnership, trust company, or trustee of the trust is the spon- 13 sor, or when the sponsor is a tenants' association, condominium associ- 14 ation, or similar organization. 15 (b) A group policy written pursuant to this section may be issued or 16 issued for delivery in this state only in compliance with the provisions 17 of this section. 18 (c) The premium for the group policy, including certificates, shall be 19 paid by the sponsor group members. An insurer shall not provide coverage 20 in regard to a group policy that requires the purchase of insurance as a 21 condition of sponsor group membership or imposes any penalty upon a 22 sponsor group member if the sponsor group member does not purchase 23 insurance. If so authorized by the insurer, the sponsor group may aggre- 24 gate the group members' premiums and remit them to the insurer or to the 25 licensed insurance agent or broker representing the sponsor group. If an 26 insurer authorizes a sponsor group to aggregate and remit the premiums 27 of sponsor group members, then payment to the sponsor group by a sponsor 28 group member shall be deemed to be payment to the insurer. 29 (d) (1) Any policy dividend, retrospective premium credit, or retro- 30 spective premium refund not distributed shall be: 31 (A) applied to reduce future premiums and, accordingly, future 32 contributions, of existing or future group sponsor members, or both; or 33 (B) paid or refunded to those sponsor group members insured on the 34 date the payment or refund is made to the group policyholder, if 35 distributed by the group policyholder, or on the date of mailing, if 36 distributed directly by the insurer, subject to the following require- 37 ments: 38 (i) the insurer shall be responsible for determining the allocation of 39 the payment or refund to the sponsor group members; 40 (ii) if the group policyholder distributes the payment or refund, the 41 insurer shall be responsible for audit to ascertain that the payment or 42 refund is actually made in accordance with the allocation procedure; and 43 (iii) if the group policyholder fails to make the payment or refund, 44 the insurer shall make the payment or refund directly or use the method 45 provided in subparagraph (A) of this paragraph. 46 (2) Notwithstanding paragraph one of this subsection, if a dividend 47 accrues upon termination of coverage under a group policy, then the 48 group policyholder shall pay or refund the dividend to the sponsor group 49 members insured on the date the payment or refund is made to the group 50 policyholder. 51 (e) The insurer shall treat in like manner all eligible sponsor group 52 members of the same class and sponsor status. 53 (f) A group policy or certificate written pursuant to this section 54 shall not be eligible for placement by an excess line broker licensed 55 pursuant to article twenty-one of this chapter.S. 7773--A 4 1 (g) A group policy written pursuant to this section shall provide 2 separate limits of coverage under the certificate issued to a sponsor 3 group member. 4 (h)(1) The insurer shall be responsible for the mailing or delivery of 5 a certificate of insurance to each sponsor group member insured under 6 the group policy. The insurer also shall be responsible for the mailing 7 or delivery to each sponsor group member of any amended certificate of 8 insurance, or endorsement to the certificate, whenever there is a change 9 of limits; change in type of coverage; addition, reduction, or elimi- 10 nation of coverage; or addition of an exclusion, under the group policy 11 or certificate. If so authorized by the insurer, the sponsor group may 12 mail or deliver certificates, endorsements and other coverage notices to 13 the sponsor group members on behalf of the insurer. 14 (2) The certificate shall contain in substance all material terms and 15 conditions of coverage afforded to the sponsor group member, unless the 16 group policy is incorporated by reference and a copy of the group policy 17 accompanies the certificate. 18 (3) If the coverage afforded to a sponsor group member is excess of 19 other applicable insurance coverage, then the certificate shall contain 20 a notice advising the sponsor group member that, if the member has other 21 insurance coverage, specified coverages under the group policy shall be 22 excess over the other insurance. 23 (i) A group policyholder shall comply with the provisions of section 24 two thousand one hundred twenty-two of this chapter, in the same manner 25 as an insurance producer, in any advertisement, sign, pamphlet, circu- 26 lar, card, or other public announcement referring to coverage under a 27 group policy or certificate. 28 (j) A group policy or certificate shall not be subject to section 29 three thousand four hundred twenty-five or section three thousand four 30 hundred twenty-six of this article. The following requirements shall 31 apply in regard to termination of coverage: 32 (1) An insurer may cancel a group policy or certificate only if 33 cancellation is based on one or more of the reasons set forth in para- 34 graph one of subsection (c) of section three thousand four hundred twen- 35 ty-six of this article; provided, however, that an act or omission by a 36 sponsor group member that would constitute the basis for cancellation of 37 an individual certificate shall not constitute the basis for cancella- 38 tion of the group policy. 39 (2)(A) An insurer's cancellation of a group policy, including all 40 certificates, shall not become effective until forty-five days, or twen- 41 ty days if based upon non-payment of premium, after the insurer mails or 42 delivers written notice of cancellation to the group policyholder at the 43 mailing address shown in the policy, and to the sponsor group member at 44 the sponsor group member's mailing address. 45 (B) An insurer's cancellation of an individual certificate shall not 46 become effective until forty-five days after the insurer mails or deliv- 47 ers written notice of cancellation to the sponsor group member at the 48 sponsor group member's mailing address and to the group policyholder at 49 the mailing address shown in the group policy. 50 (C) (i) A group policyholder may cancel a group policy, including all 51 certificates, or any individual certificate, for any reason, upon ninety 52 days written notice to the insurer and each sponsor group member. 53 (ii) The group policyholder shall mail or deliver written notice to 54 each affected group member of the group policyholder's cancellation of 55 the group policy or certificate and the effective date of cancellation. 56 The group policyholder shall mail or deliver the written notice to theS. 7773--A 5 1 sponsor group member's mailing address at least ninety days prior to the 2 effective date of the cancellation. 3 (3)(A) Unless the group policy provides for a longer policy period, 4 the policy and all certificates shall be issued or renewed for a one- 5 year policy period. 6 (B) The sponsor group member shall be entitled to renew the certif- 7 icate upon timely payment of the premium billed to the sponsor group 8 member for the renewal, unless: 9 (i) the insurer mails or delivers to the sponsor group member written 10 notice of nonrenewal or conditional renewal; and 11 (ii) the insurer mails or delivers written notice at least ninety, but 12 not more than two hundred forty days prior to the expiration date speci- 13 fied in the policy or, if the policy does not specify a date, then the 14 next anniversary date of the policy. 15 (4) Where the group policyholder nonrenews the group policy, the group 16 policyholder shall mail or deliver written notice to each sponsor group 17 member advising the sponsor group member of nonrenewal of the group 18 policy and the effective date of nonrenewal. The group policy holder 19 shall mail or deliver the written notice at least ninety days prior to 20 the nonrenewal. 21 (5) Every notice of cancellation, nonrenewal, or conditional renewal 22 shall contain the specific reason or reasons for cancellation, nonrene- 23 wal, or conditional renewal. 24 (6)(A) An insurer shall not be required under this subsection to give 25 notice to a sponsor group member if the insurer has been advised by 26 either the group policyholder or another insurer that substantially 27 similar coverage has been obtained from the other insurer without lapse 28 of coverage. 29 (B) A group policyholder shall not be required under this subsection 30 to give notice to sponsor group member if substantially similar coverage 31 has been obtained from another insurer without lapse of coverage. 32 (k) If an insurer cancels or nonrenews a renters' insurance group 33 policy, then the insurer shall offer to convert a certificate to an 34 individual insurance policy, using the insurer's filed rates and forms 35 for individual policies, for any remaining part of the required policy 36 period set forth in section three thousand four hundred twenty-five of 37 this article. 38 § 3. This act shall take effect immediately.