S07773 Summary:

BILL NOS07773A
 
SAME ASSAME AS A11268-A
 
SPONSORBRESLIN
 
COSPNSR
 
MLTSPNSR
 
Amd S3445, add S3454, Ins L
 
Enacts provisions providing sponsored group personal insurance and allows such insurance to be written by authorized insurers.
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S07773 Actions:

BILL NOS07773A
 
05/07/2010REFERRED TO INSURANCE
06/07/20101ST REPORT CAL.755
06/08/20102ND REPORT CAL.
06/09/2010AMENDED 7773A
06/09/2010ADVANCED TO THIRD READING
06/22/2010PASSED SENATE
06/22/2010DELIVERED TO ASSEMBLY
06/22/2010referred to insurance
06/22/2010substituted for a11268a
06/22/2010ordered to third reading rules cal.270
06/22/2010passed assembly
06/22/2010returned to senate
09/20/2010DELIVERED TO GOVERNOR
10/01/2010SIGNED CHAP.544
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S07773 Floor Votes:

DATE:06/22/2010Assembly Vote  YEA/NAY: 142/0
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
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S07773 Memo:

Memo not available
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S07773 Text:



 
                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.
                                                                   LBD17135-05-0

        S. 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  the

        S. 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.
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