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A04461 Summary:

COSPNSRPeoples-Stokes, Gottfried, Zebrowski, Gunther, Hyndman, Taylor, Buttenschon, Sayegh, Williams, Steck
MLTSPNSRDavila, Griffin, Simon
Add Art 30-B §645, Gen Bus L
Provides for limited death benefit life insurance policies for persons aged 60 and over; authorizes the attorney general to enforce provisions; requires an insurer to provide consumers with a prescribed "Financial Review of Policy" form when it delivers or issues for delivery in this state an insurance policy or a certificate of insurance for persons aged 60 and over.
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A04461 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                    February 4, 2021
        Introduced  by  M.  of  A.  COOK,  PEOPLES-STOKES, GOTTFRIED, ZEBROWSKI,
          Multi-Sponsored  by  -- M.   of A. DAVILA, GRIFFIN, SIMON -- read once
          and referred to the Committee on Insurance
        AN ACT to amend the general business law, in relation to  limited  death
          benefit life insurance policies for persons aged sixty and over
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The general business law is amended by adding a new article
     2  30-B to read as follows:
     3                                ARTICLE 30-B
     6                         PERSONS AGED SIXTY AND OVER
     7  Section 645. Financial review of policy.
     8    § 645. Financial review of policy. 1. Whenever a life insurance policy
     9  or certificate of insurance is delivered or issued for delivery in  this
    10  state to an applicant at age sixty and over, which limits death benefits
    11  during  a period following the inception date of the policy or where the
    12  accumulated premiums exceed the death benefit at any  point  during  the
    13  first  ten years, the insurer shall provide the insured with a copy of a
    14  "Financial Review of Policy" form of at least ten point  in  size.  Such
    15  form  shall  use  substantially  the  same  format and terminology shown
    16  below, and shall have complete information  provided  for  any  and  all
    17  blank space.
    18                         Financial Review of Policy
    19        Notice:  You  should  review  this  form and your policy and
    20        decide if the policy is suitable for you.  If  you  are  not
    21        entirely  satisfied, pursuant to New York State law, you may
    22        return the policy within  thirty  days  from  the  date  you
    23        receive  it  and  obtain a full refund of any premiums paid.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 4461                             2
     1        This is a policy offered  without  an  attempt  to  classify
     2        risks by determining your state of health. Premiums may have
     3        been lower if health information had been obtained.
     4        Applicant Information:
     5        Name:                       Age:        Sex:
     6  (1)         (2)       (3)           (4)         (5)
     7                                                              Col 3
     8                        Prem-                                 minus
     9                        iums                                  Col 2
    10  End of      Annual    accum-                    Cash        Net
    11  Policy      Prem-     ulating                   Surren-     gain
    12  Year        ium       interest      Death       der         (net
    13                        at 5%         Benefits    Value       loss)
    14  __________________________________________________________________
    15  1     
    16  2     
    17  3     
    18  4     
    19  5     
    20  6     
    21  7     
    22  8     
    23  9     
    24  10    
    25    Definitions.  The  following  terms  used in the above chart are
    26  defined as:
    27    1. Annual Premium -- Amount you must pay each year to keep  this
    28  policy in force.
    29    2. Premiums Accumulating Interest at 5% -- Amount which could be
    30  earned  if,  instead  of purchasing insurance, the premium dollars
    31  paid to the insurer were left to accumulate at 5% interest.
    32    3. Death Benefits -- Amount that will be paid upon death, exclu-
    33  sive of any supplementary benefits.
    34    4. Cash Surrender Value -- Amount the insurance company will pay
    35  you if you surrender your policy to the company for cash.
    36    5. Net Gain or Loss -- This  column  shows  whether  your  money
    37  would  have  earned  more  or  less  at 5% interest than your life
    38  insurance benefit.
    39    2. Any consumer injured by a violation of this section  may  bring  an
    40  action  for recovery of damages. Judgment shall be entered in favor of a
    41  consumer in an amount not to exceed three times the  actual  damages  or
    42  one hundred dollars whichever is greater. The court may award reasonable
    43  attorney's fees to a prevailing plaintiff.
    44    3. In addition to the other remedies provided, whenever there shall be
    45  a  violation  of  this  section, application may be made by the attorney
    46  general in the name of the people of the state of New York to a court or
    47  justice having jurisdiction by a special proceeding to issue an  injunc-
    48  tion,  and  upon  notice to the defendant of not less than five days, to
    49  enjoin and restrain the continuance of such violations; and if it  shall
    50  appear  to  the  satisfaction of the court or justice that the defendant
    51  has, in fact, violated this article, an injunction may be issued by such
    52  court or justice, enjoining and restraining any further violation, with-
    53  out requiring proof that any  person  has,  in  fact,  been  injured  or
    54  damaged  thereby.  In any such proceeding, the court may make allowances
    55  to the attorney general as provided in paragraph six of subdivision  (a)

        A. 4461                             3
     1  of  section  eighty-three  hundred  three  of the civil practice law and
     2  rules, and direct restitution. Whenever the court shall determine that a
     3  violation of this article has occurred, the court  may  impose  a  civil
     4  penalty  of  not  more  than five hundred dollars for each violation. In
     5  connection with any such proposed application, the attorney  general  is
     6  authorized  to take proof and make a determination of the relevant facts
     7  and to issue subpoenas in accordance with the  civil  practice  law  and
     8  rules.
     9    §  2. This act shall take effect on the first of January next succeed-
    10  ing the date on which it shall have become a law.
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