BILL NUMBER: S5341
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the insurance law, in relation to the approval of policy
forms
 
SUMMARY OF PROVISIONS:
Section one amends section 3201 of the Insurance Law to add a provision
which identifies certain group policies, group contracts and certif-
icates issued thereunder, exempting them from the filing and approval
requirements. in the section. The provision sets forth the standards by
which the superintendent shall have the authority to issue a cease and
desist order with regard to the issue of such exempted policy forms.
There is also authority granted to the issuer of the group policy form
to include provisions in these policies, contracts and certificates
which are at least as favorable as the standard provisions required in
the law.
Sections two sets forth the effective date.
 
JUSTIFICATION:
This bill would allow New York licensed life insurers to market group
life and group annuities to large employer groups without the require-
ment to obtain prior approval of the policy language from the Department
of Financial Services. This legislation would enable life insurers to
respond to the timeframes demanded by the national large group insurance
marketplace, yet maintain the statutory standards for the protection of
policyholders and insureds set forth in the Insurance Law. New York
property and casualty insurers currently have the ability to market
policies to large commercial clients without the Department's prior
approval through the Department's Free Trade Zone; this legislation
would extend similar authority to life insurers. The current law
provides a system of policy form filing requirements. This legislation
would allow life insurers to obtain relief from these procedural
requirements, but still require the policy and contract forms to meet
the substantive provisions in the Insurance Law governing the content,
benefits and other coverage requirements for group life insurance and
annuities. An exemption from filing requirements would enhance the abil-
ity c New York authorized insurers to respond quickly to requests fo r
coverage, and to tailor the policy language to the particular needs of
the institutional customer. Such policies would however continue to
remain subject to all other applicable provisions of the Insurance Law.
This legislation would only apply to groups with 500 or more employees
or members who have a "qualified benefits manager" as defined in the
legislation, and the group policyholder would be notified that the poli-
cy is not subject to the Department's filing and approval requirements.
The filing exemption set forth in this legislation would not impact, nor
be available for policies sold to individual consumers.
 
PRIOR LEGISLATIVE HISTORY:
S5432 - 19/20
S3564 - 21/22
S3543- 23/24
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
30th day after it shall have become a law

Statutes affected:
S5341: 3201 insurance law