Bill Text: NY A06126 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Prohibits insurers from reducing disability benefits due to the actual or anticipated receipt of social security disability benefits unless certain conditions are met.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Vetoed) 2024-11-22 - tabled [A06126 Detail]

Download: New_York-2023-A06126-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6126

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      April 3, 2023
                                       ___________

        Introduced by M. of A. HUNTER -- read once and referred to the Committee
          on Insurance

        AN  ACT  to amend the insurance law, in relation to prohibiting insurers
          from reducing disability benefits unless certain conditions are met

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Section 3216 of the insurance law is amended by adding two
     2  new subsections (n) and (o) to read as follows:
     3    (n) No policy or certificate of accident and health insurance  provid-
     4  ing  disability  benefits delivered or issued for delivery to any person
     5  in this state shall contain any  provision  authorizing  an  insurer  to
     6  offset  or  reduce  benefits due to the actual or anticipated receipt of
     7  social security disability benefits or other disability benefits, unless
     8  such policy or certificate notifies the insured  that  the  insured  may
     9  qualify  for  such  benefits,  and  to  pursue such benefits through any
    10  required administrative appeals.
    11    (o) No insurer may offset or reduce benefits payable under a policy of
    12  accident and health insurance providing disability insurance due to  the
    13  actual  or  estimated  receipt  of  social security disability insurance
    14  benefits unless:
    15    (1) the insurer has a reasonable, good faith belief that  the  insured
    16  is  entitled  to  such benefits and a means of reasonably estimating the
    17  amount payable;
    18    (2) the insurer makes a good faith effort to  assist  the  insured  in
    19  applying for such benefits; and
    20    (3)  the  insured  fails  to  apply for, or pursue, such benefits with
    21  reasonable diligence during the  application  process  or  any  required
    22  appeals.
    23    § 2.  This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09886-01-3