Bill Text: NY A09702 | 2011-2012 | General Assembly | Amended

---

Bill Title: Provides that an insurer may offer valuable consideration, including merchandise or periodical subscriptions of a value of $25 or less to an insured.

Spectrum: Bipartisan Bill

Status: (Passed) 2012-08-01 - signed chap.291 [A09702 Detail]

Download: New_York-2011-A09702-Amended.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        9702--A
                                 I N  A S S E M B L Y
                                    March 27, 2012
                                      ___________
       Introduced by M. of A. HEVESI -- read once and referred to the Committee
         on  Insurance -- committee discharged, bill amended, ordered reprinted
         as amended and recommitted to said committee
       AN ACT  to  amend  the  insurance  law,  in  relation  to  anti-rebating
         provisions for insurers
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subsection (a) of section 2324 of  the  insurance  law,  as
    2  amended  by  chapter  482  of  the  laws  of 2000, is amended to read as
    3  follows:
    4    (a) No authorized insurer, no licensed insurance  agent,  no  licensed
    5  insurance  broker,  and  no employee or other representative of any such
    6  insurer, agent or broker shall make, procure or negotiate  any  contract
    7  of  insurance  other  than  as  plainly expressed in the policy or other
    8  written contract issued or to be issued as evidence  thereof,  or  shall
    9  directly  or  indirectly,  by  giving  or sharing a commission or in any
   10  manner whatsoever, pay or allow or offer to pay or allow to the  insured
   11  or to any employee of the insured, either as an inducement to the making
   12  of  insurance  or after insurance has been effected, any rebate from the
   13  premium which is specified in the policy, or any special favor or advan-
   14  tage in the dividends or other benefit to accrue thereon, or shall  give
   15  or  offer  to give any valuable consideration or inducement of any kind,
   16  directly or indirectly,  which  is  not  specified  in  such  policy  or
   17  contract,  other than any [article of] VALUABLE CONSIDERATION, INCLUDING
   18  BUT NOT LIMITED TO merchandise OR PERIODICAL SUBSCRIPTIONS, not  exceed-
   19  ing  [fifteen]  TWENTY-FIVE dollars in value [which shall have conspicu-
   20  ously stamped or printed thereon the advertisement of the insurer, agent
   21  or broker], or shall give, sell or purchase, or offer to give,  sell  or
   22  purchase,  as  an  inducement  to  the  making  of  such insurance or in
   23  connection therewith, any stock, bond or other securities or  any  divi-
   24  dends  or  profits  accrued thereon, nor shall the insured, his agent or
   25  representative knowingly receive directly or indirectly, any such rebate
   26  or special favor or advantage, provided, however, a  licensed  insurance
   27  agent  or a licensed insurance broker may retain the usual commission or
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15149-02-2
       A. 9702--A                          2
    1  underwriting fee on insurance placed on his own property  or  risks,  if
    2  the  aggregate  of such commissions or underwriting fees will not exceed
    3  five percent of the total net commissions or underwriting fees  received
    4  by such licensed insurance agent or insurance broker during the calendar
    5  year.
    6    S  2.  Subsection (c) of section 4224 of the insurance law, as amended
    7  by chapter 592 of the laws of 2008, is amended to read as follows:
    8    (c) Except as permitted by section three thousand two hundred  thirty-
    9  nine of this chapter, no such life insurance company and no such savings
   10  and  insurance  bank  and no officer, agent, solicitor or representative
   11  thereof and no such insurer doing in this state the business of accident
   12  and health insurance and no officer, agent, solicitor or  representative
   13  thereof,  and  no  licensed  insurance  broker  and no employee or other
   14  representative of any such insurer, agent or broker, shall pay, allow or
   15  give, or offer to pay, allow or give,  directly  or  indirectly,  as  an
   16  inducement  to any person to insure, or shall give, sell or purchase, or
   17  offer to give, sell or purchase, as such inducement,  or  interdependent
   18  with any policy of life insurance or annuity contract or policy of acci-
   19  dent  and  health  insurance, any stocks, bonds, or other securities, or
   20  any dividends or profits accruing or to accrue thereon, or any  valuable
   21  consideration  or  inducement  whatever  not specified in such policy or
   22  contract OTHER THAN ANY VALUABLE CONSIDERATION, INCLUDING BUT NOT LIMIT-
   23  ED TO MERCHANDISE OR PERIODICAL SUBSCRIPTIONS, NOT EXCEEDING TWENTY-FIVE
   24  DOLLARS IN VALUE; nor shall any person in this state  knowingly  receive
   25  as  such  inducement, any rebate of premium or policy fee or any special
   26  favor or advantage in the dividends or other benefits to accrue  on  any
   27  such  policy  or  contract,  or knowingly receive any paid employment or
   28  contract for services of any kind,  or  any  valuable  consideration  or
   29  inducement whatever which is not specified in such policy or contract.
   30    S 3. This act shall take effect immediately.