STATE OF NEW YORK
        ________________________________________________________________________

                                          2795

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 24, 2023
                                       ___________

        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance

        AN ACT to amend the insurance law, in relation to prohibitions on rebat-
          ing and discrimination

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

     1    Section  1.  Subsection  (c)  of section 4224 of the insurance law, as
     2  amended by chapter 496 of the laws  of  2013,  is  amended  to  read  as
     3  follows:
     4    (c)  (1)  Except  as  permitted  by section three thousand two hundred
     5  thirty-nine of this chapter or subsection (f) of this section,  no  such
     6  life  insurance  company  and  no such savings and insurance bank and no
     7  officer, agent, solicitor or representative thereof and no such  insurer
     8  doing in this state the business of accident and health insurance and no
     9  officer,  agent,  solicitor  or  representative thereof, and no licensed
    10  insurance broker and no employee or other  representative  of  any  such
    11  insurer,  agent  or  broker,  shall pay, allow or give, or offer to pay,
    12  allow or give, directly or indirectly, as an inducement to any person to
    13  insure, or shall give, sell or purchase,  or  offer  to  give,  sell  or
    14  purchase,  as such inducement, or interdependent with any policy of life
    15  insurance or annuity contract or policy of accident  and  health  insur-
    16  ance,  any  stocks,  bonds,  or  other  securities,  or any dividends or
    17  profits accruing or to accrue thereon, or any valuable consideration  or
    18  inducement  whatever not specified in such policy or contract other than
    19  any valuable consideration, including but not limited to merchandise  or
    20  periodical  subscriptions,  not  exceeding twenty-five dollars in value;
    21  nor shall any person in this state knowingly receive as such inducement,
    22  any rebate of premium or policy fee or any special favor or advantage in
    23  the dividends or  other  benefits  to  accrue  on  any  such  policy  or
    24  contract,  or  knowingly  receive  any  paid  employment or contract for

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06684-01-3

        S. 2795                             2

     1  services of any kind, or any valuable consideration or inducement  what-
     2  ever which is not specified in such policy or contract.
     3    (2)   Notwithstanding   the   provisions  of  paragraph  one  of  this
     4  subsection, any services provided, or offered to be provided, by a  life
     5  insurance  company  or  any  officer, agent, solicitor or representative
     6  thereof, or by an insurer doing in this state the business  of  accident
     7  and  health insurance and an officer, agent, solicitor or representative
     8  thereof, or by a licensed insurance broker, an employee or other  repre-
     9  sentative  of  any  such,  insurer,  agent or broker; provided that such
    10  services are offered or delivered as part of the sale or renewal  of  an
    11  insurance  policy,  contract  or  group  insurance policy and offered or
    12  delivered in a  non-discriminatory  manner  to  all  similarly  situated
    13  insureds  or potential insureds, whether or not such services are speci-
    14  fied in such policy or contract,  shall  not  be  considered  to  be  an
    15  inducement  or  rebate prohibited by this section unless the superinten-
    16  dent determines, after a notice and hearing, that the offer and sale  of
    17  such  services  constituted  the  sole  reason  for the purchase of such
    18  insurance policy, contract or group insurance policy and that,  but  for
    19  the  offer  or  delivery of such service, the purchase of such policy or
    20  contract would not have taken place.
    21    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    22  have become a law.