Bill Text: NY S03147 | 2025-2026 | General Assembly | Introduced

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Bill Title: Provides that the sale of a non-indemnity legal service plan shall not constitute doing an insurance business in this state; makes related provisions.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2025-01-23 - REFERRED TO INSURANCE [S03147 Detail]

Download: New_York-2025-S03147-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          3147

                               2025-2026 Regular Sessions

                    IN SENATE

                                    January 23, 2025
                                       ___________

        Introduced  by  Sens.  COONEY, SCARCELLA-SPANTON, WEBB -- 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 the sale of a non-in-
          demnity legal service plan

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

     1    Section  1.  Subsection  (b)  of  section 1101 of the insurance law is
     2  amended by adding a new paragraph 9 to read as follows:
     3    (9)(A) Notwithstanding the foregoing,  the  sale  of  a  non-indemnity
     4  legal  service  plan shall not constitute doing an insurance business in
     5  this state.
     6    (B) For purposes of this paragraph, a non-indemnity legal service plan
     7  includes any plan, regardless of the benefits, where legal services  are
     8  available  to members, or their dependents, through an organization that
     9  contracts directly with independent attorneys for the provision  of  the
    10  legal  services and the organization pays the independent attorney via a
    11  capitated arrangement and the independent  attorney  receives  no  addi-
    12  tional  payment  or  reimbursement  from  the organization for specified
    13  legal services or specified legal expenses.
    14    § 2.  This act shall take effect on the thirtieth day after  it  shall
    15  have become a law.




         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03172-01-5