Bill Text: NY S03632 | 2019-2020 | General Assembly | Introduced

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Bill Title: Prohibits unilateral reduction, diminishment or non-payment of health insurance commissions or other compensation.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO INSURANCE [S03632 Detail]

Download: New_York-2019-S03632-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3632
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 11, 2019
                                       ___________
        Introduced  by  Sens.  BRESLIN, SEWARD, O'MARA -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Insur-
          ance
        AN ACT to amend the insurance law, in relation to prohibiting unilateral
          reduction, diminishment or non-payment of health insurance commissions
          or other compensation
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 2114 of the insurance law is amended  by  adding  a
     2  new subsection (c) to read as follows:
     3     (c)  Notwithstanding any other provision of this chapter or any other
     4  general, special or local law to the contrary, it shall be  unlawful  as
     5  against  public  policy  for  any  insurer or health plan to include any
     6  provisions in a sales contract or agreement entered into with a licensed
     7  life or accident and health insurance producer, broker, agent  or  bene-
     8  fits  consultant,  allowing  such insurer or health plan to unilaterally
     9  reduce, diminish or otherwise cease payments of any commissions or other
    10  compensation offered to any such licensed life or  accident  and  health
    11  insurance  producer,  broker, agent or benefits consultant, for the sale
    12  or replacement of any individual or small group health insurance policy,
    13  contract for insurance or certificate of insurance, where  such  commis-
    14  sions or other compensation were included, embedded or otherwise actuar-
    15  ially  loaded  into such insurer's or health plan's premium rate filings
    16  or applications submitted to the department pursuant  to  section  three
    17  thousand  two  hundred  thirty-one  of this chapter, for so long as such
    18  prior approved rates are valid and remain in full force and effect.
    19    § 2. This act shall take effect immediately and  shall  apply  to  all
    20  applicable  policies,  certificates and contracts issued, renewed, modi-
    21  fied, altered or amended on or after such date.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09803-01-9