STATE OF NEW YORK ________________________________________________________________________ 4854 2017-2018 Regular Sessions IN SENATE March 3, 2017 ___________ Introduced by Sen. DIAZ -- 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 prohibiting retained- asset accounts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 3213 of the insurance law is amended to read as 2 follows: 3 § 3213. Payment of proceeds. 1. Where the proceeds of a policy of 4 life insurance delivered or issued for delivery in this state are paya- 5 ble, according to its terms, such proceeds shall not be held in a 6 retained-asset account held by the insurer. For purposes of this section 7 a "retained-asset account" shall mean an account not guaranteed by the 8 federal deposit insurance corporation, the funds of which are retained 9 by the insurer, with all or a portion of the interest being paid to the 10 insurer, but the funds of such account are payable to the beneficiary or 11 beneficiaries by use of a checkbook. 12 2. Where the proceeds of a policy of life insurance delivered or 13 issued for delivery in this state are payable, according to its terms, 14 to two or more beneficiaries without designation of their respective 15 interests, the proceeds shall be paid to such beneficiaries in equal 16 portions. 17 § 2. This act shall take effect on the sixtieth day after it shall 18 have become a law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07296-01-7