Bill Text: NY S06014 | 2009-2010 | General Assembly | Amended
Bill Title: Relates to group life and group accident and health insurance policies; revises certain provisions relating to minimum participation requirements by employees in group life and certain group accident and health insurance contracts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-09-17 - SIGNED CHAP.515 [S06014 Detail]
Download: New_York-2009-S06014-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6014--B
Cal. No. 751
2009-2010 Regular Sessions
I N S E N A T E
June 19, 2009
___________
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- recommitted to the Committee on Insurance in
accordance with Senate Rule 6, sec. 8 -- reported favorably from said
committee, ordered to first and second report, ordered to a third
reading, amended and ordered reprinted, retaining its place in the
order of third reading
AN ACT to amend the insurance law, in relation to group life and group
accident and health insurance policies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph 1 of subsection (b) of section 4216 of the insur-
2 ance law, as amended by chapter 369 of the laws of 1985, is amended to
3 read as follows:
4 (1) A policy issued to an employer or to a trustee or trustees of a
5 fund established by an employer, which employer or trustees shall be
6 deemed the policyholder, insuring with or without evidence of individual
7 insurability satisfactory to the insurer, employees of such employer,
8 and insuring, except as hereinafter provided, all of such employees or
9 all of any class or classes thereof determined by conditions pertaining
10 to the employment, or by a combination of such conditions and conditions
11 pertaining to the family status of the employee, for amounts of insur-
12 ance on each person insured based upon some plan which will preclude
13 individual selection. However, such a plan may permit a limited number
14 of selections by employees if the selections offered utilize a consist-
15 ent pattern of grading the amounts of insurance for individual group
16 members so that the resulting pattern of coverage is reasonable. The
17 premium for the policy shall be paid by the policyholder, either wholly
18 from the employer's funds [or funds contributed by him] or from funds
19 contributed by the insured employees, or from funds contributed jointly
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09479-09-0
S. 6014--B 2
1 by the employer and employees. If all or part of the premium is to be
2 derived from funds contributed by the insured employees, such policy
3 must insure [not less than] A MINIMUM OF fifty percent [of such eligible
4 employees or, if less, fifty or more] OR FIVE of such ELIGIBLE employees
5 WHICHEVER IS FEWER. Except as provided in subsection (b) of section four
6 thousand two hundred thirty-one of this article and in paragraph five of
7 subsection (a) of section three thousand two hundred twenty of this
8 chapter, such policy shall provide for payment of all benefits there-
9 under, to the person insured or to some beneficiary or beneficiaries
10 other than the employer, and shall provide for the issuance of a certif-
11 icate to the policyholder for delivery to the person insured or to such
12 beneficiary, as evidence of such insurance.
13 S 2. Subparagraph (A) of paragraph 1 of subsection (c) of section 4235
14 of the insurance law, as separately amended by chapters 369 and 846 of
15 the laws of 1985, is amended to read as follows:
16 (A) A policy issued to an employer or to a trustee or trustees of a
17 fund established by an employer, which employer or trustee or trustees
18 shall be deemed the policyholder, insuring with or without evidence of
19 insurability satisfactory to the insurer, employees of such employer,
20 and insuring, except as hereinafter provided, all of such employees or
21 all of any class or classes thereof determined by conditions pertaining
22 to the employment or a combination of such conditions and conditions
23 pertaining to the family status of the employee, for insurance coverage
24 on each person insured based upon some plan which will preclude individ-
25 ual selection. However, such a plan may permit a limited number of
26 selections by employees if the selections offered utilize consistent
27 plans of coverage for individual group members so that the resulting
28 plans of coverage are reasonable. The premium for the policy shall be
29 paid by the policyholder, either from the employer's funds, or from
30 funds contributed by the insured employees, or from funds contributed
31 jointly by the employer and employees. If all or part of the premium is
32 to be derived from funds contributed by the insured employees, then such
33 policy must insure not less than fifty percent of such eligible employ-
34 ees or, if less, fifty or more of such employees WHEN SUCH POLICY IS
35 PROVIDING COVERAGE FOR GROUP HOSPITAL, MEDICAL, MAJOR MEDICAL OR SIMILAR
36 COMPREHENSIVE TYPES OF EXPENSE REIMBURSED INSURANCE AND, FOR ALL OTHER
37 TYPES OF GROUP ACCIDENT AND HEALTH INSURANCE, MUST INSURE A MINIMUM OF
38 FIFTY PERCENT OR FIVE OF SUCH ELIGIBLE EMPLOYEES, WHICHEVER IS FEWER.
39 S 3. This act shall take effect immediately.
