Bill Text: NY S06132 | 2017-2018 | General Assembly | Introduced
Bill Title: Prohibits unilateral reduction, diminishment or non-payment of health insurance commissions or other compensation.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INSURANCE [S06132 Detail]
Download: New_York-2017-S06132-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6132 2017-2018 Regular Sessions IN SENATE May 11, 2017 ___________ Introduced by Sen. SEWARD -- 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 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. LBD11531-01-7
