New York S 4962: Relates to prohibitions on rebating and discrimination in rates and payments under insurance policies

Bill Text

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S04962 Summary:

BILL NOS04962 

&nbsp

SAME ASSAME AS A05081

&nbsp

SPONSORBAILEY

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §4224, Ins L

&nbsp

Relates to prohibitions on rebating and discrimination in rates and payments under insurance policies; provides that certain services shall not be considered to be an inducement or rebate unless the superintendent determines that the offer and sale of such services constituted the sole reason for the purchase of such insurance policy.

Go to top S04962 Actions:

BILL NOS04962 

&nbsp

02/14/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS04962 Committee&nbspVotes:

Go to topS04962 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04962 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4962

 2025-2026 Regular Sessions

 IN SENATE

 February 14, 2025
 ___________

 Introduced by Sen. BAILEY -- 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 prohibitions on rebat-
 ing and discrimination

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

 1 Section 1. Subsection (c) of section 4224 of the insurance law, as
 2 amended by chapter 496 of the laws of 2013, is amended to read as
 3 follows:
 4 (c) (1) Except as permitted by section three thousand two hundred
 5 thirty-nine of this chapter or subsection (f) of this section, no such
 6 life insurance company and no such savings and insurance bank and no
 7 officer, agent, solicitor or representative thereof and no such insurer
 8 doing in this state the business of accident and health insurance and no
 9 officer, agent, solicitor or representative thereof, and no licensed
 10 insurance broker and no employee or other representative of any such
 11 insurer, agent or broker, shall pay, allow or give, or offer to pay,
 12 allow or give, directly or indirectly, as an inducement to any person to
 13 insure, or shall give, sell or purchase, or offer to give, sell or
 14 purchase, as such inducement, or interdependent with any policy of life
 15 insurance or annuity contract or policy of accident and health insur-
 16 ance, any stocks, bonds, or other securities, or any dividends or
 17 profits accruing or to accrue thereon, or any valuable consideration or
 18 inducement whatever not specified in such policy or contract other than
 19 any valuable consideration, including but not limited to merchandise or
 20 periodical subscriptions, not exceeding twenty-five dollars in value;
 21 nor shall any person in this state knowingly receive as such inducement,
 22 any rebate of premium or policy fee or any special favor or advantage in
 23 the dividends or other benefits to accrue on any such policy or
 24 contract, or knowingly receive any paid employment or contract for

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08598-01-5

 S. 4962 2

 1 services of any kind, or any valuable consideration or inducement what-
 2 ever which is not specified in such policy or contract.
 3 (2) Notwithstanding the provisions of paragraph one of this
 4 subsection, any services provided, or offered to be provided, by a life
 5 insurance company or any officer, agent, solicitor or representative
 6 thereof, or by an insurer doing in this state the business of accident
 7 and health insurance and an officer, agent, solicitor or representative
 8 thereof, or by a licensed insurance broker, an employee or other repre-
 9 sentative of any such, insurer, agent or broker; provided that such
 10 services are offered or delivered as part of the sale or renewal of an
 11 insurance policy, contract or group insurance policy and offered or
 12 delivered in a non-discriminatory manner to all similarly situated
 13 insureds or potential insureds, whether or not such services are speci-
 14 fied in such policy or contract, shall not be considered to be an
 15 inducement or rebate prohibited by this section unless the superinten-
 16 dent determines, after a notice and hearing, that the offer and sale of
 17 such services constituted the sole reason for the purchase of such
 18 insurance poli