New York S 5239: Relates to insurance loss prevention programs

Bill Text

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S05239 Summary:

BILL NOS05239 

&nbsp

SAME ASSAME AS A06508

&nbsp

SPONSORCOMRIE

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §2324, Ins L

&nbsp

Ensures that insurers are permitted to offer loss prevention programs as long as such programs are offered to the general public and the insurer's policyholders.

Go to top S05239 Actions:

BILL NOS05239 

&nbsp

02/20/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS05239 Committee&nbspVotes:

Go to topS05239 Floor&nbspVotes:

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

Go to topS05239 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5239

 2025-2026 Regular Sessions

 IN SENATE

 February 20, 2025
 ___________

 Introduced by Sen. COMRIE -- 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 providing loss
 prevention programs

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

 1 Section 1. Section 2324 of the insurance law, subsection (a) as
 2 amended by chapter 291 of the laws of 2012, is amended to read as
 3 follows:
 4 § 2324. Rebating and discrimination. (a) No authorized insurer, no
 5 licensed insurance agent, no licensed insurance broker, and no employee
 6 or other representative of any such insurer, agent or broker shall make,
 7 procure or negotiate any contract of insurance other than as plainly
 8 expressed in the policy or other written contract issued or to be issued
 9 as evidence thereof, or shall directly or indirectly, by giving or shar-
 10 ing a commission or in any manner whatsoever, pay or allow or offer to
 11 pay or allow to the insured or to any employee of the insured, either as
 12 an inducement to the making of insurance or after insurance has been
 13 effected, any rebate from the premium which is specified in the policy,
 14 or any special favor or advantage in the dividends or other benefit to
 15 accrue thereon, or shall give or offer to give any valuable consider-
 16 ation or inducement of any kind, directly or indirectly, which is not
 17 specified in such policy or contract, other than any valuable consider-
 18 ation, including but not limited to merchandise or periodical
 19 subscriptions, not exceeding twenty-five dollars in value, or shall
 20 give, sell or purchase, or offer to give, sell or purchase, as an
 21 inducement to the making of such insurance or in connection therewith,
 22 any stock, bond or other securities or any dividends or profits accrued
 23 thereon, nor shall the insured, [his] the insured's agent or represen-
 24 tative knowingly receive directly or indirectly, any such rebate or
 25 special favor or advantage, provided, however, a licensed insurance

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD07728-01-5

 S. 5239 2

 1 agent or a licensed insurance broker may retain the usual commission or
 2 underwriting fee on insurance placed on [his] their own property or
 3 risks, if the aggregate of such commissions or underwriting fees will
 4 not exceed five percent of the total net commissions or underwriting
 5 fees received by such licensed insurance agent or insurance broker
 6 during the calendar year.
 7 (b) Within the meaning of subsection (a) hereof, the sharing of a
 8 commission with the insured shall be deemed to include any case in which
 9 a licensed insurance agent or a licensed insurance broker which is a
 10 subsidiary corporation of, or a corporation affiliated with, any corpo-
 11 ration insured, received commissions for the negotiation or procurement
 12 of any policy or contract of insurance for the insured.
 13 (c) This section shall not prohibit any insurer from offering partic-
 14 ipation in a loss prevention program that promotes and incentivizes safe
 15 driving behavior with points-based rewards so long as participation in
 16 such program is offered both to members of the general public and to the
 17 insurer's policyholders.
 18 (d) This section shall not prohibit any insurer from equitably
 19 distributing to its policyholders dividends payable from surplus on
 20 earned premiums, nor prohibit the return at any time during th