New York S 5238: Relates to replacement of individual life insurance policies or annuity contracts

Bill Text

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S05238 Summary:

BILL NOS05238 

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SAME ASSAME AS A00854

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SPONSORCOMRIE

&nbsp

COSPNSR

&nbsp

MLTSPNSR

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Amd §§2123 & 4226, Ins L

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Relates to replacement of individual life insurance policies or annuity contracts; amends provisions relating to misrepresentations and misleading statements; requires replacements regulation be consistent with policies of the national association of insurance commissioners.

Go to top S05238 Actions:

BILL NOS05238 

&nbsp

02/20/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS05238 Committee&nbspVotes:

Go to topS05238 Floor&nbspVotes:

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

Go to topS05238 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5238

 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 the replacement of
 individual life insurance policies or individual annuity contracts of
 any insurer

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

 1 Section 1. The section heading and subsections (a), (b) and (c) of
 2 section 2123 of the insurance law, subsection (a) as amended by section
 3 37-a of part D of chapter 56 of the laws of 2013, subsections (b) and
 4 (c) as amended by chapter 540 of the laws of 1996, are amended to read
 5 as follows:
 6 Misrepresentations[,] and misleading statements [and incomplete
 7 comparisons]. (a) (1) No agent or representative of any insurer or
 8 health maintenance organization authorized to transact life, accident or
 9 health insurance or health maintenance organization business in this
 10 state, insurance broker, person who has received a grant from and has
 11 been certified by the health benefit exchange established pursuant to
 12 section 1311 of the Affordable Care Act, 42 U.S.C. § 18031, to act as a
 13 navigator, including any person employed by a certified navigator, or
 14 other person, firm, association or corporation, shall issue or circulate
 15 or cause or permit to be issued or circulated, any illustration, circu-
 16 lar, statement or memorandum misrepresenting the terms, benefits or
 17 advantages of any policy or contract of life, accident or health insur-
 18 ance, any annuity contract or any health maintenance organization
 19 contract, delivered or issued for delivery or to be delivered or issued
 20 for delivery, in this state, or shall make any misleading estimate as to
 21 the dividends or share of surplus or additional amounts to be received
 22 in the future on such policy or contract, or shall make any false or
 23 misleading statement as to the dividends or share of surplus or addi-
 24 tional amounts previously paid by any such insurer or health maintenance

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03357-01-5

 S. 5238 2

 1 organization on similar policies or contracts, or shall make any
 2 misleading representation, or any misrepresentation, as to the financial
 3 condition of any such insurer or health maintenance organization, or as
 4 to the legal reserve system upon which such insurer or health mainte-
 5 nance organization operates.
 6 (2) No such person, firm, association or corporation shall make to any
 7 person or persons any incomplete [comparison] or misleading represen-
 8 tation of any such policies or contracts of any insurer, insurers, or
 9 health maintenance organization, for the purpose of inducing, or tending
 10 to induce, such person or persons to lapse, forfeit or surrender any
 11 insurance policy or health maintenance organization contract.
 12 (3) Any replacement of individual life insurance policies or individ-
 13 ual annuity contracts of an insurer by an agent, representative of the
 14 same or different insurer or broker shall conform to standards promul-
 15 gated by regulation by the superintendent. Such regulation shall be
 16 consistent, to the greatest extent practicable and in the public inter-
 17 est, with the replacements regulation adopted by the national associ-
 18 ation of in