Nov 11, 2014

Insurance legislation delivered to the governor

Six insurance-related proposals were sent to the governor this week after being passed by both houses of the Legislature during the 2014 session. Among them are the following:

A.8630-A-Excludes crime data or statistics in the setting rates of insurance when such data or statistics are as a result of crimes committed in correctional or detention facilities.

A.9154-A-Removes the requirement that a life insurer must wait five days before payment of an accelerated death benefit and facilitates more immediate payment to policyholders when they are most in need of that payment.

A.9175-A-Provides that an unauthorized insurer will not be "doing an insurance business" in the state, if they offer an option for Internet enrollment by New York residents who are employed by an out-of-state employer under a group life or group accident and health insurance policy or a group annuity contract that is being issued by such unauthorized insurer.

A.9346-A-Clarifies that the amount of the loss is a proper subject of arbitration in court-ordered appraisals under fire-insurance policies.

A.9915-Eliminates the cap on assessments that may be imposed against member insurers of the Life Insurance Company Guaranty Corporation of New York (the "Corporation") and make other changes pertaining to the Corporation.

S.6672-A-Directs the Department of Financial Assistance to establish a public awareness program on the availability of long-term healthcare insurance, the financing thereof and the provision of tax credits for premiums paid therefor. It also accelerates the payment of death benefits and special surrender values upon receipt of the insured of end-of-life or palliative care.

While the Legislature is in session (technically they are currently), Gov. Andrew M. Cuomo has 10 days (not counting Sundays) to sign or veto bills passed by both houses. Signed bills become law; vetoed bills do not. However, the governor's failure to sign or veto a bill within the 10-day period means that it becomes law automatically. Vetoed bills are returned to the house that first passed them, together with a statement of the reason for their disapproval. A vetoed bill can become law if two-thirds of the members of each house vote to override the governor's veto. When the Legislature is out of session, the Governor has 30 days in which to make a decision on legislation sent to him for consideration. Failure to act within those 30 days ("pocket veto") has the same effect as a veto.

Certificates of insurance

PIANYs top-priority certificates of insurance reform bill (A.9590 Morelle/S.6545-A Seward) has yet to be sent to the governor. Theres still time to write Gov. Cuomo a letter on your agencys letterhead and help PIANY show strong, broad-based support for this important bill if you havent done so already.

The bill requires the use of an ACORD certificate form (with limited exceptions) and provides that no person or governmental entity shall request or require, prepare or issue a certificate of insurance that such person knows does not accurately state the terms of coverage provided by the policy; or purports to alter, amend, extend or misrepresent the terms of coverage to which the certificate makes reference; or purports to confer to any person new or additional rights beyond what the referenced policy of insurance expressly provides. Essentially, the bill requires a certificate to be a true and accurate representation of the policy.