Apr 21, 2016

PIANY legislative update

Senate passes legislation to make forgery of a certificate of insurance a felony: The state Senate passed legislation to designate the forgery of a certificate of insurance or insurance identification card a class-D felony of forgery in the second degree. The bill, (S.1524/A.1913) passed the Senate on April 11 and was referred to the Assembly Codes Committee. If passed by the Assembly and signed into law, it would take effect Nov. 1, 2016.

Proposal to amend antirebating laws introduced: Legislation has been introduced in the state Legislature (S.1672/A.666) that would amend the antirebating laws for life, accident and health insurance sales. The bill would modernize the insurance law to allow licensed brokers, agents and benefit consultants to assist insurers and employers in the interpretation, management and communication of the insurance policy and its resulting costs, and to assist insurers and employers in the development and implementation of care coordination services and other incidental or ancillary programs and services.

Proposal to allow electronic delivery of p/c notices, posting p/c policies on Internet moves out of committee: Legislation (S.5249-B/A.8076-B) recently has been considered by the insurance committees in both the state Senate and Assembly and has been sent to the full Senate and Assembly for consideration. The legislation would allow for the electronic delivery of property/casualty insurance notices and the posting of these policies on the Internet.

Legislation would establish p/c insurer report cards: Legislation (A.9804/S.5211) recently was introduced to require the superintendent of the New York State Department of Financial Services to prepare a report card containing information on how insurers licensed to write personal-lines insurance or certain commercial-lines insurance policies respond to an emergency or disaster. The superintendent would be required to post the report card on the NYDFS website and make it available in writing no later than 20 days following the declaration of a disaster or emergency. The superintendent would also have to update the report card every seven days for at least six months or until the superintendent determines that the report card is no longer necessary.

Legislation introduced to ease medical malpractice placement in excess-line market: Legislation was introduced this week to repeal the requirement that excess-line brokers must obtain a declination from the medical malpractice insurance pool before the broker can place primary malpractice insurance in the excess-line market. The bill (S.7339) was referred to the state Senate Insurance Committee and does not currently have an Assembly sponsor.