S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                          683

                              2011-2012 Regular Sessions

                                 I N  A S S E M B L Y

                                      (PREFILED)

                                    January 5, 2011
                                      ___________

       Introduced  by  M.  of  A.  M. MILLER  --  read once and referred to the
         Committee on Insurance

       AN ACT to amend the insurance law, in relation to prohibiting  retained-
         asset accounts

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Section 3213 of the insurance law is  amended  to  read  as
    2  follows:
    3    S  3213.  Payment  of proceeds.   1. WHERE THE PROCEEDS OF A POLICY OF
    4  LIFE INSURANCE DELIVERED OR ISSUED FOR DELIVERY IN THIS STATE ARE  PAYA-
    5  BLE,  ACCORDING  TO  ITS  TERMS,  SUCH  PROCEEDS  SHALL NOT BE HELD IN A
    6  RETAINED-ASSET ACCOUNT HELD BY THE INSURER. FOR PURPOSES OF THIS SECTION
    7  A "RETAINED-ASSET ACCOUNT" SHALL MEAN AN ACCOUNT NOT GUARANTEED  BY  THE
    8  FEDERAL  DEPOSIT  INSURANCE CORPORATION, THE FUNDS OF WHICH ARE RETAINED
    9  BY THE INSURER, WITH ALL OR A PORTION OF THE INTEREST BEING PAID TO  THE
   10  INSURER, BUT THE FUNDS OF SUCH ACCOUNT ARE PAYABLE TO THE BENEFICIARY OR
   11  BENEFICIARIES BY USE OF A CHECKBOOK.
   12    2.  Where  the  proceeds  of  a  policy of life insurance delivered or
   13  issued for delivery in this state are payable, according to  its  terms,
   14  to  two  or  more  beneficiaries without designation of their respective
   15  interests, the proceeds shall be paid to  such  beneficiaries  in  equal
   16  portions.
   17    S  2.  This  act  shall take effect on the sixtieth day after it shall
   18  have become a law.



        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03338-01-1