Requires persons or entities providing benefits in the event of disability to not impose "onerous or unreasonable conditions" for the payment or continued payment of benefits thereunder, and provides for the enforcement thereof including actual damages, interest and penalties, reasonable costs and attorney's fees, and in the court's discretion, exemplary damages; exempts worker's compensation and NYS disability insurance.

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A254-2011 Actions

• May 8, 2012: REFERRED TO JUDICIARY
• May 8, 2012: delivered to senate
• May 8, 2012: passed assembly
• Jan 4, 2012: ordered to third reading cal.14
• Jan 4, 2012: RETURNED TO ASSEMBLY
• Jan 4, 2012: DIED IN SENATE
• Jan 25, 2011: REFERRED TO JUDICIARY
• Jan 25, 2011: delivered to senate
• Jan 25, 2011: passed assembly
• Jan 13, 2011: advanced to third reading cal.2
• Jan 11, 2011: reported
• Jan 5, 2011: referred to judiciary

A254-2011 Text

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

                                     254

                         2011-2012 Regular Sessions

                            I N  ASSEMBLY

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  Introduced by M. of A. DINOWITZ, KAVANAGH -- Multi-Sponsored by -- M. of
    A. BRENNAN, CUSICK -- read once and referred to the Committee on Judi-
    ciary

  AN  ACT  to amend the general obligations law, in relation to onerous or
    unreasonable conditions  in  the  performance  of  disability  related
    contracts

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


    Section 1. The general obligations law is  amended  by  adding  a  new
  section 5-336 to read as follows:

    S 5-336. PERFORMANCE OF WRITTEN CONTRACTS FOR BENEFITS IN THE EVENT OF
  DISABILITY.  1. NO PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER ENTI-
  TY, WHETHER SUCH PERSON OR ENTITY BE AN EMPLOYER OR OTHERWISE, EXCLUDING
  WORKERS' COMPENSATION OR NEW YORK STATE DISABILITY INSURANCE, WHO ENTERS
  INTO A WRITTEN CONTRACT PROVIDING FOR PAYMENT OF BENEFITS OR THE  WAIVER
  OF  OBLIGATIONS  OR BOTH IN THE EVENT OF THE DISABILITY OF A NAMED INDI-
  VIDUAL SHALL, BY CONTRACT OR OTHERWISE,  IMPOSE  ON  A  DISABLED  PERSON
  ONEROUS  OR UNREASONABLE CONDITIONS FOR THE PAYMENT OR CONTINUED PAYMENT
  OF CONTRACTUAL BENEFITS OR THE  WAIVER  OR  CONTINUED  WAIVER  OF  OBLI-
  GATIONS.    CONDITIONS ARE "ONEROUS OR UNREASONABLE" IF BY THEIR CONTIN-
  UOUS OR REPETITIOUS NATURE THEY  REQUIRE  THE  DISABLED  BENEFICIARY  TO
  PERFORM  UNNECESSARY  OR  DUPLICATIVE ACTS IN ORDER TO OBTAIN OR COLLECT
  THE BENEFITS TO WHICH HE OR SHE IS OTHERWISE ENTITLED UNDER THE CONTRACT
  AND INCLUDE BUT ARE NOT LIMITED TO:

    (A) REQUIRING THE DISABLED PERSON TO UNDERGO  UNREASONABLY  REPETITIVE
  MEDICAL EXAMINATIONS; OR
    (B)  REQUIRING THE DISABLED PERSON TO PROVIDE FINELY-DETAILED OR REPE-
  TITIOUS MEDICAL DOCUMENTATION OF A DISABLING CONDITION; OR

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02160-01-1

 A. 254                              2

    (C) BARGAINING IN BAD FAITH OR ENGAGING IN ANY OF THE  ACTS  DESCRIBED
  IN  THE PARAGRAPHS OF SUBSECTION (A) OF SECTION TWO THOUSAND SIX HUNDRED
  ONE OF THE INSURANCE LAW, RELATING TO UNFAIR CLAIM SETTLEMENT PRACTICES.
    2.  ANY  PARTY  TO  THE CONTRACT OR CONTRACT BENEFICIARY INJURED BY AN
  ACTION OR FAILURE TO ACT IN VIOLATION OF SUBDIVISION ONE OF THIS SECTION
  MAY MAINTAIN AN ACTION TO RECOVER AND, UPON PROOF OF SUCH INJURY DUE  TO
  VIOLATION  OF  SUBDIVISION ONE OF THIS SECTION BY A PREPONDERANCE OF THE
  EVIDENCE, SHALL RECOVER  ACTUAL  DAMAGES,  INCLUDING  ANY  INTEREST  AND
  PENALTIES  INCURRED  DUE  TO  THE  VIOLATION  OF SUBDIVISION ONE OF THIS
  SECTION, AND REASONABLE COSTS AND ATTORNEY'S FEES. THE COURT MAY IN  ITS
  DISCRETION AWARD EXEMPLARY DAMAGES.
    S 2. This act shall take effect immediately.