Assembly Bill A638

2013-2014 Legislative Session

Relates to prohibiting retained asset accounts

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2013-A638 (ACTIVE) - Details

See Senate Version of this Bill:
S13
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §3213, Ins L
Versions Introduced in Other Legislative Sessions:
2009-2010: S8469
2011-2012: A683, S504
2015-2016: A888, S476
2017-2018: S4854

2013-A638 (ACTIVE) - Summary

Prohibits insurers from using retained asset accounts to hold proceeds from death benefits.

2013-A638 (ACTIVE) - Bill Text download pdf

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

                                   638

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. 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:

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



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00928-01-3


              

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