Allows licensed insurance brokers and agents to develop, implement and administer wellness programs.
Ayes (63): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
TITLE OF BILL: An act to amend the insurance law, in relation to exceptions to the general prohibition on rebating
PURPOSE: To modernize the insurance law to allow licensed brokers and agents to develop, implement, and administer wellness programs.
SUMMARY OF PROVISIONS: This bill would allow insurance agents and brokers to, without charging a service fee or charging a reduced fee, develop, implement, and administer wellness programs, if such programs and services are provided in a fair and nondiscriminatory manner and are incidental to a policy sold by the agent or broker.
JUSTIFICATION: The fast-paced and competitive insurance marketplace continues to evolve, and insurance producers must change with it. Integral to this is the modernization of certain statutory restrictions that are old and outmoded. Chief amongst these are the anti-rebating and inducement laws that were originally designed to protect insurance producers and consumers alike from offering and accepting illegal inducements for the sale of insurance products. In today's health insurance market, licensed insurance brokers and agents must be able to offer wellness programs in order to attract business and close the sale.
With the recent issuance of federal rules giving employers greater leeway in how they manage programs that promote healthy behavior and reduce illness amongst employees, employer groups of all sizes are increasingly looking not only for traditional advice in selecting health plan benefits design and coverage options, underwriting to reduce claims losses, and claims servicing and policyholder advocacy, but are looking for programs and services that would improve the health of their employees.
LEGISLATIVE HISTORY: S 4950 of 2011-12
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 2894--A Cal. No. 355 2013-2014 Regular Sessions IN SENATE January 24, 2013 ___________Introduced by Sens. SEWARD, LANZA, LATIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Insur- ance -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, passed by Senate and deliv- ered to the Assembly, recalled, vote reconsidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the insurance law, in relation to exceptions to the general prohibition on rebating THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (c) of section 4224 of the insurance law, as amended by chapter 291 of the laws of 2012, is amended to read as follows: (c) Except as permitted by section three thousand two hundred thirty- nine of this chapter OR SUBSECTION (F) OF THIS SECTION, no such life insurance company and no such savings and insurance bank and no officer, agent, solicitor or representative thereof and no such insurer doing in this state the business of accident and health insurance and no officer, agent, solicitor or representative thereof, and no licensed insurance broker and no employee or other representative of any such insurer, agent or broker, shall pay, allow or give, or offer to pay, allow or give, directly or indirectly, as an inducement to any person to insure, or shall give, sell or purchase, or offer to give, sell or purchase, as such inducement, or interdependent with any policy of life insurance or annuity contract or policy of accident and health insurance, any stocks, bonds, or other securities, or any dividends or profits accruing or to accrue thereon, or any valuable consideration or inducement whatever not specified in such policy or contract other than any valuable consider- ation, including but not limited to merchandise or periodical subscriptions, not exceeding twenty-five dollars in value; nor shall anyEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06650-03-3 S. 2894--A 2
person in this state knowingly receive as such inducement, any rebate of premium or policy fee or any special favor or advantage in the dividends or other benefits to accrue on any such policy or contract, or knowingly receive any paid employment or contract for services of any kind, or any valuable consideration or inducement whatever which is not specified in such policy or contract. S 2. Section 4224 of the insurance law is amended by adding a new subsection (f) to read as follows: (F) (1) THIS SUBSECTION SHALL APPLY ONLY WITH RESPECT TO A GROUP OR BLANKET ACCIDENT AND HEALTH INSURANCE POLICY ISSUED BY AN INSURER LICENSED TO WRITE ACCIDENT AND HEALTH INSURANCE IN THIS STATE OR A GROUP CONTRACT ISSUED BY A CORPORATION ORGANIZED PURSUANT TO ARTICLE FORTY-THREE OF THIS CHAPTER, OR A HEALTH MAINTENANCE ORGANIZATION CERTI- FIED PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW. (2) NOTWITHSTANDING SUBSECTION (C) OF THIS SECTION, A LICENSED AGENT OR INSURANCE BROKER MAY DEVELOP, IMPLEMENT, AND ADMINISTER WELLNESS PROGRAMS ESTABLISHED IN ACCORDANCE WITH SECTION THREE THOUSAND TWO HUNDRED THIRTY-NINE OF THIS CHAPTER WITHOUT CHARGING A SERVICE FEE OR, IN THE CASE OF A LICENSED INSURANCE BROKER, FOR A REDUCED SERVICE FEE PURSUANT TO A WRITTEN MEMORANDUM MADE IN ACCORDANCE WITH SUBSECTION (C) OF SECTION TWO THOUSAND ONE HUNDRED NINETEEN OF THIS CHAPTER, IF SUCH PROGRAMS ARE PROVIDED IN A FAIR AND NONDISCRIMINATORY MANNER AND INCI- DENTAL TO A GROUP OR BLANKET POLICY OR CONTRACT SOLD BY THE INSURANCE AGENT OR INSURANCE BROKER. S 3. This act shall take effect immediately.