Bill S3372-2013

Requires six months notice when cancelling the insurance policy of any small business

Requires six months notice when cancelling the insurance policy of any small business.

Details

Actions

  • Jan 8, 2014: REFERRED TO INSURANCE
  • Feb 1, 2013: REFERRED TO INSURANCE

Memo

BILL NUMBER:S3372

TITLE OF BILL: An act to amend the insurance law, in relation to requiring six months notice when cancelling the insurance policy of any small business

PURPOSE: To provide sufficient notice to small businesses when their health insurance carrier will no longer provide coverage for their employees.

SUMMARY OF PROVISIONS: Amends the insurance law by adding a new section 3114 to require that any business with 50 employees or less must receive a minimum of six months notice prior to the cancellation of a policy.

JUSTIFICATION: Many small businesses have had their health insurance policies cancelled due to no fault of their own. Very often there is little notice given which leaves these businesses scrambling to find a carrier that will provide the policy for their employees. Recently, Empire Blue insurance company withdrew from the small business market leaving thousands of employees without health insurance. This legislation would require that insurance companies provide six months notice of cancellation, to provide for adequate time for the company and their employees to research and secure coverage from another carrier.

LEGISLATIVE HISTORY: 2012: S.7339 Referred to Insurance Committee

FISCAL IMPLICATIONS: None.

LOCAL FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: 120 days after it has become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 3372 2013-2014 Regular Sessions IN SENATE February 1, 2013 ___________
Introduced by Sen. ADDABBO -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to requiring six months notice when cancelling the insurance policy of any small business THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The insurance law is amended by adding a new section 3114 to read as follows: S 3114. CANCELLATION OF SMALL BUSINESS POLICIES. 1. FOR THE PURPOSES OF THIS SECTION, THE TERM "SMALL BUSINESS" SHALL MEAN ANY BUSINESS ENTERPRISE RESIDING WITHIN THE STATE THAT HAS FIFTY EMPLOYEES OR LESS. 2. BEFORE THE POLICY OF INSURANCE OF ANY SMALL BUSINESS IS CANCELLED, SUCH SMALL BUSINESS SHALL BE PROVIDED SIX MONTHS NOTICE. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective immediately, the addition, amend- ment and/or repeal of any rules or regulations necessary for the imple- mentation of this act on its effective date are authorized to be made on or before such date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus