S3372-2013 Actions

• Feb 1, 2013: REFERRED TO INSURANCE

S3372-2013 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 legis-
lation 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.

S3372-2013 Text

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

                                    3372

                         2013-2014 Regular Sessions

                              I N  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.





   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD08325-01-3