Requires six months notice when cancelling the insurance policy of any small business.
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.
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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08325-01-3