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BILL NUMBER:S3948

TITLE OF BILL: An act to amend the insurance law, in relation to relieving permanently and totally disabled persons of the requirement to annually prove their disability

PURPOSE OF BILL: To remove requirement that permanently and totally disabled persons must continually prove their disability.

SUMMARY OF PROVISIONS: Section 1. Amends paragraph 4 of subsection (a) of section 3215 of the insurance law to include the provision that individuals who have been determined to be permanently and totally disabled shall not be required to furnish further, continuing proof of such disability.

Section 2. Amends paragraph 9 of subsection (a) of section 3221 of the insurance law, as amended by chapter 237 of the laws of 2009, to include the provision that individuals who have been determined to be permanently and totally disabled shall not be required to furnish further, continuing proof of such disability.

Section 3. Effective date.

JUSTIFICATION: Individuals who are permanently and totally disabled face an unnecessary burden by being required to continually prove their disability in order to continue to receive their disability insurance benefits. This legislation removes this requirement.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

3948

2011-2012 Regular Sessions

IN SENATE

March 10, 2011
___________

Introduced  by  Sen. BONACIC -- 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 relieving  permanently
  and  totally  disabled  persons  of  the requirement to annually prove
  their disability

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 4 of subsection (a) of section 3215 of the insur-
ance law is amended to read as follows:
  (4)  That  there be reasonable requirements as to the time, method and
form of proof of disability and as to  the  continuance  of  disability,
including  an  examination  of  the insured by the insurer at reasonable
intervals. Failure to  furnish  proof  of  disability  within  the  time
required  shall not invalidate or reduce any claim if it was not reason-
ably possible to give proof within such time,  provided  such  proof  is
furnished  as soon as reasonably possible and in no event, except in the
absence of legal capacity, later than one year from the  time  proof  is
otherwise  required.   PROVIDED, HOWEVER, THAT INDIVIDUALS WHO HAVE BEEN
DETERMINED TO BE PERMANENTLY AND TOTALLY DISABLED SHALL NOT BE  REQUIRED
TO FURNISH FURTHER, CONTINUING PROOF OF SUCH DISABILITY.
  S  2.  Paragraph  9 of subsection (a) of section 3221 of the insurance
law, as amended by chapter 237 of the laws of 2009, is amended  to  read
as follows:
  (9) That in the case of claim for loss of time for disability, written
proof  of  such loss must be furnished to the insurer within thirty days
after the commencement of the period for which the  insurer  is  liable,
and that subsequent written proofs of the continuance of such disability
must  be  furnished  to the insurer at such intervals as the insurer may
reasonably require, and that in the case of claim for  any  other  loss,
written  proof  of such loss must be furnished to the insurer within one
hundred twenty days after the date of such loss. Failure to furnish such

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08342-01-1
S. 3948                             2

proof within such time shall not invalidate or reduce any  claim  if  it
shall  be  shown  not  to  have been reasonably possible to furnish such
proof within such time, provided such proof was  furnished  as  soon  as
reasonably  possible.  PROVIDED, HOWEVER, THAT INDIVIDUALS WHO HAVE BEEN
DETERMINED TO BE PERMANENTLY AND TOTALLY DISABLED SHALL NOT BE  REQUIRED
TO FURNISH FURTHER, CONTINUING PROOF OF SUCH DISABILITY.
  S 3. This act shall take effect immediately.