Relates to required form for exclusion language; permits superintendent of insurance to establish such form through promulgation of regulations.
TITLE OF BILL: An act to amend the insurance law, to allow for certain life insurance policy provisions to be disclosed in an alternative, equally prominent manner
The purpose of the bill is to amend §3201(c)(4) of the insurance law to authorize the Superintendent of Financial Services to approve certain life insurance policy provisions to be disclosed on the application in an alternative, equally prominent manner. Current law only allows such disclosure to be put forth in red ink, capital letters and twelve point font.
SUMMARY OF PROVISIONS:
This bill amends § 3201(c)(4) of the insurance law to add language to provide that the requisite disclosure on life insurance policy applications related to any war or travel limitations in the policy can be put forth in an equally prominent manner to red ink, capital letters and twelve point type, so long as the alternative, prominent disclosure has been approved by the Superintendent of the Department of Financial Services.
Current law only allows such disclosure to be put forth in red ink, capital letters and twelve point font.
Section 320I(c)(4) of the insurance law provides the disclosure that must be included on a life insurance policy application if it contains a limitation or restriction related to war or travel. Such disclosure is required to be put forth in red ink, capital letters and twelve point font size At the time that this law was written, life insurance policy forms were typically printed in mass volume and distributed to the agent or employer who was marketing the policy_ Since that time, the use of personal computers and office printers by such entities has proliferated so that these documents are now oftentimes, particularly in the group insurance setting, being provided to the employers who are offering them via computer and then printed out on office printers for distribution Although the original document may have been sent to the employer with red ink on the form, the form may not be reproduced in that manner if, for instance, the employer is not using a color printer. Life insurers would like to have some flexibility to adjust the format of this disclosure so as to accommodate these situations. For instance, insurers may have submitted to the Department of Financial Services forms that have the disclosure in bold, capital letters and larger than twelve point type. The Department would find it necessary to reject these alternatives because the law is very specific and detailed in how the disclosure should be put forward to the consumer. This bill would allow the Department the flexibility to approve alternative disclosure of this type of provision on a life policy, so long as they determine that it is equally prominent to the detailed disclosure that is required under the current law.
FISCAL IMPLICATIONS: None.
STATE OF NEW YORK ________________________________________________________________________ 4374 2013-2014 Regular Sessions IN SENATE March 25, 2013 ___________Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, to allow for certain life insurance policy provisions to be disclosed in an alternative, equally prominent manner THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of paragraph 4 of subsection (c) of section 3201 of the insurance law is amended to read as follows: The superintendent shall not approve any life insurance policy form containing any war or travel exclusion or restriction, for delivery or issuance for delivery in this state, unless such policy form shall have printed or stamped across its face in red and in capital letters not smaller than twelve point type, OR IN AN EQUALLY PROMINENT MANNER AS APPROVED BY THE SUPERINTENDENT, the following: S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09743-01-3