S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2651
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2017
                                ___________
 
 Introduced  by  M. of A. DINOWITZ, WEPRIN, KAVANAGH, SEAWRIGHT -- Multi-
   Sponsored by -- M. of A. CUSICK --  read  once  and  referred  to  the
   Committee on Judiciary
 
 AN  ACT  to amend the general obligations law, in relation to onerous or
   unreasonable conditions  in  the  performance  of  disability  related
   contracts

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general obligations law is  amended  by  adding  a  new
 section 5-336 to read as follows:
   § 5-336. PERFORMANCE OF WRITTEN CONTRACTS FOR BENEFITS IN THE EVENT OF
 DISABILITY.  1. NO PERSON, FIRM, ASSOCIATION, CORPORATION OR OTHER ENTI-
 TY, WHETHER SUCH PERSON OR ENTITY BE AN EMPLOYER OR OTHERWISE, EXCLUDING
 WORKERS' COMPENSATION OR NEW YORK STATE DISABILITY INSURANCE, WHO ENTERS
 INTO A WRITTEN CONTRACT PROVIDING FOR PAYMENT OF BENEFITS OR THE  WAIVER
 OF  OBLIGATIONS  OR BOTH IN THE EVENT OF THE DISABILITY OF A NAMED INDI-
 VIDUAL SHALL, BY CONTRACT OR OTHERWISE,  IMPOSE  ON  A  DISABLED  PERSON
 ONEROUS  OR UNREASONABLE CONDITIONS FOR THE PAYMENT OR CONTINUED PAYMENT
 OF CONTRACTUAL BENEFITS OR THE  WAIVER  OR  CONTINUED  WAIVER  OF  OBLI-
 GATIONS.    CONDITIONS ARE "ONEROUS OR UNREASONABLE" IF BY THEIR CONTIN-
 UOUS OR REPETITIOUS NATURE THEY  REQUIRE  THE  DISABLED  BENEFICIARY  TO
 PERFORM  UNNECESSARY  OR  DUPLICATIVE ACTS IN ORDER TO OBTAIN OR COLLECT
 THE BENEFITS TO WHICH HE OR SHE IS OTHERWISE ENTITLED UNDER THE CONTRACT
 AND INCLUDE BUT ARE NOT LIMITED TO:
   (A) REQUIRING THE DISABLED PERSON TO UNDERGO  UNREASONABLY  REPETITIVE
 MEDICAL EXAMINATIONS; OR
   (B)  REQUIRING THE DISABLED PERSON TO PROVIDE FINELY-DETAILED OR REPE-
 TITIOUS MEDICAL DOCUMENTATION OF A DISABLING CONDITION; OR
   (C) BARGAINING IN BAD FAITH OR ENGAGING IN ANY OF THE  ACTS  DESCRIBED
 IN  THE PARAGRAPHS OF SUBSECTION (A) OF SECTION TWO THOUSAND SIX HUNDRED
 ONE OF THE INSURANCE LAW, RELATING TO UNFAIR CLAIM SETTLEMENT PRACTICES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03551-01-7

 A. 2651                             2
 
   2. ANY PARTY TO THE CONTRACT OR CONTRACT  BENEFICIARY  INJURED  BY  AN
 ACTION OR FAILURE TO ACT IN VIOLATION OF SUBDIVISION ONE OF THIS SECTION
 MAY  MAINTAIN AN ACTION TO RECOVER AND, UPON PROOF OF SUCH INJURY DUE TO
 VIOLATION OF SUBDIVISION ONE OF THIS SECTION BY A PREPONDERANCE  OF  THE
 EVIDENCE,  SHALL  RECOVER  ACTUAL  DAMAGES,  INCLUDING  ANY INTEREST AND
 PENALTIES INCURRED DUE TO THE  VIOLATION  OF  SUBDIVISION  ONE  OF  THIS
 SECTION,  AND REASONABLE COSTS AND ATTORNEY'S FEES. THE COURT MAY IN ITS
 DISCRETION AWARD EXEMPLARY DAMAGES.
   § 2. This act shall take effect immediately.