Bill > A00854

This bill amends the New York State Insurance Law to strengthen regulations around life insurance policy and annuity contract replacements, with a focus on preventing misleading practices. The bill updates provisions related to misrepresentations by insurance agents, brokers, and insurers, specifically requiring that any replacements of individual life insurance policies or annuity contracts must align with regulations from the National Association of Insurance Commissioners (NAIC). Key changes include prohibiting misleading statements about policy terms, benefits, dividends, or financial conditions, and establishing standards for policy replacements. The new regulations mandate specific disclosure and notification procedures when replacing policies, including requiring notification to the original insurer and providing a 60-day period for policy owners to return a new policy and reinstate the original coverage. By referencing NAIC standards, the bill aims to create more consistent consumer protections across insurance transactions, ensuring that consumers receive clear, comprehensive information when considering replacing their existing life insurance or annuity contracts.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A854