Bill > S03862

This bill amends the New York insurance law to enhance consumer protections for life insurance policy loans by requiring that all policy loan terms and conditions be documented in writing with specific safeguards. Specifically, the bill mandates that policy loan documents must be written in at least ten-point type font, signed by both the insured policyholder and the insurance agent, and include a signed statement confirming that the agent has fully explained all loan terms and conditions to the policyholder. The goal appears to be ensuring transparency and that policyholders fully understand the details of their policy loans before agreeing to them. The bill will take effect 60 days after becoming law and will apply to all life insurance policies issued, reviewed, or modified on or after that date, thereby providing immediate consumer protections for future and existing policy loans.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S3862