Bill > S05238

This bill amends the New York insurance law to update regulations surrounding life insurance policy and annuity contract replacements, focusing on preventing misrepresentations and misleading statements. The legislation modifies existing provisions to require that replacement regulations align, to the greatest extent possible, with guidelines established by the National Association of Insurance Commissioners (NAIC). Specifically, the bill requires that any replacement of individual life insurance policies or annuity contracts must follow new standards, including specifying what constitutes a replacement, establishing proper disclosure and notification procedures, and requiring notification to the insurer whose policies are being replaced. The bill also mandates a 60-day period after issuing replacement policies during which the policy owner can return the new policies and reinstate the original ones. Additionally, the legislation eliminates previous language about "incomplete comparisons" and broadens the scope of prohibited misleading representations by insurance agents, brokers, and insurers. The changes aim to provide more transparency and consumer protection in the insurance market by ensuring more accurate and comprehensive information is provided during policy replacements.

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https://www.nysenate.gov/legislation/bills/2025/S5238