Bill > A06975

This bill proposes several amendments to the New York Insurance Law related to life insurance agents' compensation and expenses. The changes include expanding the definition of distribution and marketing expenses by removing some specific items like sales support functions, modifying the rules for employees who are licensed as life insurance agents by clarifying when their compensation is subject to certain regulations, and adjusting training allowance subsidy provisions for new agents. Specifically, the bill increases several monetary thresholds, such as raising the income eligibility for training allowances from $20,000 to $40,000, increasing the maximum prize and award values for agents from $250 to $500 (with annual total limits rising from $1,000 to $2,000), and extending the notification period for excess payments from 30 to 90 days. The bill also adds flexibility for companies by allowing them to establish alternative training allowance plans with superintendent approval and requiring companies to make reasonable efforts to recover excess payments from agents who are no longer with the company. The changes aim to provide more clarity and adaptability in how life insurance companies compensate and support their agents while maintaining regulatory oversight.

Budget and Finance, Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A6975