Bill > A07234

This bill amends New York's general business law to establish new consumer protections for life insurance policies targeting individuals aged 60 and over with limited death benefits. Specifically, when an insurer delivers a life insurance policy to a person 60 or older that either limits death benefits in the initial period or where accumulated premiums exceed the death benefit within the first ten years, the insurer must provide a detailed "Financial Review of Policy" form. This form, which must be at least 10-point font, provides consumers with a comprehensive breakdown of premium costs, potential cash surrender values, and a comparison of insurance benefits versus potential investment returns at a 5% interest rate. The bill also empowers consumers who are injured by violations to sue for damages, with potential recovery of up to three times actual damages or $100, whichever is greater. Additionally, the New York Attorney General is authorized to seek injunctions against insurers violating these provisions and can request civil penalties of up to $500 per violation. The legislation aims to increase transparency and protect older consumers from potentially misleading or disadvantageous insurance products by ensuring they have clear, standardized information about their policy's financial implications.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A7234