NY Lab L § 217 (2021)
2021 New York Laws LAB - Labor Article 7 - General Provisions 217 - Employee Notification and Remittance of Premiums; Group Policies of Accident and Health Insurance.

§  217.  Employee  notification  and  remittance  of  premiums;  group policies of accident  and  health  insurance.  1.  Statement  of  public policy.  The  legislature  finds  that  in  today's  society  health and accident insurance coverage for medical care and treatment is  of  prime importance to all employees and their dependents within the state of New York. Adequate and prospective planning is necessary to insure that such coverage  is  in  effect  at  the  time  of commencement of the need for medical and health care. Many employees and their dependents in New York State are covered through group  policies  issued  to  their  employers, employee  organizations  or  trustees  of  employee welfare funds and no statutory provision has heretofore afforded these  employees  and  their dependents the right as certificate holders of a group accident or group health  policy  to  receive  notification of the intended termination or substitution of the group  policy  and  to  have  premiums  remitted  to insurers  on  their  behalf  should they choose to exercise continuation privileges available under law.   Accordingly, it is the declared public policy of the state of New York that sufficient and timely notice  be  afforded  each  employee  covered under   a  group  accident  or  group  health  policy  of  the  intended termination or  substitution  of  such  policy  and  that  employers  be required  to  remit  premiums  to  insurers  on  behalf  of  individuals exercising their right to continuation coverage under the law.   2. Definitions. As used in this section:  (a) "Policyholder" shall mean any person, co-partnership, corporation, trade   association,   joint   stock   association,   incorporated    or unincorporated association, trustees or labor organization as defined in subsections  (c)  and  (g),  respectively, of section four thousand four hundred two of the insurance law or any other entity to whom a policy or contract of group accident, group health or group  accident  and  health insurance has been issued.   For the purpose of this section, "policyholder" shall also include any group remitting agent.  (b)  "Certificate  holder"  shall mean any person insured, on either a contributory or non-contributory basis, by a policy or contract of group accident, group health or group accident and health insurance,  as  well as persons covered by group remittance policies.   3.  Notification. A policyholder shall, subsequent to receipt from the insurer of notice of termination pursuant to subsection (k)  of  section four  thousand  two  hundred  thirty-five  of  the insurance law provide written notice to  the  certificate  holders  of  such  policy  of  such termination.  In  any  case  where the policyholder is substituting such policy with another policy  providing  similar  coverage  for  the  same certificate  holders, the policyholder shall provide certificate holders with a written notice including therein  the  name  of  the  substituted insurer.  Where  the  employees are represented by a labor organization, such  notice  shall  be  given  to  the  representative  of  that  labor organization.  Such written notice shall be in accordance with the rules and regulations of the superintendent of financial services, promulgated pursuant  to  subsection  (l)  of  section  four  thousand  two  hundred thirty-five of the insurance law.   4.  Exception.  The  provisions  of  subdivision three of this section shall not be deemed to apply if, within ten days subsequent  to  receipt of  notice  of  termination from the insurer, the policyholder has taken necessary steps whereby the intended termination is  rendered  null  and void.   5.  Where  the  policyholder  has  contracted  with another insurer to replace the existing insurer for the providing of similar and continuous coverage for the same certificate holders he  shall  file  an  affidavit  with  the commissioner of labor and superintendent of financial services to that effect.   6.  Remittance of premiums. Any policyholder who receives notification from an individual entitled to  exercise  a  right  to  continuation  of coverage  by  the  policyholder's  insurer  pursuant  to  section  three thousand two hundred twenty-one of the insurance law,  shall,  no  later than thirty days subsequent to receipt of premiums from such individual, remit  such  premiums  to  the  insurer on behalf of such individual and provide evidence to the individual that the premium has been remitted.   6-a.  Residence  location  to  accompany  enrollment  data.   When   a policyholder  provides  information  to an insurer or health maintenance organization certified under article forty-four of the public health law or licensed pursuant to the  insurance  law  regarding  the  initial  or continued  enrollment  eligibility  of  a certificate holder, the policy holder must include the current united states postal  service  zip  code and state in which the certificate holder currently resides.   7.  Penalties.  (a)  Any  policyholder  who  fails to comply with this section, shall forfeit to the people of the  State  a  sum  up  to  five thousand dollars, to be recovered by the commissioner in a civil action. Where  the policyholder is a corporation, trade association, joint stock association, incorporated or unincorporated association, the  president, secretary and treasurer thereof shall be liable for any forfeiture.  (b)  In addition to such penalty, where the failure to comply involves the failure to notify an employee of the termination of a group accident or group health policy pursuant to subdivision three of this section  or the  failure  to  remit  premiums  pursuant  to  subdivision six of this section, or  the  failure  to  provide  an  individual  with  notice  of termination   pursuant   to  subdivision  six  of  section  one  hundred ninety-five of this chapter, the policy holder shall also be liable,  in a  civil action brought by the individual entitled to receive the notice of termination or exercise the right to continuation of  coverage  in  a court  of  competent  jurisdiction,  to  appropriate damages which shall include reimbursement for medical expenses which were not covered by the policyholder's insurer by virtue of his termination  of  the  policy  or failure to remit such premiums.