NY Ins L § 3111 (2021)
2021 New York Laws ISC - Insurance Article 31 - Insurance Contracts - General 3111 - Special Provisions Relating to Senior Citizens.

§  3111. Special  provisions  relating  to  senior citizens. (a) Every insurer that has in  force  any  policy  of  insurance  subject  to  the provisions  of  section  three thousand four hundred twenty-five of this chapter shall permit senior citizen insureds to designate a third  party to  whom  the insurer shall transmit notices of cancellation, nonrenewal and conditional renewal. The senior citizen  insured  shall  notify  the insurer  that  a  third  party has been so designated. Such notification shall be delivered to the insurer  by  certified  mail,  return  receipt requested,  and shall be effective not later than ten business days from the date of receipt by the insurer. The notification  must  contain,  in writing, an acceptance by the third party designee to receive notices of cancellation,  nonrenewal  and  conditional  renewal  from  the insurer. Should the third party designee desire to terminate his or her status as a third party designee, such designee shall provide  written  notice  to both  the  insurer  and  the  senior  citizen insured. Should the senior citizen insured desire to terminate the  third  party  designation,  the insured shall provide written notice to the insurer. The transmission to the  third  party  designee of any notice of cancellation, nonrenewal or conditional renewal shall be in addition to  a  copy  of  such  document transmitted  to  the senior citizen insured and when a third party is so designated all such notices shall  be  mailed  in  an  envelope  clearly marked  on  its  face  with  the  following: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATELY". Designation as a third party  shall  not constitute  acceptance  of any liability on the third party for services provided to such senior citizen. The insurer  shall  notify  its  senior citizen  insureds  annually  in writing of the availability of the third party designee notice procedure  and  provide  information  on  how  the insured  can  commence  this procedure, however, such notice need not be provided once a senior citizen has made a designation.  (b) Every insurer that has in force a premium paying  individual  life insurance policy on the life of a senior citizen insured, who has made a designation  in  accordance  with  paragraph  one  of  subsection (b) of section three thousand two hundred eleven of this  chapter,  shall  upon appropriate  notification  as  described  herein,  provide  such  senior citizen with a copy of the notice  of  cancellation  for  nonpayment  of premiums before the lapse date of the policy. The senior citizen insured shall  notify  the  insurer that in addition to the person designated in accordance with  paragraph  one  of  subsection  (b)  of  section  three thousand  two  hundred eleven of this chapter, a copy of such notices of cancellation shall be transmitted to the senior citizen insured and when a third party is so designated all such notices shall be  mailed  in  an envelope  clearly  marked  on  its  face  with the following: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATELY".  Such  notification  to the  insurer  shall  be in writing delivered to the insurer by certified mail, return receipt requested and shall be effective not later than ten business days from the date of receipt by the insurer. Should the senior citizen  insured  desire  to  terminate  receipt  of  such  notices   of cancellation,  such  senior  citizen shall provide written notice to the insurer. The insurer shall at the time the senior citizen insured  makes a  designation  in  accordance  with  paragraph one of subsection (b) of section three thousand two hundred eleven of  this  chapter  inform  the senior  citizen  in  writing  about  the  notice  procedure  and provide information on how the insured can commence this procedure.  (c) Every insurer, corporation organized under article forty-three  of this chapter or organization certified pursuant to article forty-four of the  public  health  law  that has in force a health insurance policy or medicare supplemental insurance  policy  as  defined  in  section  three thousand two hundred eighteen of this chapter the premiums for which are  paid  directly to the insurer by the senior citizen insured shall permit senior citizen insureds to designate a third party to whom  the  insurer shall  transmit  notices  of  nonpayment  of  premiums  due or notice of cancellation  for  nonpayment of premiums, as determined by the insurer. The senior citizen shall notify the insurer that a third party has  been so  designated.  Such  notification shall be delivered to the insurer by certified mail, return receipt requested, and  shall  be  effective  not later  than  ten  business days from the date of receipt by the insurer. The notification must contain, in writing, an acceptance  by  the  third party designee to receive such notices of cancellation. Should the third party  designee  desire  to terminate his or her status as a third party designee, such designee shall provide written notice to both the insurer and the senior citizen insured. Should the senior citizen insured desire to terminate the third party  designation,  the  insured  shall  provide written  notice  to  the  insurer.  The  transmission to the third party designee of any such notice of cancellation shall be in  addition  to  a copy of such document transmitted to the senior citizen insured and when a  third  party  is so designated all such notices shall be mailed in an envelope clearly marked on  its  face  with  the  following:  "IMPORTANT INSURANCE  POLICY INFORMATION: OPEN IMMEDIATELY". Designation as a third party shall not constitute acceptance of  any  liability  on  the  third party  for  services  provided to such senior citizen. The insurer shall notify  its  senior  citizen  insureds  annually  in  writing   of   the availability  of  the  third party designee notice procedure and provide information on how the insured can  commence  this  procedure;  however, such  notice  need  not  be  provided  once  a senior citizen has made a designation.  (d) In the case of a medicare supplemental insurance policy as defined in section three thousand two hundred eighteen of this  chapter  offered by  or through a group the premiums for which are paid to the insurer by the group policyholder or group remitting agent, the group  policyholder or  group  remitting  agent  shall  permit  senior  citizen  insureds to designate a  third  party  to  whom  the  group  policyholder  or  group remitting  agent shall transmit notices of nonpayment of premiums due or notice of cancellation for nonpayment of premiums, as determined by  the group  policyholder  or  group remitting agent. The senior citizen shall notify the group policyholder or group  remitting  agent  that  a  third party  has  been  so designated. Such notification shall be delivered to the group policyholder or group remitting agent by mail,  and  shall  be effective  not  later than ten business days from the date of receipt by the group policyholder or group remitting agent. The  notification  must contain,  in  writing,  an  acceptance  by  the  third party designee to receive such notices of cancellation. Should the  third  party  designee desire  to  terminate  his or her status as a third party designee, such designee shall provide written notice to both the group policyholder  or group  remitting agent and the senior citizen insured. Should the senior citizen insured desire to terminate the  third  party  designation,  the insured  shall provide written notice to the group policyholder or group remitting agent. The transmission to the third  party  designee  of  any such  notice  of  cancellation  shall  be  in addition to a copy of such document transmitted to the senior citizen  insured  and  when  a  third party  is  so designated all such notices shall be mailed in an envelope clearly marked on its face  with  the  following:  "IMPORTANT  INSURANCE POLICY  INFORMATION:  OPEN  IMMEDIATELY".  Designation  as a third party shall not constitute acceptance of any liability on the third party  for services  provided  to  such  senior  citizen. The group policyholder or group remitting agent shall notify its senior citizen insureds  annually in  writing  of  the  availability  of  the  third party designee notice  procedure and provide information on how the insured can  commence  this procedure;  however,  such  notice  need  not  be provided once a senior citizen has made a designation.  (e)  Every insurer that has in force a long-term care insurance policy as defined in section one thousand one hundred seventeen of this chapter the premiums for which are paid directly to the insurer  by  the  senior citizen  insured,  except  a  policy  that qualifies as a long-term care insurance contract as defined in Section 7702B of the  Internal  Revenue Code, shall permit senior citizen insureds to designate a third party to whom the insurer shall transmit notices of nonpayment of premiums due or notice  of cancellation for nonpayment of premiums; provided that notice of cancellation for nonpayment of premium shall be sent  no  later  than thirty  days  before the effective date of such cancellation. The senior citizen insured shall notify the insurer that a third party has been  so designated.  Such  notification shall be delivered to the insurer either in the same envelope as the senior citizen insured's premium payment  or by  certified mail, return receipt requested, and shall be effective not later than ten business days from the date of receipt  by  the  insurer. The  notification  must  contain, in writing, an acceptance by the third party designee to receive such notices of cancellation. Should the third party designee desire to terminate his or her status as  a  third  party designee, such designee shall provide written notice to both the insurer and the senior citizen insured. Should the senior citizen insured desire to  terminate  the  third  party  designation, the insured shall provide written notice to the insurer.  The  transmission  to  the  third  party designee  of  any  such notice of cancellation shall be in addition to a copy of such document transmitted to the senior citizen insured and when a third party is so designated all such notices shall be  mailed  in  an envelope  clearly  marked  on  its  face  with the following: "IMPORTANT INSURANCE POLICY INFORMATION: OPEN IMMEDIATELY". Designation as a  third party  shall  not  constitute  acceptance  of any liability on the third party for services provided to such senior citizen.  The  insurer  shall notify  its senior citizen insureds not less than annually in writing of the availability of  the  third  party  designee  notice  procedure  and provide information on how the insured can commence this procedure. If a senior  citizen  insured  has  not  made  a third party designation, the insurer shall include a copy of the third party  designation  form  with each  premium  statement sent to the senior citizen insured. If a senior citizen insured has made a designation, the insurer shall  confirm  with the  senior  citizen  insured  that  the  third party designee's contact information is correct. Upon receipt of a designation or termination  of a  designation, the insurer shall verify the designation or cancellation of designation with the senior citizen insured. Such  verification  may, but  is not required to be, written and the insurer may use telephony to obtain an oral confirmation from the senior citizen insured so  long  as the   insurer   provides   the   senior  citizen  insured  with  written confirmation of the oral verification.  (f) For purposes of this section, "senior citizen insured" shall  mean a  New  York  resident  who is the policyowner or the insured and is age sixty-five or  older.  The  superintendent  may  promulgate  regulations necessary to carry out the purposes of this section.