N.Y. Insurance Law § 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.