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  that  has  in  force  a  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 transmitnotices 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.    * NB Effective until October 25, 2010    * (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.    * NB Effective October 25, 2010(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, as determined by  the  insurer. The senior citizens 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".  Designationas 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.    (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.