Governor Signs Cymbrowitz Bill Increasing Seniors’ Protections Against Sudden Insurance Cancellation

November 18, 2016

Seniors will have greater protection against the unexpected cancellation of their long-term insurance policies thanks to legislation (A.10269) introduced by Assemblyman Steven Cymbrowitz (D-Brooklyn), which was signed by Governor Cuomo this week.

The law enhances the current statutory regulations allowing senior citizens

who hold long-term care insurance policies to designate a third party to receive notices of nonpayment of premiums due or notices of cancelation for nonpayment of premiums.

“Currently, if a senior’s long-term care policy is about to be cancelled for non-payment of premiums, insurance companies are required to send a copy of this cancellation notice to the senior’s third-party designate as well,” said Assemblyman Cymbrowitz, Chair of the Aging Committee and a member of the Insurance Committee.

“The problem is that current law allows insurance companies to determine when these notices will be sent to third-party designates. This means that if the insurer does not send out the cancellation notice in a timely manner, the third-party designation safeguard proves useless and the senior ends up with a cancelled insurance policy,” he said.

The new law requires that third-party designates receive a copy of the cancellation notice no less than 30 days before the effective date of the cancellation.

The law further enhances the protections provided to seniors by prescribing the manner in which a senior’s third-party designee may be chosen, the process the insurer may use to confirm designation or termination of designation, and requires the insurer to confirm that the contact information of the third-party designate is correct.

“These additional safeguards will strengthen the protection that the law currently provides our senior citizens,” Assemblyman Cymbrowitz said.

Senator Marty Golden (R-Brooklyn) was the bill’s Senate sponsor.