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Bill

S 5238

Relates to replacement of individual life insurance policies or annuity contracts

2025 Regular Session Introduced by Leroy Comrie

Strengthens consumer protections when replacing life insurance or annuity contracts by mandating clearer disclosures and tighter agent suitability standards.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · S 5238

Summary: New York Senate Bill S 5238 – Relates to replacement of individual life insurance policies or annuity contracts

Overview

  • Bill number: S 5238
  • Title: Relates to replacement of individual life insurance policies or annuity contracts
  • Sponsor: Leroy Comrie (primary)
  • Status: Referred to the Senate Committee on Insurance
  • Introduced: February 20, 2025
  • Legislative actions: On February 20, 2025, the bill was referred to INSURANCE (listed twice in the actions provided)
  • Related bills: Several prior-session bills (S 1170, S 3065, S 5024, S 708, S 3502, S 4041, S 2817) and companion A 854 (listed as companion)

What is known about the bill

  • The bill’s title indicates it would address the replacement of individual life insurance policies or annuity contracts.
  • The current information provided does not include the bill’s full text or explicit provisions. The only detailed information available is the purpose suggested by the title and the procedural action of referral to the Insurance committee.

Inferred purpose and potential scope (based on the title)

Because the text is not provided, the following are plausible areas such a bill might address. These are common elements in replacement-related legislation and are listed for context; the actual provisions may differ:
- Consumer protections for policy replacements, including protections against inappropriate or “churning” replacement practices.
- Enhanced disclosures required to be provided to consumers when a replacement of a life insurance policy or annuity is being considered.
- Standards for producers/agents regarding suitability and best interests when advising on replacements.
- Regulatory or reporting requirements for insurance carriers and agents related to replacement activity.
- Timeframes, penalties, or enforcement mechanisms to deter improper replacement practices.

These points are not confirmed aspects of S 5238 without the bill’s text; they reflect typical content found in replacement-related legislation.

Affected parties

  • Policyholders/annuitants: potential beneficiaries or buyers affected by replacement decisions; may gain enhanced protections and disclosures if enacted.
  • Insurance companies and annuity issuers: potentially subject to additional rules, reporting, and compliance obligations.
  • Insurance producers/agents: may face stricter suitability standards, disclosures, and fiduciary-like considerations.
  • Regulators (State Department of Financial Services/Insurance): would implement, monitor, and enforce any new requirements.
  • Consumer advocates and market participants interested in replacement practices and protection from abusive sales tactics.

Procedural and timeline aspects

  • The bill has been introduced and referred to the Senate Insurance Committee as of February 20, 2025.
  • No further actions (e.g., hearings, amendments, floor votes) are listed in the provided information.

Relationship to related bills

  • Numerous prior-session bills (S 1170, S 3065, S 5024, S 708, S 3502, S 4041, S 2817) suggest ongoing legislative interest in the topic.
  • A companion bill is listed as A 854 (appears twice in the provided related-bills list), indicating parallel consideration in the Assembly.

Potential impact (high-level)

  • If enacted, could strengthen consumer protections around replacing life insurance or annuity contracts.
  • Might increase compliance and disclosure requirements for insurers and producers, with potential cost implications.
  • Could influence replacement activity and sales practices in the individual life and annuity markets.

Next steps for readers

  • Monitor updates from the Senate Insurance Committee for the bill’s text, amendments, and hearings.
  • Review the full bill language when available to assess exact provisions, definitions (e.g., “replacement”), timelines, penalties, and implementation dates.
  • Consider corresponding Assembly actions and companion bill A 854 for cross-chamber developments.

Compiled from official sources — confirm details with the bill’s official record.

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