New York Assembly Bill A07234

New York 2025-2026 Regular Session

• Introduced: 3/21/25
• Refer: 3/21/25
• Refer: 1/7/26

Caption

Provides for limited death benefit life insurance policies for persons aged 60 and over; authorizes the attorney general to enforce provisions; requires an insurer to provide consumers with a prescribed "Financial Review of Policy" form when it delivers or issues for delivery in this state an insurance policy or a certificate of insurance for persons aged 60 and over.

Summary

A07234 would add a new article to the General Business Law requiring insurers to give certain consumers age 60 and over a standardized "Financial Review of Policy" form when issuing a life insurance policy or certificate that has limited death benefits or where premiums may exceed the death benefit within the first 10 years. The form is intended to help older applicants compare the policy’s annual premiums, projected cash surrender value, death benefit, and a hypothetical 5% accumulation scenario, so they can better judge whether the policy is suitable before keeping it. The bill also creates enforcement and remedy provisions. A consumer injured by a violation could sue for damages, including up to treble actual damages or $100, whichever is greater, plus possible attorney’s fees. The Attorney General could also bring an action to stop violations, seek restitution, and obtain civil penalties of up to $500 per violation. The act would take effect on January 1 following enactment.

Impact

The bill would amend the General Business Law by creating a new consumer-protection article focused on limited death benefit life insurance policies sold to people age 60 and older. It would impose a disclosure obligation on insurers, require a prescribed review form with specified terminology and formatting, and authorize both private lawsuits and Attorney General enforcement. The measure would affect insurers, policyholders, and the state’s consumer protection and insurance oversight framework, while not directly changing the substantive terms of life insurance contracts beyond the required disclosures.

Sentiment

The bill appears generally consumer-protective in tone, with its purpose centered on helping older buyers understand the value and suitability of certain life insurance products. The sponsorship pattern suggests support from multiple Assembly members, and there is no recorded committee opposition, vote history, or transcript evidence indicating controversy in the materials provided. Overall, the available context suggests a favorable or at least precautionary sentiment toward stronger disclosure requirements for seniors.

Contention

The main point of potential contention is the added compliance burden on insurers, who would need to provide a detailed standardized form and face private litigation and Attorney General enforcement for noncompliance. Another possible issue is whether the mandated 5% comparison and the specific framing of the form could be seen as influencing consumer choice or oversimplifying complex insurance products. On the consumer side, supporters would likely emphasize transparency and protection for older purchasers, while any critics would likely focus on administrative costs, liability exposure, and the risk of discouraging legitimate product offerings.