New York State Consolidated Laws

Insurance

                               ARTICLE 27
                 HOLOCAUST VICTIMS INSURANCE ACT OF 1998
Section 2701. Definitions.
        2702. Holocaust claims assistance.
        2703. Insurer claims handling.
        2704. Rights of action.
        2705. Reports from insurers.
        2706. Reports to the governor and the legislature.
        2707. Penalty.
        2708. Application  of  section four thousand two hundred twenty-
                four.
        2709. Substantial compliance.
        2710. Rules and regulations.
        2711. Severability.

  S 2701. Definitions. For the purpose of this article:
  (a)  "Holocaust    victim"  shall  mean  any  person, claimant, or the
estate, heir, legatee, descendant, survivor, beneficiary, or other  such
successor-in-interest  of such person, who lost his or her life or prop-
erty as a result of discriminatory laws, policies, or  actions  targeted
against  discrete  groups of persons based on race, religion, ethnicity,
sexual orientation or national origin, whether or not  such  person  was
actually  a  member of any of the foregoing enumerated groups or because
such person assisted or allegedly assisted any of the foregoing  groups,
between  January  first, nineteen hundred twenty-nine and December thir-
ty-first, nineteen hundred forty-five in areas under Nazi  influence  as
defined in subsection (f) of this section.
  (b)  "Person",  "control",  "holding  company",  and  "holding company
system" and any other term  used  in  this  article  but  not  otherwise
defined shall have the same meaning as it has in article fifteen of this
chapter.
  (c) "Insurance policy" shall mean any policy of insurance substantial-
ly  similar  to any kind of insurance that was authorized at any time in
New York between and including the years  nineteen  hundred  twenty-nine
and  nineteen  hundred  forty-five  or authorized by the jurisdiction in
which the policy was sold at the time it  was  sold  including  but  not
limited  to  any form of life, accident and health, annuities, property,
casualty, education or dowry insurance.
  (d) "Proceeds" shall mean the face or other pay-out value of an insur-
ance policy or annuity plus reasonable interest to date  of  payment  as
shall be prescribed by regulations promulgated by the superintendent.
  (e)  "Member  of  a  holding  company  system" shall include a holding
company, a controlled insurer, a controlled person, and any  person  who
alone  or  in  concert  with  any  other  persons directly or indirectly
controls a holding company or controls a person who controls  a  holding
company.
  (f) "Areas under Nazi influence" shall mean the country of Nazi Germa-
ny, areas occupied by Nazi Germany, those European countries allied with
Nazi  Germany,  areas  occupied  by those European countries allied with
Nazi Germany, or any other neutral European country or  area  in  Europe
under the influence or threat of Nazi invasion.

  S 2702.  Holocaust claims assistance. The superintendent shall arrange
for  a  toll-free telephone number available in English as well as other
appropriate languages, to assist any person seeking to recover  proceeds
from an insurance policy issued to or covering the life or property of a
Holocaust victim.

  S 2703.  Insurer claims handling. (a) Notwithstanding any inconsistent
provision  of  this chapter, any insurer organized, registered, licensed
or accredited to do an insurance business in this state, in receipt of a
claim against it arising from an occurrence during  the  period  between
January  first,  nineteen hundred twenty-nine and December thirty-first,
nineteen hundred forty-five from an individual that such insurer  knows,
or reasonably should have known, is a Holocaust victim shall:
  (1) diligently and expeditiously investigate such claim;
  (2)  allow  claimants  to provide alternative documentation which does
not meet the usual standards of proof required by an insurer to substan-
tiate the particular claim, subject to standards  established  for  such
documentation  as  prescribed  by  regulations promulgated by the super-
intendent; and
  (3) attempt to resolve, settle and, if appropriate, make  payments  on
claims irrespective of any statute of limitations or notice requirements
imposed  by  any  law or such insurance policy issued to or covering the
life, property or interests of a Holocaust  victim,  provided  that  the
claim  is  submitted  to the insurer within ten years from the effective
date of this article.
  (b) Failure to abide by the terms of this section shall  constitute  a
defined violation for purposes of subsection (b) of section two thousand
four hundred two of this chapter.
  (c)  This article shall serve as additional and conclusive notice that
the superintendent is currently investigating all claims  pertaining  to
the victims of the Holocaust. Evidence of the intentional destruction or
alteration  of  any  records or other materials pertaining to such claim
shall be admissible in both administrative and judicial  proceedings  as
evidence  in support of any claim being made against the insurer involv-
ing the destroyed  or altered material. It shall be permissible  for  an
administrative   or   judicial  court  to  infer  that  the  intentional
destruction or alteration of any records or other  materials  pertaining
to  a  claim  was  done  in order to prevent discovery of information to
support any claim of a Holocaust victim.

  S  2704.  Rights  of  action. (a) Notwithstanding any law or agreement
among the parties to an insurance policy to  the  contrary,  any  action
arising  from  an  occurrence  during  the period between January first,
nineteen hundred twenty-nine and December thirty-first, nineteen hundred
forty-five brought by a Holocaust victim seeking proceeds of  an  insur-
ance  policy  issued  to or covering the life or property of a Holocaust
victim prior to  December  thirty-first,  nineteen  hundred  forty-five,
shall not be dismissed for failure to comply with any statute of limita-
tions  or laches or other similar provision of any applicable law relat-
ing to the timeliness of the filing of claims that might prevent a claim
from being heard on its merits, or any notice  requirements  imposed  by
any  insurance  policy provided the action is commenced within ten years
from the effective date of this article.
  (b) With respect to any action arising from an occurrence  during  the
period  between January first, nineteen hundred twenty-nine and December
thirty-first, nineteen hundred forty-five brought by a Holocaust  victim
seeking  proceeds  of an insurance policy issued to or covering the life
or property of a Holocaust victim prior to December thirty-first,  nine-
teen  hundred  forty-five  no  such  action shall be stayed or dismissed
pursuant to rule three hundred twenty-seven of the  civil  practice  law
and rules.
  (c)   In recognition of the significant period of time that has passed
and in order to effect the  goals  of  substantial  justice,  the  rules
regarding  the  admissibility  of evidence, including but not limited to
rule forty-five hundred eighteen and section forty-five hundred nineteen
of the civil practice law and rules, and  principles  of  law  or  other
rules  relating to the admission of hearsay evidence shall be relaxed at
the discretion of the trial judge in any action or proceeding authorized
by this section.

  S  2705.  Reports from insurers.   (a) Every insurer organized, regis-
tered, accredited or licensed to do an insurance business in this  state
shall  file  or  shall cause its holding company to file with the super-
intendent, within one hundred and twenty days of the effective  date  of
this  article,  a report setting forth such insurer`s plan for complying
with the provisions of this article. Any insurer  which  has  determined
that it does not have any of the information requested in subsection (b)
of this section shall file or cause its holding company to file a report
stating that they have no such information.  In addition, an insurer may
request  to  be  relieved from filing any further reports upon providing
evidence satisfactory  to  the  superintendent  that  such  insurer  has
fulfilled its obligations under this article.
  (b)  Every insurer organized, licensed, registered or accredited to do
an insurance business in this state shall  report  or  shall  cause  its
holding  company  to report to the superintendent the following informa-
tion:
  (1) whether it is a member of a holding company system  including  any
insurer, any other member, subsidiary or division in each case whether a
licensee  or  not,  that  could  possibly  be expected to have issued an
insurance policy to a Holocaust victim between January  first,  nineteen
hundred  twenty  and  December thirty-first, nineteen hundred forty-five
and a list of each such entity;
  (2) the approximate number and the total value of all  such  insurance
policies  issued  by  such insurer or by any other member, subsidiary or
division within the reporting insurer`s holding company  system,  which,
as  of the date of such report, remain unpaid or were paid to, or expro-
priated by a government located in areas under Nazi influence, that  was
not the named beneficiary of such insurance policy;
  (3)  attempts  made  by the insurer to locate the beneficiaries of any
such insurance policies for which no claim of benefits has been made;
  (4) if requested by the superintendent and to  the  extent  consistent
with  applicable  laws  and confidentiality obligations, with respect to
each such insurance policy, the names of the  owner,  the  name  of  the
beneficiary and the face amount or pay-out value;
  (5)  the  number of claims filed by persons who allege or have alleged
that they are Holocaust victims and whether each  such  claim  has  been
paid or payment has been denied;
  (6)  if  requested by the superintendent, an explanation of any denial
or pending payment of a claim to any person who alleges or  has  alleged
that he or she is a Holocaust victim;
  (7) a summary of the length of time for the processing and disposition
of such a claim by the insurer; and
  (8)  in  the  event  that  the insurer is unable to provide any of the
information required by this section, an explanation of the reasons  why
and  whether  such information may, in the future, be ascertainable. The
reports required by this subsection shall be  made  within  thirty  days
after  the  end  of  the  calendar year in which this article shall have
become effective and annually thereafter for each of the succeeding  ten
years except as provided in subsection (a) of this section.
  (c)  Reports  submitted to the superintendent pursuant to this section
shall be certified and  affirmed  under  oath  as  being  true  and  not
misleading  and as containing the most accurate information available at
the time of such report`s submission.
  (d) The superintendent may waive penalties and fines imposed  by  this
article  for  those  insurers  that, through no fault of their own, were
unaware that they, or members of a holding company system that  includes
such  insurer,  were  obligated to file reports pursuant to this article
and to comply with the provisions of this article.
  (e) The superintendent is authorized to use any power available to the
state to compel holding company systems that include issuers  of  insur-
ance  policies  to  Holocaust victims to submit reports pursuant to this
article and to comply with the provisions of this article.
  (f)  Any  insurer  which  knowingly  or  recklessly  files  a false or
misleading certification required by this section  shall  be  fined  not
less  than  one  hundred  thousand dollars or such greater amount as the
superintendent deems appropriate based upon the degree  of  misrepresen-
tation, the willfulness of the misconduct and the amount of funds misap-
propriated. Such insurer also may be barred from further sales of insur-
ance in New York for a period of up to ten years.

  S  2706.  Reports to the governor and the legislature. The superinten-
dent shall report to the governor and the legislature one year from  the
effective  date  of this article and annually thereafter for each of the
succeeding ten years the following:
  (a) the number of insurers organized, licensed, accredited  or  regis-
tered  to do an insurance business in this state and the number of other
insurers that may be in the same holding company system as an organized,
licensed, accredited or  registered  insurer  which  could  possibly  be
expected  to  have issued a policy to a Holocaust victim between January
first, nineteen  hundred  twenty  and  December  thirty-first,  nineteen
hundred forty-five;
  (b)  the  approximate number and the total value of all such insurance
policies which, as of the date of such report,  remain  unpaid  or  were
paid  to,  or  expropriated by, a government located in areas under Nazi
influence that was not the named beneficiary of such insurance policy;
  (c) a listing by insurer of the number of claims filed by persons  who
allege  or have alleged that they are Holocaust victims and whether each
such claim has been paid or payment has been denied;
  (d) a summary of the length of time for the processing and disposition
of such a claim by the insurer; and
  (e) a listing of the circumstances of the  activities  of  the  super-
intendent  pursuant  to  subdivision (d) of this section and section two
thousand seven hundred seven of this article.

  S  2707.  Penalty. In addition to any other penalty prescribed by this
article or any other provision of this chapter, any  insurer  or  person
who  violates  the provisions of this article will be subject to a civil
penalty of up to one thousand dollars for each day each  such  violation
continues  except  that, if the superintendent finds that such violation
has been willful, such insurer shall be fined an amount that the  super-
intendent  deems  appropriate  based on the degree of willful misconduct
and the nature of the violation.

  S  2708. Application of section four thousand two hundred twenty-four.
An insurer shall not be considered in violation of section four thousand
two  hundred  twenty-four  of  this  chapter  for  complying  with   the
provisions of this article.

  S 2709. Substantial compliance.  (a) An insurer which, pursuant to the
laws  of  another  jurisdiction is required (or whose holding company is
required) to report, certify or otherwise disclose information  substan-
tially equivalent to that required by section two thousand seven hundred
five  of this article, may satisfy the requirements of section two thou-
sand seven hundred five of this article by filing with  the  superinten-
dent  within the applicable periods prescribed hereunder, copies of such
material filed with such jurisdiction. The determination as  to  whether
the requirements of a given jurisdiction are substantially equivalent to
those  of  section two thousand seven hundred five of this article shall
be made by the superintendent in his or her discretion. The  superinten-
dent  may  require that any such filing be supplemented by a schedule or
index referring to the specific requirements  of  section  two  thousand
seven hundred five or the regulations promulgated thereunder.
  (b)  The  superintendent,  in  his  or her discretion, may suspend the
application of section two thousand seven hundred five of  this  article
to  any  insurer  upon a finding that such insurer, a subsidiary of such
insurer, or any member of the holding company system that includes  such
insurer,  has  subjected  itself  in  good faith to the authority of the
international commission referenced in a  memorandum  of  intent,  dated
April  eighth, nineteen hundred ninety-eight executed by the superinten-
dent, other United States insurance regulators, worldwide Jewish  organ-
izations  and  insurers,  or any successor thereto, and has meaningfully
participated in such commission or successor entity in a manner  reason-
ably  calculated  to  effect  the prompt investigation and resolution of
claims of Holocaust victims and upon a  finding  by  the  superintendent
that  such  commission  or successor entity is effectively moving toward
the swift and equitable resolution of claims made against  such  insurer
by Holocaust victims.
  (c)  Each  such  suspension granted pursuant to subsection (b) of this
section shall be valid for a one year period and may be extended annual-
ly for additional one year periods upon a finding (i) that such insurer,
a subsidiary of such insurer, or  any  member  of  the  holding  company
system that includes such insurer, continues to satisfy the requirements
set forth in subsection (b) of this section and (ii) that the commission
or  successor entity is effective in achieving the prompt identification
of Holocaust victims to whom  insurance  policies  were  issued  between
January  first, nineteen hundred twenty and December thirty-first, nine-
teen hundred forty-five, and the investigation and resolution of  claims
of  those  Holocaust  victims.  Each  insurer  who  is exempted or seeks
continued exemption pursuant to this section shall file such reports  or
provide  such other information as the superintendent may require in his
or her discretion.
  (d) The superintendent shall have the discretion  to  discontinue  any
exemption  made in accordance with this section if a reasonable determi-
nation is made by the superintendent that the insurer, its subsidiary or
division, or the member of the holding company system that includes such
insurer, as applicable, is not cooperating fully with such commission or
successor entity or that such commission  or  successor  entity  is  not
effective in promptly investigating and resolving such claims.

  S  2710.  Rules  and regulations.   The superintendent, by regulation,
shall provide for the implementation of the provisions of  this  article
and  for  facilitating,  monitoring  and  verifying compliance with this
article.

  S  2711.  Severability.    If  any  word, clause, sentence, paragraph,
subdivision, section or part of this article shall be  adjudged  by  any
court  of  competent jurisdiction to be invalid, such judgment shall not
affect, impair, or  invalidate  the  remainder  thereof,  but  shall  be
confined  in  its  operation  to  the word, clause, sentence, paragraph,
subdivision, section or part thereof directly involved in the controver-
sy in which such  judgment  shall  have  been  rendered.  It  is  hereby
declared  to  be  the  intent of the legislature that this article would
have been enacted even if such invalid provisions had not been  included
herein.