Relates to requirements for making of policy loans

Latest action Mar 4, 2026

Requires the terms and conditions of any individual life insurance policy loan to be in writing, be signed by the insured and the agent and contain a signed statement that the agent has explained the terms to the policyholder.

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Where it stands

Passed one of the two chambers; it still needs the other.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A6833, the matching bill in the Assembly.

Amends the Insurance Law.

Committee

Insurance · New York State Assembly

Also referred to Insurance · New York State Senate.

Purpose, from the sponsor's memo

The practice of churning has become increasingly prevalent in the life insurance market. In this practice, policyholders are encouraged to purchase additional life insurance policies by borrowing from the cash value of, or turning in, existing policies. In many case s, consumers are not aware of the exact terms of these transactions. This bill seeks to rectify this problem by requiring that agents fully explain the terms of these policy .loans to the consumer, and that both the agent and the insured sign a disclosure which state s that the agent has explained all of the terms of the loan agreement, and that to the best of their know- ledge, both parties are in full understanding of these terms.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Cosponsors

Al Taylor, Alicia Hyndman and 9 more on Agora

Democratic11

See the full list on nysenate.gov

The sponsor's argument

Why Leroy Comrie says this is needed

The practice of churning has become increasingly prevalent in the life insurance industry. Churning occurs when a consumer is persuaded to turn in, or borrow from the cash value of, an existing life insurance policy in order to purchase a new policy. to most cases, this practice benefits the agent and the company selling the policy, and is not in the best interest of the consumer. This practice is deceptive because the consum- er may be unwittingly acting against his own best interest, and the agent may not fully explain to him the origin. of the funds used for the purchase of the new policy. This bill seek,s to address this problem by requiring that agents who are involved in these transactions fully explain all of the terms and conditions of the policy loan to the poli- cyholder. In addition, both the agent and the policyholder must sign a disclosure, printed in at least ten point type, which describes the terms and conditions of these policy loans which are being made for the purchase of additional policies.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Mar 4, 2026
Sent to the executive
DELIVERED TO SENATE
NY Assembly
Mar 4, 2026
Passed a chamber
PASSED ASSEMBLY
NY Assembly
Mar 4, 2026
Referred to committee
REFERRED TO INSURANCE
NY Senate
Feb 26, 2026
Advanced to Third Reading CAL.273
ADVANCED TO THIRD READING CAL.273
NY Assembly
Feb 25, 2026
Reported out of committee
REPORTED
NY Assembly

Show full history (4 earlier events)

Jan 7, 2026
Referred to committee
REFERRED TO INSURANCE
NY Senate
Jan 7, 2026
Referred to committee
REFERRED TO INSURANCE
NY Assembly
Mar 14, 2025
Referred to committee
REFERRED TO INSURANCE
NY Assembly
Jan 30, 2025
Referred to committee
REFERRED TO INSURANCE
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 2, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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