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New YorkS 72222025-2026 Regular SessionSenateWALLET

Relates to indexing fixed amounts and clarifying compliance

Sponsored By: Jamaal Bailey (Republican)

Signed by Governor

INSURANCEWAYS AND MEANS

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

More training money for insurance agents

The law takes effect immediately and allows company training payments for eligible full-time life insurance agents in New York. Agents must mainly seek policies for their insurer and its affiliates, without receiving another life insurer’s training allowance. They must meet one of three tests covering the three years before appointment. These are cumulative sales earnings below $40,000, sales income below 25% of earned income each year, or individual life and annuity sales work below 25% of worktime each year. Companies may accept an agent’s eligibility statement unless known facts about the agent give grounds to reject it. Total subsidy caps through years one to four are the greater of $54,000, $85,000, $105,000, and $116,000, respectively, or commission-based formulas. Those formulas add 60% of year-one, 40% of year-two, 20% of year-three, and 10% of year-four first-year commission limits as each year passes. Eligible agents earning at least $127,000 in either of the two preceding calendar years can receive extra subsidies. In each of the first two subsidy years, insurers may add $2,000 for every $4,000 earned above $127,000. This option has an $87,000 first-year cap and a $116,000 cap across all subsidy years. Training allowances may accompany expense allowances. Company-sponsored training time before acting as an agent, and salary during that time, do not count toward subsidy limits. The superintendent can adjust caps, approve higher subsidies, or approve alternative plans likely to train new agents cost-effectively.

Higher prize limits for insurance agents

New York life insurers can award agents and brokers prizes under their compensation plans. The annual limit rises from $1,000 to $2,000 per person. The supplied sources disagree on the single-prize cap: the backing provision says $500, while the bill summary says $550. Separate prizes worth up to $50 remain allowed no more than once a month. Prize costs are excluded from certain compensation limits, and the superintendent can authorize higher prize values. These rules allow awards but do not guarantee anyone a prize.

Pay limits eased for non-sales employees

Some salaried life insurer employees are exempt from certain sales compensation limits on their total pay. Their main job cannot be selling new policies or contracts, or supervising agents or agencies. No more than 25% of their total pay can relate to business they personally produce. The exemption applies even when they hold a life insurance agent license. It does not guarantee a pay increase.

Life insurers face revised compliance duties

Life insurers get 90 days, instead of 30, to report excess compensation payments they discover and cannot recover. Notice is unnecessary if the insurer recovers the excess before the deadline. Notice is also unnecessary after reasonable recovery efforts for an agent or broker no longer appointed by the insurer. Required reports must explain the cause, recipient count, total excess paid, and steps to prevent repeat payments. A knowledgeable officer must sign the annual expense schedule after reviewing selling expense sources and reasonable three-year projections. The officer must attest that expenses will stay within legal limits or identify the expected years and amounts of excess spending. Agents and brokers receiving excess payments may face recovery efforts.

Life insurers get revised expense rules

The law changes which selling expenses New York life insurers can count under state limits. It explicitly includes agent recruitment and training, sales management and supervision, and sales-office clerical work. Company-paid travel, meals, and entertainment qualify when directly tied to getting new business. The specified sales-support list no longer names underwriting support, proposals, illustrations, or related systems and equipment. These changes affect insurer expense treatment, not direct household payments.

Sponsors & Cosponsors

Sponsor

  • Jamaal Bailey

    Republican • Senate

Cosponsors

  • Dean Murray

    Republican • Senate

  • Nathalia Fernandez

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 217 • No: 0

House vote • 6/13/2025

Assembly floor vote

Yes: 137 • No: 0

Senate vote • 6/12/2025

FLOOR Vote

Yes: 59 • No: 0

committee vote • 6/9/2025

Rules Committee Vote

Yes: 21 • No: 0

Actions Timeline

  1. SIGNED CHAP.427

    9/26/2025Senate

  2. DELIVERED TO GOVERNOR

    9/22/2025Senate

  3. RETURNED TO SENATE

    6/13/2025House

  4. PASSED ASSEMBLY

    6/13/2025House

  5. ORDERED TO THIRD READING RULES CAL.661

    6/13/2025House

  6. SUBSTITUTED FOR A6975A

    6/13/2025House

  7. REFERRED TO WAYS AND MEANS

    6/12/2025House

  8. DELIVERED TO ASSEMBLY

    6/12/2025Senate

  9. PASSED SENATE

    6/12/2025Senate

  10. AMENDED ON THIRD READING 7222A

    6/9/2025Senate

  11. ORDERED TO THIRD READING CAL.1644

    6/9/2025Senate

  12. COMMITTEE DISCHARGED AND COMMITTED TO RULES

    6/9/2025Senate

  13. REFERRED TO INSURANCE

    4/4/2025Senate

Bill Text

  • Amendment A

    6/9/2025

    PDF

  • Original

    4/4/2025

    PDF

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