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New YorkS 72222025-2026 Regular SessionSenateWALLET

Relates to indexing fixed amounts and clarifying compliance

Sponsored By: Jamaal Bailey (Republican)

Became Law

INSURANCEWAYS AND MEANS

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Bill Overview

Analyzed Economic Effects

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

More training subsidies for life agents

Life insurers may pay training allowances to full‑time agents who mainly solicit for the company and its affiliates. You qualify if, in the prior three years, you either earned under $40,000 from sales, or in each year less than 25% of your income was from sales, or in each year less than 25% of your work time was in life and annuity sales. The company may accept your signed attestation unless it has actual knowledge to reject it. Caps apply per agent: Year 1 is the greater of $54,000 or 60% of the first‑year commission limit; Year 2 is the greater of $85,000 or 60%+40%; Year 3 is the greater of $105,000 or 60%+40%+20%; Year 4 is the greater of $116,000 or 60%+40%+20%+10%. If you earned $127,000 or more in either of the two years before subsidies start, the company may also pay $2,000 for each $4,000 above $127,000 in years 1 and 2, up to an $87,000 first‑year cap and a $116,000 total cap.

Salary rules for non-sales insurance staff

Salaried employees whose main job is not selling new policies or supervising agents are exempt from subsections (d) and (e). They qualify only if 25% or less of their total pay is tied to business they personally produced. This rule applies even if the employee holds a life insurance license.

Higher prize limits for agents

Companies may give agents prizes under compensation plans. No single prize can exceed $500, and the total per agent per year cannot exceed $2,000. A prize paid at most monthly can be up to $50. The regulator may allow higher limits, and these prize costs do not count against certain selling‑expense limits.

New rules for insurer selling expenses

The law updates what counts as insurer selling expenses. It removes the prior list of “sales support” examples like underwriting support, proposals, illustrations, and company‑owned PCs used in sales. It also broadens travel, meal, and entertainment costs tied to selling by removing the rule that travel must be only for sales conferences, training, or awards. These changes mainly affect insurer accounting and reporting; any consumer effect is indirect.

Stronger insurer attestations, longer notice time

An officer must sign the annual schedule, state they personally reviewed it, and attest that, based on three‑year projections, expenses will not exceed the legal limit. If not, the officer must disclose the year or years that will exceed the limit and by how much. When a company cannot recover payments that exceed a statutory limit, it now has 90 days after learning of the excess to notify the superintendent. No notice is needed if the excess is recovered before the due date or if the agent is no longer appointed and the company made reasonable recovery efforts. The notice must explain the reason, the number of agents paid too much, the excess amount, steps to stop repeats, and recovery efforts.

Sponsors & Cosponsors

Sponsor

  • Jamaal Bailey

    Republican • Senate

Cosponsors

  • Dean Murray

    Republican • Senate

  • Nathalia Fernandez

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 80 • 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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