New York considers broker comp billNews added by Benefits Pro on May 28, 2014

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By Allison Bell

New York state lawmakers are looking at a bill that could require health insurers to add interest to late agent and broker commission payments.

S. 7300 would require carriers to send out health insurance commission payments within 45 days after receiving the premium payments for the coverage.

Unless a carrier had a good excuse for making the payment late, it would have to add interest.

The interest rate could be a benchmark rate set by the state tax commissioner.

If the commissioner failed to set the rate, the default rate would be 12 percent per year.

Sen. James Seward, R-Oneonta, N.Y., a past president of the National Conference of Insurance Legislators, introduced the bill earlier this month. The bill is now in the state Senate Insurance Committee.

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