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NY Lawmaker Seeks Interest for Late Health Broker Commission Payments

New York State Sen. James Seward (R) has introduced legislation in the New York State Assembly that would require health insurers to add interest when they are late in paying agent and broker commissions...
June 12, 2014

New York State Sen. James Seward (R) has introduced legislation in the New York State Assembly that would require health insurers to add interest when they are late in paying agent and broker commissions.

The bill would require health insurance carriers to send commission payments within 45 days of receiving premium payments, except under extenuating circumstances. The rate of interest would be set by New York’s tax commissioner. If the commissioner did not set an interest rate, it would default to 12 percent. Seward is the immediate past president of the National Conference of Insurance Legislators (NCOIL), and has been chairman of the state senate insurance committee since 1999.

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