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S05644 Summary:

S05644 Actions:

S05644 Committee Votes:

S05644 Floor Votes:

S05644 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5644--B
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                     April 24, 2017
                                       ___________
 
        Introduced by Sens. SEWARD, ADDABBO, ALCANTARA, AVELLA -- read twice and
          ordered  printed, and when printed to be committed to the Committee on
          Insurance -- committee discharged, bill amended, ordered reprinted  as
          amended  and  recommitted  to  said committee -- committee discharged,
          bill amended, ordered reprinted as amended  and  recommitted  to  said
          committee
 
        AN  ACT  to  amend  the  insurance law, in relation to limits on certain
          supplementary  insurance;  and  providing  for  the  repeal  of   such
          provisions upon expiration thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subsection (f) of section 3420  of  the  insurance  law  is
     2  amended by adding a new paragraph 2-a to read as follows:
     3    (2-a) (A) Notwithstanding paragraph two of this subsection, this para-
     4  graph  shall  apply to any new insurance policy or contract entered into
     5  after the effective date of this paragraph. This paragraph shall not  be
     6  deemed  to  apply  to  any policies originally entered into prior to the
     7  effective date of this paragraph, but renewed after the  effective  date
     8  of  this  paragraph.  Any  new insurance policy or contract entered into
     9  after the effective date of this paragraph shall, at the option  of  the
    10  insured,  also  provide  supplementary  uninsured/underinsured motorists
    11  insurance for bodily injury, in an amount equal  to  the  bodily  injury
    12  liability insurance limits of coverage provided under such motor vehicle
    13  liability  insurance  policy;  provided, however, that any named insured
    14  may   exercise   the    choice    to    decline    such    supplementary
    15  uninsured/underinsured  motorists  insurance or select a lower amount of
    16  coverage through a written waiver signed, or electronically  signed,  by
    17  such  insured,  subject  to the requirements of subparagraph (B) of this
    18  paragraph.  Supplementary  uninsured/underinsured  motorists   insurance
    19  shall provide coverage, in any state or Canadian province, if the limits
    20  of liability under all bodily injury liability bonds and insurance poli-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04852-06-7
        S. 5644--B                          2
 
     1  cies  of  any  other  motor  vehicle  liable for damages are in a lesser
     2  amount than the bodily injury liability  insurance  limits  of  coverage
     3  provided  by such policy. Upon written request by any insured covered by
     4  supplemental  uninsured/underinsured  motorists  insurance  or  his duly
     5  authorized representative and upon disclosure  by  the  insured  of  the
     6  insured's  bodily  injury and supplemental uninsured/underinsured motor-
     7  ists insurance coverage limits, the insurer of any other owner or opera-
     8  tor of another motor vehicle against which a claim  has  been  made  for
     9  damages  to  the  insured  shall disclose, within forty-five days of the
    10  request, the bodily injury liability insurance limits  of  its  coverage
    11  provided under the policy or all bodily injury liability bonds. The time
    12  of the insured to make any supplementary uninsured/underinsured motorist
    13  claim,  shall be tolled during the period the insurer of any other owner
    14  or operator of another motor vehicle that may be liable for  damages  to
    15  the insured, fails to so disclose its coverage. As a condition precedent
    16  to  the  obligation  of  the  insurer  to  pay  under  the supplementary
    17  uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
    18  liability  of  all  bodily  injury liability bonds or insurance policies
    19  applicable at the time of the accident shall be exhausted by payment  of
    20  judgments or settlements.
    21    (B)  In  addition to the notice provided, upon issuance of a policy of
    22  motor vehicle liability insurance pursuant to regulations promulgated by
    23  the superintendent, insurers shall notify insureds, in writing,  of  the
    24  availability of supplementary uninsured/underinsured motorists coverage.
    25  Such   notification   shall  contain  an  explanation  of  supplementary
    26  uninsured/underinsured motorists coverage and the amounts  in  which  it
    27  can be purchased.  Subsequently, a notification of availability shall be
    28  provided  at  least  once a year and may be simplified pursuant to regu-
    29  lations promulgated by the superintendent, but must  include  a  concise
    30  statement  that  supplementary uninsured/underinsured motorists coverage
    31  is available, an explanation of such coverage, and the  coverage  limits
    32  that  can be purchased from the insurer.  If an insured elects to reject
    33  supplementary uninsured/underinsured motorist coverage or select a lower
    34  amount of supplementary uninsured/underinsured  motorist  coverage  than
    35  the  bodily injury liability insurance limits of coverage provided under
    36  the insured's motor vehicle liability insurance policy, the selection of
    37  lower  supplementary  uninsured/underinsured   motorists   coverage   or
    38  rejection  of such coverage must be made on a written or electronic form
    39  provided to the named insured. Such form shall  also  advise  that  such
    40  coverage  is equal to the insured's bodily injury liability limits under
    41  the motor vehicle liability insurance policy  unless  lower  limits  are
    42  requested or the coverage is rejected.
    43    (i)  The form shall be in at least 12-point bold type and shall state:
    44  "SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM  COVERAGE)
    45  PROVIDES  INSURANCE  PROTECTION FOR ANY PERSON INCLUDED AS INSURED UNDER
    46  YOUR POLICY IF HE OR SHE IS INJURED IN  AN  ACCIDENT  INVOLVING  ANOTHER
    47  MOTOR  VEHICLE  WHOSE OWNER OR OPERATOR WAS NEGLIGENT BUT WHO HAS EITHER
    48  NO BODILY INJURY OR LIABILITY INSURANCE, OR LESS THAN THE INSURANCE  YOU
    49  CARRY.  SUM  COVERAGE  SHALL  BE EQUAL TO THE LEVEL OF THE BODILY INJURY
    50  LIABILITY COVERAGE OF YOUR  MOTOR  VEHICLE  LIABILITY  INSURANCE  POLICY
    51  UNLESS  YOU  SIGN  A  WAIVER  REQUESTING LOWER COVERAGE OR DECLINING THE
    52  COVERAGE. YOU ARE URGED TO CAREFULLY CONSIDER THIS DECISION."
    53    (ii) An  insured's  written  waiver  shall  apply  to  all  subsequent
    54  renewals  of  coverage and to all policies or endorsements which extend,
    55  change, supersede, or replace an existing policy  issued  to  the  named
    56  insured, unless changed in writing by any named insured.
        S. 5644--B                          3
 
     1    (iii)  the  selection  of  lower  supplementary uninsured/underinsured
     2  motorists coverage or the rejection of such coverage by  any  one  named
     3  insured shall be binding upon all insureds under such policy.
     4    (C)  Notwithstanding  the provisions of subparagraph (A) of this para-
     5  graph,  at   the   insurer's   option,   the   insured's   supplementary
     6  uninsured/underinsured motorists coverage limit may be required to equal
     7  the  insured's  bodily  injury liability insurance limit under the motor
     8  vehicle liability insurance policy.
     9    (D) An insurer may provide the coverage described  in  this  paragraph
    10  available  in  an umbrella or excess liability policy if the umbrella or
    11  excess liability policy expressly provides such coverage.
    12    § 2. This act shall take effect on the one hundred eightieth day after
    13  it shall have become a law, and shall apply to  new  insurance  policies
    14  and  contracts  issued on and after such effective date and shall expire
    15  and be deemed repealed June 30, 2020.