A02624 Summary:

BILL NOA02624
 
SAME ASSAME AS S01941
 
SPONSORHyndman
 
COSPNSR
 
MLTSPNSR
 
Amd 311 & 345, V & T L; amd 3420 & 5210, Ins L
 
Increases the minimum insurance coverage requirements for automobiles registered and/or operated within the state of New York.
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A02624 Actions:

BILL NOA02624
 
01/19/2021referred to insurance
01/05/2022referred to insurance
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A02624 Committee Votes:

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A02624 Floor Votes:

There are no votes for this bill in this legislative session.
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A02624 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2624
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 19, 2021
                                       ___________
 
        Introduced  by M. of A. HYNDMAN -- read once and referred to the Commit-
          tee on Insurance
 
        AN ACT to amend the vehicle and traffic law and the  insurance  law,  in
          relation to increasing the minimum insurance coverage requirements for
          automobiles registered and/or operated within the state of New York

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph (a) of subdivision 4 and subdivision 7 of section
     2  311 of the vehicle and traffic law, paragraph (a) of  subdivision  4  as
     3  amended  by chapter 305 of the laws of 1995 and subdivision 7 as amended
     4  by chapter 805 of the laws of 1984, are amended to read as follows:
     5    (a) Affording coverage as defined in the minimum provisions prescribed
     6  in a regulation which shall be  promulgated  by  the  superintendent  at
     7  least  ninety  days prior to effective date of this act. The superinten-
     8  dent before promulgating such  regulations  or  any  amendment  thereof,
     9  shall  consult  with all insurers licensed to write automobile liability
    10  insurance in this state and shall not prescribe minimum provisions which
    11  fail to reflect the provisions of automobile liability  insurance  poli-
    12  cies,  other than motor vehicle liability policies as defined in section
    13  three hundred forty-five of this chapter, issued within  this  state  at
    14  the  date of such regulation or amendment thereof.  Nothing contained in
    15  such regulation or in this  article  shall  prohibit  any  insurer  from
    16  affording  coverage  under an owner's policy of liability insurance more
    17  liberal than that required by  said  minimum  provisions.    Every  such
    18  owner's policy of liability insurance shall provide insurance subject to
    19  said  regulation  against  loss  from  the  liability imposed by law for
    20  damages, including damages for care and loss  of  services,  because  of
    21  bodily  injury to or death of any person and injury to or destruction of
    22  property arising out of the ownership, maintenance, use, or operation of
    23  a specific motor vehicle or motor vehicles within the state of New York,
    24  or elsewhere in the United States in North America or  the  Dominion  of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04212-01-1

        A. 2624                             2
 
     1  Canada,  subject  to  a  limit,  exclusive  of  interest and costs, with
     2  respect to each such motor vehicle except a tow truck, of  [twenty-five]
     3  two  hundred  fifty  thousand  dollars because of bodily injuries to and
     4  [fifty]  five hundred thousand dollars because of death of one person in
     5  any one accident and, subject to said limit for one person, to  a  limit
     6  of [fifty] five hundred thousand dollars because of bodily injury to and
     7  one  [hundred  thousand] million dollars because of death of two or more
     8  persons in any one accident, and to a limit of [ten]  twenty-five  thou-
     9  sand  dollars  because of injury to or destruction of property of others
    10  in any one accident provided, however, that such policy need not be  for
    11  a  period  coterminous  with  the  registration  period  of  the vehicle
    12  insured. The limit, exclusive of interest and costs, with respect  to  a
    13  tow  truck  shall  be  a combined single limit of at least three hundred
    14  thousand dollars because of bodily  injury  or  death  to  one  or  more
    15  persons or because of injury or destruction of property of others in any
    16  one  accident, and to a limit of twenty-five thousand dollars because of
    17  damage to a vehicle in the care, custody and control of the insured. Any
    18  insurer authorized to issue an owner's policy of liability insurance  as
    19  provided  for  in  this article may, pending the issue of such a policy,
    20  make an agreement, to be known as a binder, or may, in lieu  of  such  a
    21  policy,  issue a renewal endorsement or evidence of renewal of an exist-
    22  ing policy; each of which shall be construed  to  provide  indemnity  or
    23  protection  in  like manner and to the same extent as such a policy. The
    24  provisions of this article shall apply to such binders, renewal endorse-
    25  ments or evidences of renewal. Every such policy issued insuring private
    26  passenger vehicles and every renewal  policy,  renewal  endorsement,  or
    27  other  evidence  of  renewal issued shall have attached thereto a rating
    28  information form which clearly specifies and defines the rating  classi-
    29  fication  assigned  thereto, including any applicable merit rating plan;
    30  and
    31    7. The term "financial security deposit" shall  mean  for  each  motor
    32  vehicle  the  deposit with the commissioner of [twenty-five] two hundred
    33  fifty thousand dollars in cash, or securities, such as  may  legally  be
    34  purchased  by  savings banks or trust funds, of a market value of [twen-
    35  ty-five] two hundred fifty thousand dollars and an additional deposit in
    36  an amount determined by the commissioner to be sufficient to satisfy the
    37  requirements of article fifty-one of the insurance law.
    38    § 2. Paragraph 3 of subdivision (b) of section 345 of the vehicle  and
    39  traffic  law,  as amended by chapter 305 of the laws of 1995, is amended
    40  to read as follows:
    41    (3) Shall insure the insured or such other person  against  loss  from
    42  the liability imposed by law for damages, including damages for care and
    43  loss  of services because of bodily injury to or death of any person and
    44  injury to or destruction of property arising out of the ownership, main-
    45  tenance, use, or operation of such motor vehicle or motor vehicles with-
    46  in the state of New York, or elsewhere in the  United  States  in  North
    47  America  or  the  Dominion  of  Canada, subject to a limit, exclusive of
    48  interest and cost, with respect to each such motor vehicle, except a tow
    49  truck, of [twenty-five] two hundred fifty thousand  dollars  because  of
    50  bodily  injury  to  or  [fifty] five hundred thousand dollars because of
    51  death of one person in any one accident and, subject to said  limit  for
    52  one  person, to a limit of [fifty] five hundred thousand dollars because
    53  of bodily injury to or one [hundred thousand] million dollars because of
    54  death of two or more persons in any one accident,  and  to  a  limit  of
    55  [ten]  twenty-five  thousand dollars because of injury to or destruction
    56  of property of others in any  one  accident.  The  limit,  exclusive  of

        A. 2624                             3
 
     1  interest  and  costs,  with  respect  to a tow truck shall be a combined
     2  single limit of three hundred thousand dollars because of bodily  injury
     3  of  death  to one or more persons or because of injury or destruction of
     4  property  of  others  in any one accident, and to a limit of twenty-five
     5  thousand dollars because of damage to a vehicle in the care, custody and
     6  control of the insured.
     7    § 3. Paragraph 1 of subsection (f) of section 3420  of  the  insurance
     8  law,  as amended by  section 19 of part III of chapter 59 of the laws of
     9  2019, is amended to read as follows:
    10    (1) No policy insuring against loss resulting from  liability  imposed
    11  by law for bodily injury or death suffered by any natural person arising
    12  out  of  the  ownership,  maintenance  and  use of a motor vehicle or an
    13  altered motor vehicle commonly referred  to  as  a  "stretch  limousine"
    14  having  a seating capacity of eight or more passengers used in the busi-
    15  ness of carrying or transporting passengers for  hire,  by  the  insured
    16  shall  be  issued  or delivered by any authorized insurer upon any motor
    17  vehicle or an altered motor vehicle commonly referred to as  a  "stretch
    18  limousine" having a seating capacity of eight or more passengers used in
    19  the business of carrying or transporting passengers for hire, then prin-
    20  cipally  garaged  or principally used in this state unless it contains a
    21  provision whereby the insurer agrees that it will pay to the insured, as
    22  defined in such provision, subject to the terms and conditions set forth
    23  therein to be prescribed by the board of directors of the Motor  Vehicle
    24  Accident Indemnification Corporation and approved by the superintendent,
    25  all  sums,  not exceeding a maximum amount or limit of [twenty-five] two
    26  hundred fifty thousand dollars  exclusive  of  interest  and  costs,  on
    27  account  of  injury  to  and all sums, not exceeding a maximum amount or
    28  limit of [fifty] five hundred thousand dollars exclusive of interest and
    29  costs, on account of death of one person, in any one accident,  and  the
    30  maximum  amount  or  limit,  subject to such limit for any one person so
    31  injured of fifty thousand dollars or so killed of one [hundred thousand]
    32  million dollars, exclusive of interest and costs, on account  of  injury
    33  to,  or  death  of,  more than one person in any one accident, which the
    34  insured or his legal representative shall  be  entitled  to  recover  as
    35  damages from an owner or operator of an uninsured motor vehicle, uniden-
    36  tified  motor  vehicle  which  leaves  the scene of an accident, a motor
    37  vehicle registered in this state as to which at the time of the accident
    38  there was not in effect a policy of liability insurance, a stolen  vehi-
    39  cle,  a  motor  vehicle  operated  without  permission  of the owner, an
    40  insured motor vehicle where the insurer disclaims  liability  or  denies
    41  coverage  or  an unregistered vehicle because of bodily injury, sickness
    42  or disease,  including  death  resulting  therefrom,  sustained  by  the
    43  insured,  caused  by accident occurring in this state and arising out of
    44  the ownership, maintenance or use of such motor vehicle. No payment  for
    45  non-economic loss shall be made under such policy provision to a covered
    46  person  unless  such person has incurred a serious injury, as such terms
    47  are defined in section five thousand one hundred two  of  this  chapter.
    48  Such  policy  shall  not  duplicate  any  element of basic economic loss
    49  provided for under article fifty-one of this  chapter.  No  payments  of
    50  first party benefits for basic economic loss made pursuant to such arti-
    51  cle  shall  diminish  the  obligations  of the insurer under this policy
    52  provision for the payment of non-economic  loss  and  economic  loss  in
    53  excess  of  basic  economic  loss.    Notwithstanding  any  inconsistent
    54  provisions of section three thousand four hundred  twenty-five  of  this
    55  article, any such policy which does not contain the aforesaid provisions
    56  shall be construed as if such provisions were embodied therein.

        A. 2624                             4
 
     1    §  4.  Subsection (a) of section 5210 of the insurance law, as amended
     2  by chapter 305 of the laws of 1995, is amended to read as follows:
     3    (a) When any qualified person who has complied with all the applicable
     4  requirements  of  this  article  recovers  a  final  judgment in a court
     5  against a financially irresponsible motorist, for injury  to,  or  death
     6  of,  any  person arising out of the ownership, maintenance or use of the
     7  uninsured motor vehicle in this state, which  remains  unpaid,  and  all
     8  appeals have been concluded or the time for commencing them has expired,
     9  the judgment creditor may file a verified petition in the court in which
    10  the  judgment  was  entered  and,  upon  ten days' written notice to the
    11  corporation apply to the court for an order  directing  payment  by  the
    12  corporation  of the amount unpaid on the judgment.  However, there shall
    13  be no right of recovery by a covered person  from  the  corporation  for
    14  non-economic  loss  unless such person has incurred a serious injury, as
    15  such terms are defined in section five thousand one hundred two of  this
    16  chapter.    Such  judgment  exclusive  of  interest  and costs shall not
    17  exceed:
    18    (1) [twenty-five] two hundred fifty thousand  dollars  on  account  of
    19  injury to one person in any one accident, and
    20    (2)  [fifty]  five hundred thousand dollars on account of death to one
    21  person in any one accident, and
    22    (3) [fifty] five hundred thousand dollars on account of injury to more
    23  than one person in any one accident subject to the limit of  twenty-five
    24  thousand dollars for any one person, and
    25    (4) one [hundred thousand] million dollars on account of death to more
    26  than  one person in any one accident subject to the limit of fifty thou-
    27  sand dollars for any one person.
    28    § 5. This act shall take effect on the one hundred eightieth day after
    29  is shall have become a law.
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