S07785 Summary:

BILL NOS07785
 
SAME ASNo same as
 
SPONSORDEFRANCISCO
 
COSPNSR
 
MLTSPNSR
 
Amd S3420, Ins L
 
Relates to limits on certain supplementary insurance; permits insured to refuse supplementary insurance; requires certain disclaimer.
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S07785 Actions:

BILL NOS07785
 
06/18/2012REFERRED TO RULES
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S07785 Floor Votes:

There are no votes for this bill in this legislative session.
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S07785 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7785
 
                    IN SENATE
 
                                      June 18, 2012
                                       ___________
 
        Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
          when printed to be committed to the Committee on Rules
 
        AN ACT to amend the insurance law, in  relation  to  limits  on  certain
          supplementary insurance
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 

     1    Section 1. Paragraph 2 of subsection (f) of section 3420 of the insur-
     2  ance law, as separately amended by chapters 547 and 568 of the  laws  of
     3  1997, is amended to read as follows:
     4    (2)  (A)  Any  such policy shall[, at the option of the insured, also]
     5  provide supplementary  uninsured/underinsured  motorists  insurance  for
     6  bodily  injury[,  in  an  amount up to] in the same amount as the bodily
     7  injury liability insurance limits of coverage provided under such  poli-
     8  cy[,  subject to a maximum of two hundred fifty thousand dollars because
     9  of bodily injury to or death of one person  in  any  one  accident  and,
    10  subject  to  such  limit  for  one  person,  up to five hundred thousand
    11  dollars because of bodily injury to or death of two or more  persons  in

    12  any  one  accident,  or  a  combined single limit policy of five hundred
    13  thousand dollars because of bodily injury to or death  of  one  or  more
    14  persons  in  any one accident. Provided however, an insurer issuing such
    15  policy, in lieu of offering to the insured the coverages  stated  above,
    16  may provide supplementary uninsured/underinsured motorists insurance for
    17  bodily  injury, in an amount up to the bodily injury liability insurance
    18  limits of coverage provided under such policy, subject to a  maximum  of
    19  one hundred thousand dollars because of bodily injury to or death of one
    20  person in any one accident and, subject to such limit for one person, up
    21  to  three  hundred thousand dollars because of bodily injury to or death

    22  of two or more persons in any one accident, or a combined  single  limit
    23  policy  of three hundred thousand dollars because of bodily injury to or
    24  death of one or more persons in any one accident, if such  insurer  also
    25  makes  available  a  personal  umbrella  policy  with liability coverage
    26  limits up to at least five hundred thousand dollars which also  provides
    27  coverage  for  supplementary  uninsured/underinsured  motorists claims].
    28  The coverage required under this paragraph is not applicable when, or to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16327-01-2


        S. 7785                             2
 
     1  the extent that, an insured named in the policy makes a rejection of the
     2  coverage on behalf of all insureds under the  policy.    Such  rejection
     3  shall  be  memorialized  by  the insurer through a signed writing, audio
     4  recording  or electronic signature evidencing the insured's rejection of
     5  such coverage. The failure of the carrier to maintain  the  memorializa-
     6  tion  of  such  rejection  of  coverage through the time a claim is made
     7  shall result in the supplementary uninsured/underinsured motorist cover-
     8  age being equal to the bodily injury liability coverage in effect at the
     9  time a  claim  arises.  Supplementary  uninsured/underinsured  motorists
    10  insurance  shall provide coverage, in any state or Canadian province, if

    11  the limits of liability under all  bodily  injury  liability  bonds  and
    12  insurance  policies  of  [another]  any  other  motor vehicle liable for
    13  damages are in a lesser amount than the bodily injury  liability  insur-
    14  ance limits of coverage provided by such policy. Upon written request by
    15  any  insured  covered  by  supplemental uninsured/underinsured motorists
    16  insurance or his duly authorized representative and upon  disclosure  by
    17  the   insured   of   the   insured's   bodily  injury  and  supplemental
    18  uninsured/underinsured motorists insurance coverage limits, the  insurer
    19  of  any other owner or operator of another motor vehicle against which a
    20  claim has been made for damages to the insured  shall  disclose,  within
    21  forty-five  days  of  the request, the bodily injury liability insurance
    22  limits of its coverage provided under the policy or  all  bodily  injury

    23  liability  bonds.  The  time  of  the  insured to make any supplementary
    24  uninsured/underinsured motorist claim, shall be tolled during the period
    25  the insurer of any other owner or operator of another motor vehicle that
    26  may be liable for damages to the  insured,  fails  to  so  disclose  its
    27  coverage.  As  a condition precedent to the obligation of the insurer to
    28  pay under the supplementary uninsured/underinsured  motorists  insurance
    29  coverage, the limits of liability of [all] any one bodily injury liabil-
    30  ity  [bonds]  bond or insurance [policies] policy applicable at the time
    31  of the accident shall be exhausted by payment of  judgments  or  settle-
    32  ments.
    33    (B)  [In addition to the notice provided, upon issuance of a policy of

    34  motor vehicle liability insurance pursuant to regulations promulgated by
    35  the superintendent, insurers shall notify insureds, in writing,  of  the
    36  availability of supplementary uninsured/underinsured motorists coverage.
    37  Such   notification   shall  contain  an  explanation  of  supplementary
    38  uninsured/underinsured motorists coverage and the amounts  in  which  it
    39  can  be purchased. Subsequently, a notification of availability shall be
    40  provided at least once a year and may be simplified  pursuant  to  regu-
    41  lations  promulgated  by  the superintendent, but must include a concise
    42  statement that supplementary uninsured/underinsured  motorists  coverage
    43  is  available,  an explanation of such coverage, and the coverage limits

    44  that can be purchased from the insurer.] If the rejection  or  selection
    45  of  lower  supplementary uninsured/underinsured motorists coverage is in
    46  written or electronic form, that shall be made on a form approved by the
    47  superintendent and furnished to the insured at the time  the  policy  is
    48  sold,  purchased, negotiated and/or renewed. The form shall fully advise
    49  the insured of the nature of the  coverage  and  shall  state  that  the
    50  coverage  is equal to bodily injury liability limits unless lower limits
    51  are requested or the coverage is rejected.   The  heading  of  the  form
    52  shall  be  in  12-point  bold  type  and  shall  state:   "Supplementary
    53  uninsured/underinsured motorists coverage (SUM Coverage) shall be  equal

    54  to  bodily  injury liability limits unless lower limits are requested or
    55  the coverage is rejected. A policyholder IS URGED TO consider purchasing
    56  THE MAXIMUM SUM coverage AVAILABLE  in  order  to  protect  against  the

        S. 7785                             3
 
     1  possibility  of  an accident involving another motor vehicle whose owner
     2  or operator was negligent and who may have no insurance  whatsoever;  or
     3  even  if insured, is only insured for third-party bodily injury at rela-
     4  tively  low  liability  limits,  in comparison to the policyholder's own
     5  liability limits  for  bodily  injury  sustained  by  third-parties.  By
     6  purchasing  SUM coverage, which cannot be purchased in an amount exceed-

     7  ing the amount of third party liability coverage purchased, the  policy-
     8  holder  and  any  insured  under  the policy can be protected for bodily
     9  injury to themselves, up to the limit of the SUM coverage purchased; and
    10  receive from the policyholder's own insurer payment  for  bodily  injury
    11  sustained  due  to  the negligence of the other motor vehicle's owner or
    12  operator." If rejection or selection of lower limits is  made  verbally,
    13  the  insurer  or  their agent shall read the identical language as is in
    14  the above rejection of matching limits form and confirm the  client  has
    15  heard and understood the same, and shall re-read the form as often as is
    16  necessary  until  the  insured  has  verbally  confirmed that they fully

    17  understand the same.   The insurer shall notify  the  named  insured  at
    18  least annually of her or his options as to the coverage required by this
    19  paragraph.  Such notice shall be part of, and attached to, the notice of
    20  premium, shall provide for a means to allow the insured to request  such
    21  coverage, and shall be given in a manner approved by the superintendent.
    22  If  the  insured  has  rejected  coverage  under  this  paragraph or has
    23  selected lower limits, the notice of premium shall clearly indicate  the
    24  level  of  coverage accepted. Receipt of this notice does not constitute
    25  an affirmative waiver of  the  insured's  right  to  uninsured  motorist
    26  coverage where the insured has not signed a selection or rejection form.

    27    §  2.  This  act shall take effect on the thirtieth day after it shall
    28  have become a law, and shall apply to insurance policies  and  contracts
    29  issued, entered into or renewed on and after such effective date.
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