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A01731 Summary:

COSPNSRWeprin, Epstein, Dickens, Tapia
Add §2619, Ins L
Restricts insurers from demanding intrusive personal, financial and tax information from insureds as a standard practice in processing ordinary theft claims where no special circumstances warranting a demand for such information exists.
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A01731 Text:

                STATE OF NEW YORK
                                                                 Cal. No. 52
                               2023-2024 Regular Sessions
                   IN ASSEMBLY
                                    January 20, 2023
        Introduced  by  M. of A. DINOWITZ, WEPRIN, EPSTEIN, DICKENS -- read once
          and referred to the Committee on Insurance -- ordered to a third read-
          ing, amended and ordered reprinted, retaining its place on  the  order
          of third reading

        AN  ACT  to amend the insurance law, in relation to restricting insurers
          from demanding intrusive personal, financial and tax information  from
          insureds as a standard practice in processing ordinary theft claims
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The insurance law is amended by adding a new  section  2619
     2  to read as follows:
     3    §  2619.  Intrusive  requests for personal, financial and tax informa-
     4  tion; ordinary theft claims. (a) It shall be an unfair claim  settlement
     5  act  or  practice  under  paragraphs three and four of subsection (a) of
     6  section two thousand six hundred one of this article for an insurer,  in
     7  the  course of investigating or settling a theft claim, to demand of its
     8  insured personal, financial and tax information unless special articula-
     9  ble circumstances have been discovered  which  directly  relate  to  the
    10  particular  individual  facts of such theft and which warrant the making
    11  of such demand for the specific purpose of determining if such claim  is
    12  fraudulent.
    13    (b)  As used in this section, a demand for personal, financial and tax
    14  information is a demand that any of the following material  or  informa-
    15  tion be provided:
    16    (1) copies of the insured's personal and business tax returns;
    17    (2)  permits  or  licenses  which  the insured holds in New York state
    18  other than those for operating a motor vehicle;
    19    (3) loan applications which the insured filed;
    20    (4) statement setting forth the county and state in which the  insured
    21  has  been  registered to vote over a period of time, other than from his
    22  or her present residence;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 1731--A                          2
     1    (5) copies of any bank statements of banks in which  the  insured  has
     2  accounts;
     3    (6)  copies of any "doing business as" certificates or certificates of
     4  incorporation for any business the insured owns; or
     5    (7) information or material of a similar personal, financial,  tax  or
     6  private nature which the superintendent by regulation finds to be intru-
     7  sive  or  which  constitutes  an  unwarranted invasion of privacy in the
     8  context of a standard or ordinary theft claim.
     9    § 2. This act shall take effect on the first of January next  succeed-
    10  ing  the date on which it shall have become a law.  Effective immediate-
    11  ly, the addition, amendment and/or repeal of any  rules  or  regulations
    12  necessary for the implementation of the foregoing section of this act on
    13  its  effective date are authorized to be made and completed on or before
    14  such effective date.
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