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A01731 Summary:

COSPNSRWeprin, Epstein, Dickens
Add §2618, 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
                               2023-2024 Regular Sessions
                   IN ASSEMBLY
                                    January 20, 2023
        Introduced by M. of A. DINOWITZ, WEPRIN -- read once and referred to the
          Committee on Insurance
        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  2618
     2  to read as follows:
     3    §  2618.  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;
    23    (5) copies of any bank statements of banks in which  the  insured  has
    24  accounts;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

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