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A04011 Summary:

BILL NOA04011
 
SAME ASSAME AS S01472
 
SPONSORWeprin
 
COSPNSRDickens
 
MLTSPNSR
 
Amd §§3425 & 3426, Ins L
 
Requires the superintendent to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies.
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A04011 Actions:

BILL NOA04011
 
02/08/2023referred to insurance
03/01/2023reported
03/02/2023advanced to third reading cal.43
05/09/2023passed assembly
05/09/2023delivered to senate
05/09/2023REFERRED TO INSURANCE
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A04011 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4011        Revised 2/8/2023
 
SPONSOR: Weprin
  TITLE OF BILL: An act to amend the insurance law, in relation to requiring the super- intendent of financial services to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies   SUMMARY OF PROVISIONS: This bill would require the Superintendent of the Department of Finan- cial Services, within six months of the effective date of this bill, to promulgate regulations which provide standardized definitions for commonly used terms and phrases found in homeowners policies and commer- cial lines policies that provide coverage for loss or damage to real property, personal property, or other liabilities for loss or damage to property. Insurers would be required to use the standardized terms and phrases in policies issued or delivered on or after the date, the regu- lations are finalized, which would be no later than January 1, 2025. The bill, would also allow insurers to use alternative definitions at the discretion of the Superintendent, so long as such definitions are not any less favorable to the policyholder or claimant than those required under the regulations.   JUSTIFICATION: Homeowners and commercial insurance policies provide necessary coverage to individuals and business owners that can prove vital in the aftermath of a disaster such as Superstorm Sandy. However, these policies can also be complex, and commonly used terms and phrases may have different mean- ings when used in different policies. This can cause confusion amongst policyholders, especially following a disaster when they need their insurance coverage the most. This bill would address this by ensuring that all homeowners policies and certain commercial policies contains standardized terms and phrases.   LEGISLATIVE HISTORY: 2021-2022: A.8637 - Ordered to Third Reading Cal. 414 2019-2020: A.75 - Ordered to Third Reading Cal. 327
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A04011 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4011
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 8, 2023
                                       ___________
 
        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on Insurance
 
        AN  ACT  to amend the insurance law, in relation to requiring the super-
          intendent  of  financial  services  to  promulgate  regulations  which
          provide  standardized  definitions for commonly used terms and phrases
          in certain insurance policies

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  3425 of the insurance law is amended by adding a
     2  new subsection (t) to read as follows:
     3    (t) Within six months after the effective date of this subsection, the
     4  superintendent shall promulgate regulations in accordance  with  section
     5  two  hundred two of the state administrative procedure act which provide
     6  standardized definitions for commonly used terms and phrases in policies
     7  that provide coverage for personal lines insurance as defined  in  para-
     8  graph two of subsection (a) of this section. Such standardized terms and
     9  phrases shall be used in such policies issued or delivered in this state
    10  on  or  after  the date the regulations are finalized, which shall be no
    11  later than January first, two thousand twenty-five. An insurer  may  use
    12  alternative  definitions,  so  long as such definitions are not any less
    13  favorable to the policyholder or claimant, as determined by  the  super-
    14  intendent.
    15    §  2.  Section  3426  of  the insurance law is amended by adding a new
    16  subsection (p) to read as follows:
    17    (p) Within six months after the effective date of this subsection, the
    18  superintendent shall promulgate regulations in accordance  with  section
    19  two  hundred two of the state administrative procedure act which provide
    20  standardized definitions for commonly used terms and phrases in policies
    21  that provide coverage for commercial lines insurance policies that cover
    22  loss or damage to real property, personal property, or other liabilities
    23  for loss or damage to property.  Such  standardized  terms  and  phrases
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05327-01-3

        A. 4011                             2
 
     1  shall  be  used in such policies issued or delivered in this state on or
     2  after the date the regulations are finalized, which shall  be  no  later
     3  than January first, two thousand twenty-five.  An insurer may use alter-
     4  native definitions, so long as such definitions are not any less favora-
     5  ble  to  the  policyholder or claimant, as determined by the superinten-
     6  dent.
     7    § 3. This act shall take effect immediately.
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