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A06727 Summary:

A06727 Actions:

A06727 Floor Votes:

A06727 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6727
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 17, 2013
                                       ___________
 
        Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
          tee on Insurance
 
        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 the bodily injury liability insurance
     7  limits of coverage provided under such policy[, subject to a maximum  of
     8  two  hundred fifty thousand dollars because of bodily injury to or death
     9  of one person in any one accident and, subject to  such  limit  for  one
    10  person,  up to five hundred thousand dollars because of bodily injury to
    11  or death of two or more persons in  any  one  accident,  or  a  combined

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

    22  persons in any one accident, or a combined single limit policy of  three
    23  hundred  thousand dollars because of bodily injury to or death of one or
    24  more persons in any one accident, if such insurer also makes available a
    25  personal umbrella policy with liability coverage limits up to  at  least

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10294-01-3
        A. 6727                             2

     1  five  hundred  thousand dollars which also provides coverage for supple-
     2  mentary   uninsured/underinsured   motorists   claims].    Supplementary

     3  uninsured/underinsured  motorists  insurance  shall provide coverage, in
     4  any  state  or  Canadian  province, if the limits of liability under all
     5  bodily injury liability bonds and insurance policies  of  [another]  any
     6  other  motor  vehicle liable for damages are in a lesser amount than the
     7  bodily injury liability insurance limits of coverage  provided  by  such
     8  policy.  Upon  written  request  by  any insured covered by supplemental
     9  uninsured/underinsured motorists insurance or his duly authorized repre-
    10  sentative and upon disclosure by the insured  of  the  insured's  bodily
    11  injury   and  supplemental  uninsured/underinsured  motorists  insurance
    12  coverage limits, the insurer of any other owner or operator  of  another
    13  motor  vehicle  against  which  a claim has been made for damages to the

    14  insured shall disclose, within forty-five days of the request, the bodi-
    15  ly injury liability insurance limits of its coverage provided under  the
    16  policy  or all bodily injury liability bonds. The time of the insured to
    17  make any supplementary uninsured/underinsured motorist claim,  shall  be
    18  tolled  during  the period the insurer of any other owner or operator of
    19  another motor vehicle that may be liable for  damages  to  the  insured,
    20  fails to so disclose its coverage. As a condition precedent to the obli-
    21  gation    of    the    insurer    to   pay   under   the   supplementary
    22  uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
    23  liability  of  all  bodily  injury liability bonds or insurance policies
    24  applicable at the time of the accident shall be exhausted by payment  of
    25  judgments or settlements.

    26    (B)  [In addition to the notice provided, upon issuance of a policy of
    27  motor vehicle liability insurance pursuant to regulations promulgated by
    28  the superintendent, insurers shall notify insureds, in writing,  of  the
    29  availability of supplementary uninsured/underinsured motorists coverage.
    30  Such   notification   shall  contain  an  explanation  of  supplementary
    31  uninsured/underinsured motorists coverage and the amounts  in  which  it
    32  can  be purchased. Subsequently, a notification of availability shall be
    33  provided at least once a year and may be simplified  pursuant  to  regu-
    34  lations  promulgated  by  the superintendent, but must include a concise
    35  statement that supplementary uninsured/underinsured  motorists  coverage

    36  is  available,  an explanation of such coverage, and the coverage limits
    37  that can be purchased from the insurer.] (i) At the time such policy  is
    38  sold,  purchased  and/or negotiated the insured shall be provided with a
    39  form that shall be in 12-point bold type and shall state: "SUM insurance
    40  protects any insured under the policy if they are injured in an accident
    41  caused by a driver who has no  insurance  or  less  insurance  than  you
    42  carry.  SUM  coverage  may be purchased at limits up to the level of the
    43  bodily injury liability coverage of the policy. Policyholders are  urged
    44  to  carefully  consider this in determining the level of SUM coverage to
    45  purchase." On the same page as the above paragraph the insured shall  be

    46  given    the    option    to    either:   (1)   Purchase   supplementary
    47  uninsured/underinsured motorists insurance in the  same  amount  as  the
    48  bodily injury liability insurance limits of coverage provided under such
    49  policy;  (2)  Purchase  supplementary  uninsured/underinsured  motorists
    50  insurance in an amount less than the bodily injury  liability  insurance
    51  limits of coverage provided under such policy; or (3) Purchase mandatory
    52  minimum  uninsured  motorist  insurance  only. The insured shall also be
    53  provided with the applicable premium for each option. If  the  rejection
    54  or selection of supplementary uninsured/underinsured motorists insurance
    55  is made verbally, the insurer or their agent shall read the identical or

    56  substantially similar language as is in the above selection or rejection
        A. 6727                             3
 
     1  form and confirm the client has heard and understood the same, and shall
     2  restate the above information as often as is necessary until the insured
     3  has  verbally  confirmed that they fully understand the same.  The named
     4  insured's rejection or selection of supplementary uninsured/underinsured
     5  motorists insurance must be memorialized by the insurer through a signed
     6  writing,  audio  recording,  electronic  signature  or  any  other means
     7  evidencing the insured's rejection or selection of such coverage. Unless
     8  the insurer has proof that the insured was presented with the above form

     9  and that such coverage was rejected or selected, at the time the insured
    10  makes a claim  seeking  supplementary  uninsured/underinsured  motorists
    11  insurance  coverage the insured's policy will be read to include supple-
    12  mentary uninsured/underinsured motorists insurance at  limits  equal  to
    13  the  bodily  injury liability insurance coverage limits of the insured's
    14  policy.
    15    (ii) The insurer shall notify the named insured at least  annually  of
    16  her  of his options as to the coverage required by this paragraph pursu-
    17  ant to regulations issued by the superintendent, if any, at the time  of
    18  or  within sixty days prior to the renewal of the policy.  The limits of
    19  supplementary  uninsured/underinsured   motorists   insurance   coverage

    20  selected  by the insured shall remain effective upon policy amendment or
    21  renewal, unless the insured requests an amendment of such coverage by so
    22  noting on an identical form as set forth in clause (i) of this  subpara-
    23  graph and in accordance with the terms of this section.  Receipt of this
    24  notice  does not constitute an affirmative waiver of the insured's right
    25  to uninsured motorist coverage or indicate the selection of  any  amount
    26  of  supplementary  uninsured/underinsured  motorists  coverage where the
    27  insured has not signed a selection or rejection form.
    28    (iii) The superintendent  may  promulgate  regulations  pertaining  to
    29  supplementary  uninsured/underinsured  motorists  insurance  coverage in

    30  accordance with the provisions of this section, regarding the  form  and
    31  content of the notices required by clauses (i) and (ii) of this subpara-
    32  graph including a concise statement of the availability of coverage, and
    33  an  explanation  of  the  coverage,  including  specific examples of its
    34  usage.
    35    § 2. This act shall take effect on the one hundred eightieth day after
    36  it shall have become a law, and shall apply to  insurance  policies  and
    37  contracts  issued,  entered  into or renewed on and after such effective
    38  date.