A05053 Summary:

BILL NOA05053
 
SAME ASNo Same As
 
SPONSORJacobson
 
COSPNSR
 
MLTSPNSR
 
Amd §§311 & 345, V & T L; amd §§3420 & 5210, Ins L
 
Increases the minimum insurance coverage required for motor vehicles registered and/or operated within the state of New York; for injury or death to one person in any one accident, increases the limits required from $25,000 to $50,000 for bodily injury and from $50,000 to $100,000 for death, for injury or death to more than one person in any one accident, increases the limits required from $50,000 to $100,000 for bodily injury and from $100,000 to $200,000 for death, and for third party property damage in any one accident, increases the limits required from $10,000 to $25,000.
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A05053 Actions:

BILL NOA05053
 
02/11/2025referred to insurance
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A05053 Committee Votes:

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A05053 Floor Votes:

There are no votes for this bill in this legislative session.
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A05053 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5053
 
SPONSOR: Jacobson
  TITLE OF BILL: An act to amend the vehicle and traffic law and the insurance law, in relation to increasing the minimum insurance coverage required for motor vehicles registered and/or operated within the state of New York   PURPOSE: To increase the minimum insurance coverage required by all vehicles registered and/or operated in New York State to $50,000 (currently $25,000) for bodily injuries and $100,000 (currently $50,000) because of the death of one person in any one accident subject to a limit for one person and subject to a limit of $100,000 (currently $50,000) because of bodily injury to two or more persons and $200,000 (currently $100,000) because of the death to two or more persons and to increase to $25,000 (currently $10,000) because of injury or destruction of property of others in any one accident.   SUMMARY OF PROVISIONS: Section 1 amends Paragraph (a) of Subdivision 4 of Section 311 of the Vehicle and Traffic Law; subdivision 7 of Section 311 of the Vehicle and Traffic Law; Section 2 amends Paragraph 3 of subsection (b) of Section 345 of the Vehicle and Traffic Law; Section 3 amends Paragraph I of subsection (0 of Section 3420 of the Insurance Law to provide that the minimum insurance coverage required by all vehicles registered or oper- ated in New York State to $50,000 (currently $25,000) for bodily inju- ries and $100,000 (currently $50,000) because of the death of one person in any one accident subject to a limit for one person and subject to a limit of $100,000 (currently $50,000) because of bodily injury to two or more persons and $200,000 (currently $100,000) because of the death to two or more persons and to increase to $25,000 (currently $10,000) because of injury or destruction of property of others in any one acci- dent. Section 4 amends subsection, (a) of Section 5210 of the Insurance Law so that a final judgement against a financially irresponsible motorist, exclusive of interest and costs shall not exceed $50,000 (currently $25,000) on account of injury to one person in any one accident, $100,000 (currently $50,000) on account of death to one person in any one accident; $100,000 (currently $50,000) on account of injury to more than one person in any one accident subject to the limit of $50,000 for any one person; and $200,000 on account of death to more than one person in any a one accident subject to the limit of $100,000 for any one person injury, to two or more persons and $200,000 (currently $100,000) because of the death to two or more persons and to increase to $25,000 (currently $10,000) because of injury or destruction of property of others in any one accident. Section 5 sets forth the effective date which is immediately and shall apply to policies and contracts issued, renewed, modified, altered or amended on or after such effective date.   JUSTIFICATION: The minimum automobile insurance coverage has not been changed since 1995. The current $25,000 liability does not even approach the amount needed to cover the costs of medical treatment for any serious injury. The current $15,000 coverage for personal damage does not cover most cars and trucks on the road today should they have major damage. Insured motorists should not have to depend on coverage from their own under-in- surance policies to pay for injuries and damages due to the negligence of other drivers.   PRIOR LEGISLATIVE HISTORY: 2019-20: A7979 - Referred to Assembly Insurance Committee 2021-2022: A717 - Referred to Assembly Insurance Committee 2023-2024: A948 - Referred to Assembly Insurance Committee   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Possible savings since those motorists causing injury or damage to the State or local governments will have greater liability coverage to pay for the costs of their negligence causing injury or damage to the State or local government.   EFFECTIVE DATE: This act shall take effect immediately and shall apply to policies and contracts issued, renewed, modified, altered or amended on or after such effective date.
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A05053 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5053
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 11, 2025
                                       ___________
 
        Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
          tee on Insurance
 
        AN  ACT  to  amend the vehicle and traffic law and the insurance law, in
          relation to increasing the minimum  insurance  coverage  required  for
          motor vehicles registered and/or operated within the state of New York

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph (a) of subdivision 4 and subdivision 7 of section
     2  311 of the vehicle and traffic law, paragraph (a) of  subdivision  4  as
     3  amended  by chapter 305 of the laws of 1995 and subdivision 7 as amended
     4  by chapter 805 of the laws of 1984, are amended to read as follows:
     5    (a) Affording coverage as defined in the minimum provisions prescribed
     6  in a regulation which shall be  promulgated  by  the  superintendent  at
     7  least  ninety  days prior to effective date of this act. The superinten-
     8  dent before promulgating such  regulations  or  any  amendment  thereof,
     9  shall  consult  with all insurers licensed to write automobile liability
    10  insurance in this state and shall not prescribe minimum provisions which
    11  fail to reflect the provisions of automobile liability  insurance  poli-
    12  cies,  other than motor vehicle liability policies as defined in section
    13  three hundred forty-five of this [chapter]  title,  issued  within  this
    14  state  at  the  date  of  such regulation or amendment thereof.  Nothing
    15  contained in such regulation or  in  this  article  shall  prohibit  any
    16  insurer  from  affording  coverage  under an owner's policy of liability
    17  insurance more liberal than that required by  said  minimum  provisions.
    18  Every such owner's policy of liability insurance shall provide insurance
    19  subject  to  said  regulation against loss from the liability imposed by
    20  law for damages, including  damages  for  care  and  loss  of  services,
    21  because  of  bodily  injury  to  or death of any person and injury to or
    22  destruction of property arising out of the ownership, maintenance,  use,
    23  or  operation  of  a specific motor vehicle or motor vehicles within the
    24  state of New York, or elsewhere in the United States in North America or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02364-01-5

        A. 5053                             2
 
     1  the Dominion of Canada, subject to a limit, exclusive  of  interest  and
     2  costs,  with  respect  to each such motor vehicle except a tow truck, of
     3  [twenty-five] fifty thousand dollars because of bodily injuries  to  and
     4  [fifty]  one  hundred thousand dollars because of death of one person in
     5  any one accident and, subject to said limit for one person, to  a  limit
     6  of  [fifty] one hundred thousand dollars because of bodily injury to and
     7  [one] two hundred thousand dollars because  of  death  of  two  or  more
     8  persons  in  any one accident, and to a limit of [ten] twenty-five thou-
     9  sand dollars because of injury to or destruction of property  of  others
    10  in  any one accident provided, however, that such policy need not be for
    11  a period  coterminous  with  the  registration  period  of  the  vehicle
    12  insured.  The  limit, exclusive of interest and costs, with respect to a
    13  tow truck shall be a combined single limit of  at  least  three  hundred
    14  thousand  dollars  because  of  bodily  injury  or  death to one or more
    15  persons or because of injury or destruction of property of others in any
    16  one accident, and to a limit of twenty-five thousand dollars because  of
    17  damage to a vehicle in the care, custody and control of the insured. Any
    18  insurer  authorized to issue an owner's policy of liability insurance as
    19  provided for in this article may, pending the issue of  such  a  policy,
    20  make  an  agreement,  to be known as a binder, or may, in lieu of such a
    21  policy, issue a renewal endorsement or evidence of renewal of an  exist-
    22  ing  policy;  each  of  which shall be construed to provide indemnity or
    23  protection in like manner and to the same extent as such a  policy.  The
    24  provisions of this article shall apply to such binders, renewal endorse-
    25  ments or evidences of renewal. Every such policy issued insuring private
    26  passenger  vehicles  and  every  renewal policy, renewal endorsement, or
    27  other evidence of renewal issued shall have attached  thereto  a  rating
    28  information  form which clearly specifies and defines the rating classi-
    29  fication assigned thereto, including any applicable merit  rating  plan;
    30  and
    31    7.  The  term  "financial  security deposit" shall mean for each motor
    32  vehicle the deposit with the commissioner of [twenty-five]  fifty  thou-
    33  sand dollars in cash, or securities, such as may legally be purchased by
    34  savings  banks  or trust funds, of a market value of [twenty-five] fifty
    35  thousand dollars and an additional deposit in an  amount  determined  by
    36  the commissioner to be sufficient to satisfy the requirements of article
    37  fifty-one of the insurance law.
    38    §  2. Paragraph 3 of subdivision (b) of section 345 of the vehicle and
    39  traffic law, as amended by chapter 305 of the laws of 1995,  is  amended
    40  to read as follows:
    41    (3)  Shall  insure  the insured or such other person against loss from
    42  the liability imposed by law for damages, including damages for care and
    43  loss of services because of bodily injury to or death of any person  and
    44  injury to or destruction of property arising out of the ownership, main-
    45  tenance, use, or operation of such motor vehicle or motor vehicles with-
    46  in  the  state  of  New York, or elsewhere in the United States in North
    47  America or the Dominion of Canada, subject  to  a  limit,  exclusive  of
    48  interest and cost, with respect to each such motor vehicle, except a tow
    49  truck,  of [twenty-five] fifty thousand dollars because of bodily injury
    50  to or [fifty] one hundred thousand  dollars  because  of  death  of  one
    51  person in any one accident and, subject to said limit for one person, to
    52  a limit of [fifty] one hundred thousand dollars because of bodily injury
    53  to or [one] two hundred thousand dollars because of death of two or more
    54  persons  in  any one accident, and to a limit of [ten] twenty-five thou-
    55  sand dollars because of injury to or destruction of property  of  others
    56  in  any  one  accident. The limit, exclusive of interest and costs, with

        A. 5053                             3
 
     1  respect to a tow truck shall be a combined single limit of three hundred
     2  thousand dollars because of bodily  injury  of  death  to  one  or  more
     3  persons or because of injury or destruction of property of others in any
     4  one  accident, and to a limit of twenty-five thousand dollars because of
     5  damage to a vehicle in the care, custody and control of the insured.
     6    § 3. Paragraph 1 of subsection (f) of section 3420  of  the  insurance
     7  law,  as  amended by section 19 of part III of chapter 59 of the laws of
     8  2019, is amended to read as follows:
     9    (1) No policy insuring against loss resulting from  liability  imposed
    10  by law for bodily injury or death suffered by any natural person arising
    11  out  of  the  ownership,  maintenance  and  use of a motor vehicle or an
    12  altered motor vehicle commonly referred  to  as  a  "stretch  limousine"
    13  having  a seating capacity of eight or more passengers used in the busi-
    14  ness of carrying or transporting passengers for  hire,  by  the  insured
    15  shall  be  issued  or delivered by any authorized insurer upon any motor
    16  vehicle or an altered motor vehicle commonly referred to as  a  "stretch
    17  limousine" having a seating capacity of eight or more passengers used in
    18  the business of carrying or transporting passengers for hire, then prin-
    19  cipally  garaged  or principally used in this state unless it contains a
    20  provision whereby the insurer agrees that it will pay to the insured, as
    21  defined in such provision, subject to the terms and conditions set forth
    22  therein to be prescribed by the board of directors of the Motor  Vehicle
    23  Accident Indemnification Corporation and approved by the superintendent,
    24  all sums, not exceeding a maximum amount or limit of [twenty-five] fifty
    25  thousand  dollars  exclusive of interest and costs, on account of injury
    26  to and all sums, not exceeding a maximum amount or limit of [fifty]  one
    27  hundred  thousand dollars exclusive of interest and costs, on account of
    28  death of one person, in any one accident,  and  the  maximum  amount  or
    29  limit,  subject  to  such limit for any one person so injured of [fifty]
    30  one hundred thousand dollars or so killed of [one] two hundred  thousand
    31  dollars,  exclusive  of  interest and costs, on account of injury to, or
    32  death of, more than one person in any one accident, which the insured or
    33  [his] the insured's legal representative shall be entitled to recover as
    34  damages from an owner or operator of an uninsured motor vehicle, uniden-
    35  tified motor vehicle which leaves the scene  of  an  accident,  a  motor
    36  vehicle registered in this state as to which at the time of the accident
    37  there  was not in effect a policy of liability insurance, a stolen vehi-
    38  cle, a motor vehicle  operated  without  permission  of  the  owner,  an
    39  insured  motor  vehicle  where the insurer disclaims liability or denies
    40  coverage or an unregistered vehicle because of bodily  injury,  sickness
    41  or  disease,  including  death  resulting  therefrom,  sustained  by the
    42  insured, caused by accident occurring in this state and arising  out  of
    43  the  ownership, maintenance or use of such motor vehicle. No payment for
    44  non-economic loss shall be made under such policy provision to a covered
    45  person unless such person has incurred a serious injury, as  such  terms
    46  are  defined  in  section five thousand one hundred two of this chapter.
    47  Such policy shall not duplicate  any  element  of  basic  economic  loss
    48  provided  for  under  article  fifty-one of this chapter. No payments of
    49  first party benefits for basic economic loss made pursuant to such arti-
    50  cle shall diminish the obligations of  the  insurer  under  this  policy
    51  provision  for  the  payment  of  non-economic loss and economic loss in
    52  excess  of  basic  economic  loss.    Notwithstanding  any  inconsistent
    53  provisions  of  section  three thousand four hundred twenty-five of this
    54  article, any such policy which does not contain the aforesaid provisions
    55  shall be construed as if such provisions were embodied therein.

        A. 5053                             4
 
     1    § 4. Subsection (a) of section 5210 of the insurance law,  as  amended
     2  by chapter 305 of the laws of 1995, is amended to read as follows:
     3    (a) When any qualified person who has complied with all the applicable
     4  requirements  of  this  article  recovers  a  final  judgment in a court
     5  against a financially irresponsible motorist, for injury  to,  or  death
     6  of,  any  person arising out of the ownership, maintenance or use of the
     7  uninsured motor vehicle in this state, which  remains  unpaid,  and  all
     8  appeals have been concluded or the time for commencing them has expired,
     9  the judgment creditor may file a verified petition in the court in which
    10  the  judgment  was  entered  and,  upon  ten days' written notice to the
    11  corporation apply to the court for an order  directing  payment  by  the
    12  corporation  of the amount unpaid on the judgment.  However, there shall
    13  be no right of recovery by a covered person  from  the  corporation  for
    14  non-economic  loss  unless such person has incurred a serious injury, as
    15  such terms are defined in section five thousand one hundred two of  this
    16  chapter.    Such  judgment  exclusive  of  interest  and costs shall not
    17  exceed:
    18    (1) [twenty-five] fifty thousand dollars on account of injury  to  one
    19  person in any one accident, and
    20    (2)  [fifty]  one  hundred thousand dollars on account of death to one
    21  person in any one accident, and
    22    (3) [fifty] one hundred thousand dollars on account of injury to  more
    23  than  one  person  in  any one accident subject to the limit of [twenty-
    24  five] fifty thousand dollars for any one person, and
    25    (4) [one] two hundred thousand dollars on account  of  death  to  more
    26  than  one person in any one accident subject to the limit of [fifty] one
    27  hundred thousand dollars for any one person.
    28    § 5. This act shall take effect immediately.
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