Bill Text: NY A03521 | 2023-2024 | General Assembly | Introduced


Bill Title: Relates to the limits of certain supplementary insurance policies; makes the Supplemental Underinsured Motorist (SUM) Insurance limit equal to the liability limit that each insured acquires.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2024-01-03 - referred to insurance [A03521 Detail]

Download: New_York-2023-A03521-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          3521

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 3, 2023
                                       ___________

        Introduced  by M. of A. PRETLOW -- 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. Subparagraph (A)  of  paragraph  2  of  subsection  (f)  of
     2  section  3420 of the insurance law, as amended by section 19 of part III
     3  of chapter 59 of the laws of 2019, is amended to read as follows:
     4    (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]  no  less  than  the  bodily  injury
     7  liability  insurance  limits  of  coverage  provided  under such policy,
     8  subject to a maximum of two hundred fifty thousand  dollars  because  of
     9  bodily injury to or death of one person in any one accident and, subject
    10  to  such  limit  for  one  person,  up  to five hundred thousand dollars
    11  because of bodily injury to or death of two or more persons in  any  one
    12  accident,  or  a  combined  single limit policy of five hundred thousand
    13  dollars because of bodily injury to or death of one or more  persons  in
    14  any  one  accident;  and any such policy insuring against loss resulting
    15  from liability imposed by law for bodily injury or death suffered by any
    16  natural person arising out of the ownership, maintenance, and use of  an
    17  altered  motor  vehicle  commonly  referred  to as a "stretch limousine"
    18  having a seating capacity of eight or more passengers used in the  busi-
    19  ness  of  carrying  or  transporting  passengers for hire, shall provide
    20  supplementary  uninsured/underinsured  motorists  insurance  for  bodily
    21  injury,  in  an  amount  of  a combined single limit of one million five
    22  hundred thousand dollars because of bodily injury or  death  of  one  or
    23  more  persons  in  any  one accident. Provided however, [an] any insurer
    24  issuing any such policy, except a policy insuring against loss resulting
    25  from liability imposed by law for bodily injury or death suffered by any

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08323-01-3

        A. 3521                             2

     1  natural person arising out of the ownership, maintenance, and use of  an
     2  altered  motor  vehicle  commonly  referred  to as a "stretch limousine"
     3  having a seating capacity of eight or more passengers used in the  busi-
     4  ness  of carrying or transporting passengers for hire, in lieu of offer-
     5  ing to the insured the  coverages  stated  above,  [may]  shall  provide
     6  supplementary  uninsured/underinsured  motorists  insurance  for  bodily
     7  injury, in an amount [up to] no less than the  bodily  injury  liability
     8  insurance  limits  of  coverage provided under such policy, subject to a
     9  maximum of one hundred thousand dollars because of bodily injury  to  or
    10  death  of  one person in any one accident and, subject to such limit for
    11  one person, up to three hundred thousand dollars because of bodily inju-
    12  ry to or death of two or more persons in any one accident, or a combined
    13  single limit policy of three hundred thousand dollars because of  bodily
    14  injury  to  or death of one or more persons in any one accident, if such
    15  insurer also makes available a personal umbrella policy  with  liability
    16  and  supplementary  uninsured/underinsured  motorists insurance coverage
    17  limits up to at least five hundred thousand dollars [which also provides
    18  coverage for  supplementary  uninsured/underinsured  motorists  claims].
    19  Supplementary  uninsured/underinsured  motorists insurance shall provide
    20  coverage, in any state or Canadian province, if the limits of  liability
    21  under all bodily injury liability bonds and insurance policies of anoth-
    22  er  motor  vehicle  liable  for  damages are in a lesser amount than the
    23  bodily injury liability insurance limits of coverage  provided  by  such
    24  policy.  Upon  written  request  by  any insured covered by supplemental
    25  uninsured/underinsured motorists insurance or his duly authorized repre-
    26  sentative and upon disclosure by the insured  of  the  insured's  bodily
    27  injury   and  supplemental  uninsured/underinsured  motorists  insurance
    28  coverage limits, the insurer of any other owner or operator  of  another
    29  motor  vehicle  against  which  a claim has been made for damages to the
    30  insured shall disclose, within forty-five days of the request, the bodi-
    31  ly injury liability insurance limits of its coverage provided under  the
    32  policy  or all bodily injury liability bonds. The time of the insured to
    33  make any supplementary uninsured/underinsured motorist claim,  shall  be
    34  tolled  during  the period the insurer of any other owner or operator of
    35  another motor vehicle that may be liable for  damages  to  the  insured,
    36  fails to so disclose its coverage. As a condition precedent to the obli-
    37  gation    of    the    insurer    to   pay   under   the   supplementary
    38  uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
    39  liability  of  all  bodily  injury liability bonds or insurance policies
    40  applicable at the time of the accident shall be exhausted by payment  of
    41  judgments or settlements.
    42    §  2.  This  act shall take effect on the thirtieth day after it shall
    43  have become a law, and shall apply to insurance policies  and  contracts
    44  issued, entered into or renewed on and after such effective date.
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