Bill Text: NY A04115 | 2019-2020 | General Assembly | Introduced

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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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to insurance [A04115 Detail]

Download: New_York-2019-A04115-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4115
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 1, 2019
                                       ___________
        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 separately amended by chapters 547
     3  and 568 of the laws of 1997, 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. Provided however, [an] any insurer issuing such  poli-
    15  cy, in lieu of offering to the insured the coverages stated above, [may]
    16  shall  provide  supplementary uninsured/underinsured motorists insurance
    17  for bodily injury, in an amount [up to] no less than the  bodily  injury
    18  liability  insurance  limits  of  coverage  provided  under such policy,
    19  subject to a maximum of one hundred thousand dollars because  of  bodily
    20  injury  to  or  death  of one person in any one accident and, subject to
    21  such limit for one person, up to three hundred thousand dollars  because
    22  of bodily injury to or death of two or more persons in any one accident,
    23  or  a  combined  single  limit  policy of three hundred thousand dollars
    24  because of bodily injury to or death of one or more persons in  any  one
    25  accident, if such insurer also makes available a personal umbrella poli-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04422-01-9
        A. 4115                             2
     1  cy  with  liability  and  supplementary uninsured/underinsured motorists
     2  insurance coverage limits up to at least five hundred  thousand  dollars
     3  [which  also  provides coverage for supplementary uninsured/underinsured
     4  motorists   claims].    Supplementary  uninsured/underinsured  motorists
     5  insurance shall provide coverage, in any state or Canadian province,  if
     6  the  limits  of  liability  under  all bodily injury liability bonds and
     7  insurance policies of another motor vehicle liable for damages are in  a
     8  lesser  amount  than  the  bodily  injury  liability insurance limits of
     9  coverage provided by such policy.  Upon written request by  any  insured
    10  covered  by  supplemental  uninsured/underinsured motorists insurance or
    11  his duly authorized representative and upon disclosure by the insured of
    12  the insured's  bodily  injury  and  supplemental  uninsured/underinsured
    13  motorists  insurance  coverage limits, the insurer of any other owner or
    14  operator of another motor vehicle against which a claim  has  been  made
    15  for damages to the insured shall disclose, within forty-five days of the
    16  request,  the  bodily  injury liability insurance limits of its coverage
    17  provided under the policy or all bodily injury liability bonds. The time
    18  of the insured to make any supplementary uninsured/underinsured motorist
    19  claim, shall be tolled during the period the insurer of any other  owner
    20  or  operator  of another motor vehicle that may be liable for damages to
    21  the insured, fails to so disclose its coverage.  As a  condition  prece-
    22  dent  to  the  obligation  of the insurer to pay under the supplementary
    23  uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
    24  liability  of  all  bodily  injury liability bonds or insurance policies
    25  applicable at the time of the accident shall be exhausted by payment  of
    26  judgments or settlements.
    27    §  2.  This  act shall take effect on the thirtieth day after it shall
    28  have become a law, and shall apply to insurance policies  and  contracts
    29  issued, entered into or renewed on and after such effective date.