Bill Text: NY A05445 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to limits on certain supplementary insurance; requires notice of procedures for rejecting supplementary uninsured/underinsured motorists coverage.
Spectrum: Partisan Bill (Democrat 22-1)
Status: (Introduced - Dead) 2018-01-03 - ordered to third reading cal.385 [A05445 Detail]
Download: New_York-2017-A05445-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5445--A Cal. No. 221 2017-2018 Regular Sessions IN ASSEMBLY February 9, 2017 ___________ Introduced by M. of A. MORELLE, PEOPLES-STOKES, ZEBROWSKI, STIRPE, HOOP- ER, WEPRIN, MOSLEY, ARROYO, ROSENTHAL, SKOUFIS, LIFTON, BRINDISI, BRONSON, AUBRY, M. G. MILLER, JENNE, LUPARDO, WALKER, GALEF, PAULIN, SANTABARBARA -- Multi-Sponsored by -- M. of A. GRAF, LUPINACCI, RAIA -- read once and referred to the Committee on Insurance -- reported from committee, advanced to a third reading, amended and ordered reprinted, retaining its place on the order of third reading 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 of8two hundred fifty thousand dollars because of bodily injury to or death9of one person in any one accident and, subject to such limit for one10person, up to five hundred thousand dollars because of bodily injury to11or death of two or more persons in any one accident, or a combined12single limit policy of five hundred thousand dollars because of bodily13injury to or death of one or more persons in any one accident. Provided14however, an insurer issuing such policy, in lieu of offering to the15insured the coverages stated above, may provide supplementary16uninsured/underinsured motorists insurance for bodily injury, in an17amount up to the bodily injury liability insurance limits of coverage18provided under such policy, subject to a maximum of one hundred thousand19dollars because of bodily injury to or death of one person in any one20accident and, subject to such limit for one person, up to three hundredEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04852-03-7A. 5445--A 2 1thousand dollars because of bodily injury to or death of two or more2persons in any one accident, or a combined single limit policy of three3hundred thousand dollars because of bodily injury to or death of one or4more persons in any one accident, if such insurer also makes available a5personal umbrella policy with liability coverage limits up to at least6five hundred thousand dollars which also provides coverage for supple-7mentary uninsured/underinsured motorists claims]; provided, however, 8 that any insured may exercise the choice to decline such supplementary 9 uninsured/underinsured motorists insurance or select a lower amount of 10 coverage through a written waiver signed, or electronically signed, by 11 such insured, subject to the requirements of subparagraph (B) of this 12 paragraph. Supplementary uninsured/underinsured motorists insurance 13 shall provide coverage, in any state or Canadian province, if the limits 14 of liability under all bodily injury liability bonds and insurance poli- 15 cies of [another] any other motor vehicle liable for damages are in a 16 lesser amount than the bodily injury liability insurance limits of 17 coverage provided by such policy. Upon written request by any insured 18 covered by supplemental uninsured/underinsured motorists insurance or 19 his duly authorized representative and upon disclosure by the insured of 20 the insured's bodily injury and supplemental uninsured/underinsured 21 motorists insurance coverage limits, the insurer of any other owner or 22 operator of another motor vehicle against which a claim has been made 23 for damages to the insured shall disclose, within forty-five days of the 24 request, the bodily injury liability insurance limits of its coverage 25 provided under the policy or all bodily injury liability bonds. The time 26 of the insured to make any supplementary uninsured/underinsured motorist 27 claim, shall be tolled during the period the insurer of any other owner 28 or operator of another motor vehicle that may be liable for damages to 29 the insured, fails to so disclose its coverage. As a condition precedent 30 to the obligation of the insurer to pay under the supplementary 31 uninsured/underinsured motorists insurance coverage, the limits of 32 liability of all bodily injury liability bonds or insurance policies 33 applicable at the time of the accident shall be exhausted by payment of 34 judgments or settlements. 35 (B) [In addition to the notice provided, upon issuance of a policy of36motor vehicle liability insurance pursuant to regulations promulgated by37the superintendent, insurers shall notify insureds, in writing, of the38availability of supplementary uninsured/underinsured motorists coverage.39Such notification shall contain an explanation of supplementary40uninsured/underinsured motorists coverage and the amounts in which it41can be purchased. Subsequently, a notification of availability shall be42provided at least once a year and may be simplified pursuant to regu-43lations promulgated by the superintendent, but must include a concise44statement that supplementary uninsured/underinsured motorists coverage45is available, an explanation of such coverage, and the coverage limits46that can be purchased from the insurer.] The selection of lower supple- 47 mentary uninsured/underinsured motorists coverage or rejection of such 48 coverage must be made on a written or electronic form provided to the 49 insured at the time the policy is sold, purchased or negotiated. Such 50 form shall advise the insured of the amount of the premium attributed to 51 supplementary uninsured/underinsured motorists coverage as required by 52 this paragraph. Such form shall also advise that such coverage is equal 53 to the insured's bodily injury liability limits unless lower limits are 54 requested or the coverage is rejected. 55 (i) The form shall be in at least 12-point bold type and shall state: 56 "SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM COVERAGE)A. 5445--A 3 1 PROVIDES INSURANCE PROTECTION FOR ANY PERSON INCLUDED AS INSURED UNDER 2 YOUR POLICY IF HE OR SHE IS INJURED IN AN ACCIDENT INVOLVING ANOTHER 3 MOTOR VEHICLE WHOSE OWNER OR OPERATOR WAS NEGLIGENT BUT WHO HAS EITHER 4 NO BODILY INJURY OR LIABILITY INSURANCE, OR LESS THAN THE INSURANCE YOU 5 CARRY. SUM COVERAGE SHALL BE EQUAL TO THE LEVEL OF THE BODILY INJURY 6 LIABILITY COVERAGE OF YOUR POLICY UNLESS YOU SIGN A WAIVER REQUESTING 7 LOWER COVERAGE OR DECLINING THE COVERAGE. YOU ARE URGED TO CAREFULLY 8 CONSIDER THIS DECISION." 9 (ii) If an insured rejects such coverage or selects coverage at a 10 lower limit, the insurer shall notify the named insured at least annual- 11 ly of his or her options as to the coverage required by this paragraph 12 pursuant to regulations issued by the superintendent, if any, at the 13 time of or within sixty days prior to the renewal of the policy, or at 14 least annually for multi-year policies. Receipt of such notice does not 15 constitute an affirmative waiver of the insured's right to supplementary 16 uninsured/underinsured motorist coverage or indicate the selection of 17 any lower amount of such coverage where the insured has not signed a 18 form to reject such coverage or select a lower amount of coverage. 19 (iii) The superintendent may promulgate regulations pertaining to 20 supplementary uninsured/underinsured motorists insurance coverage in 21 accordance with the provisions of this section, regarding the form and 22 content of the notices required by clauses (i) and (ii) of this subpara- 23 graph. 24 § 2. This act shall take effect on the one hundred eightieth day after 25 it shall have become a law, and shall apply to insurance policies and 26 contracts issued, entered into or renewed on and after such effective 27 date.