Bill Text: NY S06799 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to limits on certain supplementary insurance; requires notice of procedures for rejecting supplementary uninsured/underinsured motorists coverage.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INSURANCE [S06799 Detail]

Download: New_York-2017-S06799-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6799
                               2017-2018 Regular Sessions
                    IN SENATE
                                      June 18, 2017
                                       ___________
        Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
          when printed to be committed to the Committee on Rules
        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] equal to the bodily injury liability
     7  insurance limits of coverage provided under such policy[, subject  to  a
     8  maximum  of  two hundred fifty thousand dollars because of bodily injury
     9  to or death of one person in any one accident and, subject to such limit
    10  for one person, up to five hundred thousand dollars  because  of  bodily
    11  injury  to  or  death  of  two or more persons in any one accident, or a
    12  combined single limit policy of five hundred thousand dollars because of
    13  bodily injury to or death of one or more persons in  any  one  accident.
    14  Provided however, an insurer issuing such policy, in lieu of offering to
    15  the  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.
                                                                   LBD13267-01-7
        S. 6799                             2

     1  five hundred thousand dollars which also provides coverage  for  supple-
     2  mentary  uninsured/underinsured  motorists  claims];  provided, however,
     3  whenever an insured purchases or renews a motor vehicle liability policy
     4  for  greater than the minimum required bodily injury policy limits, that
     5  any insured may  exercise  the  choice  to  decline  such  supplementary
     6  uninsured/underinsured  motorists  insurance or select a lower amount of
     7  coverage through a written waiver signed, or electronically  signed,  by
     8  such  insured,  subject  to the requirements of subparagraph (B) of this
     9  paragraph.  Supplementary  uninsured/underinsured  motorists   insurance
    10  shall provide coverage, in any state or Canadian province, if the limits
    11  of liability under all bodily injury liability bonds and insurance poli-
    12  cies  of  [another]  any other motor vehicle liable for damages are in a
    13  lesser amount than the  bodily  injury  liability  insurance  limits  of
    14  coverage  provided  by  such policy. Upon written request by any insured
    15  covered by supplemental uninsured/underinsured  motorists  insurance  or
    16  his duly authorized representative and upon disclosure by the insured of
    17  the  insured's  bodily  injury  and  supplemental uninsured/underinsured
    18  motorists insurance coverage limits, the insurer of any other  owner  or
    19  operator  of  another  motor vehicle against which a claim has been made
    20  for damages to the insured shall disclose, within forty-five days of the
    21  request, the bodily injury liability insurance limits  of  its  coverage
    22  provided under the policy or all bodily injury liability bonds. The time
    23  of the insured to make any supplementary uninsured/underinsured motorist
    24  claim,  shall be tolled during the period the insurer of any other owner
    25  or operator of another motor vehicle that may be liable for  damages  to
    26  the insured, fails to so disclose its coverage. As a condition precedent
    27  to  the  obligation  of  the  insurer  to  pay  under  the supplementary
    28  uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
    29  liability  of  all  bodily  injury liability bonds or insurance policies
    30  applicable at the time of the accident shall be exhausted by payment  of
    31  judgments or settlements.
    32    (B)  [In addition to the notice provided, upon issuance of a policy of
    33  motor vehicle liability insurance pursuant to regulations promulgated by
    34  the superintendent, insurers shall notify insureds, in writing,  of  the
    35  availability of supplementary uninsured/underinsured motorists coverage.
    36  Such   notification   shall  contain  an  explanation  of  supplementary
    37  uninsured/underinsured motorists coverage and the amounts  in  which  it
    38  can  be purchased. Subsequently, a notification of availability shall be
    39  provided at least once a year and may be simplified  pursuant  to  regu-
    40  lations  promulgated  by  the superintendent, but must include a concise
    41  statement that supplementary uninsured/underinsured  motorists  coverage
    42  is  available,  an explanation of such coverage, and the coverage limits
    43  that can be purchased from the insurer.] Whenever an  insured  purchases
    44  or  renews a motor vehicle liability policy for greater than the minimum
    45  required policy limits for bodily injury, the selection of lower supple-
    46  mentary uninsured/underinsured motorists coverage or rejection  of  such
    47  coverage  must  be  made on a written or electronic form provided to the
    48  insured at the time the policy is sold, purchased  or  negotiated.  Such
    49  form shall advise the insured of the amount of the premium attributed to
    50  supplementary  uninsured/underinsured  motorists coverage as required by
    51  this paragraph. Such form shall also advise that such coverage is  equal
    52  to  the insured's bodily injury liability limits unless lower limits are
    53  requested or the coverage is rejected.
    54    (i) The form shall be in at least 12-point bold type and shall  state:
    55  "SUPPLEMENTARY  UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM COVERAGE)
    56  PROVIDES INSURANCE PROTECTION FOR ANY PERSON INCLUDED AS  INSURED  UNDER
        S. 6799                             3
     1  YOUR  POLICY  IF  HE  OR SHE IS INJURED IN AN ACCIDENT INVOLVING ANOTHER
     2  MOTOR VEHICLE WHOSE OWNER OR OPERATOR WAS NEGLIGENT BUT WHO  HAS  EITHER
     3  NO  BODILY INJURY OR LIABILITY INSURANCE, OR LESS THAN THE INSURANCE YOU
     4  CARRY.  SUM  COVERAGE  SHALL  BE EQUAL TO THE LEVEL OF THE BODILY INJURY
     5  LIABILITY COVERAGE OF YOUR POLICY UNLESS YOU SIGN  A  WAIVER  REQUESTING
     6  LOWER  COVERAGE  OR  DECLINING  THE COVERAGE. YOU ARE URGED TO CAREFULLY
     7  CONSIDER THIS DECISION."
     8    (ii) If such an insured rejects such coverage or selects coverage at a
     9  lower limit, the insurer shall notify the named insured at least annual-
    10  ly of his or her options as to the coverage required by  this  paragraph
    11  pursuant  to  regulations  issued  by the superintendent, if any, at the
    12  time of or within sixty days prior to the renewal of the policy,  or  at
    13  least annually for multi-year policies.  Receipt of such notice does not
    14  constitute an affirmative waiver of the insured's right to supplementary
    15  uninsured/underinsured  motorist  coverage  or indicate the selection of
    16  any lower amount of such coverage where the insured  has  not  signed  a
    17  form to reject such coverage or select a lower amount of coverage.
    18    (iii)  The  superintendent  may  promulgate  regulations pertaining to
    19  supplementary uninsured/underinsured  motorists  insurance  coverage  in
    20  accordance  with  the provisions of this section, regarding the form and
    21  content of the notices required by clauses (i) and (ii) of this subpara-
    22  graph.
    23    § 2. This act shall take effect on the one hundred eightieth day after
    24  it shall have become a law, and shall apply to  insurance  policies  and
    25  contracts  issued,  entered  into or renewed on and after such effective
    26  date.