Bill Text: NY A00536 | 2025-2026 | General Assembly | Introduced

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Bill Title: Relates to summaries of readable and understandable insurance policies which shall include the limits of insurance, the term of the policy, the amount of premium and the amount of deductibles and a statement.

Spectrum: Bipartisan Bill

Status: (Introduced) 2025-01-08 - referred to insurance [A00536 Detail]

Download: New_York-2025-A00536-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           536

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 8, 2025
                                       ___________

        Introduced by M. of A. PAULIN, SEPTIMO, MAGNARELLI, JACOBSON, McDONOUGH,
          DeSTEFANO,  DURSO, K. BROWN -- Multi-Sponsored by -- M. of A. SIMON --
          read once and referred to the Committee on Insurance

        AN ACT to amend the insurance law, in relation to summaries of  readable
          and understandable insurance policies

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 3102 of the insurance law is amended  by  adding  a
     2  new subsection (g) to read as follows:
     3    (g)  Policy summary.  (1) Every policy described in paragraph three or
     4  four of subsection (a) of this section shall be accompanied, when deliv-
     5  ered to a policyholder in this state, by a document printed in red  font
     6  and in typeface of no less than sixteen point type which sets forth: (A)
     7  the  limits  of insurance; (B) the term of the policy; (C) the amount of
     8  premium to be paid for the policy; (D) the amount of any  deductible  or
     9  deductibles  applicable before the policy will provide coverage; (E) the
    10  principal exclusions from coverage under the policy; and (F) the follow-
    11  ing statement: "THIS IS ONLY A SUMMARY OF YOUR  POLICY.  ALL  TERMS  AND
    12  CONDITIONS  OF  THE  POLICY  WILL  GOVERN  AS TO THE SCOPE AND AMOUNT OF
    13  COVERAGE UNDER THE POLICY. CONTACT YOUR AGENT, BROKER OR INSURER IF  YOU
    14  HAVE QUESTIONS". An insurer may use the declarations page of a policy to
    15  provide the information required by this subsection.
    16    (2)  The  information required to be delivered to a policyholder under
    17  paragraph one of this section may be provided by an agent or  broker  so
    18  authorized  by an insurer, and may be sent electronically to the policy-
    19  holder in accordance with section three  thousand  four  hundred  fifty-
    20  eight of this chapter.
    21    (3)  Within  one  hundred  eighty  days  from  the  enactment  of this
    22  subsection the superintendent shall issue a  regulation  specifying  the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02604-01-5
        A. 536                              2

     1  wording,  filing and approval requirements for the document described in
     2  paragraph one of this subsection.
     3    (4) Before issuing such regulation the superintendent shall appoint an
     4  advisory  committee  on  the  summary of key personal lines property and
     5  casualty policy provisions to be comprised of equal number of  represen-
     6  tatives  from  insurers  or  insurer associations, producers or producer
     7  associations, consumers or consumer associations, and  academic  experts
     8  on  insurance  regulation.  Such  advisory  committee  shall solicit and
     9  review comments from the public on the content of such  regulation  and,
    10  within  two  hundred  ten  days of the enactment of this subsection make
    11  recommendations in writing to the superintendent as to  the  content  of
    12  such regulation.
    13    (5)  No  insurer  or  producer complying with this subsection shall be
    14  required by the superintendent,  in  any  regulation,  order,  decision,
    15  determination  or other communication, to provide any additional summary
    16  of the terms and conditions of the policy to a policyholder.
    17    § 2. This act shall take effect on the first of October next  succeed-
    18  ing  the date on which it shall have become a law and shall apply to all
    19  policies and contracts issued, renewed, modified, altered or amended  on
    20  or after such date.