Bill Text: NY A01230 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires the superintendent to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies.

Spectrum: Moderate Partisan Bill (Democrat 10-2)

Status: (Engrossed - Dead) 2016-03-21 - REFERRED TO INSURANCE [A01230 Detail]

Download: New_York-2015-A01230-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1230
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                    January 8, 2015
                                      ___________
       Introduced  by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. ABINAN-
         TI, CUSICK, MALLIOTAKIS, MOYA, PERRY,  SALADINO,  SKOUFIS,  WEPRIN  --
         read once and referred to the Committee on Insurance
       AN  ACT  to amend the insurance law, in relation to requiring the super-
         intendent  of  financial  services  to  promulgate  regulations  which
         provide  standardized  definitions for commonly used terms and phrases
         in certain insurance policies
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  3425 of the insurance law is amended by adding a
    2  new subsection (t) to read as follows:
    3    (T) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
    4  SUPERINTENDENT SHALL PROMULGATE REGULATIONS IN ACCORDANCE  WITH  SECTION
    5  TWO  HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH PROVIDE
    6  STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
    7  THAT PROVIDE COVERAGE FOR PERSONAL LINES INSURANCE AS DEFINED  IN  PARA-
    8  GRAPH TWO OF SUBSECTION (A) OF THIS SECTION. SUCH STANDARDIZED TERMS AND
    9  PHRASES SHALL BE USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE
   10  ON  OR  AFTER  THE DATE THE REGULATIONS ARE FINALIZED, WHICH SHALL BE NO
   11  LATER THAN JANUARY FIRST, TWO THOUSAND SEVENTEEN.   AN INSURER  MAY  USE
   12  ALTERNATIVE  DEFINITIONS,  SO  LONG AS SUCH DEFINITIONS ARE NOT ANY LESS
   13  FAVORABLE TO THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY  THE  SUPER-
   14  INTENDENT.
   15    S  2.  Section  3426  of  the insurance law is amended by adding a new
   16  subsection (p) to read as follows:
   17    (P) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
   18  SUPERINTENDENT SHALL PROMULGATE REGULATIONS IN ACCORDANCE  WITH  SECTION
   19  TWO  HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH PROVIDE
   20  STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
   21  THAT PROVIDE COVERAGE FOR COMMERCIAL LINES INSURANCE POLICIES THAT COVER
   22  LOSS OR DAMAGE TO REAL PROPERTY, PERSONAL PROPERTY, OR OTHER LIABILITIES
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06324-01-5
       A. 1230                             2
    1  FOR LOSS OR DAMAGE TO PROPERTY.  SUCH  STANDARDIZED  TERMS  AND  PHRASES
    2  SHALL  BE  USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE ON OR
    3  AFTER THE DATE THE REGULATIONS ARE FINALIZED, WHICH SHALL  BE  NO  LATER
    4  THAN  JANUARY FIRST, TWO THOUSAND SEVENTEEN. AN INSURER MAY USE ALTERNA-
    5  TIVE DEFINITIONS, SO LONG AS SUCH DEFINITIONS ARE NOT ANY LESS FAVORABLE
    6  TO THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY THE SUPERINTENDENT.
    7    S 3. This act shall take effect immediately.