Bill Text: NY A08933 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to the rights of the first named insured on a commercial risk insurance policy.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-29 - substituted by s7288 [A08933 Detail]

Download: New_York-2017-A08933-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          8933
                   IN ASSEMBLY
                                     January 8, 2018
                                       ___________
        Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
          tee on Insurance
        AN ACT to amend the insurance law, in relation to 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-a of subsection (f)  of  section  3420  of  the
     2  insurance  law,  as added by chapter 490 of the laws of 2017, is amended
     3  to read as follows:
     4    (2-a) (A) Notwithstanding paragraph two of this subsection, this para-
     5  graph shall apply to any new insurance policy  or  contract  subject  to
     6  this subsection entered into after the effective date of this paragraph.
     7  This  paragraph  shall not be deemed to apply to any policies originally
     8  entered into prior to the effective date of this paragraph, but  renewed
     9  after  the effective date of this paragraph, or to any policy of commer-
    10  cial risk insurance. Any new insurance policy or contract  entered  into
    11  after  the  effective date of this paragraph shall, at the option of the
    12  first named insured, also provide  supplementary  uninsured/underinsured
    13  motorists  insurance for bodily injury, in an amount equal to the bodily
    14  injury liability insurance limits of coverage provided under such  motor
    15  vehicle  liability  insurance  policy;  provided,  however, that [any] a
    16  first named insured may exercise the choice to decline such supplementa-
    17  ry uninsured/underinsured motorists insurance or select a  lower  amount
    18  of  coverage  through a written waiver signed, or electronically signed,
    19  by such insured, subject to the requirements of subparagraph (B) of this
    20  paragraph.  Supplementary  uninsured/underinsured  motorists   insurance
    21  shall provide coverage, in any state or Canadian province, if the limits
    22  of liability under all bodily injury liability bonds and insurance poli-
    23  cies  of  any  other  motor  vehicle  liable for damages are in a lesser
    24  amount than the bodily injury liability  insurance  limits  of  coverage
    25  provided by such policy.  Upon written request by any insured covered by
    26  supplemental  uninsured/underinsured motorists insurance or [his] a duly
    27  authorized representative and upon disclosure  by  the  insured  of  the
    28  insured's  bodily  injury and supplemental uninsured/underinsured motor-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04852-10-7
        A. 8933                             2
     1  ists insurance coverage limits, the insurer of any other owner or opera-
     2  tor of another motor vehicle against which a claim  has  been  made  for
     3  damages  to  the  insured  shall disclose, within forty-five days of the
     4  request,  the  bodily  injury liability insurance limits of its coverage
     5  provided under the policy or all bodily injury liability bonds. The time
     6  of the insured to make any supplementary uninsured/underinsured motorist
     7  claim, shall be tolled during the period the insurer of any other  owner
     8  or  operator  of another motor vehicle that may be liable for damages to
     9  the insured, fails to so disclose its coverage. As a condition precedent
    10  to the  obligation  of  the  insurer  to  pay  under  the  supplementary
    11  uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
    12  liability of all bodily injury liability  bonds  or  insurance  policies
    13  applicable  at the time of the accident shall be exhausted by payment of
    14  judgments or settlements.
    15    (B) In addition to the notice provided, upon issuance of a  policy  of
    16  motor vehicle liability insurance pursuant to regulations promulgated by
    17  the  superintendent,  insurers shall notify insureds, in writing, of the
    18  availability of supplementary uninsured/underinsured motorists coverage.
    19  Such  notification  shall  contain  an  explanation   of   supplementary
    20  uninsured/underinsured  motorists  coverage  and the amounts in which it
    21  can be purchased. Subsequently, a notification of availability shall  be
    22  provided  at  least  once a year and may be simplified pursuant to regu-
    23  lations promulgated by the superintendent, but must  include  a  concise
    24  statement  that  supplementary uninsured/underinsured motorists coverage
    25  is available, an explanation of such coverage, and the  coverage  limits
    26  that  can  be purchased from the insurer. If an insured elects to reject
    27  supplementary uninsured/underinsured motorist coverage or select a lower
    28  amount of supplementary uninsured/underinsured  motorist  coverage  than
    29  the  bodily injury liability insurance limits of coverage provided under
    30  the insured's motor vehicle liability insurance policy, the selection of
    31  lower  supplementary  uninsured/underinsured   motorists   coverage   or
    32  rejection  of such coverage must be made on a written or electronic form
    33  provided to the first named insured.  Such form shall also  advise  that
    34  such  coverage  is equal to the insured's bodily injury liability limits
    35  under the motor vehicle liability insurance policy unless  lower  limits
    36  are requested or the coverage is rejected.
    37    (i) The form shall [be in at least 12-point bold type and shall state:
    38  "SUPPLEMENTARY  UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM COVERAGE)
    39  PROVIDES INSURANCE PROTECTION FOR ANY PERSON INCLUDED AS  INSURED  UNDER
    40  YOUR  POLICY  IF  HE  OR SHE IS INJURED IN AN ACCIDENT INVOLVING ANOTHER
    41  MOTOR VEHICLE WHOSE OWNER OR OPERATOR WAS NEGLIGENT BUT WHO  HAS  EITHER
    42  NO  BODILY INJURY OR LIABILITY INSURANCE, OR LESS THAN THE INSURANCE YOU
    43  CARRY. SUM COVERAGE SHALL BE EQUAL TO THE LEVEL  OF  THE  BODILY  INJURY
    44  LIABILITY  COVERAGE  OF  YOUR  MOTOR  VEHICLE LIABILITY INSURANCE POLICY
    45  UNLESS YOU SIGN A WAIVER REQUESTING  LOWER  COVERAGE  OR  DECLINING  THE
    46  COVERAGE.  YOU  ARE  URGED  TO  CAREFULLY CONSIDER THIS DECISION."] also
    47  advise that supplementary uninsured/underinsured motorists coverage (sum
    48  coverage) provides insurance  protection  for  any  person  included  as
    49  insured under your policy if he or she is injured in an accident involv-
    50  ing  another motor vehicle whose owner or operator was negligent but who
    51  has either no bodily injury or liability insurance,  or  less  than  the
    52  insurance  you  carry.  Sum  coverage shall be equal to the level of the
    53  bodily injury liability coverage of your motor vehicle liability  insur-
    54  ance  policy  unless  you  sign  a  waiver  requesting lower coverage or
    55  declining the coverage. You are urged to carefully consider  this  deci-
    56  sion.
        A. 8933                             3
     1    (ii)  An  insured's  written  waiver  shall  apply  to  all subsequent
     2  renewals of coverage and to all policies or endorsements  which  extend,
     3  change,  supersede,  or  replace  an existing policy issued to the named
     4  insured, unless changed in writing by any named insured.
     5    (iii)     [the]     The     selection     of    lower    supplementary
     6  uninsured/underinsured motorists  coverage  or  the  rejection  of  such
     7  coverage  by  any  [one]  first  named insured shall be binding upon all
     8  insureds under such policy.
     9    (C) Notwithstanding the provisions of subparagraph (A) of  this  para-
    10  graph,   at   the   insurer's   option,   the   insured's  supplementary
    11  uninsured/underinsured motorists coverage limit may be required to equal
    12  the insured's bodily injury liability insurance limit  under  the  motor
    13  vehicle liability insurance policy.
    14    (D)  An  insurer  may provide the coverage described in this paragraph
    15  available in an umbrella or excess liability policy if the  umbrella  or
    16  excess liability policy expressly provides such coverage.
    17    §  2.  This  act  shall  take  effect on the same date and in the same
    18  manner as chapter 490 of the laws of 2017 takes effect; provided, howev-
    19  er, that the amendments to paragraph (2-a) of subsection (f) of  section
    20  3420  of  the  insurance  law  made by section one of this act shall not
    21  affect the repeal of such paragraph and shall be deemed repealed  there-
    22  with.