Bill Text: NY S05579 | 2013-2014 | General Assembly | Introduced

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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: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-01-08 - REFERRED TO INSURANCE [S05579 Detail]

Download: New_York-2013-S05579-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5579
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                     May 22, 2013
                                      ___________
       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be committed 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 FIFTEEN.   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
   23  FOR  LOSS  OR  DAMAGE  TO  PROPERTY. SUCH STANDARDIZED TERMS AND PHRASES
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11159-02-3
       S. 5579                             2
    1  SHALL BE USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE  ON  OR
    2  AFTER  THE  DATE  THE REGULATIONS ARE FINALIZED, WHICH SHALL BE NO LATER
    3  THAN JANUARY FIRST, TWO THOUSAND FIFTEEN. AN INSURER MAY USE ALTERNATIVE
    4  DEFINITIONS,  SO  LONG AS SUCH DEFINITIONS ARE NOT ANY LESS FAVORABLE TO
    5  THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY THE SUPERINTENDENT.
    6    S 3. This act shall take effect immediately.