Bill Text: NY S07781 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to limits on certain supplementary insurance; permits insured to refuse supplementary insurance; requires certain disclaimer.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-06-18 - REFERRED TO RULES [S07781 Detail]
Download: New_York-2011-S07781-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7781
I N S E N A T E
June 18, 2012
___________
Introduced by Sen. SEWARD -- 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] PRIVATE PASSENGER AUTOMOBILE INSURANCE policy
5 shall[, at the option of the insured, also] provide supplementary
6 uninsured/underinsured motorists insurance for bodily injury[, in an
7 amount up to] IN THE SAME AMOUNT AS the bodily injury liability insur-
8 ance limits of coverage provided under [such] THE PRIVATE PASSENGER
9 AUTOMOBILE INSURANCE policy[, subject to a maximum of two hundred fifty
10 thousand dollars because of bodily injury to or death of one person in
11 any one accident and, subject to such limit for one person, up to five
12 hundred thousand dollars because of bodily injury to or death of two or
13 more persons in any one accident, or a combined single limit policy of
14 five hundred thousand dollars because of bodily injury to or death of
15 one or more persons in any one accident. Provided however, an insurer
16 issuing such policy, in lieu of offering to the insured the coverages
17 stated above, may provide supplementary uninsured/underinsured motorists
18 insurance for bodily injury, in an amount up to the bodily injury
19 liability insurance limits of coverage provided under such policy,
20 subject to a maximum of one hundred thousand dollars because of bodily
21 injury to or death of one person in any one accident and, subject to
22 such limit for one person, up to three hundred thousand dollars because
23 of bodily injury to or death of two or more persons in any one accident,
24 or a combined single limit policy of three hundred thousand dollars
25 because of bodily injury to or death of one or more persons in any one
26 accident, if such insurer also makes available a personal umbrella poli-
27 cy with liability coverage limits up to at least five hundred thousand
28 dollars which also provides coverage for supplementary
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15532-06-2
S. 7781 2
1 uninsured/underinsured motorists claims]. THE COVERAGE REQUIRED UNDER
2 THIS PARAGRAPH IS NOT APPLICABLE WHEN, OR TO THE EXTENT THAT, AN INSURED
3 NAMED IN THE POLICY MAKES A REJECTION OF THE COVERAGE ON BEHALF OF ALL
4 INSUREDS UNDER THE POLICY. SUCH REJECTION MAY BE MEMORIALIZED BY THE
5 INSURER THROUGH A SIGNED WRITING, AUDIO RECORDING, ELECTRONIC SIGNATURE
6 OR ANY OTHER MEANS EVIDENCING THE INSURED'S REJECTION OF SUCH COVERAGE.
7 Supplementary uninsured/underinsured motorists insurance shall provide
8 coverage, in any state or Canadian province, if the limits of liability
9 under all bodily injury liability bonds and insurance policies of
10 [another] ANY OTHER motor vehicle liable for damages are in a lesser
11 amount than the bodily injury liability insurance limits of coverage
12 provided by such policy. Upon written request by any insured covered by
13 supplemental uninsured/underinsured motorists insurance or his duly
14 authorized representative and upon disclosure by the insured of the
15 insured's bodily injury and supplemental uninsured/underinsured motor-
16 ists insurance coverage limits, the insurer of any other owner or opera-
17 tor of another motor vehicle against which a claim has been made for
18 damages to the insured shall disclose, within forty-five days of the
19 request, the bodily injury liability insurance limits of its coverage
20 provided under the policy or all bodily injury liability bonds. The time
21 of the insured to make any supplementary uninsured/underinsured motorist
22 claim, shall be tolled during the period the insurer of any other owner
23 or operator of another motor vehicle that may be liable for damages to
24 the insured, fails to so disclose its coverage. As a condition precedent
25 to the obligation of the insurer to pay under the supplementary
26 uninsured/underinsured motorists insurance coverage, the limits of
27 liability of [all] bodily injury liability bonds or insurance policies
28 applicable at the time of the accident shall be exhausted by payment of
29 judgments or settlements.
30 (B) [In addition to the notice provided, upon issuance of a policy of
31 motor vehicle liability insurance pursuant to regulations promulgated by
32 the superintendent,] AT THE TIME THE POLICY IS SOLD, PURCHASED OR NEGO-
33 TIATED insurers shall notify insureds, in [writing] WRITTEN, VERBAL OR
34 ELECTRONIC FORMAT, of the NATURE AND availability of supplementary
35 uninsured/underinsured motorists coverage AND SHALL STATE THAT THE
36 COVERAGE IS EQUAL TO BODILY INJURY LIABILITY LIMITS UNLESS LOWER LIMITS
37 ARE REQUESTED OR THE COVERAGE IS REJECTED. Such notification shall
38 contain an explanation of supplementary uninsured/underinsured motorists
39 coverage and the amounts in which it can be purchased. SUCH NOTICE
40 SHALL STATE THE FOLLOWING OR INCLUDE INFORMATION SUBSTANTIALLY SIMILAR
41 TO THE FOLLOWING:
42 "SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM COVER-
43 AGE) SHALL BE EQUAL TO BODILY INJURY LIABILITY LIMITS UNLESS LOWER
44 LIMITS ARE REQUESTED OR THE COVERAGE IS REJECTED. A POLICYHOLDER SHOULD
45 CONSIDER PURCHASING SUM COVERAGE IN ORDER TO PROTECT AGAINST THE POSSI-
46 BILITY OF AN ACCIDENT INVOLVING ANOTHER MOTOR VEHICLE WHOSE OWNER OR
47 OPERATOR WAS NEGLIGENT AND WHO MAY HAVE NO INSURANCE WHATSOEVER; OR EVEN
48 IF INSURED, IS ONLY INSURED FOR THIRD-PARTY BODILY INJURY AT RELATIVELY
49 LOW LIABILITY LIMITS, IN COMPARISON TO THE POLICYHOLDER'S OWN LIABILITY
50 LIMITS FOR BODILY INJURY SUSTAINED BY THIRD-PARTIES. BY PURCHASING SUM
51 COVERAGE, WHICH CANNOT BE PURCHASED IN AN AMOUNT EXCEEDING THE AMOUNT OF
52 THIRD PARTY LIABILITY COVERAGE PURCHASED, THE POLICYHOLDER AND ANY
53 INSURED UNDER THE POLICY CAN BE PROTECTED FOR BODILY INJURY TO THEM-
54 SELVES, UP TO THE LIMIT OF THE SUM COVERAGE PURCHASED; AND RECEIVE FROM
55 THE POLICYHOLDER'S OWN INSURANCE PAYMENT FOR BODILY INJURY SUSTAINED DUE
56 TO THE NEGLIGENCE OF THE OTHER MOTOR VEHICLE'S OWNER OR OPERATOR."
S. 7781 3
1 Subsequently, a notification of availability shall be provided at least
2 once a year and may be simplified pursuant to regulations promulgated by
3 the superintendent, but must include a concise statement that supplemen-
4 tary uninsured/underinsured motorists coverage is available, an explana-
5 tion of such coverage, and the coverage limits that can be purchased
6 from the insurer.
7 (C) WHEN THERE IS A DISPUTE BETWEEN AN INSURER AND INSURED OVER THE
8 AMOUNT OF SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE AVAIL-
9 ABLE ON A CLAIM AND THE INSURER ULTIMATELY PROVIDES COVERAGE HIGHER THAN
10 THE AMOUNT OF PREMIUM THE INSURER IS CHARGING FOR, AN INSURER MAY DEDUCT
11 ANY PREMIUM DUE FROM A RE-RATING OF THE POLICY BACK TO THE POLICY ISSUE
12 DATE AGAINST ANY BENEFITS DUE ON THE CLAIM.
13 S 2. This act shall take effect on the one hundred eightieth day
14 after it shall have become a law, and shall apply to insurance policies
15 and contracts issued, entered into or renewed on and after such date.
