senate Bill S1527

Restricts insurers from demanding intrusive personal, financial and tax information from insureds as a standard practice in ordinary theft claims

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 02 / Feb / 2009
    • REFERRED TO INSURANCE
  • 06 / Jan / 2010
    • REFERRED TO INSURANCE

Summary

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Bill Details

See Assembly Version of this Bill:
A534
Versions:
S1527
Legislative Cycle:
2009-2010
Current Committee:
Senate Insurance
Law Section:
Insurance Law

Sponsor Memo

BILL NUMBER: S1527

TITLE OF BILL :
An act to amend the insurance law, in relation to restricting insurers
from demanding intrusive personal, financial and tax information from
insureds as a standard practice in processing ordinary theft claims


PURPOSE :
Restricts insurers from demanding intrusive personal, financial and
tax information from insureds as a standard practice in ordinary theft
claims.

SUMMARY OF PROVISIONS :
Adds a new section 2616 to the Insurance Law, to restrict insurers
from demanding intrusive personal, financial and tax information from
an insured as a standard practice in ordinary theft claims.

JUSTIFICATION :
Requests for personal and financial information which has nothing to
do with a theft claim made by an insured are inappropriate and
intrusive. For example, companies have requested copies of personal
and business tax returns, license and registration, other permits or
licenses held in NYS, loan applications filed, statements setting
forth the county and state in which the insured was registered to vote
over the last five years, copies of any bank statements, and copies of
any "Doing Business As" Certificates or Certificates of Incorporation
for any businesses owned in addition to requiring that the insured
make a recorded statement regarding the circumstances of the theft.
While an insurance company has a right to information pertinent to the
claim in question, clearly many of these demands go beyond being
reasonable requests and are exceedingly onerous and intrusive.

LEGISLATIVE HISTORY :
S.7060 of 2006 Referred to Insurance
S.3897 of 2007-2008 Referred to Insurance

FISCAL IMPLICATIONS :
None.

EFFECTIVE DATE :
January 1 provided, however, that effective immediately, the addition,
amendment and/or repeal of any rules and regulations necessary for the
implementation of this act on its effective date is authorized and
directed to be made and completed on or before such effective date.
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