NY State Senate Bill 2009-S4651

Senate Bill S4651

Signed By Governor

2009-2010 Legislative Session

Establishes that insurers providing rental vehicle reimbursement coverage shall not require an insured to utilize a particular rental vehicle company

download bill text pdf

Archive: Last Bill Status Via A4916 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 13, 2010	signed chap.322
Aug 03, 2010	delivered to governor
Jun 17, 2010	returned to assembly passed senate
Jun 10, 2010	3rd reading cal.748 substituted for s4651
Jun 10, 2010	substituted by a4916
Jun 09, 2010	advanced to third reading
Jun 08, 2010	2nd report cal.
Jun 07, 2010	1st report cal.748
Jan 06, 2010	referred to insurance
Apr 27, 2009	referred to insurance

Votes

- Jun 17, 2010 - Floor Vote
  A4916
  
  60
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 17, 2010
      
      aye (60)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      nay (1)
      
      Seward
      
      excused (1)
      
      Morahan
  Jun 7, 2010 - Insurance Committee Vote
  S4651
  
  13
  
  Aye
  
  0
  
  Nay
  
  5
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: Jun 7, 2010
      
      aye (13)
      
      Alesi
      
      Breslin
      
      Diaz
      
      Espada
      
      Golden
      
      Johnson
      
      Kruger
      
      Leibell
      
      Parker
      
      Peralta
      
      Sampson
      
      Stachowski
      
      Thompson
      
      aye wr (5)
      
      LaValle
      
      Larkin
      
      McDonald
      
      Seward
      
      Young

2009-S4651 (ACTIVE) - Details

See Assembly Version of this Bill:: A4916
Law Section:: Insurance Law
Laws Affected:: Add §2610-a, Ins L

2009-S4651 (ACTIVE) - Summary

Establishes that insurers providing rental vehicle reimbursement coverage shall not require an insured to utilize a particular rental vehicle company; requires an insurer writing automobile insurance which includes rental vehicle reimbursement coverage to inform the consumer of his or her right to choose a rental vehicle company to utilize in the event he or she utilizes such coverage.

2009-S4651 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4651

 TITLE OF BILL :  An act to amend the insurance law, in relation to
rental vehicle reimbursement coverage

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to ensure that consumers utilizing rental
vehicle reimbursement coverage are able to rent from the rental
vehicle company of their choice.

 SUMMARY OF SPECIFIC PROVISIONS :

This bill would:

o prohibit insurers providing rental vehicle reimbursement coverage
from requiring an insured to utilize a particular rental vehicle
company, rental vehicle company location or a particular concern;

o require insurers to disclose to the insured that the insured has the
right to utilize any particular rental vehicle company, rental vehicle
company location or a particular concern; and

o require insurers writing automobile insurance that includes rental
vehicle reimbursement coverage to inform the consumer of his or her
rights granted under this section in a separate written document.

 JUSTIFICATION :

There have been instances of insurers steering their customers with
rental vehicle reimbursement coverage to use one particular rental
vehicle company. Oftentimes, these customers are unaware of the
availability of other rental vehicle companies, some of which may
offer less expensive rentals than the company favored by the insurer.
Consumers should not be forced to use one particular rental vehicle
company or be in any way limited in their ability to utilize the
coverage they purchased. When insurers recommend only one rental
vehicle company without telling the consumer they have the option to
use any company, consumers (many of whom are distressed from suffering
an accident) often hastily agree to rent from the recommended company,
regardless of the fact that other, possibly less expensive and more
convenient, options are available. This bill would ensure that
consumers are afforded the opportunity to make an informed decision.

This bill is based on Insurance Law section 2610, which prohibits
insurers providing collision or comprehensive coverage from requiring
an insured to utilize a particular repair shop, or, in processing any
such claim, recommending or suggesting that the insured utilize a
particular repair shop.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
90 days after enactment.

2009-S4651 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4651

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen. SAMPSON -- 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  rental  vehicle
  reimbursement coverage

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new section 2610-a
to read as follows:
  S 2610-A. RENTAL VEHICLE REIMBURSEMENT COVERAGE. (A) FOR THE  PURPOSES
OF  THIS  SECTION,  "RENTAL  VEHICLE  REIMBURSEMENT COVERAGE" SHALL MEAN
COVERAGE FOR THE COST OF RENTING A VEHICLE USED AS SUBSTITUTE  TRANSPOR-
TATION  IF  THE INSURED VEHICLE IS DAMAGED AND IS TEMPORARILY OUT OF USE
DUE TO A COVERED LOSS, UNTIL SUCH VEHICLE IS REPAIRED OR IS  DECLARED  A
TOTAL LOSS.
  (B)  WHENEVER  A  MOTOR  VEHICLE COLLISION OR COMPREHENSIVE LOSS SHALL
HAVE BEEN SUFFERED BY AN INSURED, NO INSURER  PROVIDING  RENTAL  VEHICLE
REIMBURSEMENT  COVERAGE SHALL REQUIRE THAT THE INSURED UTILIZE A PARTIC-
ULAR RENTAL VEHICLE  COMPANY,  RENTAL  VEHICLE  COMPANY  LOCATION  OR  A
PARTICULAR CONCERN.
  (C)  IN  PROCESSING  ANY SUCH CLAIM, THE INSURER SHALL DISCLOSE TO THE
INSURED THAT THE INSURED HAS THE RIGHT, AS GRANTED BY THIS  SECTION,  TO
UTILIZE ANY RENTAL VEHICLE COMPANY, RENTAL VEHICLE COMPANY LOCATION OR A
PARTICULAR CONCERN.
  (D)  AN  INSURER  WRITING  AUTOMOBILE  INSURANCE WHICH INCLUDES RENTAL
VEHICLE REIMBURSEMENT COVERAGE SHALL INFORM THE CONSUMER OF HIS  OR  HER
RIGHT, AS GRANTED BY THIS SECTION, TO CHOOSE A RENTAL VEHICLE COMPANY TO
UTILIZE  IN THE EVENT THAT HE OR SHE UTILIZES SUCH COVERAGE. THE INSURER
SHALL PROVIDE THE DISCLOSURE REQUIRED UNDER THIS SECTION TO ANY  INSURED
ON  NEW  AND  RENEWAL  POLICIES.  SUCH DISCLOSURE SHALL BE PROVIDED IN A
SEPARATE WRITTEN DOCUMENT, WHICH NEED NOT  BE  PROVIDED  IN  A  SEPARATE
MAILING  AS  ANOTHER  DOCUMENT  AS  LONG AS IT IS PROVIDED ON A SEPARATE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08619-01-9

S. 4651                             2

PIECE OF PAPER, EXCEPT THAT FOR NEW BUSINESS IT MAY BE  PROVIDED  EITHER
IN WRITING OR IN THE SAME MEDIUM AS THE APPLICATION FOR INSURANCE.
  S  2.  Severability and construction. The provisions of this act shall
be severable, and if any court of competent  jurisdiction  declares  any
phrase,  clause, sentence or provision of this act to be invalid, or its
applicability to any  government,  agency,  person  or  circumstance  is
declared invalid, the remainder of this act and its relevant applicabil-
ity shall not be affected. The provisions of this act shall be liberally
construed to give effect to the purposes thereof.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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