senate Bill S7312B

Relates to uninsured and underinsured motorist coverage for ambulance services, volunteer fire departments and volunteer ambulance services

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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 / May / 2012
    • REFERRED TO INSURANCE
  • 11 / Jun / 2012
    • AMEND AND RECOMMIT TO INSURANCE
  • 11 / Jun / 2012
    • PRINT NUMBER 7312A
  • 18 / Jun / 2012
    • AMEND (T) AND RECOMMIT TO INSURANCE
  • 18 / Jun / 2012
    • PRINT NUMBER 7312B
  • 20 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1439
  • 21 / Jun / 2012
    • SUBSTITUTED BY A10090B

Summary

Relates to uninsured and underinsured motorist coverage for corporate and business entities, volunteer fire departments and volunteer ambulance services.

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Bill Details

See Assembly Version of this Bill:
A10090B
Versions:
S7312
S7312A
S7312B
Legislative Cycle:
2011-2012
Law Section:
Insurance Law
Laws Affected:
Amd ยง3420, Ins L

Sponsor Memo

BILL NUMBER:S7312B

TITLE OF BILL:
An act
to amend the insurance law, in relation to uninsured and underinsured
motorist coverage for ambulance services, volunteer fire
departments and voluntary ambulance services

PURPOSE:
To ensure that volunteer firefighters and
ambulance crews,
while acting in the scope of their duties shall be covered by the
maximum available supplemental uninsured/underinsured motorist
coverage in an insurance policy that names such volunteer fire
department or ambulance service as a named insured.

SUMMARY OF PROVISIONS:;
This bill amends section 3420(f) of the
insurance law pertaining to mandatory uninsured motorist coverage and
optional supplemental uninsured/underinsured motorist coverage
("SUM") by clarifying the definition of the term "named insured" when
the "named insured" is a corporate or business entity or a volunteer
fire department or volunteer ambulance service.

This bill provides that an insurance policy that includes SUM coverage
that names a volunteer fire department or ambulance service as a
named insured shall be deemed to provide the maximum SUM coverage
available under that particular policy to any individual who is a
member of such volunteer fire department or ambulance service,
regardless of whether the individual is an additional named insured
under that policy, or is a named insured, or is covered under any
other policy providing SUM coverage.

JUSTIFICATION:
This issue arises because the
mandatory New York SUM
endorsement required by II NYCRR Section 60-23 defines the term
"insured" to mean, in relevant part, "You, as the named insured and,
while residents of the same household, your spouse and the relatives
of either you or your spouse.. ." II NYCRR Sect 60-2.3(f)(1).
Starting with Buckner v. MVAIC, 66 NY2d 211 (1985) and continuing with
an increasing number of Appellate Division decisions since, our
Courts have consistently held that when the "named insured" is an
entity such as a a volunteer fire department, the individual
officers. directors, employees or volunteers will not be covered as
"named insureds" even when they were injured within the scope of
their duties for the insured entity. While these individuals might
still be covered under 11NYCRR Section 60-2.3(f)(2) if they were
"occupying" a covered vehicle, the definition of "named insured" as
interpreted by our Courts creates a gap in coverage for employees and
volunteer firefighters and ambulance crews injured by uninsured or
underinsured vehicles in the scope of their duties for the "named
insured" entity while outside of a covered vehicle.

This means that unless the definition of the term "insured" is
clarified a volunteer fire department, or ambulance service will be


unable to provide SUM coverage to its officers, employees or members
who face risks from uninsured or underinsured vehicles in the course
of their employment after exiting from covered vehicles. The danger
is particularly acute for volunteer firefighters and ambulance crews,
all of whom are exposed to vehicle hazards after they have exited a
covered vehicle.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
120th day after it shall become law and shall apply
to any policies issued or renewed on or after such date. Effective
immediately, the addition, amendment and/or repeal of any rules or
regulations necessary for the implementation of this act on its
effective date are authorized to be made on or before such effective
date.

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

                                 7312--B

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Insurance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  --  committee  discharged,  bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the insurance law, in relation to uninsured and underin-
  sured motorist coverage for ambulance services, volunteer fire depart-
  ments and voluntary ambulance services

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

  Section  1.  Subsection  (f)  of  section 3420 of the insurance law is
amended by adding a new paragraph 5 to read as follows:
  (5) A POLICY THAT NAMES A  VOLUNTEER  FIRE  DEPARTMENT,  AN  AMBULANCE
SERVICE  OR  A  VOLUNTARY  AMBULANCE SERVICE AS DEFINED IN SECTION THREE
THOUSAND ONE OF THE PUBLIC HEALTH LAW,  AS  A  NAMED  INSURED  SHALL  BE
DEEMED  TO PROVIDE THE MAXIMUM UNINSURED OR UNDERINSURED MOTORIST COVER-
AGE AVAILABLE UNDER THE  PROVISIONS  OF  THE  POLICY  TO  AN  INDIVIDUAL
EMPLOYED  BY  THE  AMBULANCE  SERVICE  OR A MEMBER OF THE VOLUNTEER FIRE
DEPARTMENT OR VOLUNTARY AMBULANCE SERVICE OR A MEMBER OF  THE  BOARD  OF
DIRECTORS OF SUCH AMBULANCE SERVICE, VOLUNTEER FIRE DEPARTMENT OR VOLUN-
TARY  AMBULANCE  SERVICE  AND WHO IS INJURED BY AN UNINSURED OR UNDERIN-
SURED VEHICLE WHILE ACTING IN THE SCOPE OF THE INDIVIDUAL'S  DUTIES  FOR
THE  VOLUNTEER FIRE DEPARTMENT, AMBULANCE SERVICE OR VOLUNTARY AMBULANCE
SERVICE LISTED AS THE NAMED INSURED.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law and shall apply to  any  policies  issued  or
renewed  on  or  after  such  date. Effective immediately, the addition,
amendment and/or repeal of any rules or regulations  necessary  for  the
implementation  of  this  act  on its effective date is authorized to be
made on or before such effective date.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15699-06-2

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