senate Bill S646

Requires notice of cancellation and renewal of insurance policies to be sent by registered or certified mail

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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

  • 09 / Jan / 2013
    • REFERRED TO INSURANCE
  • 08 / Jan / 2014
    • REFERRED TO INSURANCE

Summary

Requires notice of cancellation or non-renewal of property/casualty insurance policies to be sent by an insurer to an insured by registered or certified mail, return receipt requested.

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Bill Details

See Assembly Version of this Bill:
A2232
Versions:
S646
Legislative Cycle:
2013-2014
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง3425, Ins L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S833, A6805
2009-2010: S2897, A6805
2007-2008: A486

Sponsor Memo

BILL NUMBER:S646

TITLE OF BILL:
An act
to amend the insurance law, in relation to the cancellation and
renewal provisions of insurance policies

PURPOSE OR GENERAL IDEA OF BILL:
Requires insurance companies to give
adequate notice to the insured if the insurance company terminates,
modifies or intends to terminate the existing insurer- insured
relationship.

SUMMARY OF SPECIFIC PROVISIONS:
Paragraph 1 of Subsection (h) of
section 3425 of the insurance law, as amended by chapter 675 of the
laws of 2003 is amended, This legislation provides that the
following communications from an insurance company to an insured
shall be mailed by registered or certified mail return receipt
requested:

1. A notice of cancellation.

2. Elimination of coverage.

3, Intention not to renew or reasons therefor.

JUSTIFICATION:
If mail is lost or misdirected an individual may be
open to personal liability merely because he/she is unaware that
his/her insurance has been canceled,

PRIOR LEGISLATIVE HISTORY:
Previously introduced.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the sixtieth day after
it shall have become a law.

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

                                   646

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. STAVISKY -- 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 the  cancellation  and
  renewal provisions of insurance policies

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

  Section 1.   Paragraph 1 of subsection (h)  of  section  3425  of  the
insurance law, as amended by chapter 675 of the laws of 2003, is amended
to read as follows:
  (1) [Proof of mailing of a] A notice of [cancellation,] A reduction of
limits[,  substitution  of policy form, elimination of coverages, condi-
tioned renewal or of intention not to renew,] IN COVERAGE  or  proof  of
the mailing of the reasons therefor, to the named insured at the address
shown  in  the policy, shall be sufficient proof of the giving of notice
and the giving of reasons required by this section;  PROVIDED,  HOWEVER,
THAT  A  NOTICE OF CANCELLATION OF COVERAGE, THE ELIMINATION OF COVERAGE
OR OF THE INTENTION NOT TO RENEW, OR THE MAILING OF THE REASONS THEREFOR
SHALL BE MAILED BY REGISTERED OR CERTIFIED MAIL RETURN RECEIPT REQUESTED
TO THE NAMED INSURED AT THE ADDRESS SHOWN IN THE POLICY.
  S 2.  This act shall take effect on the sixtieth day  after  it  shall
have become a law.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03551-01-3

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