Senate Oks Id Theft Insurance

 

The state senate has approved legislation that would authorize identity theft insurance in New York State, Insurance Committee Chairman Sen. James L. Seward said today. Senate bill 2397-a authorizes the sale of identity theft insurance on a group basis.

"Identity theft is a growing problem," said Seward. "It has become all too common to open the newspaper and read about personal information being stolen or unwittingly distributed and falling into the wrong hands, and it can cost consumers thousands and damaged credit, at the least. Repairing damage to one’s credit rating and sorting out other problems associated with identity theft can be a difficult, time consuming, and disturbing process. We all know people who have been victims of identity theft."

Identity theft insurance covers losses and expenses incurred resulting from identity theft. It's currently offered on an individual basis, often in conjunction with other coverage such as a homeowner's policy. Legislation is necessary to allow it to be sold on a group basis.

In addition to taking steps to maintain the security of personal information, purchasing identity theft insurance is another important way that consumers can protect themselves from identity theft.

By allowing the coverage to be sold on a group basis, the bill permits insurers to sell ID theft insurance as part of a general employee benefits package, thereby making this important coverage more available to consumers.

It is sponsored in the assembly by Assemblyman I. Lafayette as A. 2884.