Assembly Bill A534

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

                                   534

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M. of A. DINOWITZ, HOOPER -- Multi-Sponsored by -- M. of
  A. BRENNAN, GOTTFRIED, JACOBS, SWEENEY, WEISENBERG --  read  once  and
  referred to the Committee on Insurance

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

  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  2616
to read as follows:
  S  2616.  INTRUSIVE  REQUESTS FOR PERSONAL, FINANCIAL AND TAX INFORMA-
TION; ORDINARY THEFT CLAIMS. (A) IT SHALL BE AN UNFAIR CLAIM  SETTLEMENT
ACT  OR  PRACTICE  UNDER  PARAGRAPHS THREE AND FOUR OF SUBSECTION (A) OF
SECTION TWO THOUSAND SIX HUNDRED ONE OF THIS ARTICLE FOR AN INSURER,  IN
THE  COURSE OF INVESTIGATING OR SETTLING A THEFT CLAIM, TO DEMAND OF ITS
INSURED PERSONAL, FINANCIAL AND TAX INFORMATION UNLESS SPECIAL ARTICULA-
BLE CIRCUMSTANCES HAVE BEEN DISCOVERED  WHICH  DIRECTLY  RELATE  TO  THE
PARTICULAR  INDIVIDUAL  FACTS OF SUCH THEFT AND WHICH WARRANT THE MAKING
OF SUCH DEMAND FOR THE SPECIFIC PURPOSE OF DETERMINING IF SUCH CLAIM  IS
FRAUDULENT.
  (B)  AS USED IN THIS SECTION, A DEMAND FOR PERSONAL, FINANCIAL AND TAX
INFORMATION IS A DEMAND THAT ANY OF THE FOLLOWING MATERIAL  OR  INFORMA-
TION BE PROVIDED:
  (1) COPIES OF THE INSURED'S PERSONAL AND BUSINESS TAX RETURNS;
  (2)  PERMITS  OR  LICENSES  WHICH  THE INSURED HOLDS IN NEW YORK STATE
OTHER THAN THOSE FOR OPERATING A MOTOR VEHICLE;
  (3) LOAN APPLICATIONS WHICH THE INSURED FILED;
  (4) STATEMENT SETTING FORTH THE COUNTY AND STATE IN WHICH THE  INSURED
HAS  BEEN  REGISTERED TO VOTE OVER A PERIOD OF TIME, OTHER THAN FROM HIS
OR HER PRESENT RESIDENCE;

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

                                                           LBD02585-01-9

A. 534                              2

  (5) COPIES OF ANY BANK STATEMENTS OF BANKS IN WHICH  THE  INSURED  HAS
ACCOUNTS;
  (6)  COPIES OF ANY "DOING BUSINESS AS" CERTIFICATES OR CERTIFICATES OF
INCORPORATION FOR ANY BUSINESS THE INSURED OWNS; OR
  (7) INFORMATION OR MATERIAL OF A SIMILAR PERSONAL, FINANCIAL,  TAX  OR
PRIVATE NATURE WHICH THE SUPERINTENDENT BY REGULATION FINDS TO BE INTRU-
SIVE  OR  WHICH  CONSTITUTES  AN  UNWARRANTED INVASION OF PRIVACY IN THE
CONTEXT OF A STANDARD OR ORDINARY THEFT CLAIM.
  S 2. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which it shall have become a law, provided, however,
that effective immediately, the addition, amendment and/or repeal of any
rules or regulations necessary for the implementation of  the  foregoing
section of this act on its effective date are authorized and directed to
be made and completed on or before such effective date.