Assembly Bill A5794

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

                                  5794

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 20, 2009
                               ___________

Introduced  by  M.  of  A. HAYES, KOLB -- Multi-Sponsored by -- M. of A.
  FINCH -- read once and referred to the Committee on Insurance

AN ACT to amend the insurance law, in  relation  to  limits  on  certain
  supplementary insurance

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

  Section 1. Subparagraph (A)  of  paragraph  2  of  subsection  (f)  of
section 3420 of the insurance law, as separately amended by chapters 547
and 568 of the laws of 1997, is amended to read as follows:
  (A)  Any  such  policy  shall[,  at  the  option of the insured,] also
provide supplementary  uninsured/underinsured  motorists  insurance  for
bodily  injury, in an amount up to the bodily injury liability insurance
limits of coverage provided under such policy, subject to a  maximum  of
two  hundred fifty thousand dollars because of bodily injury to or death
of one person in any one accident and, subject to  such  limit  for  one
person,  up to five hundred thousand dollars because of bodily injury to
or death of two or more persons in  any  one  accident,  or  a  combined
single  limit  policy of five hundred thousand dollars because of bodily
injury to or death of one or more persons in any one accident.  Provided
however,  an  insurer  issuing  such  policy, in lieu of offering to the
insured the coverages stated above, [may]  SHALL  provide  supplementary
uninsured/underinsured  motorists  insurance  for  bodily  injury, in an
amount up to the bodily injury liability insurance  limits  of  coverage
provided under such policy, subject to a maximum of one hundred thousand
dollars  because  of  bodily injury to or death of one person in any one
accident and, subject to such limit for one person, up to three  hundred
thousand  dollars  because  of  bodily injury to or death of two or more
persons in any one accident, or a combined single limit policy of  three
hundred  thousand dollars because of bodily injury to or death of one or
more persons in any one accident, if such insurer also makes available a
personal   umbrella   policy   with    liability    AND    SUPPLEMENTARY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07568-01-9
              

A. 5794                             2

UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE  coverage  limits  up to at
least five hundred thousand dollars [which also  provides  coverage  for
supplementary  uninsured/underinsured  motorists claims].  Supplementary
uninsured/underinsured  motorists  insurance  shall provide coverage, in
any state or Canadian province, if the limits  of  liability  under  all
bodily  injury  liability  bonds and insurance policies of another motor
vehicle liable for damages are in a lesser amount than the bodily injury
liability insurance limits of coverage provided by such  policy.    Upon
written    request    by    any    insured   covered   by   supplemental
uninsured/underinsured motorists insurance or his duly authorized repre-
sentative and upon disclosure by the insured  of  the  insured's  bodily
injury   and  supplemental  uninsured/underinsured  motorists  insurance
coverage limits, the insurer of any other owner or operator  of  another
motor  vehicle  against  which  a claim has been made for damages to the
insured shall disclose, within forty-five days of the request, the bodi-
ly injury liability insurance limits of its coverage provided under  the
policy  or all bodily injury liability bonds. The time of the insured to
make any supplementary uninsured/underinsured motorist claim,  shall  be
tolled  during  the period the insurer of any other owner or operator of
another motor vehicle that may be liable for  damages  to  the  insured,
fails  to  so  disclose  its coverage.   As a condition precedent to the
obligation   of   the   insurer   to   pay   under   the   supplementary
uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
liability of all bodily injury liability  bonds  or  insurance  policies
applicable  at the time of the accident shall be exhausted by payment of
judgments or settlements.
  S 2. This act shall take effect on the thirtieth day  after  it  shall
have  become  a law, and shall apply to insurance policies and contracts
issued, entered into or renewed on and after such effective date.