S T A T E   O F   N E W   Y O R K
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                                 5475--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 11, 2009
                               ___________

Introduced  by  Sen.  LANZA  -- 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

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]  NO  LESS  THAN  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] ANY insurer issuing such poli-
cy, 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] NO LESS THAN 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11723-02-9
              

S. 5475--A                          2

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 poli-
cy with liability  AND  SUPPLEMENTARY  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 representative 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  bodily  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  prece-
dent  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.