Senate Bill S5417

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

                                  5417

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               May 1, 2009
                               ___________

Introduced  by  Sen.  MONTGOMERY  -- 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 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:
  (2)  (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
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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11684-01-9
              

S. 5417                             2

cy  with  liability 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 obli-
gation    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.