senate Bill S4507B

2011-2012 Legislative Session

Permits an insurer to rescind or retroactively cancel a policy in certain circumstances

download bill text pdf

Sponsored By

Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (18)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 22, 2012 referred to insurance
delivered to assembly
passed senate
Mar 21, 2012 advanced to third reading
Mar 20, 2012 2nd report cal.
Mar 19, 2012 1st report cal.372
Jan 04, 2012 referred to insurance
returned to senate
died in assembly
Jun 20, 2011 referred to insurance
delivered to assembly
passed senate
Jun 14, 2011 amended on third reading 4507b
Jun 13, 2011 amended on third reading (t) 4507a
May 11, 2011 advanced to third reading
May 10, 2011 2nd report cal.
May 09, 2011 1st report cal.553
Apr 08, 2011 referred to insurance

Votes

view votes

Mar 19, 2012 - Insurance committee Vote

S4507B
17
1
committee
17
Aye
1
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Insurance committee vote details

May 9, 2011 - Insurance committee Vote

S4507
13
2
committee
13
Aye
2
Nay
3
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S4507 - Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Add §3455, amd §§3420 & 5103, Ins L; amd §313, V & T L
Versions Introduced in 2011-2012 Legislative Session:
A6346B

S4507 - Summary

Permits an insurer to rescind or retroactively cancel a policy in certain circumstances involving a staged or fraudulent accident.

S4507 - Sponsor Memo

S4507 - Bill Text download pdf

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

                                  4507

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 8, 2011
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 permitting an  insurer
  to rescind or retroactively cancel a policy in certain circumstances

  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  3455
to read as follows:
  S  3455.  CANCELLATION OF POLICY. (A) NOTWITHSTANDING ANY RULE, LAW OR
REGULATION TO THE CONTRARY, AN  INSURER  MAY  RESCIND  OR  RETROACTIVELY
CANCEL  TO  THE  INCEPTION  OF THE POLICY, A NEWLY ISSUED COVERED POLICY
SUBJECT TO SUBSECTION (A) OF SECTION THREE THOUSAND FOUR  HUNDRED  TWEN-
TY-FIVE  OF  THIS CHAPTER OR A NEWLY ISSUED COMMERCIAL AUTOMOBILE INSUR-
ANCE POLICY SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF
THIS CHAPTER, IF THE INITIAL PREMIUM PAYMENT IS NOT HONORED BY A  FINAN-
CIAL INSTITUTION DUE TO NON-SUFFICIENT FUNDS, THE NONEXISTENCE OF A BANK
ACCOUNT OR THE UNAUTHORIZED USE OF THE ACCOUNT.
  (B)  A  PERSON  WHO IS INJURED DURING THIS PERIOD MAY HAVE RECOURSE TO
HIS OR HER OWN POLICY, OR THE  MOTOR  VEHICLE  ACCIDENT  INDEMNIFICATION
CORPORATION,  PROVIDED SUCH PERSON DID NOT PARTICIPATE IN ANY FRAUDULENT
ACTIVITY, INCLUDING, BUT NOT LIMITED TO, A STAGED  OR  CAUSED  ACCIDENT.
THE MOTOR VEHICLE ACCIDENT INDEMNIFICATION CORPORATION MAY NOT SUBROGATE
ITS CLAIM AGAINST THE RESCINDING INSURER.
  S 2. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09930-04-1

Co-Sponsors

S4507A - Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Add §3455, amd §§3420 & 5103, Ins L; amd §313, V & T L
Versions Introduced in 2011-2012 Legislative Session:
A6346B

S4507A - Summary

Permits an insurer to rescind or retroactively cancel a policy in certain circumstances involving a staged or fraudulent accident.

S4507A - Sponsor Memo

S4507A - Bill Text download pdf

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

                                 4507--A
    Cal. No. 553

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 8, 2011
                               ___________

Introduced  by  Sens.  GOLDEN, SEWARD -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Insurance  --
  reported  favorably  from  said committee, ordered to first and second
  report, ordered to a third reading,  amended  and  ordered  reprinted,
  retaining its place in the order of third reading

AN  ACT  to  amend the insurance law and the vehicle and traffic law, in
  relation to permitting an insurer to rescind or retroactively cancel a
  policy in certain circumstances

  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 3455
to read as follows:
  S 3455. CANCELLATION OF POLICY. (A) AN INSURER MAY, WITHIN  THE  FIRST
SIXTY  DAYS,  RESCIND  OR  RETROACTIVELY  CANCEL TO THE INCEPTION OF THE
POLICY, A NEWLY ISSUED COVERED  POLICY  SUBJECT  TO  SUBSECTION  (A)  OF
SECTION  THREE  THOUSAND  FOUR  HUNDRED TWENTY-FIVE OF THIS ARTICLE OR A
NEWLY ISSUED COMMERCIAL AUTOMOBILE INSURANCE POLICY SUBJECT  TO  SECTION
THREE  THOUSAND  FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE, IF THE INITIAL
PREMIUM PAYMENT IS  NOT  HONORED  BY  A  FINANCIAL  INSTITUTION  DUE  TO
NON-SUFFICIENT  FUNDS,  THE  NONEXISTENCE OF A BANK ACCOUNT OR THE UNAU-
THORIZED USE OF THE ACCOUNT.  IN THE EVENT THAT SUCH INITIAL PAYMENT  IS
NOT HONORED BY A FINANCIAL INSTITUTION DUE TO NON-SUFFICIENT FUNDS IN AN
EXISTING ACCOUNT THAT THE POLICYHOLDER IS AUTHORIZED TO USE, THE INSURER
SHALL  NOTIFY  THE  POLICYHOLDER  THAT  UNLESS THE POLICYHOLDER REMITS A
CHECK CERTIFIED PURSUANT TO SECTION  3-411  OF  THE  UNIFORM  COMMERCIAL
CODE,  ALONG  WITH  ANY  FEES  ACCESSED FOR NON-SUFFICIENT FUNDS, TO THE
INSURER WITHIN TEN DAYS,  THE  POLICY  MAY  BE  RESCINDED  OR  CANCELLED
RETROACTIVELY TO THE INCEPTION OF THE POLICY.
  (B)  A PERSON WHO IS INJURED DURING THIS PERIOD SHALL HAVE RECOURSE TO
HIS OR HER OWN POLICY, SUBJECT  TO  THE  TERMS  AND  CONDITIONS  OF  THE
CONTRACT,  OR  THE  MOTOR  VEHICLE ACCIDENT INDEMNIFICATION CORPORATION,

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

Co-Sponsors

S4507B (ACTIVE) - Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Add §3455, amd §§3420 & 5103, Ins L; amd §313, V & T L
Versions Introduced in 2011-2012 Legislative Session:
A6346B

S4507B (ACTIVE) - Summary

Permits an insurer to rescind or retroactively cancel a policy in certain circumstances involving a staged or fraudulent accident.

S4507B (ACTIVE) - Sponsor Memo

S4507B (ACTIVE) - Bill Text download pdf

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

                                 4507--B
    Cal. No. 553

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 8, 2011
                               ___________

Introduced  by  Sens.  GOLDEN, SEWARD -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Insurance  --
  reported  favorably  from  said committee, ordered to first and second
  report, ordered to a third reading,  amended  and  ordered  reprinted,
  retaining its place in the order of third reading -- again amended and
  ordered reprinted, retaining its place in the order of third reading

AN  ACT  to  amend the insurance law and the vehicle and traffic law, in
  relation to permitting an insurer to rescind or retroactively cancel a
  policy in certain circumstances

  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 3455
to read as follows:
  S 3455. CANCELLATION OF POLICY. (A) AN INSURER MAY, WITHIN  THE  FIRST
SIXTY  DAYS,  RESCIND  OR  RETROACTIVELY  CANCEL TO THE INCEPTION OF THE
POLICY, A NEWLY ISSUED COVERED  POLICY  SUBJECT  TO  SUBSECTION  (A)  OF
SECTION  THREE  THOUSAND  FOUR  HUNDRED TWENTY-FIVE OF THIS ARTICLE OR A
NEWLY ISSUED COMMERCIAL AUTOMOBILE INSURANCE POLICY SUBJECT  TO  SECTION
THREE  THOUSAND  FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE, IF THE INITIAL
PREMIUM PAYMENT IS  NOT  HONORED  BY  A  FINANCIAL  INSTITUTION  DUE  TO
NON-SUFFICIENT  FUNDS,  THE  NONEXISTENCE OF A BANK ACCOUNT OR THE UNAU-
THORIZED USE OF THE ACCOUNT.  IN THE EVENT THAT SUCH INITIAL PAYMENT  IS
NOT HONORED BY A FINANCIAL INSTITUTION DUE TO NON-SUFFICIENT FUNDS IN AN
EXISTING ACCOUNT THAT THE POLICYHOLDER IS AUTHORIZED TO USE, THE INSURER
SHALL  NOTIFY  THE  POLICYHOLDER  THAT  UNLESS THE POLICYHOLDER REMITS A
CHECK CERTIFIED PURSUANT TO SECTION  3-411  OF  THE  UNIFORM  COMMERCIAL
CODE,  ALONG  WITH  ANY  FEES  ACCESSED FOR NON-SUFFICIENT FUNDS, TO THE
INSURER WITHIN TEN DAYS,  THE  POLICY  MAY  BE  RESCINDED  OR  CANCELLED
RETROACTIVELY TO THE INCEPTION OF THE POLICY.
  (B)  A PERSON WHO IS INJURED DURING THIS PERIOD SHALL HAVE RECOURSE TO
HIS OR HER OWN POLICY, SUBJECT  TO  THE  TERMS  AND  CONDITIONS  OF  THE

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

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