Assembly Bill A10318A

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

                                10318--A

                          I N  A S S E M B L Y

                              May 22, 2012
                               ___________

Introduced  by  M.  of A. COOK, MORELLE -- read once and referred 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 deductibles for phys-
  ical damage insurance

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

  Section  1.  Subsection  (k)  of  section 3411 of the insurance law is
amended to read as follows:
  (k) (1) Each insurer which offers physical damage insurance subject to
the provisions of this section shall offer such insurance with a  stand-
ard  deductible  of two hundred dollars for each occurrence. The insured
shall, however, at the inception of the policy or at the annual anniver-
sary date, or at the time of the replacement or addition of  an  automo-
bile,  have  the option of purchasing a policy with a lesser deductible,
but in no event may the insurer sell a policy with a deductible of  less
than  fifty dollars for fire, theft or comprehensive insurance coverages
(one hundred dollars for assigned risk policies issued pursuant to para-
graph two of subsection (a) of section five thousand three hundred three
of this chapter) and one hundred dollars for collision insurance  cover-
age  except that window glass coverage may be sold without a deductible.
Each insurer which offers  physical  damage  insurance  subject  to  the
provisions  of  this  section shall also offer physical damage coverages
with co-insurance or deductible provisions or  combinations  thereof  as
the  superintendent  may prescribe, including but not limited to deduct-
ibles of two hundred fifty dollars, five hundred dollars and  one  thou-
sand dollars.
  (2) NOTWITHSTANDING THE DOLLAR LIMITS FOR DEDUCTIBLES IN PARAGRAPH ONE
OF  THIS  SUBSECTION,  AN INSURER WHICH OFFERS PHYSICAL DAMAGE INSURANCE
SUBJECT TO THE PROVISIONS OF THIS SECTION MAY  OFFER  A  REDUCED  DOLLAR
DEDUCTIBLE,  A  ZERO  DOLLAR  DEDUCTIBLE OR A DEDUCTIBLE THAT DIMINISHES
OVER TIME AND MAY ULTIMATELY BE REDUCED TO ZERO DOLLARS.
  (3) AN INSURER WHO OFFERS A REDUCED DOLLAR DEDUCTIBLE, A  ZERO  DOLLAR
DEDUCTIBLE  OR  A DEDUCTIBLE THAT DIMINISHES OVER TIME SHALL DISCLOSE TO

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

                                                           LBD15192-04-2

A. 10318--A                         2

THE INSURED OR POTENTIAL INSURED  AT  THE  TIME  SUCH  A  DEDUCTIBLE  IS
OFFERED  OR  A  POLICY  THAT HAS SUCH A DEDUCTIBLE IS RENEWED HOW SUCH A
DEDUCTIBLE WOULD INTERACT WITH THE OTHER  PROVISIONS  OF  THE  INSURED'S
POLICY, ANY ADDITIONAL COST TO THE INSURED FOR HAVING SUCH A DEDUCTIBLE,
THE  CIRCUMSTANCES  UNDER  WHICH THE DEDUCTIBLE MAY BE REDUCED OR DIMIN-
ISHED, IF AND UNDER WHAT CIRCUMSTANCES THE DEDUCTIBLE MAY BE  INCREASED,
AND THE EFFECT THAT THE DEDUCTIBLE MAY HAVE UPON THE INSURED'S PREMIUM.
  (4)  UNDER  NO  CIRCUMSTANCES SHALL AN INSURER PENALIZE AN INSURED WHO
HAS A REDUCED DOLLAR DEDUCTIBLE, A ZERO DOLLAR DEDUCTIBLE OR  A  DEDUCT-
IBLE  THAT DIMINISHES OVER TIME BY INCREASING BOTH THE INSURED'S PREMIUM
AND DEDUCTIBLE IN RESPONSE TO THE SAME CLAIM OR INCIDENT. THIS PARAGRAPH
SHALL NOT BE CONSTRUED TO PROHIBIT AN INSURER FROM INCREASING EITHER THE
INSURED'S PREMIUM OR DEDUCTIBLE IN RESPONSE TO THE SAME CLAIM  OR  INCI-
DENT.
  S 2. This act shall take effect immediately.