S T A T E O F N E W Y O R K
________________________________________________________________________
10390
I N A S S E M B L Y
May 24, 2012
___________
Introduced by M. of A. MORELLE, LUPARDO, BARCLAY, GRAF, COOK, CYMBROW-
ITZ, PRETLOW, P. RIVERA, MAGNARELLI, SCARBOROUGH, MILLMAN, BENEDETTO,
MARKEY, TITONE, MAISEL, ZEBROWSKI, ROBERTS, WEPRIN, BRINDISI, CASTRO
-- Multi-Sponsored by -- M. of A. ABBATE, ARROYO, CLARK, GIBSON, GOTT-
FRIED, MAGEE, THIELE -- 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. Paragraph 2 of subsection (f) of section 3420 of the insur-
ance 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] IN THE SAME AMOUNT AS the bodily
injury liability insurance limits of coverage provided under such poli-
cy[, 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 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15532-03-2
A. 10390 2
makes available a personal umbrella policy with liability coverage
limits up to at least five hundred thousand dollars which also provides
coverage for supplementary uninsured/underinsured motorists claims].
THE COVERAGE REQUIRED UNDER THIS PARAGRAPH IS NOT APPLICABLE WHEN, OR TO
THE EXTENT THAT, AN INSURED NAMED IN THE POLICY MAKES A WRITTEN
REJECTION OF THE COVERAGE ON BEHALF OF ALL INSUREDS UNDER THE POLICY,
PROVIDED HOWEVER, THAT IN NO EVENT SHALL COVERAGE REQUIRED UNDER THIS
SECTION BE LESS THAN THE STATUTORY MINIMUM BODILY INJURY LIABILITY
INSURANCE LIMITS. Supplementary uninsured/underinsured motorists insur-
ance shall provide coverage, in any state or Canadian province, if the
limits of liability under all bodily injury liability bonds and insur-
ance policies of [another] ANY OTHER 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 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.
(B) [In addition to the notice provided, upon issuance of a policy of
motor vehicle liability insurance pursuant to regulations promulgated by
the superintendent, insurers shall notify insureds, in writing, of the
availability of supplementary uninsured/underinsured motorists coverage.
Such notification shall contain an explanation of supplementary
uninsured/underinsured motorists coverage and the amounts in which it
can be purchased. Subsequently, a notification of availability shall be
provided at least once a year and may be simplified pursuant to regu-
lations promulgated by the superintendent, but must include a concise
statement that supplementary uninsured/underinsured motorists coverage
is available, an explanation of such coverage, and the coverage limits
that can be purchased from the insurer.] THE REJECTION OR SELECTION OF
LOWER SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE SHALL BE
MADE ON A FORM APPROVED BY THE SUPERINTENDENT AND FURNISHED TO THE
INSURED AT THE TIME THE POLICY IS SOLD, PURCHASED, NEGOTIATED AND/OR
RENEWED. THE FORM SHALL FULLY ADVISE THE INSURED OF THE NATURE OF THE
COVERAGE AND SHALL STATE THAT THE COVERAGE IS EQUAL TO BODILY INJURY
LIABILITY LIMITS UNLESS LOWER LIMITS ARE REQUESTED OR THE COVERAGE IS
REJECTED. THE FORM SHALL SET FORTH THE DIFFERENCE IN PREMIUMS TO BE PAID
SHOULD THE INSURED CHOOSE TO ACCEPT OR REJECT HIGHER SUPPLEMENTARY
UNINSURED/UNDERINSURED MOTORISTS COVERAGE. THE HEADING OF THE FORM
SHALL BE IN 12-POINT BOLD TYPE AND SHALL STATE: "YOU ARE ELECTING NOT TO
PURCHASE CERTAIN VALUABLE COVERAGE WHICH PROTECTS YOU AND YOUR FAMILY OR
YOU ARE PURCHASING UNINSURED MOTORIST LIMITS LESS THAN YOUR BODILY INJU-
RY LIABILITY LIMITS WHEN YOU SIGN THIS FORM. PLEASE READ CAREFULLY
A. 10390 3
BEFORE REJECTING HIGHER LIMITS, BY DOING SO YOU ARE PROVIDING LESS
PROTECTION FOR YOURSELF AND YOUR FAMILY THAN YOU ARE FOR THE PUBLIC AT
LARGE." IF THIS FORM IS SIGNED BY A NAMED INSURED, IT WILL BE CONCLU-
SIVELY PRESUMED THAT THERE WAS AN INFORMED, KNOWING REJECTION OF COVER-
AGE OR ELECTION OF LOWER LIMITS ON BEHALF OF ALL INSUREDS. THE INSURER
SHALL NOTIFY THE NAMED INSURED AT LEAST ANNUALLY OF HER OR HIS OPTIONS
AS TO THE COVERAGE REQUIRED BY THIS PARAGRAPH. SUCH NOTICE SHALL BE PART
OF, AND ATTACHED TO, THE NOTICE OF PREMIUM, SHALL PROVIDE FOR A MEANS TO
ALLOW THE INSURED TO REQUEST SUCH COVERAGE, AND SHALL BE GIVEN IN A
MANNER APPROVED BY THE SUPERINTENDENT. IF THE INSURED HAS REJECTED
COVERAGE UNDER THIS PARAGRAPH OR HAS SELECTED LOWER LIMITS, THE NOTICE
OF PREMIUM SHALL CLEARLY INDICATE THE LEVEL OF COVERAGE ACCEPTED.
RECEIPT OF THIS NOTICE DOES NOT CONSTITUTE AN AFFIRMATIVE WAIVER OF THE
INSURED'S RIGHT TO UNINSURED MOTORIST COVERAGE WHERE THE INSURED HAS NOT
SIGNED A SELECTION OR REJECTION FORM.
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.