Assembly Bill A10533

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

                                  10533

                          I N  A S S E M B L Y

                              June 4, 2012
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Morelle) --
  read once and referred to the Committee on Insurance

AN ACT to amend the insurance law, in relation to certain motor  vehicle
  insurance reparations

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

  Section 1. Paragraph 3 of subsection (b) of section 5103 of the insur-
ance law is amended to read as follows:
  (3) Is injured while he is: (i) committing an act which would  consti-
tute  a  felony,  or seeking to avoid lawful apprehension or arrest by a
law enforcement officer, or (ii) operating a motor vehicle in a race  or
speed test, or (iii) operating or occupying a motor vehicle known to him
to  be stolen, or (iv) operating or occupying any motor vehicle owned by
such injured person with respect  to  which  the  coverage  required  by
subsection  (a)  hereof  is  not in effect, or (v) a pedestrian, through
being struck by any motor vehicle owned by such injured pedestrian  with
respect  to  which the coverage required by subsection (a) hereof is not
in effect, [or] (vi) repairing, servicing  or  otherwise  maintaining  a
motor  vehicle  if  such  conduct  is within the course of a business of
repairing, servicing or otherwise maintaining a motor  vehicle  and  the
injury occurs on the business premises, OR (VII) A NON-PERMISSIVE DRIVER
OF A RENTAL VEHICLE AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED THIR-
TY-SEVEN-A OF THE VEHICLE AND TRAFFIC LAW.
  S  2.    Section  5103 of the insurance law is amended by adding a new
subsection (i) to read as follows:
  (I) (1) IN ANY ACTION BY OR ON BEHALF OF  A  COVERED  PERSON,  UPON  A
SHOWING BY THE INSURER THAT SUCH ACTION ALSO INVOLVES: (I) THREE OR MORE
OCCUPANTS OF A RENTAL VEHICLE OTHERWISE ENTITLED TO FIRST PARTY BENEFITS
WHO ARE NOT RELATED BY BLOOD, ADOPTION, MARRIAGE OR BY OTHER SUPPORT, AS
SHOWN  BY  EITHER  UNILATERAL  DEPENDENCE  OR MUTUAL INTERDEPENDENCE, AS
EVIDENCED BY A NEXUS OF FACTORS; AND  (II) THE OPERATOR OF  THE  VEHICLE
IS  NOT  AN AUTHORIZED DRIVER OF SUCH VEHICLE PURSUANT TO THE PROVISIONS
OF  PARAGRAPH  (A)  OF  SUBDIVISION  ONE  OF   SECTION   THREE   HUNDRED
NINETY-SIX-Z  OF  THE  GENERAL BUSINESS LAW, THERE SHALL BE A TOLLING OF

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

                                                           LBD16098-01-2

A. 10533                            2

THE INSURER'S OBLIGATION TO PAY SUCH BENEFITS WITHIN THIRTY  DAYS  AFTER
THE  CLAIMANT  SUPPLIES  PROOF  OF THE FACT AND AMOUNT OF LOSS SUSTAINED
PURSUANT TO THE PROVISIONS OF SUBSECTION (A) OF  SECTION  FIVE  THOUSAND
ONE  HUNDRED  SIX  OF  THIS  ARTICLE,  FOR THE PURPOSES OF PROVIDING THE
INSURER THE OPPORTUNITY TO INVESTIGATE THE VALIDITY OF THE CLAIM.
  (2) UPON THE  WRITTEN  DOCUMENTATION  OF  EVIDENCE  SUBMITTED  TO  THE
DEPARTMENT  BY  THE  INSURER  DEMONSTRATING  THE  PRESENCE  OF THE FACTS
PRESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION,  THE  INSURER  SHALL  BE
PROVIDED WITH AN ADDITIONAL NINETY DAYS TO SUBSTANTIATE ITS CLAIM TO THE
DEPARTMENT FOR DENIAL PRIOR TO ANY PAYMENT OF A CLAIM.
  S 3. Subsection (a) of section 5106 of the insurance law is amended to
read as follows:
  (a)  Payments of first party benefits and additional first party bene-
fits shall be made as the loss is incurred.  Such benefits  are  overdue
if  not paid within thirty days after the claimant supplies proof of the
fact and amount of loss sustained, EXCEPT WHERE THE PERIOD IS  OTHERWISE
TOLLED  PURSUANT  TO  THE  PROVISIONS  OF SUBSECTION (I) OF SECTION FIVE
THOUSAND ONE HUNDRED THREE OF THIS ARTICLE, IN WHICH  CASE  THE  INSURER
MUST  EITHER  ISSUE  A DENIAL OR PAY THE CLAIM WITHIN ONE HUNDRED TWENTY
DAYS AFTER THE CLAIMANT INITIALLY SUPPLIES PROOF OF THE FACT AND  AMOUNT
OF  LOSS SUSTAINED. If proof is not supplied as to the entire claim, the
amount which is supported by proof is overdue if not paid within  thirty
days  after  such  proof  is  supplied.  All overdue payments shall bear
interest at the rate of two percent per  month.  If  a  valid  claim  or
portion  was overdue, the claimant shall also be entitled to recover his
attorney's  reasonable  fee,  for  services  necessarily  performed   in
connection  with securing payment of the overdue claim, subject to limi-
tations promulgated by the superintendent in regulations.
  S 4. This act shall take effect immediately.