Assembly Bill A9113

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

                                  9113

                          I N  A S S E M B L Y

                            January 25, 2012
                               ___________

Introduced by M. of A. GRAF, BRINDISI, BURLING, CASTRO, CERETTO, CROUCH,
  CURRAN,  FRIEND, GALEF, GIGLIO, KATZ, LOSQUADRO, McKEVITT, McLAUGHLIN,
  MONTESANO, MURRAY, RA, RAIA, RABBITT, SALADINO, SAYWARD, SMARDZ, SWEE-
  NEY, TENNEY, THIELE, TITONE -- 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. 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:
  (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,  THAT  IF  THE  INSURED  DECLINES  SUCH SUPPLEMENTARY
UNINSURED/UNDERINSURED MOTORISTS INSURANCE  SUCH  DECLINATION  SHALL  BE
MEMORIALIZED  IN  A  WRITTEN  WAIVER SIGNED BY SUCH INSURED. SUCH WAVIER
SHALL DISCLOSE THE BENEFITS OF SUCH SUPPLEMENTAL POLICY  AND  THE  ADDI-
TIONAL  COST  THEREOF.  Provided  however, [an] ANY insurer issuing such
policy, 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 bodi-
ly 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

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

                                                           LBD13281-01-1

A. 9113                             2

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 policy with liability AND SUPPLEMENTARY  UNINSURED/UNDERINSURED
MOTORISTS INSURANCE 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
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.
  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.