The New York State Senate

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

                                  6727

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 17, 2013
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee 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 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,  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 makes available a
personal umbrella policy with liability coverage limits up to  at  least

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10294-01-3

A. 6727                             2

five  hundred  thousand dollars which also provides coverage for supple-
mentary   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]  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 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 obli-
gation    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.] (I) AT THE TIME SUCH POLICY  IS
SOLD,  PURCHASED  AND/OR NEGOTIATED THE INSURED SHALL BE PROVIDED WITH A
FORM THAT SHALL BE IN 12-POINT BOLD TYPE AND SHALL STATE: "SUM INSURANCE
PROTECTS ANY INSURED UNDER THE POLICY IF THEY ARE INJURED IN AN ACCIDENT
CAUSED BY A DRIVER WHO HAS NO  INSURANCE  OR  LESS  INSURANCE  THAN  YOU
CARRY.  SUM  COVERAGE  MAY BE PURCHASED AT LIMITS UP TO THE LEVEL OF THE
BODILY INJURY LIABILITY COVERAGE OF THE POLICY. POLICYHOLDERS ARE  URGED
TO  CAREFULLY  CONSIDER THIS IN DETERMINING THE LEVEL OF SUM COVERAGE TO
PURCHASE." ON THE SAME PAGE AS THE ABOVE PARAGRAPH THE INSURED SHALL  BE
GIVEN    THE    OPTION    TO    EITHER:   (1)   PURCHASE   SUPPLEMENTARY
UNINSURED/UNDERINSURED MOTORISTS INSURANCE IN THE  SAME  AMOUNT  AS  THE
BODILY INJURY LIABILITY INSURANCE LIMITS OF COVERAGE PROVIDED UNDER SUCH
POLICY;  (2)  PURCHASE  SUPPLEMENTARY  UNINSURED/UNDERINSURED  MOTORISTS
INSURANCE IN AN AMOUNT LESS THAN THE BODILY INJURY  LIABILITY  INSURANCE
LIMITS OF COVERAGE PROVIDED UNDER SUCH POLICY; OR (3) PURCHASE MANDATORY
MINIMUM  UNINSURED  MOTORIST  INSURANCE  ONLY. THE INSURED SHALL ALSO BE
PROVIDED WITH THE APPLICABLE PREMIUM FOR EACH OPTION. IF  THE  REJECTION
OR SELECTION OF SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE
IS MADE VERBALLY, THE INSURER OR THEIR AGENT SHALL READ THE IDENTICAL OR
SUBSTANTIALLY SIMILAR LANGUAGE AS IS IN THE ABOVE SELECTION OR REJECTION

A. 6727                             3

FORM AND CONFIRM THE CLIENT HAS HEARD AND UNDERSTOOD THE SAME, AND SHALL
RESTATE THE ABOVE INFORMATION AS OFTEN AS IS NECESSARY UNTIL THE INSURED
HAS  VERBALLY  CONFIRMED THAT THEY FULLY UNDERSTAND THE SAME.  THE NAMED
INSURED'S REJECTION OR SELECTION OF SUPPLEMENTARY UNINSURED/UNDERINSURED
MOTORISTS INSURANCE MUST BE MEMORIALIZED BY THE INSURER THROUGH A SIGNED
WRITING,  AUDIO  RECORDING,  ELECTRONIC  SIGNATURE  OR  ANY  OTHER MEANS
EVIDENCING THE INSURED'S REJECTION OR SELECTION OF SUCH COVERAGE. UNLESS
THE INSURER HAS PROOF THAT THE INSURED WAS PRESENTED WITH THE ABOVE FORM
AND THAT SUCH COVERAGE WAS REJECTED OR SELECTED, AT THE TIME THE INSURED
MAKES A CLAIM  SEEKING  SUPPLEMENTARY  UNINSURED/UNDERINSURED  MOTORISTS
INSURANCE  COVERAGE THE INSURED'S POLICY WILL BE READ TO INCLUDE SUPPLE-
MENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE AT  LIMITS  EQUAL  TO
THE  BODILY  INJURY LIABILITY INSURANCE COVERAGE LIMITS OF THE INSURED'S
POLICY.
  (II) THE INSURER SHALL NOTIFY THE NAMED INSURED AT LEAST  ANNUALLY  OF
HER  OF HIS OPTIONS AS TO THE COVERAGE REQUIRED BY THIS PARAGRAPH PURSU-
ANT TO REGULATIONS ISSUED BY THE SUPERINTENDENT, IF ANY, AT THE TIME  OF
OR  WITHIN SIXTY DAYS PRIOR TO THE RENEWAL OF THE POLICY.  THE LIMITS OF
SUPPLEMENTARY  UNINSURED/UNDERINSURED   MOTORISTS   INSURANCE   COVERAGE
SELECTED  BY THE INSURED SHALL REMAIN EFFECTIVE UPON POLICY AMENDMENT OR
RENEWAL, UNLESS THE INSURED REQUESTS AN AMENDMENT OF SUCH COVERAGE BY SO
NOTING ON AN IDENTICAL FORM AS SET FORTH IN CLAUSE (I) OF THIS  SUBPARA-
GRAPH AND IN ACCORDANCE WITH THE TERMS OF THIS SECTION.  RECEIPT OF THIS
NOTICE  DOES NOT CONSTITUTE AN AFFIRMATIVE WAIVER OF THE INSURED'S RIGHT
TO UNINSURED MOTORIST COVERAGE OR INDICATE THE SELECTION OF  ANY  AMOUNT
OF  SUPPLEMENTARY  UNINSURED/UNDERINSURED  MOTORISTS  COVERAGE WHERE THE
INSURED HAS NOT SIGNED A SELECTION OR REJECTION FORM.
  (III) THE SUPERINTENDENT  MAY  PROMULGATE  REGULATIONS  PERTAINING  TO
SUPPLEMENTARY  UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE  COVERAGE IN
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, REGARDING THE  FORM  AND
CONTENT OF THE NOTICES REQUIRED BY CLAUSES (I) AND (II) OF THIS SUBPARA-
GRAPH INCLUDING A CONCISE STATEMENT OF THE AVAILABILITY OF COVERAGE, AND
AN  EXPLANATION  OF  THE  COVERAGE,  INCLUDING  SPECIFIC EXAMPLES OF ITS
USAGE.
  S 2. This act shall take effect on the one hundred eightieth 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.