S T A T E O F N E W Y O R K
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6727
2013-2014 Regular Sessions
I N A S S E M B L Y
April 17, 2013
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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.