Assembly Bill A7453

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

                                  7453

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 17, 2013
                               ___________

Introduced by M. of A. CAHILL -- read once and referred to the Committee
  on Insurance

AN  ACT  to amend the insurance law, in relation to requiring the super-
  intendent  of  financial  services  to  promulgate  regulations  which
  provide  standardized  definitions for commonly used terms and phrases
  in certain insurance policies

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

  Section  1.  Section  3425 of the insurance law is amended by adding a
new subsection (t) to read as follows:
  (T) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
SUPERINTENDENT SHALL PROMULGATE REGULATIONS IN ACCORDANCE  WITH  SECTION
TWO  HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH PROVIDE
STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
THAT PROVIDE COVERAGE FOR PERSONAL LINES INSURANCE AS DEFINED  IN  PARA-
GRAPH TWO OF SUBSECTION (A) OF THIS SECTION. SUCH STANDARDIZED TERMS AND
PHRASES SHALL BE USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE
ON  OR  AFTER  THE DATE THE REGULATIONS ARE FINALIZED, WHICH SHALL BE NO
LATER THAN JANUARY FIRST, TWO THOUSAND FIFTEEN.    AN  INSURER  MAY  USE
ALTERNATIVE  DEFINITIONS,  SO  LONG AS SUCH DEFINITIONS ARE NOT ANY LESS
FAVORABLE TO THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY  THE  SUPER-
INTENDENT.
  S  2.  Section  3426  of  the insurance law is amended by adding a new
subsection (p) to read as follows:
  (P) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
SUPERINTENDENT SHALL PROMULGATE REGULATIONS IN ACCORDANCE  WITH  SECTION
TWO  HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH PROVIDE
STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
THAT PROVIDE COVERAGE FOR COMMERCIAL LINES INSURANCE POLICIES THAT COVER
LOSS OR DAMAGE TO REAL PROPERTY, PERSONAL PROPERTY, OR OTHER LIABILITIES
FOR LOSS OR DAMAGE TO PROPERTY.  SUCH  STANDARDIZED  TERMS  AND  PHRASES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11159-02-3
              

A. 7453                             2

SHALL  BE  USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE ON OR
AFTER THE DATE THE REGULATIONS ARE FINALIZED, WHICH SHALL  BE  NO  LATER
THAN JANUARY FIRST, TWO THOUSAND FIFTEEN. AN INSURER MAY USE ALTERNATIVE
DEFINITIONS,  SO  LONG AS SUCH DEFINITIONS ARE NOT ANY LESS FAVORABLE TO
THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY THE SUPERINTENDENT.
  S 3. This act shall take effect immediately.