senate Bill S7250

2013-2014 Legislative Session

Relates to the posting of internet policies on the internet

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 07, 2014 referred to insurance

S7250 - Bill Details

See Assembly Version of this Bill:
A9592
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Add ยง3455, Ins L

S7250 - Bill Texts

view summary

Relates to the posting of internet policies on the internet.

view sponsor memo
BILL NUMBER:S7250

TITLE OF BILL: An act to amend the insurance law, in relation to
posting insurance policies on the internet

PURPOSE:

To allow state-approved insurance policies to be accessed on the
internet instead of being mailed unless specifically requested by the
policyholder.

SUMMARY OF PROVISIONS:

Adds a new section 3455 to the Insurance Law to permit a
property/casualty insurance company to elect to post state-approved
insurance policies and endorsements on the company's website.
Policyholders would be able request a free paper copy of the insurance
policy.

JUSTIFICATION:

Each year property and casualty insurance companies print and then
mail millions of policy contract booklets to their customers. Often,
these policies can exceed fifty pages in length. Surveys suggest
consumers often toss their policies into the recycle bins without ever
reading them. While e-commerce laws have helped to eliminate some of
the waste, the process still has serious limitations.

This legislation would allow the posting of standard approved
insurance policies and endorsements on the insurance company's
website, provided that the policy and endorsements must be accessible
and remain that way for as long as the policy is in force. Expired
policies and endorsements would be required to available for five
years, and available upon request. The policies and endorsements must
be posted in a manner that enables the policyholder to print and save
the policy and endorsements using programs or applications widely
available on the internet and free to use. The insurance company is
required to provide with each declaration page a description of the
exact policy and endorsement forms purchased by the insured; a method
for the policyholder to obtain, upon request and without charge, a
paper copy of the policy and the internet address where the policy and
endorsements are posted.

Personal identifying information would not be posted. This legislation
applies to insurance policy and endorsements as approved by the
Department of Financial Services.

The benefits to the insurance consumer are many: first, for the
prospective insurance buyer, he or she can look at the approved
policies and better compare the provisions of competitors. Second,
this legislation is environment friendly by reducing unnecessary and
unwanted mailings. Third, there are no privacy concerns, as policy
contracts and endorsements do not contain any personal identifying
information. Fourth, electronic policy contracts create additional
features that are not possible with paper contracts, for example,
companies could augment the policies with FAQs, annotations, chat
functionality for answering questions and other content to help


consumers better understand their policies. Enabling laws have been
approved in at least thirteen other states.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

January 1, 2015.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7250

                            I N  S E N A T E

                               May 7, 2014
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law,  in  relation  to  posting  insurance
  policies on the internet

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

  Section 1. The insurance law is amended by adding a new  section  3455
to read as follows:
  S  3455.  POSTING  OF INSURANCE POLICIES ON THE INTERNET. (A) NOTWITH-
STANDING SECTION THREE HUNDRED NINE OF THE STATE TECHNOLOGY LAW  OR  ANY
OTHER  PROVISION OF THE LAW TO THE CONTRARY, STANDARD PROPERTY AND CASU-
ALTY INSURANCE POLICIES AND ENDORSEMENTS THAT DO NOT CONTAIN  PERSONALLY
IDENTIFIABLE  INFORMATION  MAY  BE  MAILED,  DELIVERED, OR POSTED ON THE
INSURER'S WEBSITE.
  (B) IF THE INSURER ELECTS TO POST INSURANCE POLICIES AND  ENDORSEMENTS
ON  ITS WEBSITE IN LIEU OF MAILING OR DELIVERING THEM TO THE INSURED, IT
MUST COMPLY WITH ALL OF THE FOLLOWING CONDITIONS:
  (1) THE POLICY AND ENDORSEMENTS MUST BE ACCESSIBLE AND REMAIN THAT WAY
FOR AS LONG AS THE POLICY IS IN FORCE;
  (2) AFTER THE EXPIRATION OF THE POLICY, THE INSURER MUST  ARCHIVE  ITS
EXPIRED  POLICIES  AND ENDORSEMENTS FOR A PERIOD OF FIVE YEARS, AND MAKE
THEM AVAILABLE UPON REQUEST;
  (3) THE POLICIES AND ENDORSEMENTS MUST BE  POSTED  IN  A  MANNER  THAT
ENABLES  THE INSURED TO PRINT AND SAVE THE POLICY AND ENDORSEMENTS USING
PROGRAMS OR APPLICATIONS THAT ARE WIDELY AVAILABLE ON THE  INTERNET  AND
FREE TO USE; AND
  (4) THE INSURER PROVIDES THE FOLLOWING INFORMATION IN, OR SIMULTANEOUS
WITH,  EACH  DECLARATIONS  PAGE  PROVIDED AT THE TIME OF ISSUANCE OF THE
INITIAL POLICY AND ANY RENEWALS OF THAT POLICY:
  (A) A DESCRIPTION OF THE EXACT POLICY AND ENDORSEMENT FORMS  PURCHASED
BY THE INSURED;
  (B) A METHOD BY WHICH THE INSURED MAY OBTAIN, UPON REQUEST AND WITHOUT
CHARGE, A PAPER COPY OF THEIR POLICY;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15041-01-4

S. 7250                             2

  (C) THE INTERNET ADDRESS WHERE THEIR POLICY AND ENDORSEMENTS ARE POST-
ED; AND
  (D)  THE  INSURER  PROVIDES  NOTICE,  IN  THE  FORMAT PREFERRED BY THE
INSURED, OF ANY CHANGES TO THE  FORMS  OR  ENDORSEMENTS,  THE  INSURED'S
RIGHT  TO  OBTAIN, UPON REQUEST AND WITHOUT CHARGE, A PAPER COPY OF SUCH
FORMS OR ENDORSEMENTS, AND THE INTERNET  ADDRESS  WHERE  SUCH  FORMS  OR
ENDORSEMENTS ARE POSTED.
  S 2. This act shall take effect January 1, 2015.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.