Assembly Bill A1340

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

                                  1340

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2015
                               ___________

Introduced by M. of A. DINOWITZ, HOOPER, WEPRIN, ABINANTI -- Multi-Spon-
  sored  by  --  M.  of  A.   BRENNAN, GOTTFRIED, PERRY -- read once and
  referred to the Committee on Insurance

AN ACT to amend the insurance law, in relation to  restricting  insurers
  from  demanding intrusive personal, financial and tax information from
  insureds as a standard practice in processing ordinary theft claims

  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 2616
to read as follows:
  S 2616. INTRUSIVE REQUESTS FOR PERSONAL, FINANCIAL  AND  TAX  INFORMA-
TION;  ORDINARY THEFT CLAIMS. (A) IT SHALL BE AN UNFAIR CLAIM SETTLEMENT
ACT OR PRACTICE UNDER PARAGRAPHS THREE AND FOUR  OF  SUBSECTION  (A)  OF
SECTION  TWO THOUSAND SIX HUNDRED ONE OF THIS ARTICLE FOR AN INSURER, IN
THE COURSE OF INVESTIGATING OR SETTLING A THEFT CLAIM, TO DEMAND OF  ITS
INSURED PERSONAL, FINANCIAL AND TAX INFORMATION UNLESS SPECIAL ARTICULA-
BLE  CIRCUMSTANCES  HAVE  BEEN  DISCOVERED  WHICH DIRECTLY RELATE TO THE
PARTICULAR INDIVIDUAL FACTS OF SUCH THEFT AND WHICH WARRANT  THE  MAKING
OF  SUCH DEMAND FOR THE SPECIFIC PURPOSE OF DETERMINING IF SUCH CLAIM IS
FRAUDULENT.
  (B) AS USED IN THIS SECTION, A DEMAND FOR PERSONAL, FINANCIAL AND  TAX
INFORMATION  IS  A DEMAND THAT ANY OF THE FOLLOWING MATERIAL OR INFORMA-
TION BE PROVIDED:
  (1) COPIES OF THE INSURED'S PERSONAL AND BUSINESS TAX RETURNS;
  (2) PERMITS OR LICENSES WHICH THE INSURED  HOLDS  IN  NEW  YORK  STATE
OTHER THAN THOSE FOR OPERATING A MOTOR VEHICLE;
  (3) LOAN APPLICATIONS WHICH THE INSURED FILED;
  (4)  STATEMENT SETTING FORTH THE COUNTY AND STATE IN WHICH THE INSURED
HAS BEEN REGISTERED TO VOTE OVER A PERIOD OF TIME, OTHER THAN  FROM  HIS
OR HER PRESENT RESIDENCE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00693-01-5

              

A. 1340                             2

  (5)  COPIES  OF  ANY BANK STATEMENTS OF BANKS IN WHICH THE INSURED HAS
ACCOUNTS;
  (6)  COPIES OF ANY "DOING BUSINESS AS" CERTIFICATES OR CERTIFICATES OF
INCORPORATION FOR ANY BUSINESS THE INSURED OWNS; OR
  (7) INFORMATION OR MATERIAL OF A SIMILAR PERSONAL, FINANCIAL,  TAX  OR
PRIVATE NATURE WHICH THE SUPERINTENDENT BY REGULATION FINDS TO BE INTRU-
SIVE  OR  WHICH  CONSTITUTES  AN  UNWARRANTED INVASION OF PRIVACY IN THE
CONTEXT OF A STANDARD OR ORDINARY THEFT CLAIM.
  S 2. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which it shall have become a law, provided, however,
that effective immediately, the addition, amendment and/or repeal of any
rules or regulations necessary for the implementation of  the  foregoing
section of this act on its effective date are authorized and directed to
be made and completed on or before such effective date.