senate Bill S1471

2015-2016 Legislative Session

Permits an insurer to rescind or retroactively cancel a policy in circumstance involving an accident staged to defraud an insurer

download bill text pdf

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Archive: Last Bill Status - Passed Senate


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

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Actions

view actions (19)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 14, 2016 referred to insurance
delivered to assembly
passed senate
ordered to third reading cal.1718
committee discharged and committed to rules
Jun 01, 2016 amend by restoring to original print 1471
Jun 10, 2015 vote reconsidered - restored to third reading
returned to senate
recalled from assembly
Mar 23, 2015 referred to insurance
delivered to assembly
passed senate
Mar 02, 2015 advanced to third reading
Feb 26, 2015 2nd report cal.
Feb 25, 2015 1st report cal.120
Jan 12, 2015 referred to insurance
Jan 06, 2016 referred to insurance
Jun 25, 2015 committed to rules
Jun 10, 2015 amended on third reading 1471a

Votes

view votes

Jun 14, 2016 - Rules committee Vote

S1471
22
0
committee
22
Aye
0
Nay
1
Aye with Reservations
1
Absent
1
Excused
0
Abstained
show Rules committee vote details

Feb 25, 2015 - Insurance committee Vote

S1471
17
1
committee
17
Aye
1
Nay
0
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Insurance committee vote details

Insurance Committee Vote: Feb 25, 2015

nay (1)
excused (1)

S1471 (ACTIVE) - Details

See Assembly Version of this Bill:
A7005
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §3455, amd §§3420, 5103 & 5201, Ins L; amd §313, V & T L
Versions Introduced in Other Legislative Sessions:
2011-2012: S7746
2013-2014: S1959, A3774
2017-2018: S4420, A6001
2019-2020: S643, A6210
2021-2022: S502

S1471 (ACTIVE) - Summary

Permits an insurer to rescind or retroactively cancel a policy in circumstance involving an accident staged to defraud an insurer.

S1471 (ACTIVE) - Sponsor Memo

S1471 (ACTIVE) - Bill Text download pdf

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

                                  1471

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 12, 2015
                               ___________

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

AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
  relation to permitting an insurer to rescind or retroactively cancel a
  policy in certain circumstances

  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.  CANCELLATION OF POLICY. (A) AN INSURER MAY, WITHIN THE FIRST
SIXTY DAYS, RESCIND OR RETROACTIVELY CANCEL TO  THE  INCEPTION  A  NEWLY
ISSUED   AUTOMOBILE   INSURANCE  POLICY  SUBJECT  TO  PARAGRAPH  ONE  OF
SUBSECTION (A) OF SECTION THREE THOUSAND  FOUR  HUNDRED  TWENTY-FIVE  OF
THIS  ARTICLE,  A  NEWLY  ISSUED  COMMERCIAL AUTOMOBILE INSURANCE POLICY
SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS  ARTI-
CLE,  OR  A POLICY ISSUED PURSUANT TO ANY PLAN ESTABLISHED UNDER ARTICLE
FIFTY-THREE OF THIS CHAPTER, IF  THE  INITIAL  PREMIUM  PAYMENT  IS  NOT
HONORED  BY A FINANCIAL INSTITUTION DUE TO THE NONEXISTENCE OR THE UNAU-
THORIZED USE OF A BANK ACCOUNT, OR THE INITIAL PREMIUM PAYMENT IS DENIED
BY A CREDIT CARD COMPANY DUE TO THE UNAUTHORIZED USE OF  A  CREDIT  CARD
ACCOUNT. THIS SECTION SHALL NOT APPLY TO POLICIES REQUIRED UNDER ARTICLE
EIGHT OF THE VEHICLE AND TRAFFIC LAW.
  (B)  A PERSON WHO IS INJURED DURING THIS PERIOD AND WHO WOULD ORDINAR-
ILY BE COVERED UNDER THE INSURED'S  POLICY  HAD  IT  NOT  BEEN  CANCELED
PURSUANT TO SUBSECTION (A) OF THIS SECTION, SHALL BE ENTITLED TO RECOVER
UNDER  HIS  OR HER OWN POLICY SUBJECT TO THE TERMS AND CONDITIONS OF THE
CONTRACT, OR IF THE INJURED PERSON IS UNINSURED, THEY SHALL BE  ENTITLED
TO RECOVER UNDER THE MOTOR VEHICLE ACCIDENT INDEMNIFICATION CORPORATION,
PROVIDED  SUCH  PERSON  DID  NOT PARTICIPATE IN ANY FRAUDULENT ACTIVITY,
INCLUDING, BUT NOT LIMITED TO, AN ACCIDENT STAGED TO DEFRAUD AN INSURER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00569-01-5

S1471A - Details

See Assembly Version of this Bill:
A7005
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §3455, amd §§3420, 5103 & 5201, Ins L; amd §313, V & T L
Versions Introduced in Other Legislative Sessions:
2011-2012: S7746
2013-2014: S1959, A3774
2017-2018: S4420, A6001
2019-2020: S643, A6210
2021-2022: S502

S1471A - Summary

Permits an insurer to rescind or retroactively cancel a policy in circumstance involving an accident staged to defraud an insurer.

S1471A - Sponsor Memo

S1471A - Bill Text download pdf

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

                                 1471--A
    Cal. No. 120

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 12, 2015
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Insurance  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, passed by  Senate  and  delivered  to  the
  Assembly,  recalled,  vote  reconsidered,  restored  to third reading,
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

AN  ACT  to  amend the insurance law and the vehicle and traffic law, in
  relation to permitting an insurer to rescind or retroactively cancel a
  policy in certain circumstances

  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. CANCELLATION OF POLICY. (A) AN INSURER MAY, WITHIN  THE  FIRST
THIRTY  DAYS,  RESCIND  OR RETROACTIVELY CANCEL TO THE INCEPTION A NEWLY
ISSUED AUTOMOBILE INSURANCE POLICY SUBJECT TO  SECTIONS  THREE  THOUSAND
FOUR  HUNDRED  TWENTY-FIVE  OR THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF
THIS ARTICLE, IF THE INITIAL PREMIUM PAYMENT IS NOT HONORED BY A  FINAN-
CIAL  INSTITUTION  DUE  TO  THE NONEXISTENCE OF A BANK ACCOUNT.  FOR THE
PURPOSES OF THIS SECTION "NONEXISTENCE OF A  BANK  ACCOUNT"  SHALL  MEAN
THAT  NO  ACCOUNT  WITH THE NAME AND ACCOUNT NUMBER PROVIDED WAS EVER IN
EXISTENCE AND SHALL NOT INCLUDE ACCOUNTS THAT MAY BE CLOSED OR OTHERWISE
INACTIVE.  IN THE EVENT THAT SUCH INITIAL PAYMENT IS NOT  HONORED  BY  A
FINANCIAL  INSTITUTION  DUE  TO  THE NONEXISTENCE OF A BANK ACCOUNT, THE
INSURER SHALL NOTIFY THE POLICYHOLDER BY CERTIFIED AND FIRST CLASS  MAIL
THAT  UNLESS  THE  POLICYHOLDER REMITS PAYMENT TO THE INSURER WITHIN TEN
BUSINESS DAYS, THE POLICY MAY BE RESCINDED OR CANCELLED RETROACTIVELY TO
THE INCEPTION OF THE POLICY. HOWEVER, IF PAYMENT IS REMITTED  AFTER  THE
TENTH BUSINESS DAY AND THE INSURED HAS NOT BEEN NOTIFIED THAT THE POLICY
HAS  BEEN  RESCINDED  OR RETROACTIVELY CANCELED, THE RIGHT TO RESCIND OR

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

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