Assembly Bill A391

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    391
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced by M. of A. CAHILL, CYMBROWITZ -- Multi-Sponsored by -- M. of
   A.  ABINANTI,  CUSICK,  MALLIOTAKIS,  MOYA,  PERRY, SALADINO, SKOUFIS,
   WEPRIN -- 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 NINETEEN. 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.
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01390-01-7

 A. 391                              2
 
 FOR  LOSS  OR  DAMAGE  TO  PROPERTY. 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 NINETEEN. AN INSURER MAY USE ALTERNA-
 TIVE DEFINITIONS, SO LONG AS SUCH DEFINITIONS ARE NOT ANY LESS FAVORABLE
 TO THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY THE SUPERINTENDENT.
   § 3. This act shall take effect immediately.