The New York State Senate

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

                                  5445

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            February 9, 2017
                               ___________

Introduced by M. of A. MORELLE, PEOPLES-STOKES, ZEBROWSKI, STIRPE, HOOP-
  ER,  WEPRIN,  MOSLEY,  ARROYO,  ROSENTHAL,  SKOUFIS, LIFTON, BRINDISI,
  BRONSON, AUBRY, M. G. MILLER, JENNE, LUPARDO, WALKER, GALEF --  Multi-
  Sponsored  by  --  M.    of  A. GRAF, LUPINACCI, RAIA -- read once and
  referred to the Committee on Insurance

AN ACT to amend the insurance law, in  relation  to  limits  on  certain
  supplementary insurance

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

  Section 1. Paragraph 2 of subsection (f) of section 3420 of the insur-
ance law, as separately amended by chapters 547 and 568 of the  laws  of
1997, is amended to read as follows:
  (2)  (A)  Any  such  policy  shall, at the option of the insured, also
provide supplementary  uninsured/underinsured  motorists  insurance  for
bodily  injury, in an amount up to the bodily injury liability insurance
limits of coverage provided under such policy[, subject to a maximum  of
two  hundred fifty thousand dollars because of bodily injury to or death
of one person in any one accident and, subject to  such  limit  for  one
person,  up to five hundred thousand dollars because of bodily injury to
or death of two or more persons in  any  one  accident,  or  a  combined
single  limit  policy of five hundred thousand dollars because of bodily
injury to or death of one or more persons in any one accident.  Provided
however,  an  insurer  issuing  such  policy, in lieu of offering to the
insured  the  coverages  stated   above,   may   provide   supplementary
uninsured/underinsured  motorists  insurance  for  bodily  injury, in an
amount up to the bodily injury liability insurance  limits  of  coverage
provided under such policy, subject to a maximum of one hundred thousand
dollars  because  of  bodily injury to or death of one person in any one
accident and, subject to such limit for one person, up to three  hundred
thousand  dollars  because  of  bodily injury to or death of two or more
persons in any one accident, or a combined single limit policy of  three

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

                                                           LBD04852-01-7

A. 5445                             2

hundred  thousand dollars because of bodily injury to or death of one or
more persons in any one accident, if such insurer also makes available a
personal umbrella policy with liability coverage limits up to  at  least
five  hundred  thousand dollars which also provides coverage for supple-
mentary   uninsured/underinsured   motorists   claims].    Supplementary
uninsured/underinsured  motorists  insurance  shall provide coverage, in
any state or Canadian province, if the limits  of  liability  under  all
bodily  injury  liability  bonds and insurance policies of [another] ANY
OTHER motor vehicle liable for damages are in a lesser amount  than  the
bodily  injury  liability  insurance limits of coverage provided by such
policy. Upon written request by  any  insured  covered  by  supplemental
uninsured/underinsured motorists insurance or his duly authorized repre-
sentative  and  upon  disclosure  by the insured of the insured's bodily
injury  and  supplemental  uninsured/underinsured  motorists   insurance
coverage  limits,  the insurer of any other owner or operator of another
motor vehicle against which a claim has been made  for  damages  to  the
insured shall disclose, within forty-five days of the request, the bodi-
ly  injury liability insurance limits of its coverage provided under the
policy or all bodily injury liability bonds. The time of the insured  to
make  any  supplementary uninsured/underinsured motorist claim, shall be
tolled during the period the insurer of any other owner or  operator  of
another  motor  vehicle  that  may be liable for damages to the insured,
fails to so disclose its coverage. As a condition precedent to the obli-
gation   of   the   insurer   to    pay    under    the    supplementary
uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
liability of all bodily injury liability  bonds  or  insurance  policies
applicable  at the time of the accident shall be exhausted by payment of
judgments or settlements.
  (B) [In addition to the notice provided, upon issuance of a policy  of
motor vehicle liability insurance pursuant to regulations promulgated by
the  superintendent,  insurers shall notify insureds, in writing, of the
availability of supplementary uninsured/underinsured motorists coverage.
Such  notification  shall  contain  an  explanation   of   supplementary
uninsured/underinsured  motorists  coverage  and the amounts in which it
can be purchased. Subsequently, a notification of availability shall  be
provided  at  least  once a year and may be simplified pursuant to regu-
lations promulgated by the superintendent, but must  include  a  concise
statement  that  supplementary uninsured/underinsured motorists coverage
is available, an explanation of such coverage, and the  coverage  limits
that  can be purchased from the insurer.] (I) AT THE TIME SUCH POLICY IS
SOLD, PURCHASED AND/OR NEGOTIATED THE INSURED SHALL BE PROVIDED  WITH  A
FORM THAT SHALL BE IN 12-POINT BOLD TYPE AND SHALL STATE: "SUM INSURANCE
PROTECTS ANY INSURED UNDER THE POLICY IF THEY ARE INJURED IN AN ACCIDENT
CAUSED  BY  A  DRIVER  WHO  HAS  NO INSURANCE OR LESS INSURANCE THAN YOU
CARRY. SUM COVERAGE MAY BE PURCHASED AT LIMITS UP TO THE  LEVEL  OF  THE
BODILY  INJURY LIABILITY COVERAGE OF THE POLICY. POLICYHOLDERS ARE URGED
TO CAREFULLY CONSIDER THIS IN DETERMINING THE LEVEL OF SUM  COVERAGE  TO
PURCHASE."  ON THE SAME PAGE AS THE ABOVE PARAGRAPH THE INSURED SHALL BE
GIVEN   THE   OPTION   TO    EITHER:    (1)    PURCHASE    SUPPLEMENTARY
UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE  IN  THE SAME AMOUNT AS THE
BODILY INJURY LIABILITY INSURANCE LIMITS OF COVERAGE PROVIDED UNDER SUCH
POLICY;  (2)  PURCHASE  SUPPLEMENTARY  UNINSURED/UNDERINSURED  MOTORISTS
INSURANCE  IN  AN AMOUNT LESS THAN THE BODILY INJURY LIABILITY INSURANCE
LIMITS OF COVERAGE PROVIDED UNDER SUCH POLICY; OR (3) PURCHASE MANDATORY
MINIMUM UNINSURED MOTORIST INSURANCE ONLY. THE  INSURED  SHALL  ALSO  BE
PROVIDED  WITH  THE APPLICABLE PREMIUM FOR EACH OPTION. IF THE REJECTION

A. 5445                             3

OR SELECTION OF SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE
IS MADE VERBALLY, THE INSURER OR THEIR AGENT SHALL READ THE IDENTICAL OR
SUBSTANTIALLY SIMILAR LANGUAGE AS IS IN THE ABOVE SELECTION OR REJECTION
FORM AND CONFIRM THE CLIENT HAS HEARD AND UNDERSTOOD THE SAME, AND SHALL
RESTATE THE ABOVE INFORMATION AS OFTEN AS IS NECESSARY UNTIL THE INSURED
HAS  VERBALLY  CONFIRMED THAT THEY FULLY UNDERSTAND THE SAME.  THE NAMED
INSURED'S REJECTION OR SELECTION OF SUPPLEMENTARY UNINSURED/UNDERINSURED
MOTORISTS INSURANCE MUST BE MEMORIALIZED BY THE INSURER THROUGH A SIGNED
WRITING, AUDIO  RECORDING,  ELECTRONIC  SIGNATURE  OR  ANY  OTHER  MEANS
EVIDENCING THE INSURED'S REJECTION OR SELECTION OF SUCH COVERAGE. UNLESS
THE INSURER HAS PROOF THAT THE INSURED WAS PRESENTED WITH THE ABOVE FORM
AND THAT SUCH COVERAGE WAS REJECTED OR SELECTED, AT THE TIME THE INSURED
MAKES  A  CLAIM  SEEKING  SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS
INSURANCE COVERAGE THE INSURED'S POLICY WILL BE READ TO INCLUDE  SUPPLE-
MENTARY  UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE AT LIMITS EQUAL TO
THE BODILY INJURY LIABILITY INSURANCE COVERAGE LIMITS OF  THE  INSURED'S
POLICY.
  (II)  THE  INSURER SHALL NOTIFY THE NAMED INSURED AT LEAST ANNUALLY OF
HER OF HIS OPTIONS AS TO THE COVERAGE REQUIRED BY THIS PARAGRAPH  PURSU-
ANT  TO REGULATIONS ISSUED BY THE SUPERINTENDENT, IF ANY, AT THE TIME OF
OR WITHIN SIXTY DAYS PRIOR TO THE RENEWAL OF THE POLICY.  THE LIMITS  OF
SUPPLEMENTARY   UNINSURED/UNDERINSURED   MOTORISTS   INSURANCE  COVERAGE
SELECTED BY THE INSURED SHALL REMAIN EFFECTIVE UPON POLICY AMENDMENT  OR
RENEWAL, UNLESS THE INSURED REQUESTS AN AMENDMENT OF SUCH COVERAGE BY SO
NOTING  ON AN IDENTICAL FORM AS SET FORTH IN CLAUSE (I) OF THIS SUBPARA-
GRAPH AND IN ACCORDANCE WITH THE TERMS OF THIS SECTION.  RECEIPT OF THIS
NOTICE DOES NOT CONSTITUTE AN AFFIRMATIVE WAIVER OF THE INSURED'S  RIGHT
TO  UNINSURED  MOTORIST COVERAGE OR INDICATE THE SELECTION OF ANY AMOUNT
OF SUPPLEMENTARY UNINSURED/UNDERINSURED  MOTORISTS  COVERAGE  WHERE  THE
INSURED HAS NOT SIGNED A SELECTION OR REJECTION FORM.
  (III)  THE  SUPERINTENDENT  MAY  PROMULGATE  REGULATIONS PERTAINING TO
SUPPLEMENTARY UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE  COVERAGE  IN
ACCORDANCE  WITH  THE PROVISIONS OF THIS SECTION, REGARDING THE FORM AND
CONTENT OF THE NOTICES REQUIRED BY CLAUSES (I) AND (II) OF THIS SUBPARA-
GRAPH INCLUDING A CONCISE STATEMENT OF THE AVAILABILITY OF COVERAGE, AND
AN EXPLANATION OF THE  COVERAGE,  INCLUDING  SPECIFIC  EXAMPLES  OF  ITS
USAGE.
  § 2. This act shall take effect on the one hundred eightieth day after
it  shall  have  become a law, and shall apply to insurance policies and
contracts issued, entered into or renewed on and  after  such  effective
date.