NY State Senate Bill S5644B

Archive: Last Bill Status - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (17)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 18, 2017	approval memo.56 signed chap.490
Dec 06, 2017	delivered to governor
Jun 28, 2017	returned to senate passed assembly ordered to third reading rules cal.637 substituted for a8519a
Jun 22, 2017	referred to insurance
Jun 21, 2017	delivered to assembly passed senate ordered to third reading cal.2211 committee discharged and committed to rules
Jun 18, 2017	print number 5644b
Jun 18, 2017	amend (t) and recommit to insurance
May 11, 2017	print number 5644a
May 11, 2017	amend and recommit to insurance
Apr 24, 2017	referred to insurance

Votes

Bill Amendments

Original

B (Active)

Original

B (Active)

S5644 - Details

See Assembly Version of this Bill:: A8519
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5606
2015-2016: S4674

S5644 - Summary

Relates to limits on certain supplementary insurance; requires notice of procedures for rejecting supplementary uninsured/underinsured motorists coverage; new policies.

S5644 - Sponsor Memo

 BILL NUMBER:  S5644

 TITLE OF BILL :  An act to amend the insurance law, in relation to
limits on certain supplementary insurance

 PURPOSE :

The purpose of this bill is to provide auto insurance consumers with
information necessary to make an informed decision regarding their SUM
coverage.

 SUMMARY OF PROVISIONS :

This bill would require that the amount of supplementary
uninsured/underinsured motorist (SUM) coverage that insurance carriers
must make available to consumers is equal to the bodily injury limits
on a policy, removing a $250,000 cap on required coverage. In
addition, this bill would require that, at the time a policy is
purchased, consumers be offered a choice of purchasing: 1) SUM
coverage equal to the level of bodily injury limits on the policy; 2)
SUM coverage at limits less than bodily injury limits on the policy;
or 3) mandatory minimum SUM coverage. The insurer or agent would be
required to disclose to the insured what SUM coverage is and what
premiums would apply at each level of coverage.

 JUSTIFICATION :

Supplementary insurance, also known as  uninsured or underinsured
motorist insurance, protects motorists who suffer severe and
devastating injuries in accidents with drivers who carry inadequate or
no insurance. Few drivers are aware of the value of supplementary
insurance and insurance companies rarely offer supplementary insurance
coverage above the statutory minimum. This bill will ensure that
drivers are informed of the availability of SUM coverage and can
affirmatively elect the coverage that best meets their needs.

 LEGISLATIVE HISTORY :

S.4674 of 2015-16;
S.5606 of 2013-14.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act will take effect on the 180th day after it shall have become
a law.

S5644 - Bill Text download pdf


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

                                  5644

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                             April 24, 2017
                               ___________

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  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
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

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

                                                           LBD04852-01-7

S. 5644                             2

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
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

S. 5644                             3

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.

Co-Sponsors

S5644A - Details

See Assembly Version of this Bill:: A8519
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5606
2015-2016: S4674

S5644A - Summary

Relates to limits on certain supplementary insurance; requires notice of procedures for rejecting supplementary uninsured/underinsured motorists coverage; new policies.

S5644A - Sponsor Memo

S5644A - Bill Text download pdf


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

                                 5644--A

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                             April 24, 2017
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Insurance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

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
hundred thousand dollars because of bodily injury to or death of one  or

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

                                                           LBD04852-02-7

S. 5644--A                          2

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];  PROVIDED, HOWEVER,
THAT ANY INSURED MAY EXERCISE THE CHOICE TO DECLINE  SUCH  SUPPLEMENTARY
UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE OR SELECT A LOWER AMOUNT OF
COVERAGE THROUGH A WRITTEN WAIVER SIGNED, OR ELECTRONICALLY  SIGNED,  BY
SUCH  INSURED,  SUBJECT  TO THE REQUIREMENTS OF SUBPARAGRAPH (B) OF THIS
PARAGRAPH.  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 poli-
cies  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 representative 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 bodily 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  obligation  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.] THE SELECTION OF LOWER  SUPPLE-
MENTARY  UNINSURED/UNDERINSURED  MOTORISTS COVERAGE OR REJECTION OF SUCH
COVERAGE MUST BE MADE ON A WRITTEN OR ELECTRONIC FORM  PROVIDED  TO  THE
INSURED  AT  THE  TIME THE POLICY IS SOLD, PURCHASED OR NEGOTIATED. SUCH
FORM SHALL ADVISE THE INSURED OF THE AMOUNT OF THE PREMIUM ATTRIBUTED TO
SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE AS  REQUIRED  BY
THIS  PARAGRAPH. SUCH FORM SHALL ALSO ADVISE THAT SUCH COVERAGE IS EQUAL
TO THE INSURED'S BODILY INJURY LIABILITY LIMITS UNLESS LOWER LIMITS  ARE
REQUESTED OR THE COVERAGE IS REJECTED.
  (I)  THE FORM SHALL BE IN AT LEAST 12-POINT BOLD TYPE AND SHALL STATE:
"SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM  COVERAGE)
PROVIDES  INSURANCE  PROTECTION FOR ANY PERSON INCLUDED AS INSURED UNDER
YOUR POLICY IF HE OR SHE IS INJURED IN  AN  ACCIDENT  INVOLVING  ANOTHER
MOTOR  VEHICLE  WHOSE OWNER OR OPERATOR WAS NEGLIGENT BUT WHO HAS EITHER

S. 5644--A                          3

NO BODILY INJURY OR LIABILITY INSURANCE, OR LESS THAN THE INSURANCE  YOU
CARRY.  SUM  COVERAGE  SHALL  BE EQUAL TO THE LEVEL OF THE BODILY INJURY
LIABILITY COVERAGE OF YOUR POLICY UNLESS YOU SIGN  A  WAIVER  REQUESTING
LOWER  COVERAGE  OR  DECLINING  THE COVERAGE. YOU ARE URGED TO CAREFULLY
CONSIDER THIS DECISION."
  (II) IF AN INSURED REJECTS SUCH COVERAGE  OR  SELECTS  COVERAGE  AT  A
LOWER LIMIT, THE INSURER SHALL NOTIFY THE NAMED INSURED AT LEAST ANNUAL-
LY  OF  HIS OR HER OPTIONS AS TO THE COVERAGE REQUIRED BY THIS PARAGRAPH
PURSUANT TO REGULATIONS ISSUED BY THE SUPERINTENDENT,  IF  ANY,  AT  THE
TIME  OF  OR WITHIN SIXTY DAYS PRIOR TO THE RENEWAL OF THE POLICY, OR AT
LEAST ANNUALLY FOR MULTI-YEAR POLICIES.  RECEIPT OF SUCH NOTICE DOES NOT
CONSTITUTE AN AFFIRMATIVE WAIVER OF THE INSURED'S RIGHT TO SUPPLEMENTARY
UNINSURED/UNDERINSURED MOTORIST COVERAGE OR INDICATE  THE  SELECTION  OF
ANY  LOWER  AMOUNT  OF  SUCH COVERAGE WHERE THE INSURED HAS NOT SIGNED A
FORM TO REJECT SUCH COVERAGE OR SELECT A LOWER AMOUNT OF COVERAGE.
  (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.
  § 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.

Co-Sponsors

S5644B (ACTIVE) - Details

See Assembly Version of this Bill:: A8519
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5606
2015-2016: S4674

S5644B (ACTIVE) - Summary

Relates to limits on certain supplementary insurance; requires notice of procedures for rejecting supplementary uninsured/underinsured motorists coverage; new policies.

S5644B (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S5644B

 TITLE OF BILL :

An act to amend the insurance law, in relation to limits on certain
supplementary insurance; and providing for the repeal of such
provisions upon expiration thereof

 PURPOSE :

The purpose of this bill is to provide for increased supplementary
uninsured/underinsured motorist (SUM) insurance coverage.

 SUMMARY OF PROVISIONS :

Section 1 of this bill would establish that the amount of
supplementary uninsured/underinsured motorist (SUM) coverage to be
included in any new auto insurance policy will be the same as the
amount of bodily injury coverage selected by the insured.  The
insured, may have the opportunity to decline SUM coverage or to
purchase lower amounts through a written waiver. The insurer or agent
would be required to inform the insured what SUM coverage is and how
much coverage the insured may purchase. At the insurer's option, the
insured's SUM coverage may be required to equal the insured's bodily
injury liability insurance.

Section 2 sets forth the effective date.

 JUSTIFICATION :

Supplementary insurance, also known as uninsured or underinsured
motorist insurance, protects motorists who suffer severe and
devastating injuries in accidents with drivers who carry inadequate or
no insurance. Few drivers are aware of the value of supplementary
insurance and insurance companies rarely offer supplementary insurance
coverage above the statutory minimum. This bill will ensure that
drivers are fully protected themselves by supplementary insurance
equal to the bodily injury liability insurance coverage they select to
protect others, unless they affirmatively elect lower coverage for
themselves.

 LEGISLATIVE HISTORY :

Similar to S.4674 of 2015-16; S.5606 of 2013-14.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act will take effect on the 180th day after it shall have become
a law and shall apply to new insurance policies and contracts issued
on and after such effective date and shall expire and be deemed
repealed June 30, 2020

S5644B (ACTIVE) - Bill Text download pdf


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

                                 5644--B

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                             April 24, 2017
                               ___________

Introduced by Sens. SEWARD, ADDABBO, ALCANTARA, AVELLA -- read twice and
  ordered  printed, and when printed to be committed to the Committee on
  Insurance -- committee discharged, bill amended, ordered reprinted  as
  amended  and  recommitted  to  said committee -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee

AN  ACT  to  amend  the  insurance law, in relation to limits on certain
  supplementary  insurance;  and  providing  for  the  repeal  of   such
  provisions upon expiration thereof

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

  Section 1. Subsection (f) of section 3420  of  the  insurance  law  is
amended by adding a new paragraph 2-a to read as follows:
  (2-A) (A) NOTWITHSTANDING PARAGRAPH TWO OF THIS SUBSECTION, THIS PARA-
GRAPH  SHALL  APPLY TO ANY NEW INSURANCE POLICY OR CONTRACT ENTERED INTO
AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH. THIS PARAGRAPH SHALL NOT  BE
DEEMED  TO  APPLY  TO  ANY POLICIES ORIGINALLY ENTERED INTO PRIOR TO THE
EFFECTIVE DATE OF THIS PARAGRAPH, BUT RENEWED AFTER THE  EFFECTIVE  DATE
OF  THIS  PARAGRAPH.  ANY  NEW INSURANCE POLICY OR CONTRACT ENTERED INTO
AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH SHALL, AT THE OPTION  OF  THE
INSURED,  ALSO  PROVIDE  SUPPLEMENTARY  UNINSURED/UNDERINSURED MOTORISTS
INSURANCE FOR BODILY INJURY, IN AN AMOUNT EQUAL  TO  THE  BODILY  INJURY
LIABILITY INSURANCE LIMITS OF COVERAGE PROVIDED UNDER SUCH MOTOR VEHICLE
LIABILITY  INSURANCE  POLICY;  PROVIDED, HOWEVER, THAT ANY NAMED INSURED
MAY   EXERCISE   THE    CHOICE    TO    DECLINE    SUCH    SUPPLEMENTARY
UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE OR SELECT A LOWER AMOUNT OF
COVERAGE THROUGH A WRITTEN WAIVER SIGNED, OR ELECTRONICALLY  SIGNED,  BY
SUCH  INSURED,  SUBJECT  TO THE REQUIREMENTS OF SUBPARAGRAPH (B) OF THIS
PARAGRAPH.  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 POLI-

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

                                                           LBD04852-06-7

S. 5644--B                          2

CIES  OF  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 REPRESENTATIVE AND UPON DISCLOSURE  BY  THE  INSURED  OF  THE
INSURED'S  BODILY  INJURY AND SUPPLEMENTAL UNINSURED/UNDERINSURED MOTOR-
ISTS INSURANCE COVERAGE LIMITS, THE INSURER OF ANY OTHER OWNER OR OPERA-
TOR 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 BODILY 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  OBLIGATION  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.  IF AN INSURED ELECTS TO REJECT
SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORIST COVERAGE OR SELECT A LOWER
AMOUNT OF SUPPLEMENTARY UNINSURED/UNDERINSURED  MOTORIST  COVERAGE  THAN
THE  BODILY INJURY LIABILITY INSURANCE LIMITS OF COVERAGE PROVIDED UNDER
THE INSURED'S MOTOR VEHICLE LIABILITY INSURANCE POLICY, THE SELECTION OF
LOWER  SUPPLEMENTARY  UNINSURED/UNDERINSURED   MOTORISTS   COVERAGE   OR
REJECTION  OF SUCH COVERAGE MUST BE MADE ON A WRITTEN OR ELECTRONIC FORM
PROVIDED TO THE NAMED INSURED. SUCH FORM SHALL  ALSO  ADVISE  THAT  SUCH
COVERAGE  IS EQUAL TO THE INSURED'S BODILY INJURY LIABILITY LIMITS UNDER
THE MOTOR VEHICLE LIABILITY INSURANCE POLICY  UNLESS  LOWER  LIMITS  ARE
REQUESTED OR THE COVERAGE IS REJECTED.
  (I)  THE FORM SHALL BE IN AT LEAST 12-POINT BOLD TYPE AND SHALL STATE:
"SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM  COVERAGE)
PROVIDES  INSURANCE  PROTECTION FOR ANY PERSON INCLUDED AS INSURED UNDER
YOUR POLICY IF HE OR SHE IS INJURED IN  AN  ACCIDENT  INVOLVING  ANOTHER
MOTOR  VEHICLE  WHOSE OWNER OR OPERATOR WAS NEGLIGENT BUT WHO HAS EITHER
NO BODILY INJURY OR LIABILITY INSURANCE, OR LESS THAN THE INSURANCE  YOU
CARRY.  SUM  COVERAGE  SHALL  BE EQUAL TO THE LEVEL OF THE BODILY INJURY
LIABILITY COVERAGE OF YOUR  MOTOR  VEHICLE  LIABILITY  INSURANCE  POLICY
UNLESS  YOU  SIGN  A  WAIVER  REQUESTING LOWER COVERAGE OR DECLINING THE
COVERAGE. YOU ARE URGED TO CAREFULLY CONSIDER THIS DECISION."
  (II) AN  INSURED'S  WRITTEN  WAIVER  SHALL  APPLY  TO  ALL  SUBSEQUENT
RENEWALS  OF  COVERAGE AND TO ALL POLICIES OR ENDORSEMENTS WHICH EXTEND,
CHANGE, SUPERSEDE, OR REPLACE AN EXISTING POLICY  ISSUED  TO  THE  NAMED
INSURED, UNLESS CHANGED IN WRITING BY ANY NAMED INSURED.

S. 5644--B                          3

  (III)  THE  SELECTION  OF  LOWER  SUPPLEMENTARY UNINSURED/UNDERINSURED
MOTORISTS COVERAGE OR THE REJECTION OF SUCH COVERAGE BY  ANY  ONE  NAMED
INSURED SHALL BE BINDING UPON ALL INSUREDS UNDER SUCH POLICY.
  (C)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (A) OF THIS PARA-
GRAPH,  AT   THE   INSURER'S   OPTION,   THE   INSURED'S   SUPPLEMENTARY
UNINSURED/UNDERINSURED MOTORISTS COVERAGE LIMIT MAY BE REQUIRED TO EQUAL
THE  INSURED'S  BODILY  INJURY LIABILITY INSURANCE LIMIT UNDER THE MOTOR
VEHICLE LIABILITY INSURANCE POLICY.
  (D) AN INSURER MAY PROVIDE THE COVERAGE DESCRIBED  IN  THIS  PARAGRAPH
AVAILABLE  IN  AN UMBRELLA OR EXCESS LIABILITY POLICY IF THE UMBRELLA OR
EXCESS LIABILITY POLICY EXPRESSLY PROVIDES SUCH COVERAGE.
  § 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law, and shall apply to  new  insurance  policies
and  contracts  issued on and after such effective date and shall expire
and be deemed repealed June 30, 2020.

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The New York State Senate

senate Bill S5644B

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Archive: Last Bill Status - Signed by Governor

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Votes

Jun 21, 2017 - floor Vote

Floor Vote: Jun 21, 2017

Jun 21, 2017 - Rules committee Vote

Rules Committee Vote: Jun 21, 2017

Bill Amendments

S5644 - Details

S5644 - Summary

S5644 - Sponsor Memo

S5644 - Bill Text download pdf

Co-Sponsors

S5644A - Details

S5644A - Summary

S5644A - Sponsor Memo

S5644A - Bill Text download pdf

Co-Sponsors

S5644B (ACTIVE) - Details

S5644B (ACTIVE) - Summary

S5644B (ACTIVE) - Sponsor Memo

S5644B (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5644B

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Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Jun 21, 2017 - floor Vote

Floor Vote: Jun 21, 2017

Jun 21, 2017 - Rules committee Vote

Rules Committee Vote: Jun 21, 2017

Bill Amendments

S5644 - Details

S5644 - Summary

S5644 - Sponsor Memo

S5644 - Bill Text download pdf

Co-Sponsors

S5644A - Details

S5644A - Summary

S5644A - Sponsor Memo

S5644A - Bill Text download pdf

Co-Sponsors

S5644B (ACTIVE) - Details

S5644B (ACTIVE) - Summary

S5644B (ACTIVE) - Sponsor Memo

S5644B (ACTIVE) - Bill Text download pdf

Comments