S T A T E   O F   N E W   Y O R K
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                                   6799
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 18, 2017
                                ___________
 
 Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
   when printed to be committed to the Committee on Rules
 
 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] EQUAL 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.
              

                                                            LBD13267-01-7

 S. 6799                             2

 five hundred thousand dollars which also provides coverage  for  supple-
 mentary  uninsured/underinsured  motorists  claims];  PROVIDED, HOWEVER,
 WHENEVER AN INSURED PURCHASES OR RENEWS A MOTOR VEHICLE LIABILITY POLICY
 FOR  GREATER THAN THE MINIMUM REQUIRED BODILY INJURY POLICY LIMITS, 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.] WHENEVER AN  INSURED  PURCHASES
 OR  RENEWS A MOTOR VEHICLE LIABILITY POLICY FOR GREATER THAN THE MINIMUM
 REQUIRED POLICY LIMITS FOR BODILY INJURY, 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

 S. 6799                             3
 
 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 POLICY UNLESS YOU SIGN  A  WAIVER  REQUESTING
 LOWER  COVERAGE  OR  DECLINING  THE COVERAGE. YOU ARE URGED TO CAREFULLY
 CONSIDER THIS DECISION."
   (II) IF SUCH 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.