The New York State Senate

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

                                  8519

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                              June 18, 2017
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee 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] 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

A. 8519                             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

A. 8519                             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.