Senate Bill S4420A

2017-2018 Legislative Session

Permits an insurer to rescind or retroactively cancel a policy in circumstance involving an accident staged to defraud an insurer

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Votes

Bill Amendments

co-Sponsors

2017-S4420 - Details

See Assembly Version of this Bill:
A6001
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §3457, amd §§3420, 5103 & 5201, Ins L; amd §313, V & T L
Versions Introduced in Other Legislative Sessions:
2011-2012: S7746
2013-2014: S1959, A3774
2015-2016: S1471, A7005
2019-2020: S643, A6210
2021-2022: S502
2023-2024: S1471

2017-S4420 - Summary

Permits an insurer to rescind or retroactively cancel a policy in circumstance involving an accident staged to defraud an insurer.

2017-S4420 - Sponsor Memo

2017-S4420 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4420
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 14, 2017
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law and the vehicle and  traffic  law,  in
   relation to permitting an insurer to rescind or retroactively cancel a
   policy in certain circumstances

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The insurance law is amended by adding a new  section  3455
 to read as follows:
   §  3455.  CANCELLATION OF POLICY. (A) AN INSURER MAY, WITHIN THE FIRST
 SIXTY DAYS, RESCIND OR RETROACTIVELY CANCEL TO  THE  INCEPTION  A  NEWLY
 ISSUED   AUTOMOBILE   INSURANCE  POLICY  SUBJECT  TO  PARAGRAPH  ONE  OF
 SUBSECTION (A) OF SECTION THREE THOUSAND  FOUR  HUNDRED  TWENTY-FIVE  OF
 THIS  ARTICLE,  A  NEWLY  ISSUED  COMMERCIAL AUTOMOBILE INSURANCE POLICY
 SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS  ARTI-
 CLE,  OR  A POLICY ISSUED PURSUANT TO ANY PLAN ESTABLISHED UNDER ARTICLE
 FIFTY-THREE OF THIS CHAPTER, IF  THE  INITIAL  PREMIUM  PAYMENT  IS  NOT
 HONORED  BY A FINANCIAL INSTITUTION DUE TO THE NONEXISTENCE OR THE UNAU-
 THORIZED USE OF A BANK ACCOUNT, OR THE INITIAL PREMIUM PAYMENT IS DENIED
 BY A CREDIT CARD COMPANY DUE TO THE UNAUTHORIZED USE OF  A  CREDIT  CARD
 ACCOUNT. THIS SECTION SHALL NOT APPLY TO POLICIES REQUIRED UNDER ARTICLE
 EIGHT OF THE VEHICLE AND TRAFFIC LAW.
   (B)  A PERSON WHO IS INJURED DURING THIS PERIOD AND WHO WOULD ORDINAR-
 ILY BE COVERED UNDER THE INSURED'S  POLICY  HAD  IT  NOT  BEEN  CANCELED
 PURSUANT TO SUBSECTION (A) OF THIS SECTION, SHALL BE ENTITLED TO RECOVER
 UNDER  HIS  OR HER OWN POLICY SUBJECT TO THE TERMS AND CONDITIONS OF THE
 CONTRACT, OR IF THE INJURED PERSON IS UNINSURED, THEY SHALL BE  ENTITLED
 TO RECOVER UNDER THE MOTOR VEHICLE ACCIDENT INDEMNIFICATION CORPORATION,
 PROVIDED  SUCH  PERSON  DID  NOT PARTICIPATE IN ANY FRAUDULENT ACTIVITY,
 INCLUDING, BUT NOT LIMITED TO, AN ACCIDENT STAGED TO DEFRAUD AN INSURER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06803-01-7
              

co-Sponsors

2017-S4420A (ACTIVE) - Details

See Assembly Version of this Bill:
A6001
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §3457, amd §§3420, 5103 & 5201, Ins L; amd §313, V & T L
Versions Introduced in Other Legislative Sessions:
2011-2012: S7746
2013-2014: S1959, A3774
2015-2016: S1471, A7005
2019-2020: S643, A6210
2021-2022: S502
2023-2024: S1471

2017-S4420A (ACTIVE) - Summary

Permits an insurer to rescind or retroactively cancel a policy in circumstance involving an accident staged to defraud an insurer.

2017-S4420A (ACTIVE) - Sponsor Memo

2017-S4420A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4420--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 14, 2017
                                ___________
 
 Introduced  by  Sens.  GOLDEN,  AKSHAR,  FUNKE -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Insur-
   ance  --  recommitted to the Committee on Insurance in accordance with
   Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 AN  ACT  to  amend the insurance law and the vehicle and traffic law, in
   relation to permitting an insurer to rescind or retroactively cancel a
   policy in certain circumstances
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The insurance law is amended by adding a new section 3457
 to read as follows:
   § 3457. CANCELLATION OF POLICY. (A) AN INSURER MAY, WITHIN  THE  FIRST
 SIXTY  DAYS,  RESCIND  OR  RETROACTIVELY CANCEL TO THE INCEPTION A NEWLY
 ISSUED  AUTOMOBILE  INSURANCE  POLICY  SUBJECT  TO  PARAGRAPH   ONE   OF
 SUBSECTION  (A)  OF  SECTION  THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF
 THIS ARTICLE, A NEWLY  ISSUED  COMMERCIAL  AUTOMOBILE  INSURANCE  POLICY
 SUBJECT  TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTI-
 CLE, OR A POLICY ISSUED PURSUANT TO ANY PLAN ESTABLISHED  UNDER  ARTICLE
 FIFTY-THREE  OF  THIS  CHAPTER,  IF  THE  INITIAL PREMIUM PAYMENT IS NOT
 HONORED BY A FINANCIAL INSTITUTION DUE TO THE NONEXISTENCE OR THE  UNAU-
 THORIZED USE OF A BANK ACCOUNT, OR THE INITIAL PREMIUM PAYMENT IS DENIED
 BY  A  CREDIT  CARD COMPANY DUE TO THE UNAUTHORIZED USE OF A CREDIT CARD
 ACCOUNT. THIS SECTION SHALL NOT APPLY TO POLICIES REQUIRED UNDER ARTICLE
 EIGHT OF THE VEHICLE AND TRAFFIC LAW.
   (B) A PERSON WHO IS INJURED DURING THIS PERIOD AND WHO WOULD  ORDINAR-
 ILY  BE  COVERED  UNDER  THE  INSURED'S  POLICY HAD IT NOT BEEN CANCELED
 PURSUANT TO SUBSECTION (A) OF THIS SECTION, SHALL BE ENTITLED TO RECOVER
 UNDER HIS OR HER OWN POLICY SUBJECT TO THE TERMS AND CONDITIONS  OF  THE
 CONTRACT,  OR IF THE INJURED PERSON IS UNINSURED, THEY SHALL BE ENTITLED
 TO RECOVER UNDER THE MOTOR VEHICLE ACCIDENT INDEMNIFICATION CORPORATION,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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