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.

                            
 
                     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.