The New York State Senate

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

                                  7288

                            I N  S E N A T E

                             January 5, 2018
                               ___________

Introduced  by  Sen.  SEWARD -- 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 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-a of subsection (f)  of  section  3420  of  the
insurance  law,  as added by chapter 490 of the laws of 2017, is amended
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  SUBJECT  TO
THIS SUBSECTION 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, OR TO ANY POLICY OF COMMER-
CIAL RISK INSURANCE. Any new insurance policy or contract  entered  into
after  the  effective date of this paragraph shall, at the option of the
FIRST NAMED 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] A
FIRST named insured may exercise the choice to decline such supplementa-
ry 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  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] A duly
authorized representative and upon disclosure  by  the  insured  of  the
insured's  bodily  injury and supplemental uninsured/underinsured motor-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD04852-10-7

S. 7288                             2

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 FIRST 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."] ALSO
ADVISE THAT 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 INVOLV-
ING  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  INSUR-
ANCE  POLICY  UNLESS  YOU  SIGN  A  WAIVER  REQUESTING LOWER COVERAGE OR
DECLINING THE COVERAGE. YOU ARE URGED TO CAREFULLY CONSIDER  THIS  DECI-
SION.

S. 7288                             3

  (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.
  (iii)     [the]     THE     selection     of    lower    supplementary
uninsured/underinsured motorists  coverage  or  the  rejection  of  such
coverage  by  any  [one]  FIRST  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 same date and in the same
manner as chapter 490 of the laws of 2017 takes effect; provided, howev-
er, that the amendments to paragraph (2-a) of subsection (f) of  section
3420  of  the  insurance  law  made by section one of this act shall not
affect the repeal of such paragraph and shall be deemed repealed  there-
with.