S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7768
 
                             I N  S E N A T E
 
                             January 11, 2022
                                ___________
 
 Introduced  by  Sen. BRESLIN -- 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 providing for a policy
   term of less than one year in certain situations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subparagraph  (E)  of  paragraph  2  of subsection (d) of
 section 3426 of the insurance law, as added by a chapter of the laws  of
 2021  amending the insurance law relating to providing for a policy term
 of less than one year in certain situations, as proposed in  legislative
 bills numbers S. 4326 and A. 5379, is amended to read as follows:
   (E) where an insured requests a LIABILITY INSURANCE policy with a term
 of  less  than  one  year  from  an  insurer  that offers such policies;
 PROVIDED THAT THE INSURER ALSO OFFERS THE INSURED THE OPTION OF PURCHAS-
 ING A POLICY WITH A TERM OF ONE YEAR, AND:
   (I) THE INSURER WRITES THE POLICY ON AN OCCURRENCE BASIS;
   (II) THE INSURER WRITES THE POLICY ON A DEFENSE  COST  OUTSIDE  LIMITS
 BASIS;
   (III) THE INSURER MAY EXTEND THE POLICY, PROVIDED THAT:
   (A) THE COVERAGE REMAINS IN EFFECT AT THE SAME TERMS AND CONDITIONS;
   (B)  THE  RATE ACCORDS WITH THE RATES FILED WITH THE SUPERINTENDENT AT
 THE POLICY'S INCEPTION; AND
   (C) THE EXTENSION DOES NOT RESULT IN THE POLICY PERIOD EXCEEDING ELEV-
 EN MONTHS IN TOTAL;
   (IV) THE POLICY HAS NO ANNUAL AGGREGATE LIABILITY LIMIT BUT  MAY  HAVE
 AGGREGATE  LIMITS  FOR THE TERM OF THE POLICY, AND SUCH AGGREGATE LIMITS
 SHALL CONTINUE WITH ANY POLICY EXTENSION PROVIDED PURSUANT TO ITEM (III)
 OF THIS SUBPARAGRAPH;
   (V) THE POLICY DOES NOT PROVIDE MEDICAL MALPRACTICE COVERAGE;  LIABIL-
 ITY  INSURANCE  REQUIRED  BY ARTICLES SIX, EIGHT, OR FORTY-FOUR-B OF THE
 VEHICLE AND TRAFFIC LAW OR UNDER ANY OTHER FINANCIAL RESPONSIBILITY  LAW
 OF THIS STATE; OR PUBLIC ENTITY INSURANCE;
   (VI) THE POLICY PROVIDES FOR A TERM OF AT LEAST ONE MONTH;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08787-02-2
              

 S. 7768                             2
 
   (VII)  THE POLICY DOES NOT CONTAIN A CLAUSE LIMITING THE TIMELY FILING
 OF A CLAIM;
   (VIII) THE POLICY PROVIDES FOR A RETURN OF PREMIUM ON A PRO-RATA BASIS
 IF  THE  INSURED  CANCELS  OR OTHERWISE TERMINATES THE POLICY BEFORE THE
 POLICY'S EXPIRATION; AND
   (IX) THE INSURER PROVIDES A WRITTEN DISCLOSURE  TO  THE  INSURED  THAT
 EXPLAINS  THAT A POLICY ISSUED PURSUANT TO THIS SUBPARAGRAPH MAY BE MORE
 EXPENSIVE THAN A POLICY WITH A TERM OF ONE YEAR.
   § 2. Paragraph 9 of subsection (e) of section 3426  of  the  insurance
 law,  as  amended by chapter 235 of the laws of 1989, is amended to read
 as follows:
   (9) This subsection shall not apply to a hyper limits excess liability
 policy except in regard to nonrenewal or to a policy of the type  speci-
 fied  in  subparagraph  (A)  [or],  (B),  OR  (E)    of paragraph two of
 subsection (d) of this section.
   § 3. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter  of  the  laws of 2021 amending the insurance law
 relating to providing for a policy term of less than one year in certain
 situations, as proposed in legislative bills  numbers  S.  4326  and  A.
 5379, takes effect.