Assembly Bill A1731A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1731--A
                                                          Cal. No. 52
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2023
                                ___________
 
 Introduced  by  M. of A. DINOWITZ, WEPRIN, EPSTEIN, DICKENS -- read once
   and referred to the Committee on Insurance -- ordered to a third read-
   ing, amended and ordered reprinted, retaining its place on  the  order
   of third reading

 AN  ACT  to amend the insurance law, in relation to restricting insurers
   from demanding intrusive personal, financial and tax information  from
   insureds as a standard practice in processing ordinary theft claims
 
   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  2619
 to read as follows:
   §  2619.  INTRUSIVE  REQUESTS FOR PERSONAL, FINANCIAL AND TAX INFORMA-
 TION; ORDINARY THEFT CLAIMS. (A) IT SHALL BE AN UNFAIR CLAIM  SETTLEMENT
 ACT  OR  PRACTICE  UNDER  PARAGRAPHS THREE AND FOUR OF SUBSECTION (A) OF
 SECTION TWO THOUSAND SIX HUNDRED ONE OF THIS ARTICLE FOR AN INSURER,  IN
 THE  COURSE OF INVESTIGATING OR SETTLING A THEFT CLAIM, TO DEMAND OF ITS
 INSURED PERSONAL, FINANCIAL AND TAX INFORMATION UNLESS SPECIAL ARTICULA-
 BLE CIRCUMSTANCES HAVE BEEN DISCOVERED  WHICH  DIRECTLY  RELATE  TO  THE
 PARTICULAR  INDIVIDUAL  FACTS OF SUCH THEFT AND WHICH WARRANT THE MAKING
 OF SUCH DEMAND FOR THE SPECIFIC PURPOSE OF DETERMINING IF SUCH CLAIM  IS
 FRAUDULENT.
   (B)  AS USED IN THIS SECTION, A DEMAND FOR PERSONAL, FINANCIAL AND TAX
 INFORMATION IS A DEMAND THAT ANY OF THE FOLLOWING MATERIAL  OR  INFORMA-
 TION BE PROVIDED:
   (1) COPIES OF THE INSURED'S PERSONAL AND BUSINESS TAX RETURNS;
   (2)  PERMITS  OR  LICENSES  WHICH  THE INSURED HOLDS IN NEW YORK STATE
 OTHER THAN THOSE FOR OPERATING A MOTOR VEHICLE;
   (3) LOAN APPLICATIONS WHICH THE INSURED FILED;
   (4) STATEMENT SETTING FORTH THE COUNTY AND STATE IN WHICH THE  INSURED
 HAS  BEEN  REGISTERED TO VOTE OVER A PERIOD OF TIME, OTHER THAN FROM HIS
 OR HER PRESENT RESIDENCE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00825-02-4
 A. 1731--A                          2
 
   (5) COPIES OF ANY BANK STATEMENTS OF BANKS IN WHICH  THE  INSURED  HAS
 ACCOUNTS;
   (6)  COPIES OF ANY "DOING BUSINESS AS" CERTIFICATES OR CERTIFICATES OF
 INCORPORATION FOR ANY BUSINESS THE INSURED OWNS; OR
   (7) INFORMATION OR MATERIAL OF A SIMILAR PERSONAL, FINANCIAL,  TAX  OR
 PRIVATE NATURE WHICH THE SUPERINTENDENT BY REGULATION FINDS TO BE INTRU-
 SIVE  OR  WHICH  CONSTITUTES  AN  UNWARRANTED INVASION OF PRIVACY IN THE
 CONTEXT OF A STANDARD OR ORDINARY THEFT CLAIM.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the date on which it shall have become a law.  Effective immediate-
 ly, the addition, amendment and/or repeal of any  rules  or  regulations
 necessary for the implementation of the foregoing section of this act on
 its  effective date are authorized to be made and completed on or before
 such effective date.