Assembly Bill A3648

2023-2024 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

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Current 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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2023-A3648 (ACTIVE) - Details

See Senate Version of this Bill:
S1471
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §3426-a, amd §§3420, 5103 & 5201, Ins L; amd §313, V & T L
Versions Introduced in Other Legislative Sessions:
2011-2012: S7746
2013-2014: S1959
2015-2016: S1471
2017-2018: S4420
2019-2020: S643
2021-2022: A8158, S502

2023-A3648 (ACTIVE) - Summary

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

2023-A3648 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3648
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee 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 3426-a
 to read as follows:
   § 3426-A. 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.
                                                            LBD05340-01-3
 A. 3648                             2
              

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