Assembly Bill A4011

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4011
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2023
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on Insurance
 
 AN  ACT  to amend the insurance law, in relation to requiring the super-
   intendent  of  financial  services  to  promulgate  regulations  which
   provide  standardized  definitions for commonly used terms and phrases
   in certain insurance policies

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  3425 of the insurance law is amended by adding a
 new subsection (t) to read as follows:
   (T) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
 SUPERINTENDENT SHALL PROMULGATE REGULATIONS IN ACCORDANCE  WITH  SECTION
 TWO  HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH PROVIDE
 STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
 THAT PROVIDE COVERAGE FOR PERSONAL LINES INSURANCE AS DEFINED  IN  PARA-
 GRAPH TWO OF SUBSECTION (A) OF THIS SECTION. SUCH STANDARDIZED TERMS AND
 PHRASES SHALL BE USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE
 ON  OR  AFTER  THE DATE THE REGULATIONS ARE FINALIZED, WHICH SHALL BE NO
 LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-FIVE. AN INSURER  MAY  USE
 ALTERNATIVE  DEFINITIONS,  SO  LONG AS SUCH DEFINITIONS ARE NOT ANY LESS
 FAVORABLE TO THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY  THE  SUPER-
 INTENDENT.
   §  2.  Section  3426  of  the insurance law is amended by adding a new
 subsection (p) to read as follows:
   (P) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
 SUPERINTENDENT SHALL PROMULGATE REGULATIONS IN ACCORDANCE  WITH  SECTION
 TWO  HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH PROVIDE
 STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
 THAT PROVIDE COVERAGE FOR COMMERCIAL LINES INSURANCE POLICIES THAT COVER
 LOSS OR DAMAGE TO REAL PROPERTY, PERSONAL PROPERTY, OR OTHER LIABILITIES
 FOR LOSS OR DAMAGE TO PROPERTY.  SUCH  STANDARDIZED  TERMS  AND  PHRASES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05327-01-3
              

 A. 4011                             2
 
 SHALL  BE  USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE ON OR
 AFTER THE DATE THE REGULATIONS ARE FINALIZED, WHICH SHALL  BE  NO  LATER
 THAN JANUARY FIRST, TWO THOUSAND TWENTY-FIVE.  AN INSURER MAY USE ALTER-
 NATIVE DEFINITIONS, SO LONG AS SUCH DEFINITIONS ARE NOT ANY LESS FAVORA-
 BLE  TO  THE  POLICYHOLDER OR CLAIMANT, AS DETERMINED BY THE SUPERINTEN-
 DENT.
   § 3. This act shall take effect immediately.