Senate Bill S1471

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

Sponsored By

Current Bill Status - In Senate Committee Insurance 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-S1471 (ACTIVE) - Details

See Assembly Version of this Bill:
A3648
Current Committee:
Senate 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: S502, A8158

2023-S1471 (ACTIVE) - Summary

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

2023-S1471 (ACTIVE) - Sponsor Memo

2023-S1471 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1471
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2023
                                ___________
 
 Introduced  by Sens. BRESLIN, HELMING, MANNION -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Insur-
   ance
 
 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
              

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