Assembly Bill A1450

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1450
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2025
                                ___________
 
 Introduced by M. of A. DINOWITZ, WEPRIN, EPSTEIN, TAPIA -- read once and
   referred to the Committee on Insurance
 
 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 THEIR
 PRESENT RESIDENCE;
   (5)  COPIES  OF  ANY BANK STATEMENTS OF BANKS IN WHICH THE INSURED HAS
 ACCOUNTS;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03192-01-5
              

 A. 1450                             2
 
   (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.