Assembly Bill A227

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    227
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M. of A. CRUZ -- read once and referred to the Committee
   on Insurance
 
 AN  ACT  to  amend  the  insurance  law,  in  relation  to  supplemental
   uninsured/underinsured insurance; and to amend chapter 490 of the laws
   of  2017  amending  the  insurance  law  relating to limits on certain
   supplementary insurance, in relation to extending the provisions ther-
   eof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  2-a  of  subsection (f) of section 3420 of the
 insurance law, as amended by chapter 15 of the laws of 2018, is  amended
 to read as follows:
   (2-a) (A) Notwithstanding paragraph two of this subsection, this para-
 graph  shall  apply  to  any new insurance policy or contract subject to
 this subsection entered into, ISSUED,  RENEWED,  OR  AMENDED  after  the
 effective date of this paragraph.  This paragraph shall not be deemed to
 apply  to  [any  policies originally entered into prior to the effective
 date of this paragraph, but renewed after the  effective  date  of  this
 paragraph,  or  to]  any  policy of commercial risk insurance. Any [new]
 insurance policy or contract entered into, ISSUED, RENEWED,  OR  AMENDED
 after  the effective date of this paragraph shall[, at the option of the
 first named insured,] also provide supplementary  uninsured/underinsured
 motorists  insurance for bodily injury, in an amount equal to the bodily
 injury liability insurance limits of coverage provided under such  motor
 vehicle  liability  insurance  policy[;  provided, however, that a first
 named insured may exercise the choice] UNLESS THE  FIRST  NAMED  INSURED
 ELECTS  IN  WRITING to decline such supplementary uninsured/underinsured
 motorists insurance or select a lower amount of coverage through a writ-
 ten waiver signed, or electronically signed, by such insured, subject to
 the requirements of subparagraph (B) of  this  paragraph.  Supplementary
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01234-01-5
 A. 227                              2
 
 uninsured/underinsured  motorists  insurance  shall provide coverage, in
 any state or Canadian province, if the limits  of  liability  under  all
 bodily  injury liability bonds and insurance policies of any other motor
 vehicle liable for damages are in a lesser amount than the bodily injury
 liability  insurance  limits  of  coverage provided by such policy. Upon
 written   request   by   any    insured    covered    by    supplemental
 uninsured/underinsured  motorists  insurance or a duly authorized repre-
 sentative and upon disclosure by the insured  of  the  insured's  bodily
 injury   and  supplemental  uninsured/underinsured  motorists  insurance
 coverage limits, the insurer of any other owner or operator  of  another
 motor  vehicle  against  which  a claim has been made for damages to the
 insured shall disclose, within forty-five days of the request, the bodi-
 ly injury liability insurance limits of its coverage provided under  the
 policy  or all bodily injury liability bonds. The time of the insured to
 make any supplementary uninsured/underinsured motorist claim,  shall  be
 tolled  during  the period the insurer of any other owner or operator of
 another motor vehicle that may be liable for  damages  to  the  insured,
 fails to so disclose its coverage. As a condition precedent to the obli-
 gation    of    the    insurer    to   pay   under   the   supplementary
 uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
 liability  of  all  bodily  injury liability bonds or insurance policies
 applicable at the time of the accident shall be exhausted by payment  of
 judgments or settlements.
   (B)  In  addition  to  the notice provided, upon issuance, RENEWAL, OR
 AMENDMENT of a policy of motor vehicle liability insurance  pursuant  to
 regulations  promulgated  by  the  superintendent, insurers shall notify
 insureds, in writing, [of the availability of] THAT  SUCH  POLICY  SHALL
 INCLUDE  supplementary  uninsured/underinsured  motorists coverage IN AN
 AMOUNT EQUAL TO THE BODILY INJURY LIABILITY INSURANCE LIMITS OF COVERAGE
 PROVIDED UNDER SUCH MOTOR VEHICLE LIABILITY INSURANCE POLICY, UNLESS THE
 INSURED DECLINES AND REFUSES SUCH INSURANCE OR SELECTS A LOWER AMOUNT OF
 COVERAGE IN WRITING.  [Such notification shall contain an explanation of
 supplementary uninsured/underinsured motorists coverage and the  amounts
 in which it can be purchased. Subsequently, a notification of availabil-
 ity  shall be provided at least once a year and may be simplified pursu-
 ant to regulations promulgated by the superintendent, but must include a
 concise statement that  supplementary  uninsured/underinsured  motorists
 coverage is available, an explanation of such coverage, and the coverage
 limits  that can be purchased from the insurer.] If an insured elects to
 reject supplementary uninsured/underinsured motorist coverage or  select
 a lower amount of supplementary uninsured/underinsured motorist coverage
 than  the  bodily injury liability insurance limits of coverage provided
 under the  insured's  motor  vehicle  liability  insurance  policy,  the
 selection of lower supplementary uninsured/underinsured motorists cover-
 age or rejection of such coverage must be made on a written or electron-
 ic  form  provided  to  the  first  named insured. [Such form shall also
 advise that such coverage  is  equal  to  the  insured's  bodily  injury
 liability  limits  under  the  motor  vehicle liability insurance policy
 unless lower limits are requested or the coverage is rejected.]  FAILURE
 OF  THE INSURANCE CARRIER TO MAINTAIN AND PROVIDE SUCH FORM SHALL RESULT
 IN THE INSURANCE POLICY BEING READ TO INCLUDE THE  MAXIMUM  SUPPLEMENTAL
 UNINSURED/UNDERINSURED  COVERAGE AVAILABLE EQUAL TO THE LIABILITY LIMITS
 REGARDLESS OF PREMIUMS PAID.
   (i)   The    form    shall    also    advise    that:    supplementary
 uninsured/underinsured motorists coverage (sum coverage) provides insur-
 ance  protection for any person included as insured under your policy if
 A. 227                              3
 
 [he or she] SUCH PERSON is injured  in  an  accident  involving  another
 motor  vehicle  whose owner or operator was negligent but who has either
 no bodily injury or liability insurance, or less than the insurance  you
 carry.  Sum  coverage  shall  be equal to the level of the bodily injury
 liability coverage of your  motor  vehicle  liability  insurance  policy
 unless  you  sign  a  waiver  requesting lower coverage or declining the
 coverage. You are urged to carefully consider this decision. WE STRONGLY
 RECOMMEND THAT YOU PROTECT YOURSELF AND  PURCHASE  THE  MAXIMUM  SUPPLE-
 MENTAL UNINSURED/UNDERINSURED COVERAGE AVAILABLE.
   (ii)  [An  insured's  written  waiver  shall  apply  to all subsequent
 renewals of coverage and to all policies or endorsements  which  extend,
 change,  supersede,  or  replace  an existing policy issued to the named
 insured, unless changed in writing by any named insured.
   (iii)] The selection  of  lower  supplementary  uninsured/underinsured
 motorists  coverage or the rejection of such coverage by any first named
 insured shall be binding upon all insureds under such policy.
   (C) Notwithstanding the provisions of subparagraph (A) of  this  para-
 graph,   at   the   insurer's   option,   the   insured's  supplementary
 uninsured/underinsured motorists coverage limit may be required to equal
 the insured's bodily injury liability insurance limit  under  the  motor
 vehicle liability insurance policy.
   (D)  An  insurer  may provide the coverage described in this paragraph
 available in an umbrella or excess liability policy if the  umbrella  or
 excess liability policy expressly provides such coverage.
   §  2. Section 2 of chapter 490 of the laws of 2017 amending the insur-
 ance law relating to  limits  on  certain  supplementary  insurance,  as
 amended  by  chapter  181  of  the  laws  of 2023, is amended to read as
 follows:
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law, and shall apply to  new  insurance  policies
 and  contracts  issued on and after such effective date and shall expire
 and be deemed repealed June 30, [2026] 2029.
   § 3. This act shall take effect immediately; provided,  however,  that
 section  one of this act shall take effect on the ninetieth day after it
 shall have become a law and shall apply to all  new  insurance  policies
 and  contracts  issued,  renewed, or amended on and after such effective
 date; and provided further that  the  amendments  to  paragraph  2-a  of
 subsection  (f) of section 3420 of the insurance law made by section one
 of this act shall not affect the repeal of such paragraph and  shall  be
 deemed repealed therewith.