S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4371

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 4, 2013
                               ___________

Introduced  by  M.  of A. COOK, MORELLE -- read once and referred to the
  Committee on Insurance

AN ACT to amend the insurance law, in relation to deductibles for  phys-
  ical damage insurance

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (k) of section 3411  of  the  insurance  law  is
amended to read as follows:
  (k) (1) Each insurer which offers physical damage insurance subject to
the  provisions of this section shall offer such insurance with a stand-
ard deductible of two hundred dollars for each occurrence.  The  insured
shall, however, at the inception of the policy or at the annual anniver-
sary  date,  or at the time of the replacement or addition of an automo-
bile, have the option of purchasing a policy with a  lesser  deductible,
but  in no event may the insurer sell a policy with a deductible of less
than fifty dollars for fire, theft or comprehensive insurance  coverages
(one hundred dollars for assigned risk policies issued pursuant to para-
graph two of subsection (a) of section five thousand three hundred three
of  this chapter) and one hundred dollars for collision insurance cover-
age except that window glass coverage may be sold without a  deductible.
Each  insurer  which  offers  physical  damage  insurance subject to the
provisions of this section shall also offer  physical  damage  coverages
with  co-insurance  or  deductible provisions or combinations thereof as
the superintendent may prescribe, including but not limited  to  deduct-
ibles  of  two hundred fifty dollars, five hundred dollars and one thou-
sand dollars.
  (2) NOTWITHSTANDING THE DOLLAR LIMITS FOR DEDUCTIBLES IN PARAGRAPH ONE
OF THIS SUBSECTION, AN INSURER WHICH OFFERS  PHYSICAL  DAMAGE  INSURANCE
SUBJECT  TO  THE  PROVISIONS  OF THIS SECTION MAY OFFER A REDUCED DOLLAR
DEDUCTIBLE, A ZERO DOLLAR DEDUCTIBLE OR  A  DEDUCTIBLE  THAT  DIMINISHES
OVER TIME AND MAY ULTIMATELY BE REDUCED TO ZERO DOLLARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06631-01-3
              

A. 4371                             2

  (3)  AN  INSURER WHO OFFERS A REDUCED DOLLAR DEDUCTIBLE, A ZERO DOLLAR
DEDUCTIBLE OR A DEDUCTIBLE THAT DIMINISHES OVER TIME SHALL  DISCLOSE  TO
THE  INSURED  OR  POTENTIAL  INSURED  AT  THE  TIME SUCH A DEDUCTIBLE IS
OFFERED OR A POLICY THAT HAS SUCH A DEDUCTIBLE IS  RENEWED  HOW  SUCH  A
DEDUCTIBLE  WOULD  INTERACT  WITH  THE OTHER PROVISIONS OF THE INSURED'S
POLICY, ANY ADDITIONAL COST TO THE INSURED FOR HAVING SUCH A DEDUCTIBLE,
THE CIRCUMSTANCES UNDER WHICH THE DEDUCTIBLE MAY BE  REDUCED  OR  DIMIN-
ISHED,  IF AND UNDER WHAT CIRCUMSTANCES THE DEDUCTIBLE MAY BE INCREASED,
AND THE EFFECT THAT THE DEDUCTIBLE MAY HAVE UPON THE INSURED'S PREMIUM.
  (4) UNDER NO CIRCUMSTANCES SHALL AN INSURER PENALIZE  AN  INSURED  WHO
HAS  A  REDUCED DOLLAR DEDUCTIBLE, A ZERO DOLLAR DEDUCTIBLE OR A DEDUCT-
IBLE THAT DIMINISHES OVER TIME BY INCREASING BOTH THE INSURED'S  PREMIUM
AND DEDUCTIBLE IN RESPONSE TO THE SAME CLAIM OR INCIDENT. THIS PARAGRAPH
SHALL NOT BE CONSTRUED TO PROHIBIT AN INSURER FROM INCREASING EITHER THE
INSURED'S  PREMIUM  OR DEDUCTIBLE IN RESPONSE TO THE SAME CLAIM OR INCI-
DENT.
  S 2. This act shall take effect immediately.