S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5445
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2017
                                ___________
 
 Introduced by M. of A. MORELLE, PEOPLES-STOKES, ZEBROWSKI, STIRPE, HOOP-
   ER,  WEPRIN,  MOSLEY,  ARROYO,  ROSENTHAL,  SKOUFIS, LIFTON, BRINDISI,
   BRONSON, AUBRY, M. G. MILLER, JENNE, LUPARDO, WALKER, GALEF --  Multi-
   Sponsored  by  --  M.    of  A. GRAF, LUPINACCI, RAIA -- read once and
   referred to the Committee on Insurance

 AN ACT to amend the insurance law, in  relation  to  limits  on  certain
   supplementary insurance
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 2 of subsection (f) of section 3420 of the insur-
 ance law, as separately amended by chapters 547 and 568 of the  laws  of
 1997, is amended to read as follows:
   (2)  (A)  Any  such  policy  shall, at the option of the insured, also
 provide supplementary  uninsured/underinsured  motorists  insurance  for
 bodily  injury, in an amount up to the bodily injury liability insurance
 limits of coverage provided under such policy[, subject to a maximum  of
 two  hundred fifty thousand dollars because of bodily injury to or death
 of one person in any one accident and, subject to  such  limit  for  one
 person,  up to five hundred thousand dollars because of bodily injury to
 or death of two or more persons in  any  one  accident,  or  a  combined
 single  limit  policy of five hundred thousand dollars because of bodily
 injury to or death of one or more persons in any one accident.  Provided
 however,  an  insurer  issuing  such  policy, in lieu of offering to the
 insured  the  coverages  stated   above,   may   provide   supplementary
 uninsured/underinsured  motorists  insurance  for  bodily  injury, in an
 amount up to the bodily injury liability insurance  limits  of  coverage
 provided under such policy, subject to a maximum of one hundred thousand
 dollars  because  of  bodily injury to or death of one person in any one
 accident and, subject to such limit for one person, up to three  hundred
 thousand  dollars  because  of  bodily injury to or death of two or more
 persons in any one accident, or a combined single limit policy of  three

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

                                                            LBD04852-01-7

 A. 5445                             2

 hundred  thousand dollars because of bodily injury to or death of one or
 more persons in any one accident, if such insurer also makes available a
 personal umbrella policy with liability coverage limits up to  at  least
 five  hundred  thousand dollars which also provides coverage for supple-
 mentary   uninsured/underinsured   motorists   claims].    Supplementary
 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 [another] 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 his 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 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 supplementary uninsured/underinsured motorists coverage.
 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 availability shall  be
 provided  at  least  once a year and may be simplified pursuant to regu-
 lations 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.] (I) AT THE TIME SUCH POLICY IS
 SOLD, PURCHASED AND/OR NEGOTIATED THE INSURED SHALL BE PROVIDED  WITH  A
 FORM THAT SHALL BE IN 12-POINT BOLD TYPE AND SHALL STATE: "SUM INSURANCE
 PROTECTS ANY INSURED UNDER THE POLICY IF THEY ARE INJURED IN AN ACCIDENT
 CAUSED  BY  A  DRIVER  WHO  HAS  NO INSURANCE OR LESS INSURANCE THAN YOU
 CARRY. SUM COVERAGE MAY BE PURCHASED AT LIMITS UP TO THE  LEVEL  OF  THE
 BODILY  INJURY LIABILITY COVERAGE OF THE POLICY. POLICYHOLDERS ARE URGED
 TO CAREFULLY CONSIDER THIS IN DETERMINING THE LEVEL OF SUM  COVERAGE  TO
 PURCHASE."  ON THE SAME PAGE AS THE ABOVE PARAGRAPH THE INSURED SHALL BE
 GIVEN   THE   OPTION   TO    EITHER:    (1)    PURCHASE    SUPPLEMENTARY
 UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE  IN  THE SAME AMOUNT AS THE
 BODILY INJURY LIABILITY INSURANCE LIMITS OF COVERAGE PROVIDED UNDER SUCH
 POLICY;  (2)  PURCHASE  SUPPLEMENTARY  UNINSURED/UNDERINSURED  MOTORISTS
 INSURANCE  IN  AN AMOUNT LESS THAN THE BODILY INJURY LIABILITY INSURANCE
 LIMITS OF COVERAGE PROVIDED UNDER SUCH POLICY; OR (3) PURCHASE MANDATORY
 MINIMUM UNINSURED MOTORIST INSURANCE ONLY. THE  INSURED  SHALL  ALSO  BE
 PROVIDED  WITH  THE APPLICABLE PREMIUM FOR EACH OPTION. IF THE REJECTION

 A. 5445                             3

 OR SELECTION OF SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE
 IS MADE VERBALLY, THE INSURER OR THEIR AGENT SHALL READ THE IDENTICAL OR
 SUBSTANTIALLY SIMILAR LANGUAGE AS IS IN THE ABOVE SELECTION OR REJECTION
 FORM AND CONFIRM THE CLIENT HAS HEARD AND UNDERSTOOD THE SAME, AND SHALL
 RESTATE THE ABOVE INFORMATION AS OFTEN AS IS NECESSARY UNTIL THE INSURED
 HAS  VERBALLY  CONFIRMED THAT THEY FULLY UNDERSTAND THE SAME.  THE NAMED
 INSURED'S REJECTION OR SELECTION OF SUPPLEMENTARY UNINSURED/UNDERINSURED
 MOTORISTS INSURANCE MUST BE MEMORIALIZED BY THE INSURER THROUGH A SIGNED
 WRITING, AUDIO  RECORDING,  ELECTRONIC  SIGNATURE  OR  ANY  OTHER  MEANS
 EVIDENCING THE INSURED'S REJECTION OR SELECTION OF SUCH COVERAGE. UNLESS
 THE INSURER HAS PROOF THAT THE INSURED WAS PRESENTED WITH THE ABOVE FORM
 AND THAT SUCH COVERAGE WAS REJECTED OR SELECTED, AT THE TIME THE INSURED
 MAKES  A  CLAIM  SEEKING  SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS
 INSURANCE COVERAGE THE INSURED'S POLICY WILL BE READ TO INCLUDE  SUPPLE-
 MENTARY  UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE AT LIMITS EQUAL TO
 THE BODILY INJURY LIABILITY INSURANCE COVERAGE LIMITS OF  THE  INSURED'S
 POLICY.
   (II)  THE  INSURER SHALL NOTIFY THE NAMED INSURED AT LEAST ANNUALLY OF
 HER OF HIS OPTIONS AS TO THE COVERAGE REQUIRED BY THIS PARAGRAPH  PURSU-
 ANT  TO REGULATIONS ISSUED BY THE SUPERINTENDENT, IF ANY, AT THE TIME OF
 OR WITHIN SIXTY DAYS PRIOR TO THE RENEWAL OF THE POLICY.  THE LIMITS  OF
 SUPPLEMENTARY   UNINSURED/UNDERINSURED   MOTORISTS   INSURANCE  COVERAGE
 SELECTED BY THE INSURED SHALL REMAIN EFFECTIVE UPON POLICY AMENDMENT  OR
 RENEWAL, UNLESS THE INSURED REQUESTS AN AMENDMENT OF SUCH COVERAGE BY SO
 NOTING  ON AN IDENTICAL FORM AS SET FORTH IN CLAUSE (I) OF THIS SUBPARA-
 GRAPH AND IN ACCORDANCE WITH THE TERMS OF THIS SECTION.  RECEIPT OF THIS
 NOTICE DOES NOT CONSTITUTE AN AFFIRMATIVE WAIVER OF THE INSURED'S  RIGHT
 TO  UNINSURED  MOTORIST COVERAGE OR INDICATE THE SELECTION OF ANY AMOUNT
 OF SUPPLEMENTARY UNINSURED/UNDERINSURED  MOTORISTS  COVERAGE  WHERE  THE
 INSURED HAS NOT SIGNED A SELECTION OR REJECTION FORM.
   (III)  THE  SUPERINTENDENT  MAY  PROMULGATE  REGULATIONS PERTAINING TO
 SUPPLEMENTARY UNINSURED/UNDERINSURED  MOTORISTS  INSURANCE  COVERAGE  IN
 ACCORDANCE  WITH  THE PROVISIONS OF THIS SECTION, REGARDING THE FORM AND
 CONTENT OF THE NOTICES REQUIRED BY CLAUSES (I) AND (II) OF THIS SUBPARA-
 GRAPH INCLUDING A CONCISE STATEMENT OF THE AVAILABILITY OF COVERAGE, AND
 AN EXPLANATION OF THE  COVERAGE,  INCLUDING  SPECIFIC  EXAMPLES  OF  ITS
 USAGE.
   § 2. This act shall take effect on the one hundred eightieth day after
 it  shall  have  become a law, and shall apply to insurance policies and
 contracts issued, entered into or renewed on and  after  such  effective
 date.