S T A T E O F N E W Y O R K
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8519
2017-2018 Regular Sessions
I N A S S E M B L Y
June 18, 2017
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Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee 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] EQUAL 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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13267-01-7
A. 8519 2
five hundred thousand dollars which also provides coverage for supple-
mentary uninsured/underinsured motorists claims]; PROVIDED, HOWEVER,
WHENEVER AN INSURED PURCHASES OR RENEWS A MOTOR VEHICLE LIABILITY POLICY
FOR GREATER THAN THE MINIMUM REQUIRED BODILY INJURY POLICY LIMITS, THAT
ANY INSURED MAY EXERCISE THE CHOICE TO DECLINE SUCH SUPPLEMENTARY
UNINSURED/UNDERINSURED MOTORISTS INSURANCE OR SELECT A LOWER AMOUNT OF
COVERAGE THROUGH A WRITTEN WAIVER SIGNED, OR ELECTRONICALLY SIGNED, BY
SUCH INSURED, SUBJECT TO THE REQUIREMENTS OF SUBPARAGRAPH (B) OF THIS
PARAGRAPH. 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 poli-
cies 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 representative 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 bodily 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 obligation 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.] WHENEVER AN INSURED PURCHASES
OR RENEWS A MOTOR VEHICLE LIABILITY POLICY FOR GREATER THAN THE MINIMUM
REQUIRED POLICY LIMITS FOR BODILY INJURY, THE SELECTION OF LOWER SUPPLE-
MENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE OR REJECTION OF SUCH
COVERAGE MUST BE MADE ON A WRITTEN OR ELECTRONIC FORM PROVIDED TO THE
INSURED AT THE TIME THE POLICY IS SOLD, PURCHASED OR NEGOTIATED. SUCH
FORM SHALL ADVISE THE INSURED OF THE AMOUNT OF THE PREMIUM ATTRIBUTED TO
SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE AS REQUIRED BY
THIS PARAGRAPH. SUCH FORM SHALL ALSO ADVISE THAT SUCH COVERAGE IS EQUAL
TO THE INSURED'S BODILY INJURY LIABILITY LIMITS UNLESS LOWER LIMITS ARE
REQUESTED OR THE COVERAGE IS REJECTED.
(I) THE FORM SHALL BE IN AT LEAST 12-POINT BOLD TYPE AND SHALL STATE:
"SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM COVERAGE)
PROVIDES INSURANCE PROTECTION FOR ANY PERSON INCLUDED AS INSURED UNDER
A. 8519 3
YOUR POLICY IF HE OR SHE 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 POLICY UNLESS YOU SIGN A WAIVER REQUESTING
LOWER COVERAGE OR DECLINING THE COVERAGE. YOU ARE URGED TO CAREFULLY
CONSIDER THIS DECISION."
(II) IF SUCH AN INSURED REJECTS SUCH COVERAGE OR SELECTS COVERAGE AT A
LOWER LIMIT, THE INSURER SHALL NOTIFY THE NAMED INSURED AT LEAST ANNUAL-
LY OF HIS OR HER OPTIONS AS TO THE COVERAGE REQUIRED BY THIS PARAGRAPH
PURSUANT TO REGULATIONS ISSUED BY THE SUPERINTENDENT, IF ANY, AT THE
TIME OF OR WITHIN SIXTY DAYS PRIOR TO THE RENEWAL OF THE POLICY, OR AT
LEAST ANNUALLY FOR MULTI-YEAR POLICIES. RECEIPT OF SUCH NOTICE DOES NOT
CONSTITUTE AN AFFIRMATIVE WAIVER OF THE INSURED'S RIGHT TO SUPPLEMENTARY
UNINSURED/UNDERINSURED MOTORIST COVERAGE OR INDICATE THE SELECTION OF
ANY LOWER AMOUNT OF SUCH COVERAGE WHERE THE INSURED HAS NOT SIGNED A
FORM TO REJECT SUCH COVERAGE OR SELECT A LOWER AMOUNT OF COVERAGE.
(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.
§ 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.