S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7288
 
                             I N  S E N A T E
 
                              January 5, 2018
                                ___________
 
 Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the insurance law, in relation to 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-a of subsection (f)  of  section  3420  of  the
 insurance  law,  as added by chapter 490 of the laws of 2017, 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 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 COMMER-
 CIAL RISK INSURANCE. Any new insurance policy or contract  entered  into
 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 [any] A
 FIRST named insured may exercise the choice to decline such supplementa-
 ry 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  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] A duly
 authorized representative and upon disclosure  by  the  insured  of  the
 insured's  bodily  injury and supplemental uninsured/underinsured motor-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD04852-10-7

 S. 7288                             2
 
 ists insurance coverage limits, the insurer of any other owner or opera-
 tor 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. 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   coverage   or
 rejection  of such coverage must be made on a written or electronic 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.
   (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
 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  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."] ALSO
 ADVISE THAT SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM
 COVERAGE) PROVIDES INSURANCE  PROTECTION  FOR  ANY  PERSON  INCLUDED  AS
 INSURED UNDER YOUR POLICY IF HE OR SHE IS INJURED IN AN ACCIDENT INVOLV-
 ING  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  INSUR-
 ANCE  POLICY  UNLESS  YOU  SIGN  A  WAIVER  REQUESTING LOWER COVERAGE OR
 DECLINING THE COVERAGE. YOU ARE URGED TO CAREFULLY CONSIDER  THIS  DECI-
 SION.

 S. 7288                             3
 
   (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]     THE     selection     of    lower    supplementary
 uninsured/underinsured motorists  coverage  or  the  rejection  of  such
 coverage  by  any  [one]  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.  This  act  shall  take  effect on the same date and in the same
 manner as chapter 490 of the laws of 2017 takes effect; provided, howev-
 er, 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  there-
 with.