S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3718
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2019
                                ___________
 
 Introduced  by M. of A. DINOWITZ, WEPRIN, ABINANTI -- Multi-Sponsored by
   -- M. of A.  GOTTFRIED, PERRY -- read once and referred to the Commit-
   tee on Insurance
 
 AN ACT to amend the insurance law, in relation to  restricting  insurers
   from  demanding intrusive personal, financial and tax information from
   insureds as a standard practice in processing ordinary theft claims
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The insurance law is amended by adding a new section 2617
 to read as follows:
   § 2617. INTRUSIVE REQUESTS FOR PERSONAL, FINANCIAL  AND  TAX  INFORMA-
 TION;  ORDINARY THEFT CLAIMS. (A) IT SHALL BE AN UNFAIR CLAIM SETTLEMENT
 ACT OR PRACTICE UNDER PARAGRAPHS THREE AND FOUR  OF  SUBSECTION  (A)  OF
 SECTION  TWO THOUSAND SIX HUNDRED ONE OF THIS ARTICLE FOR AN INSURER, IN
 THE COURSE OF INVESTIGATING OR SETTLING A THEFT CLAIM, TO DEMAND OF  ITS
 INSURED PERSONAL, FINANCIAL AND TAX INFORMATION UNLESS SPECIAL ARTICULA-
 BLE  CIRCUMSTANCES  HAVE  BEEN  DISCOVERED  WHICH DIRECTLY RELATE TO THE
 PARTICULAR INDIVIDUAL FACTS OF SUCH THEFT AND WHICH WARRANT  THE  MAKING
 OF  SUCH DEMAND FOR THE SPECIFIC PURPOSE OF DETERMINING IF SUCH CLAIM IS
 FRAUDULENT.
   (B) AS USED IN THIS SECTION, A DEMAND FOR PERSONAL, FINANCIAL AND  TAX
 INFORMATION  IS  A DEMAND THAT ANY OF THE FOLLOWING MATERIAL OR INFORMA-
 TION BE PROVIDED:
   (1) COPIES OF THE INSURED'S PERSONAL AND BUSINESS TAX RETURNS;
   (2) PERMITS OR LICENSES WHICH THE INSURED  HOLDS  IN  NEW  YORK  STATE
 OTHER THAN THOSE FOR OPERATING A MOTOR VEHICLE;
   (3) LOAN APPLICATIONS WHICH THE INSURED FILED;
   (4)  STATEMENT SETTING FORTH THE COUNTY AND STATE IN WHICH THE INSURED
 HAS BEEN REGISTERED TO VOTE OVER A PERIOD OF TIME, OTHER THAN  FROM  HIS
 OR HER PRESENT RESIDENCE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00759-01-9
              

 A. 3718                             2
 
   (5)  COPIES  OF  ANY BANK STATEMENTS OF BANKS IN WHICH THE INSURED HAS
 ACCOUNTS;
   (6)  COPIES OF ANY "DOING BUSINESS AS" CERTIFICATES OR CERTIFICATES OF
 INCORPORATION FOR ANY BUSINESS THE INSURED OWNS; OR
   (7) INFORMATION OR MATERIAL OF A SIMILAR PERSONAL, FINANCIAL,  TAX  OR
 PRIVATE NATURE WHICH THE SUPERINTENDENT BY REGULATION FINDS TO BE INTRU-
 SIVE  OR  WHICH  CONSTITUTES  AN  UNWARRANTED INVASION OF PRIVACY IN THE
 CONTEXT OF A STANDARD OR ORDINARY THEFT CLAIM.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the date on which it shall have become a law.  Effective immediate-
 ly, the addition, amendment and/or repeal of any  rules  or  regulations
 necessary for the implementation of the foregoing section of this act on
 its  effective date are authorized and directed to be made and completed
 on or before such effective date.