S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5503
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 3, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed 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.
              

                                                            LBD07992-01-9

 S. 5503                             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.
   § 2. This act shall take effect immediately.