S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2779
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2023
                                ___________
 
 Introduced  by  M.  of  A.  COOK,  TAYLOR,  COLTON,  REYES, BUTTENSCHON,
   WILLIAMS -- Multi-Sponsored by -- M. of A.  DAVILA,  PRETLOW  --  read
   once and referred 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04056-01-3
 A. 2779                             2
              

 
 DEDUCTIBLE,  A  ZERO  DOLLAR  DEDUCTIBLE OR A DEDUCTIBLE THAT DIMINISHES
 OVER TIME AND MAY ULTIMATELY BE REDUCED TO ZERO DOLLARS.
   (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.