NY State Senate Bill 2023-S1472

Senate Bill S1472

2023-2024 Legislative Session

Requires the superintendent of financial services to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies

download bill text pdf

Current Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Jan 12, 2023	referred to insurance

2023-S1472 (ACTIVE) - Details

See Assembly Version of this Bill:: A4011
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§3425 & 3426, Ins L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5579, A7453
2015-2016: S4221, A1230
2017-2018: S2809, A391
2019-2020: S3501, A72
2021-2022: S3767, A8637

2023-S1472 (ACTIVE) - Summary

Requires the superintendent to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies.

2023-S1472 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1472

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring the super-
intendent of financial services to promulgate regulations which provide
standardized definitions for commonly used terms and phrases in certain
insurance policies

 
SUMMARY OF PROVISIONS:

This bill would require the Superintendent of Financial Services, within
six months of the effective date of this bill, to promulgate regulations
which provide standardized definitions for commonly used terms and
phrases found in homeowners policies and commercial lines policies that,
provide coverage for loss or damage to real property, personal property,
or other liabilities for loss or damage to property. Insurers would be
required to use the standardized terms and phrases in policies issued or
delivered on or after the date, the regulations are finalized, which
would be no later than January 1, 2021. The bill would also allow insur-
ers to use alternative definitions at the discretion of the Superinten-
dent, so long as such definitions are not any less favorable to the

policyholder or claimant than those required under the regulations.

 
JUSTIFICATION:

Homeowners and commercial insurance policies provide necessary coverage
to individuals and business owners that can prove vital in the aftermath
of a disaster such as Superstorm Sandy. However, these policies can also
be complex, and commonly used terms and phrases may have different mean-
ings when used in different policies. This can cause confusion amongst
policyholders, especially following a disaster when they need their
insurance coverage the most. This bill would address this by ensuring
that all homeowners policies and certain commercial policies contain
standardized terms and phrases.

 
LEGISLATIVE HISTORY:

S.3767 of 2021-2022

S.3501 of 2019-20;

S.2809a of 2017-18;

S.4221 of 2015-16;

S.5579 of 2013-14.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2023-S1472 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1472
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- 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 requiring  the  super-
   intendent  of  financial  services  to  promulgate  regulations  which
   provide standardized definitions for commonly used terms  and  phrases
   in certain insurance policies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3425 of the insurance law is amended  by  adding  a
 new subsection (t) to read as follows:
   (T) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
 SUPERINTENDENT  SHALL  PROMULGATE REGULATIONS IN ACCORDANCE WITH SECTION
 TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH  PROVIDE
 STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
 THAT  PROVIDE  COVERAGE FOR PERSONAL LINES INSURANCE AS DEFINED IN PARA-
 GRAPH TWO OF SUBSECTION (A) OF THIS SECTION. SUCH STANDARDIZED TERMS AND
 PHRASES SHALL BE USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE
 ON OR AFTER THE DATE THE REGULATIONS ARE FINALIZED, WHICH  SHALL  BE  NO
 LATER  THAN  JANUARY FIRST, TWO THOUSAND TWENTY-FIVE. AN INSURER MAY USE
 ALTERNATIVE DEFINITIONS, SO LONG AS SUCH DEFINITIONS ARE  NOT  ANY  LESS
 FAVORABLE  TO  THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY THE SUPER-
 INTENDENT.
   § 2. Section 3426 of the insurance law is  amended  by  adding  a  new
 subsection (p) to read as follows:
   (P) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
 SUPERINTENDENT  SHALL  PROMULGATE REGULATIONS IN ACCORDANCE WITH SECTION
 TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH  PROVIDE
 STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
 THAT PROVIDE COVERAGE FOR COMMERCIAL LINES INSURANCE POLICIES THAT COVER
 LOSS OR DAMAGE TO REAL PROPERTY, PERSONAL PROPERTY, OR OTHER LIABILITIES
 FOR  LOSS  OR  DAMAGE  TO  PROPERTY. SUCH STANDARDIZED TERMS AND PHRASES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05327-01-3

 S. 1472                             2
 
 SHALL BE USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE  ON  OR
 AFTER  THE  DATE  THE REGULATIONS ARE FINALIZED, WHICH SHALL BE NO LATER
 THAN JANUARY FIRST, TWO THOUSAND TWENTY-FIVE.  AN INSURER MAY USE ALTER-
 NATIVE DEFINITIONS, SO LONG AS SUCH DEFINITIONS ARE NOT ANY LESS FAVORA-
 BLE  TO  THE  POLICYHOLDER OR CLAIMANT, AS DETERMINED BY THE SUPERINTEN-
 DENT.
   § 3. This act shall take effect immediately.

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