NY State Senate Bill 2023-S4228

Archive: Last 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Feb 06, 2023	referred to insurance

co-Sponsors

2023-S4228 (ACTIVE) - Details

See Assembly Version of this Bill:: A2741
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3102, Ins L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A9927
2025-2026: A536

2023-S4228 (ACTIVE) - Summary

Relates to summaries of readable and understandable insurance policies which shall include the limits of insurance, the term of the policy, the amount of annual premium and the amount of deductibles and a statement.

2023-S4228 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4228

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the insurance law, in relation to summaries of readable
and understandable insurance policies

 
PURPOSE OR GENERAL IDEA OF BILL:

To require insurers to provide policyholders with a summary document
summarizing coverage.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds a new section 3102 to the insurance law, requiring insur-
ers to provide, with every policy, an accompanying document containing
the limits of insurance; the term of the policy; the amount of premium
to be paid for the policy; the amount of any deductible or deductibles
applicable before the policy will provide coverage; the principal exclu-
sions from coverage under the policy; and a statement clarifying such
document is only a summary of the policy. The information may be

provided by an agent or broker authorized by an insurer and may be sent
electronically.

Section 2 provides the effective date.

 
JUSTIFICATION:

Millions of New Yorkers buy auto, homeowners and renters insurance poli-
cies every year, but most have very limited understanding as to what
exactly their policies do and do not cover. It is not widely known, for
example, that standard homeowner policies will not cover flood damage
and auto insurance will not cover accidents occurring while someone is
operating their vehicle as an Uber or Lyft driver.  Few consumers take
the time to read the terms and conditions of their policy, since they
are not presented in a clear and concise format, thereby discouraging
consumers from even attempting to read the details of their coverage.

This bill would require insurers to send policyholders a summary docu-
ment including the coverage limits, term of the policy, annual premium,
and the principal exclusions from coverage. It would also need to
include a disclaimer that the document is only a summary of the policy,
that the amount and scope of coverage are determined only by the actual
terms of the policy, and that if the policyholder has any questions they
should contact the insurer, or the agent or broker who sold the policy.

Providing a policy summary is a beneficial tool to ensure consumers are
informed and have a clearer understanding.of their insurance coverage.

 
PRIOR LEGISLATIVE HISTORY:

A.2741 of 2023, referred to insurance.

A.9927a of 2022, referred to insurance.

 
FISCAL IMPLICATIONS:

None.
 
EFFECTIVE DATE:
This act shall take effect on the first of October next succeeding the
date on which it shall have become a law.

2023-S4228 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4228
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 6, 2023
                                ___________
 
 Introduced  by  Sen.  COONEY -- 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 summaries of  readable
   and understandable insurance policies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3102 of the insurance law is amended  by  adding  a
 new subsection (g) to read as follows:
   (G)  POLICY SUMMARY.  (1) EVERY POLICY DESCRIBED IN PARAGRAPH THREE OR
 FOUR OF SUBSECTION (A) OF THIS SECTION SHALL BE ACCOMPANIED, WHEN DELIV-
 ERED TO A POLICYHOLDER IN THIS STATE, BY A DOCUMENT PRINTED IN RED  FONT
 AND IN TYPEFACE OF NO LESS THAN SIXTEEN POINT TYPE WHICH SETS FORTH: (A)
 THE  LIMITS  OF INSURANCE; (B) THE TERM OF THE POLICY; (C) THE AMOUNT OF
 PREMIUM TO BE PAID FOR THE POLICY; (D) THE AMOUNT OF ANY  DEDUCTIBLE  OR
 DEDUCTIBLES  APPLICABLE BEFORE THE POLICY WILL PROVIDE COVERAGE; (E) THE
 PRINCIPAL EXCLUSIONS FROM COVERAGE UNDER THE POLICY; AND (F) THE FOLLOW-
 ING STATEMENT: "THIS IS ONLY A SUMMARY OF YOUR  POLICY.  ALL  TERMS  AND
 CONDITIONS  OF  THE  POLICY  WILL  GOVERN  AS TO THE SCOPE AND AMOUNT OF
 COVERAGE UNDER THE POLICY. CONTACT YOUR AGENT, BROKER OR INSURER IF  YOU
 HAVE QUESTIONS". AN INSURER MAY USE THE DECLARATIONS PAGE OF A POLICY TO
 PROVIDE THE INFORMATION REQUIRED BY THIS SUBSECTION.
   (2)  THE  INFORMATION REQUIRED TO BE DELIVERED TO A POLICYHOLDER UNDER
 PARAGRAPH ONE OF THIS SECTION MAY BE PROVIDED BY AN AGENT OR  BROKER  SO
 AUTHORIZED  BY AN INSURER, AND MAY BE SENT ELECTRONICALLY TO THE POLICY-
 HOLDER IN ACCORDANCE WITH SECTION THREE  THOUSAND  FOUR  HUNDRED  FIFTY-
 EIGHT OF THIS CHAPTER.
   (3)  WITHIN  ONE  HUNDRED  EIGHTY  DAYS  FROM  THE  ENACTMENT  OF THIS
 SUBSECTION THE SUPERINTENDENT SHALL ISSUE A  REGULATION  SPECIFYING  THE
 WORDING,  FILING AND APPROVAL REQUIREMENTS FOR THE DOCUMENT DESCRIBED IN
 PARAGRAPH ONE OF THIS SUBSECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05725-02-3
 S. 4228                             2

 
   (4) BEFORE ISSUING SUCH REGULATION THE SUPERINTENDENT SHALL APPOINT AN
 ADVISORY COMMITTEE ON THE SUMMARY OF KEY  PERSONAL  LINES  PROPERTY  AND
 CASUALTY  POLICY PROVISIONS TO BE COMPRISED OF EQUAL NUMBER OF REPRESEN-
 TATIVES FROM INSURERS OR INSURER  ASSOCIATIONS,  PRODUCERS  OR  PRODUCER
 ASSOCIATIONS,  CONSUMERS  OR CONSUMER ASSOCIATIONS, AND ACADEMIC EXPERTS
 ON INSURANCE REGULATION.  SUCH  ADVISORY  COMMITTEE  SHALL  SOLICIT  AND
 REVIEW  COMMENTS  FROM THE PUBLIC ON THE CONTENT OF SUCH REGULATION AND,
 WITHIN TWO HUNDRED TEN DAYS OF THE ENACTMENT  OF  THIS  SUBSECTION  MAKE
 RECOMMENDATIONS  IN  WRITING  TO THE SUPERINTENDENT AS TO THE CONTENT OF
 SUCH REGULATION.
   (5) NO INSURER OR PRODUCER COMPLYING WITH  THIS  SUBSECTION  SHALL  BE
 REQUIRED  BY  THE  SUPERINTENDENT,  IN  ANY REGULATION, ORDER, DECISION,
 DETERMINATION OR OTHER COMMUNICATION, TO PROVIDE ANY ADDITIONAL  SUMMARY
 OF THE TERMS AND CONDITIONS OF THE POLICY TO A POLICYHOLDER.
   §  2. This act shall take effect on the first of October next succeed-
 ing the date on which it shall have become a law and shall apply to  all
 policies  and contracts issued, renewed, modified, altered or amended on
 or after such date.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S4228

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

2023-S4228 (ACTIVE) - Details

2023-S4228 (ACTIVE) - Summary

2023-S4228 (ACTIVE) - Sponsor Memo

2023-S4228 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4228

Share this bill

Sponsored By

Jeremy A. Cooney

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

Shelley B. Mayer

2023-S4228 (ACTIVE) - Details

2023-S4228 (ACTIVE) - Summary

2023-S4228 (ACTIVE) - Sponsor Memo

2023-S4228 (ACTIVE) - Bill Text download pdf

Comments