S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7138--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance  --  recommitted
   to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee

 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 2619
 to read as follows:
   § 2619. 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;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00825-03-4
 S. 7138--A                          2
 
              

   (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;
   (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 to be made and completed on or  before
 such effective date.