STATE OF NEW YORK ________________________________________________________________________ 5644--B 2017-2018 Regular Sessions IN SENATE April 24, 2017 ___________ Introduced by Sens. SEWARD, ADDABBO, ALCANTARA, AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to limits on certain supplementary insurance; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subsection (f) of section 3420 of the insurance law is 2 amended by adding a new paragraph 2-a to read as follows: 3 (2-a) (A) Notwithstanding paragraph two of this subsection, this para- 4 graph shall apply to any new insurance policy or contract entered into 5 after the effective date of this paragraph. This paragraph shall not be 6 deemed to apply to any policies originally entered into prior to the 7 effective date of this paragraph, but renewed after the effective date 8 of this paragraph. Any new insurance policy or contract entered into 9 after the effective date of this paragraph shall, at the option of the 10 insured, also provide supplementary uninsured/underinsured motorists 11 insurance for bodily injury, in an amount equal to the bodily injury 12 liability insurance limits of coverage provided under such motor vehicle 13 liability insurance policy; provided, however, that any named insured 14 may exercise the choice to decline such supplementary 15 uninsured/underinsured motorists insurance or select a lower amount of 16 coverage through a written waiver signed, or electronically signed, by 17 such insured, subject to the requirements of subparagraph (B) of this 18 paragraph. Supplementary uninsured/underinsured motorists insurance 19 shall provide coverage, in any state or Canadian province, if the limits 20 of liability under all bodily injury liability bonds and insurance poli- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04852-06-7

S. 5644--B 2 1 cies of any other motor vehicle liable for damages are in a lesser 2 amount than the bodily injury liability insurance limits of coverage 3 provided by such policy. Upon written request by any insured covered by 4 supplemental uninsured/underinsured motorists insurance or his duly 5 authorized representative and upon disclosure by the insured of the 6 insured's bodily injury and supplemental uninsured/underinsured motor- 7 ists insurance coverage limits, the insurer of any other owner or opera- 8 tor of another motor vehicle against which a claim has been made for 9 damages to the insured shall disclose, within forty-five days of the 10 request, the bodily injury liability insurance limits of its coverage 11 provided under the policy or all bodily injury liability bonds. The time 12 of the insured to make any supplementary uninsured/underinsured motorist 13 claim, shall be tolled during the period the insurer of any other owner 14 or operator of another motor vehicle that may be liable for damages to 15 the insured, fails to so disclose its coverage. As a condition precedent 16 to the obligation of the insurer to pay under the supplementary 17 uninsured/underinsured motorists insurance coverage, the limits of 18 liability of all bodily injury liability bonds or insurance policies 19 applicable at the time of the accident shall be exhausted by payment of 20 judgments or settlements. 21 (B) In addition to the notice provided, upon issuance of a policy of 22 motor vehicle liability insurance pursuant to regulations promulgated by 23 the superintendent, insurers shall notify insureds, in writing, of the 24 availability of supplementary uninsured/underinsured motorists coverage. 25 Such notification shall contain an explanation of supplementary 26 uninsured/underinsured motorists coverage and the amounts in which it 27 can be purchased. Subsequently, a notification of availability shall be 28 provided at least once a year and may be simplified pursuant to regu- 29 lations promulgated by the superintendent, but must include a concise 30 statement that supplementary uninsured/underinsured motorists coverage 31 is available, an explanation of such coverage, and the coverage limits 32 that can be purchased from the insurer. If an insured elects to reject 33 supplementary uninsured/underinsured motorist coverage or select a lower 34 amount of supplementary uninsured/underinsured motorist coverage than 35 the bodily injury liability insurance limits of coverage provided under 36 the insured's motor vehicle liability insurance policy, the selection of 37 lower supplementary uninsured/underinsured motorists coverage or 38 rejection of such coverage must be made on a written or electronic form 39 provided to the named insured. Such form shall also advise that such 40 coverage is equal to the insured's bodily injury liability limits under 41 the motor vehicle liability insurance policy unless lower limits are 42 requested or the coverage is rejected. 43 (i) The form shall be in at least 12-point bold type and shall state: 44 "SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS COVERAGE (SUM COVERAGE) 45 PROVIDES INSURANCE PROTECTION FOR ANY PERSON INCLUDED AS INSURED UNDER 46 YOUR POLICY IF HE OR SHE IS INJURED IN AN ACCIDENT INVOLVING ANOTHER 47 MOTOR VEHICLE WHOSE OWNER OR OPERATOR WAS NEGLIGENT BUT WHO HAS EITHER 48 NO BODILY INJURY OR LIABILITY INSURANCE, OR LESS THAN THE INSURANCE YOU 49 CARRY. SUM COVERAGE SHALL BE EQUAL TO THE LEVEL OF THE BODILY INJURY 50 LIABILITY COVERAGE OF YOUR MOTOR VEHICLE LIABILITY INSURANCE POLICY 51 UNLESS YOU SIGN A WAIVER REQUESTING LOWER COVERAGE OR DECLINING THE 52 COVERAGE. YOU ARE URGED TO CAREFULLY CONSIDER THIS DECISION." 53 (ii) An insured's written waiver shall apply to all subsequent 54 renewals of coverage and to all policies or endorsements which extend, 55 change, supersede, or replace an existing policy issued to the named 56 insured, unless changed in writing by any named insured.

S. 5644--B 3 1 (iii) the selection of lower supplementary uninsured/underinsured 2 motorists coverage or the rejection of such coverage by any one named 3 insured shall be binding upon all insureds under such policy. 4 (C) Notwithstanding the provisions of subparagraph (A) of this para- 5 graph, at the insurer's option, the insured's supplementary 6 uninsured/underinsured motorists coverage limit may be required to equal 7 the insured's bodily injury liability insurance limit under the motor 8 vehicle liability insurance policy. 9 (D) An insurer may provide the coverage described in this paragraph 10 available in an umbrella or excess liability policy if the umbrella or 11 excess liability policy expressly provides such coverage. 12 § 2. This act shall take effect on the one hundred eightieth day after 13 it shall have become a law, and shall apply to new insurance policies 14 and contracts issued on and after such effective date and shall expire 15 and be deemed repealed June 30, 2020.