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Who cares
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Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
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Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to providing for a reduction in automobile insurance to reflect depreciation of insured automobile
Purpose
The purpose of this legislation is to provide for a reduction in automobile insurance premiums for comprehensive and collision coverage to reflect the reduced value of an automobile due to its depreciation during the term of a policy.
Summary of provisions
Section 1. Adds a new Insurance Law, section 2336 (h), to provide an insurance premium discount to reimburse the insured for the reduced value of an automobile as it depreciates in value over time.
Section 2. Provides for effective date.
Existing law
Under current law, motorists with disabled license plates are entitled to full-service refueling at the self-service price at retail gas stations that offer both.
Justification
This measure addresses the paradox that occurs for insurees and insurers with regard to automobile insurance rates. The Paradox is that even though an individual's coverage decreases over time because the value of the automobile decreases due to age, the rate paid by the insured generally remains constant as long as he or she owns the vehicle. The bill sponsor maintains that as the liability exposure to an insurer decreases as the value of the automobile decreases, that the insurance premium should reflect the decreases exposure to the insurer and decreased coverage that is received by the insured.
This legislation mandates that as the value of the automobile depreciates over time, there should be a corresponding decrease in the cost of the insurance to the consumer.
Legislative history
A.6492A of 2000 - Referred to Consumer Affairs A.2244 of 2002 - Referred to Consumer Affairs A.4463 of 2004 - Referred to Consumer Affairs S.2756 of 2006 - Referred to Insurance S.2246 of 2008 - Referred to Insurance
Fiscal implications
None.
Effective date
This act shall take effect on the first day of January next succeeding the date which it shall have become a law and shall apply to all policies issued, renewed, altered, or amended on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.