Requires a motor vehicle insurance provider to notify a customer of the importance and usefulness of uninsured and underinsured motorist coverage

Title of bill

An act to amend the insurance law, in relation to notification of the importance and usefulness of uninsured and underinsured motorist coverage

Purpose or general idea of bill

This bill seeks to inform automobile owners of the value and importance of uninsured and underinsured motorist coverage.

Summary of specific provisions

This bill would amend the insurance law to provide, that no policy providing automobile physical damage insurance for private passenger automobiles registered in this state, shall be issued, delivered or renewed, without an informational disclaimer being provided to the insured, in writing, prior to the time of such issuance, delivery or renewal, concerning the importance and usefulness of uninsured and underinsured motorist coverage, and that the superintendent shall be responsible for the drafting of the informational disclaimer.

Justification

Uninsured and underinsured motorist coverage is a very important insurance product.

Statistics show that this inexpensive, valuable coverage is all too frequently neither recommended nor availed to customers of private passenger automobile insurance in New York State. This bill seeks to change that, by simply educating consumers as to this important coverage.

This bill would also have the positive effect of saving the state money, by not necessitating financial hits on the state sponsored uninsured/underinsured motorist insurance fund.

Fiscal impact

This bill should reduce financial costs to the state sponsored uninsured/underinsured motorist insurance fund.

Prior legislative history

2008 - S.2380: Referred to Insurance Committee

Effective date

This act would take effect immediately.