Amends the insurance law in relation to the limits on certain supplementary insurance

Title of bill

An act to amend the insurance law, in relation to the limits on certain supplementary insurance

Purpose

This bill provides for supplementary uninsured/underinsured motorists insurance in standard policy.

Summary of specific provisions

Section 1. Subparagraph (A) of paragraph 2 of subsection (f) of section 3420 of the insurance law, as separately amended by chapters 547 and 568 of the laws of 1997.

Justification

This bill would make the Supplemental Underinsured Motorist (SUM) Insurance limit equal to the liability limit that each insured acquires.

Presently, all motorists with the minimum $25,000 or $50,000 liability coverage must carry the same SUM coverage. Those who choose higher liability limits have the option of the SUM matching the liability limits. Currently, many drivers who chose higher liability limits are unaware that they have the option to insure themselves up to the limits of their liability levels. Subsequently, when they are injured, they frequently learn that they have not exercised the option to protect themselves above the SUM minimum level. By automatically linking liability and SUM coverage, the insured is protected to the degree that she protects the rest of the state.

Legislative history

New bill.

Fiscal implications

None to the state.

Effective date

This act shall take effect on the thirtieth day after it shall have become a law.