What's happening
This bill directs the Department of Financial Services to study and report on minimum coverage amounts for non-commercial auto insurance in New York.
Why it matters
Could lead to higher or lower minimum insurance requirements. in New York, directly affecting how much coverage drivers must legally have and what they could pay out-of-pocket after an accident.
Examines how current coverage impacts consumers. , including whether people tend to buy more insurance than the minimum, and how raising minimums might affect insurance premiums, claim processing, and overall consumer satisfaction.
Involves input from a wide range of stakeholders. including insurance companies, agents, and consumer advocates—which means the recommendations could reflect real-world impacts and concerns from both industry and the public.
The study’s findings and recommendations could shape future legislative action. on auto insurance, potentially leading to changes that affect the affordability and adequacy of coverage for all New York drivers.
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Study Auto Insurance Minimums
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Study Auto Insurance Minimums
In Senate Committee · Insurance · Sponsor Kevin Cahill
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5883
2017-2018 Regular Sessions
IN SENATE
May 4, 2017
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT relating to the creation of a study of the minimum coverage amounts for non-commercial auto insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The department of financial services shall conduct a study of the minimum coverage amounts for liability and uninsured motorist coverage currently required under article 3 of the vehicle and traffic law for non-commercial auto insurance in New York state, the minimum amount of no-fault coverage required by article 51 of the insurance law, and additional coverage options, including but not limited to comprehensive, collision, and supplemental uninsured/underinsured motorist coverage. In conducting this study, such department shall consider whether the current minimum coverage amounts are adequate to protect consumers; whether and to what extent consumers purchase higher coverage amounts; the impact higher coverage amounts have on premiums, claims processing, and consumer satisfaction; and any other factors such department deems relevant. Such department shall consult with relevant stakeholders, including insurance companies, insurance producers, consumer advocacy groups, and any other person or entity such department deems necessary. Such department shall issue a report of its findings as well as recommendations as to whether the required minimum coverage amounts for liability, uninsured motorist coverage, and no-fault should be increased, the extent to which such amounts should be increased, and the impact this would have on premiums. Such department shall submit its report to the governor, the temporary president of the senate, the speaker of the assembly, and the chairs of the senate and assembly standing committees on insurance no later than April 15, 2019.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01675-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act relating to the creation of a study of the minimum coverage amounts for non-commercial auto insurance
Purpose
The purpose of this bill is to require DFS to conduct a study to determine the impact of raising the minimum coverage limits of automobile insurance coverage.
Summary of provisions
This bill would require the Department of Financial Services (DFS) to conduct a study that would include a review of the minimum coverage amounts for the following types of automobile insurance coverage: liability, uninsured motorist, no-fault, and additional coverage options, including but not limited to comprehensive collision, and supplemental uninsured/underinsured motorist coverage. Furthermore, the bill requires that a report detailing DFS' findings as well as-recommendations as to whether the required minimum coverage amounts for liability, uninsured motorist coverage, and no-fault should be increased, the extent to which such coverage should be increased, and the impact this would have on premiums be submitted to the Governor, the temporary President of the Senate, the Speaker of the Assembly, and the Chairs of the Senate and Assembly standing committees on insurance no later than April 15, 2018. The study shall be created in consultation with relevant stakeholders, including insurance companies, insurance producers, consumer advocacy groups, and any other person or entity DFS deems necessary.
Existing law
New York State law requires that motorists carry a minimum amount of liability insurance of $25,000 for bodily injury to one person, $50,000 for bodily injury to all persons, and $10,000 for property damage in any one accident. Mandatory "no-fault" coverage of $50,000 is also required. However, many motorists carry higher liability limits and additional personal injury protection beyond these minimum benefits required by law. The law also requires all auto insurance policies to provide uninsured motorists coverage (for bodily injury), subject to the same minimums. In addition, SUM (Supplementary Uninsured/Underinsured Motorists) coverage can also be purchased, in amounts up to the bodily injury liability limits of an insured's own policy.
Legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.