What's happening
This bill prohibits insurers from routinely demanding intrusive personal, financial, or tax information from insureds when processing ordinary theft claims, unless special circumstances indicate possible fraud.
Why it matters
Protects policyholder privacy. The bill specifically limits insurers from routinely requesting highly sensitive information (like tax returns, bank statements, and business records) during ordinary theft claim investigations, thereby reducing the risk of unnecessary invasions of personal and financial privacy.
Raises the bar for “special circumstances”. Insurers are only allowed to demand intrusive information if they can identify special, articulable circumstances directly tied to possible fraud in the specific claim, ensuring that policyholders are not treated with suspicion by default.
Clarifies what is considered “intrusive”. The legislation defines the types of information that are considered especially private, including not just financial documents but also voting registration history and business incorporation records, giving both insurers and insureds clearer guidelines.
Empowers regulatory oversight. The bill authorizes the state insurance superintendent to further define and regulate what constitutes an unwarranted invasion of privacy in these contexts, which may help adapt protections as new types of sensitive data become relevant.
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Who cares
Headline styles
Limit Insurers' Private Info Requests
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
2 Multi-sponsors
History
- Referred to insurance
- Referred to insurance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3718
2019-2020 Regular Sessions
IN ASSEMBLY
January 30, 2019
Introduced by M. of A. DINOWITZ, WEPRIN, ABINANTI -- Multi-Sponsored by -- M. of A. GOTTFRIED, PERRY -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to restricting insurers from demanding intrusive personal, financial and tax information from insureds as a standard practice in processing ordinary theft claims
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The insurance law is amended by adding a new section 2617 to read as follows:
§ 2617. Intrusive requests for personal, financial and tax information; ordinary theft claims. (a) It shall be an unfair claim settlement act or practice under paragraphs three and four of subsection (a) of section two thousand six hundred one of this article for an insurer, in the course of investigating or settling a theft claim, to demand of its insured personal, financial and tax information unless special articulable circumstances have been discovered which directly relate to the particular individual facts of such theft and which warrant the making of such demand for the specific purpose of determining if such claim is fraudulent.
(b) As used in this section, a demand for personal, financial and tax information is a demand that any of the following material or information be provided:
(1) copies of the insured's personal and business tax returns;
(2) permits or licenses which the insured holds in New York state other than those for operating a motor vehicle;
(3) loan applications which the insured filed;
(4) statement setting forth the county and state in which the insured has been registered to vote over a period of time, other than from his or her present residence;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00759-01-9
A. 3718 2
(5) copies of any bank statements of banks in which the insured has accounts;
(6) copies of any "doing business as" certificates or certificates of incorporation for any business the insured owns; or
(7) information or material of a similar personal, financial, tax or private nature which the superintendent by regulation finds to be intrusive or which constitutes an unwarranted invasion of privacy in the context of a standard or ordinary theft claim.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of the foregoing section of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.