What's happening
This bill requires insurance policies to provide supplementary uninsured/underinsured motorists coverage at least equal to bodily injury liability limits.
Why it matters
Ensures greater financial protection for drivers and passengers. By requiring uninsured/underinsured motorist coverage to match bodily injury liability limits, the bill guarantees that individuals injured by inadequately insured drivers have access to higher compensation for medical costs and damages.
Reduces the risk of underinsurance gaps. Previously, drivers could opt for low supplementary uninsured/underinsured coverage even if they carried high liability limits, risking insufficient coverage in serious accidents. This change closes that loophole, helping insured individuals avoid unexpected out-of-pocket expenses.
May impact insurance premiums and consumer choices. With higher minimum coverage requirements, insurance premiums might rise for some policyholders, but consumers will be protected from the common pitfall of being underinsured after a collision with an uninsured or underinsured driver.
Strengthens consumer protections and claim transparency. The bill maintains rules requiring insurers to promptly disclose coverage limits to claimants, ensuring that injured parties have the information needed to pursue claims efficiently and avoid delays in accessing compensation.
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Who cares
Auto insurance policyholders
The bill would make supplementary uninsured/underinsured motorist bodily injury coverage mandatory rather than optional, with limits no lower than their bodily injury liability limits, subject to statutory caps.
Auto insurers
Insurers would have to provide the required supplementary coverage on policies issued, entered into or renewed starting 30 days after the bill becomes law.
Personal umbrella insurers and policyholders
The bill would require umbrella policies offered alongside the lower-cap auto coverage alternative to make both liability and supplementary uninsured/underinsured motorist coverage available with limits up to at least $500,000.
Headline styles
Raise Insurance Coverage Minimums
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4115
2019-2020 Regular Sessions
IN ASSEMBLY
February 1, 2019
Introduced by M. of A. PRETLOW -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to limits on certain supplementary insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
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, is amended to read as follows:
(A) Any such policy shall[, at the option of the insured,] also provide supplementary uninsured/underinsured motorists insurance for bodily injury, in an amount [up to] no less than the bodily injury liability insurance limits of coverage provided under such policy, subject to a maximum of two hundred fifty thousand dollars because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, up to five hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, or a combined single limit policy of five hundred thousand dollars because of bodily injury to or death of one or more persons in any one accident. Provided however, [an] any insurer issuing such policy, in lieu of offering to the insured the coverages stated above, [may] shall provide supplementary uninsured/underinsured motorists insurance for bodily injury, in an amount [up to] no less than the bodily injury liability insurance limits of coverage provided under such policy, subject to a maximum of one hundred thousand dollars because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, up to three hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, or a combined single limit policy of three hundred thousand dollars because of bodily injury to or death of one or more persons in any one accident, if such insurer also makes available a personal umbrella poli-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04422-01-9
A. 4115 2
cy with liability and supplementary uninsured/underinsured motorists insurance coverage limits up to at least five hundred thousand dollars [which also provides coverage for supplementary uninsured/underinsured motorists claims]. Supplementary uninsured/underinsured motorists insurance shall provide coverage, in any state or Canadian province, if the limits of liability under all bodily injury liability bonds and insurance policies of another motor vehicle liable for damages are in a lesser amount than the bodily injury liability insurance limits of coverage provided by such policy. Upon written request by any insured covered by supplemental uninsured/underinsured motorists insurance or his duly authorized representative and upon disclosure by the insured of the insured's bodily injury and supplemental uninsured/underinsured motorists insurance coverage limits, the insurer of any other owner or operator of another motor vehicle against which a claim has been made for damages to the insured shall disclose, within forty-five days of the request, the bodily injury liability insurance limits of its coverage provided under the policy or all bodily injury liability bonds. The time of the insured to make any supplementary uninsured/underinsured motorist claim, shall be tolled during the period the insurer of any other owner or operator of another motor vehicle that may be liable for damages to the insured, fails to so disclose its coverage. As a condition precedent to the obligation of the insurer to pay under the supplementary uninsured/underinsured motorists insurance coverage, the limits of liability of all bodily injury liability bonds or insurance policies applicable at the time of the accident shall be exhausted by payment of judgments or settlements.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law, and shall apply to insurance policies and contracts issued, entered into or renewed on and after 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.