What's happening
This bill prevents financially irresponsible motorists and unlawfully insured persons from recovering non-economic damages after vehicle accidents.
Why it matters
Creates a strong financial incentive for drivers to maintain proper insurance coverage. , as those without it lose the ability to seek compensation for pain and suffering or emotional distress after an accident.
May disproportionately impact low-income individuals. who, due to financial hardship, may be more likely to drive without insurance and would now be barred from recovering non-economic damages even if not at fault.
Could lower costs for insured drivers and insurance companies. by reducing payouts for non-economic losses to uninsured or unlawfully insured claimants, potentially influencing insurance premium rates.
Shifts the risk of non-economic loss. (such as pain and suffering) directly onto uninsured drivers and unlawfully insured persons, fundamentally altering their legal recourse after a motor vehicle accident.
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Who cares
Financially irresponsible motorists
The bill would bar them from recovering non-economic losses arising from the use or operation of a motor vehicle or motorcycle.
Unlawfully insured people
They would lose the right to recover non-economic losses arising from motor vehicle or motorcycle use or operation.
Auto insurers and accident defendants
The bill would give them a basis to contest non-economic loss claims brought by people covered by the prohibition.
Personal injury attorneys
They would need to assess whether a client's financial responsibility or insurance status bars recovery of non-economic losses.
Headline styles
No Payouts for Uninsured Drivers
Plain English, a few words. Used as the page title.
Sponsors
4 Co-sponsors
1 Multi-sponsor
History
- Held for consideration in insurance
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5565
2019-2020 Regular Sessions
IN ASSEMBLY
February 13, 2019
Introduced by M. of A. MANKTELOW, DeSTEFANO, HAWLEY -- Multi-Sponsored by -- M. of A. McDONOUGH -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to recovery of non-economic loss
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 5104 of the insurance law is amended by adding a new subsection (d) to read as follows:
(d) A financially irresponsible motorist and an unlawfully insured person shall not have a right of recovery for non-economic loss arising out of the use or operation of a motor vehicle or motorcycle.
§ 2. This act shall take effect January 1, 2020 and shall apply to any cause of action filed on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08932-01-9
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.