What's happening
This bill requires the superintendent of financial services to create standardized definitions for terms in personal and commercial insurance policies.
Why it matters
Reduces confusion and increases clarity for consumers and businesses. by requiring that all personal and commercial insurance policies use the same definitions for common terms, making it easier to compare policies and understand coverage.
Limits insurers’ ability to use ambiguous or unfavorable definitions. , since any alternative definitions must be at least as favorable to policyholders or claimants as the standardized ones, subject to oversight by the superintendent.
May enhance regulatory oversight and reduce disputes. about the meaning of policy language, potentially leading to fewer claims denials and less litigation over unclear terms.
Forces timely action from regulators and insurers. The superintendent must finalize regulations within a set timeframe, and insurers must comply quickly, potentially resulting in faster industry-wide changes and improved consumer protections.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Standardize Insurance Policy Terms
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Advanced to third reading cal.327
- Reported
- 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.
Standardize Insurance Policy Terms
In Senate Committee · Insurance · Sponsor Neil D. Breslin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
72
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. CAHILL, CYMBROWITZ, OTIS -- Multi-Sponsored by -- M. of A. ABINANTI, CUSICK, MALLIOTAKIS, PERRY, WEPRIN -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to requiring the superintendent of financial services to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3425 of the insurance law is amended by adding a new subsection (t) to read as follows:
(t) Within six months after the effective date of this subsection, the superintendent shall promulgate regulations in accordance with section two hundred two of the state administrative procedure act which provide standardized definitions for commonly used terms and phrases in policies that provide coverage for personal lines insurance as defined in paragraph two of subsection (a) of this section. Such standardized terms and phrases shall be used in such policies issued or delivered in this state on or after the date the regulations are finalized, which shall be no later than January first, two thousand twenty-one. An insurer may use alternative definitions, so long as such definitions are not any less favorable to the policyholder or claimant, as determined by the superintendent.
§ 2. Section 3426 of the insurance law is amended by adding a new subsection (p) to read as follows:
(p) Within six months after the effective date of this subsection, the superintendent shall promulgate regulations in accordance with section two hundred two of the state administrative procedure act which provide standardized definitions for commonly used terms and phrases in policies that provide coverage for commercial lines insurance policies that cover
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01962-01-9
A. 72 2
loss or damage to real property, personal property, or other liabilities for loss or damage to property. Such standardized terms and phrases shall be used in such policies issued or delivered in this state on or after the date the regulations are finalized, which shall be no later than January first, two thousand twenty-one. An insurer may use alternative definitions, so long as such definitions are not any less favorable to the policyholder or claimant, as determined by the superintendent.
§ 3. This act shall take effect immediately.
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.