What's happening
This bill directs the Department of Financial Services to study and report on the adequacy of minimum non-commercial auto insurance coverage in New York.
Why it matters
Potential for Raising Insurance Minimums. The study could lead to recommendations for increasing the legally required minimum amounts of liability, no-fault, and uninsured motorist coverage, which could significantly affect both drivers’ protection and their insurance costs.
Consumer Impact Assessment. By evaluating whether current minimums are adequate and how often consumers opt for higher coverage, the report could highlight gaps in consumer protection or reveal that many New Yorkers are underinsured in serious accidents.
Influence on Insurance Premiums and Market Practices. The analysis will consider how changes to coverage requirements would affect insurance premiums, claims handling, and overall consumer satisfaction, shaping future policy discussions and possibly leading to regulatory changes that impact all drivers.
Broad Stakeholder Input. The Department of Financial Services is required to consult with insurers, agents, consumer advocates, and others, ensuring that the study’s findings and recommendations reflect a wide array of perspectives and interests, not just those of the insurance industry.
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
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 Assembly Committee · Ways And Means · Sponsor Alicia Hyndman
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2993
2019-2020 Regular Sessions
IN SENATE
January 31, 2019
Introduced by Sen. BRESLIN -- 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, 2021.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03113-01-9
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 or general idea of bill
The purpose of this bill is to require DFS to conduct a study to deter- mine the impact of raising the minimum coverage limits of automobile insurance coverage.
Summary of specific 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 recommen- dations as to whether the required minimum coverage amounts for liabil- ity, 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 Pres- ident 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, 2021. 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.
Justification
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 unin- sured motorists coverage (for bodily injury), subject to the same mini- mums. 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. The New York State Assembly Standing Committee on Insurance held a hearing that examined the auto insurance market in this state. Witnesses testified that the current minimum coverage amounts may not be adequate to protect consumers in an auto accident. However, other witnesses raised concerns about the impact that raising the minimum amounts would have on premiums. This bill would get to the heart of the matter by requiring DFS to conduct a study of these issues and issue a report to the Governor and the Legislature.
Prior legislative history
2017-2018: A.3787 - Passed Assembly S.5883 - Referred to Insurance Committee 2014: A.10115 - Passed assembly
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.