What's happening
This bill requires insurers to give potential customers a copy of personal or commercial insurance policies with time to review before purchase.
Why it matters
Improves transparency. By requiring insurers to share the full policy before purchase, consumers and businesses can better understand exactly what is covered (and what is not), reducing the risk of unpleasant surprises after buying insurance.
Empowers informed decision-making. Potential policyholders gain the opportunity to review terms, conditions, and exclusions, allowing them to compare policies more effectively and choose coverage that fits their needs.
May reduce insurance disputes. With more time and access to policy documents before committing, customers are less likely to claim they were misled or unaware of certain provisions, which could lead to fewer disputes and complaints down the road.
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Who cares
Headline styles
Require Insurance Policy Review
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
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.
Let Buyers Review Insurance Policies
Assembly Floor Calendar · Sponsor Kevin Cahill
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3498
2019-2020 Regular Sessions
IN SENATE
February 8, 2019
Introduced by Sens. BRESLIN, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to personal and commercial lines insurance
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 (a-1) to read as follows:
(a-1) An insurer or producer shall, prior to the time a policy of personal lines insurance is sold or purchased, provide the potential insured with a copy of the policy and allow the potential insured sufficient time to review such policy. Personal lines insurance shall have the same meaning as paragraph two of subsection (a) of this section.
§ 2. Section 3426 of the insurance law is amended by adding a new subsection (a-1) to read as follows:
(a-1) An insurer or producer shall, prior to the time a policy of commercial lines insurance that provides coverage for loss or damage to real property, personal property, or other liabilities for loss or damage to property is sold or purchased, provide the potential insured with a copy of the policy and allow the potential insured sufficient time to review such policy.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01993-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to personal and commer- cial lines insurance
Purpose
The purpose of this bill is to require insurers to provide consumers with copies of certain insurance policies prior to the policy being purchased in order to allow consumers to make informed decisions about their insurance coverage.
Summary of provisions
This bill would require an insurer, agent,. or broker to provide to consumers in the market for homeowners and certain commercial policies a copy of the policy, prior to the time such policy is sold or purchased. The potential insured would have sufficient time to read and review the policy.
Justification
Insurance policies can be vital following a disaster such as Superstorm Sandy, when payments from insurers are vital to helping people recover and rebuild. However, many home and business owners find their homeown- ers and commercial insurance policies to be confusing. One reason for this is that many times consumers are only provided with the entire policy after they have purchased it; prior to that, they only receive a general outline as to what the policy covers and excludes. This bill would address this by requiring insurers, agents, and brokers to provide consumers with copies of homeowners and certain commercial policies prior to the policy being purchased. Having this information will allow consumers to make informed decisions about the coverage that they need to adequately insure themselves and their property.
Legislative history
S.2812 of 2017-18 S.2349 of 2015-16; S.5578 of 2013-14.
Fiscal implications
None noted.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.