Bill Text: NY A00714 | 2011-2012 | General Assembly | Introduced

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Bill Title: Restricts insurers from demanding intrusive personal, financial and tax information from insureds as a standard practice in processing ordinary theft claims where no special circumstances warranting a demand for such information exists.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2012-01-04 - referred to insurance [A00714 Detail]

Download: New_York-2011-A00714-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          714
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 5, 2011
                                      ___________
       Introduced  by  M. of A. DINOWITZ, HOOPER -- Multi-Sponsored by -- M. of
         A. BRENNAN, GOTTFRIED, JACOBS, SWEENEY, WEISENBERG --  read  once  and
         referred to the Committee on Insurance
       AN  ACT  to amend the insurance law, in relation to restricting insurers
         from demanding intrusive personal, financial and tax information  from
         insureds as a standard practice in processing ordinary theft claims
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The insurance law is amended by adding a new  section  2616
    2  to read as follows:
    3    S  2616.  INTRUSIVE  REQUESTS FOR PERSONAL, FINANCIAL AND TAX INFORMA-
    4  TION; ORDINARY THEFT CLAIMS. (A) IT SHALL BE AN UNFAIR CLAIM  SETTLEMENT
    5  ACT  OR  PRACTICE  UNDER  PARAGRAPHS THREE AND FOUR OF SUBSECTION (A) OF
    6  SECTION TWO THOUSAND SIX HUNDRED ONE OF THIS ARTICLE FOR AN INSURER,  IN
    7  THE  COURSE OF INVESTIGATING OR SETTLING A THEFT CLAIM, TO DEMAND OF ITS
    8  INSURED PERSONAL, FINANCIAL AND TAX INFORMATION UNLESS SPECIAL ARTICULA-
    9  BLE CIRCUMSTANCES HAVE BEEN DISCOVERED  WHICH  DIRECTLY  RELATE  TO  THE
   10  PARTICULAR  INDIVIDUAL  FACTS OF SUCH THEFT AND WHICH WARRANT THE MAKING
   11  OF SUCH DEMAND FOR THE SPECIFIC PURPOSE OF DETERMINING IF SUCH CLAIM  IS
   12  FRAUDULENT.
   13    (B)  AS USED IN THIS SECTION, A DEMAND FOR PERSONAL, FINANCIAL AND TAX
   14  INFORMATION IS A DEMAND THAT ANY OF THE FOLLOWING MATERIAL  OR  INFORMA-
   15  TION BE PROVIDED:
   16    (1) COPIES OF THE INSURED'S PERSONAL AND BUSINESS TAX RETURNS;
   17    (2)  PERMITS  OR  LICENSES  WHICH  THE INSURED HOLDS IN NEW YORK STATE
   18  OTHER THAN THOSE FOR OPERATING A MOTOR VEHICLE;
   19    (3) LOAN APPLICATIONS WHICH THE INSURED FILED;
   20    (4) STATEMENT SETTING FORTH THE COUNTY AND STATE IN WHICH THE  INSURED
   21  HAS  BEEN  REGISTERED TO VOTE OVER A PERIOD OF TIME, OTHER THAN FROM HIS
   22  OR HER PRESENT RESIDENCE;
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04359-01-1
       A. 714                              2
    1    (5) COPIES OF ANY BANK STATEMENTS OF BANKS IN WHICH  THE  INSURED  HAS
    2  ACCOUNTS;
    3    (6)  COPIES OF ANY "DOING BUSINESS AS" CERTIFICATES OR CERTIFICATES OF
    4  INCORPORATION FOR ANY BUSINESS THE INSURED OWNS; OR
    5    (7) INFORMATION OR MATERIAL OF A SIMILAR PERSONAL, FINANCIAL,  TAX  OR
    6  PRIVATE NATURE WHICH THE SUPERINTENDENT BY REGULATION FINDS TO BE INTRU-
    7  SIVE  OR  WHICH  CONSTITUTES  AN  UNWARRANTED INVASION OF PRIVACY IN THE
    8  CONTEXT OF A STANDARD OR ORDINARY THEFT CLAIM.
    9    S 2. This act shall take effect on the first of January next  succeed-
   10  ing  the  date  on  which it shall have become a law, provided, however,
   11  that effective immediately, the addition, amendment and/or repeal of any
   12  rules or regulations necessary for the implementation of  the  foregoing
   13  section of this act on its effective date are authorized and directed to
   14  be made and completed on or before such effective date.