Bill Text: NY A04011 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires the superintendent to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed) 2024-03-13 - REFERRED TO INSURANCE [A04011 Detail]

Download: New_York-2023-A04011-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4011

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 8, 2023
                                       ___________

        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on Insurance

        AN  ACT  to amend the insurance law, in relation to requiring the super-
          intendent  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  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  3425 of the insurance law is amended by adding a
     2  new subsection (t) to read as follows:
     3    (t) Within six months after the effective date of this subsection, the
     4  superintendent shall promulgate regulations in accordance  with  section
     5  two  hundred two of the state administrative procedure act which provide
     6  standardized definitions for commonly used terms and phrases in policies
     7  that provide coverage for personal lines insurance as defined  in  para-
     8  graph two of subsection (a) of this section. Such standardized terms and
     9  phrases shall be used in such policies issued or delivered in this state
    10  on  or  after  the date the regulations are finalized, which shall be no
    11  later than January first, two thousand twenty-five. An insurer  may  use
    12  alternative  definitions,  so  long as such definitions are not any less
    13  favorable to the policyholder or claimant, as determined by  the  super-
    14  intendent.
    15    §  2.  Section  3426  of  the insurance law is amended by adding a new
    16  subsection (p) to read as follows:
    17    (p) Within six months after the effective date of this subsection, the
    18  superintendent shall promulgate regulations in accordance  with  section
    19  two  hundred two of the state administrative procedure act which provide
    20  standardized definitions for commonly used terms and phrases in policies
    21  that provide coverage for commercial lines insurance policies that cover
    22  loss or damage to real property, personal property, or other liabilities
    23  for loss or damage to property.  Such  standardized  terms  and  phrases

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05327-01-3
        A. 4011                             2

     1  shall  be  used in such policies issued or delivered in this state on or
     2  after the date the regulations are finalized, which shall  be  no  later
     3  than January first, two thousand twenty-five.  An insurer may use alter-
     4  native definitions, so long as such definitions are not any less favora-
     5  ble  to  the  policyholder or claimant, as determined by the superinten-
     6  dent.
     7    § 3. This act shall take effect immediately.