Bill Text: NY S00551 | 2019-2020 | General Assembly | Introduced


Bill Title: Increases the minimum insurance coverage requirements for automobiles registered and/or operated within the state of New York.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced) 2019-01-09 - REFERRED TO TRANSPORTATION [S00551 Detail]

Download: New_York-2019-S00551-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           551
                               2019-2020 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced  by  Sens.  AKSHAR, FELDER -- read twice and ordered printed,
          and when printed to be committed to the Committee on Transportation
        AN ACT to amend the vehicle and traffic law and the  insurance  law,  in
          relation to increasing the minimum insurance coverage requirements for
          automobiles registered and/or operated within the state of New York
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (a) of subdivision 4 and subdivision 7 of section
     2  311 of the vehicle and traffic law, paragraph (a) of  subdivision  4  as
     3  amended  by chapter 305 of the laws of 1995 and subdivision 7 as amended
     4  by chapter 805 of the laws of 1984, are amended to read as follows:
     5    (a) Affording coverage as defined in the minimum provisions prescribed
     6  in a regulation which shall be  promulgated  by  the  superintendent  at
     7  least  ninety  days prior to effective date of this act. The superinten-
     8  dent before promulgating such  regulations  or  any  amendment  thereof,
     9  shall  consult  with all insurers licensed to write automobile liability
    10  insurance in this state and shall not prescribe minimum provisions which
    11  fail to reflect the provisions of automobile liability  insurance  poli-
    12  cies,  other than motor vehicle liability policies as defined in section
    13  three hundred forty-five of this chapter, issued within  this  state  at
    14  the  date of such regulation or amendment thereof.  Nothing contained in
    15  such regulation or in this  article  shall  prohibit  any  insurer  from
    16  affording  coverage  under an owner's policy of liability insurance more
    17  liberal than that required by  said  minimum  provisions.    Every  such
    18  owner's policy of liability insurance shall provide insurance subject to
    19  said  regulation  against  loss  from  the  liability imposed by law for
    20  damages, including damages for care and loss  of  services,  because  of
    21  bodily  injury to or death of any person and injury to or destruction of
    22  property arising out of the ownership, maintenance, use, or operation of
    23  a specific motor vehicle or motor vehicles within the state of New York,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05488-01-9

        S. 551                              2
     1  or elsewhere in the United States in North America or  the  Dominion  of
     2  Canada,  subject  to  a  limit,  exclusive  of  interest and costs, with
     3  respect to each such motor vehicle except a tow truck, of  [twenty-five]
     4  two  hundred  fifty  thousand  dollars because of bodily injuries to and
     5  [fifty] five hundred thousand dollars because of death of one person  in
     6  any  one  accident and, subject to said limit for one person, to a limit
     7  of [fifty] five hundred thousand dollars because of bodily injury to and
     8  one [hundred thousand] million dollars because of death of two  or  more
     9  persons  in  any one accident, and to a limit of [ten] twenty-five thou-
    10  sand dollars because of injury to or destruction of property  of  others
    11  in  any one accident provided, however, that such policy need not be for
    12  a period  coterminous  with  the  registration  period  of  the  vehicle
    13  insured.  The  limit, exclusive of interest and costs, with respect to a
    14  tow truck shall be a combined single limit of  at  least  three  hundred
    15  thousand  dollars  because  of  bodily  injury  or  death to one or more
    16  persons or because of injury or destruction of property of others in any
    17  one accident, and to a limit of twenty-five thousand dollars because  of
    18  damage to a vehicle in the care, custody and control of the insured. Any
    19  insurer  authorized to issue an owner's policy of liability insurance as
    20  provided for in this article may, pending the issue of  such  a  policy,
    21  make  an  agreement,  to be known as a binder, or may, in lieu of such a
    22  policy, issue a renewal endorsement or evidence of renewal of an  exist-
    23  ing  policy;  each  of  which shall be construed to provide indemnity or
    24  protection in like manner and to the same extent as such a  policy.  The
    25  provisions of this article shall apply to such binders, renewal endorse-
    26  ments or evidences of renewal. Every such policy issued insuring private
    27  passenger  vehicles  and  every  renewal policy, renewal endorsement, or
    28  other evidence of renewal issued shall have attached  thereto  a  rating
    29  information  form which clearly specifies and defines the rating classi-
    30  fication assigned thereto, including any applicable merit  rating  plan;
    31  and
    32    7.  The  term  "financial  security deposit" shall mean for each motor
    33  vehicle the deposit with the commissioner of [twenty-five]  two  hundred
    34  fifty  thousand  dollars  in cash, or securities, such as may legally be
    35  purchased by savings banks or trust funds, of a market value  of  [twen-
    36  ty-five] two hundred fifty thousand dollars and an additional deposit in
    37  an amount determined by the commissioner to be sufficient to satisfy the
    38  requirements of article fifty-one of the insurance law.
    39    §  2. Paragraph 3 of subdivision (b) of section 345 of the vehicle and
    40  traffic law, as amended by chapter 305 of the laws of 1995,  is  amended
    41  to read as follows:
    42    (3)  Shall  insure  the insured or such other person against loss from
    43  the liability imposed by law for damages, including damages for care and
    44  loss of services because of bodily injury to or death of any person  and
    45  injury to or destruction of property arising out of the ownership, main-
    46  tenance, use, or operation of such motor vehicle or motor vehicles with-
    47  in  the  state  of  New York, or elsewhere in the United States in North
    48  America or the Dominion of Canada, subject  to  a  limit,  exclusive  of
    49  interest and cost, with respect to each such motor vehicle, except a tow
    50  truck,  of  [twenty-five]  two hundred fifty thousand dollars because of
    51  bodily injury to or [fifty] five hundred  thousand  dollars  because  of
    52  death  of  one person in any one accident and, subject to said limit for
    53  one person, to a limit of [fifty] five hundred thousand dollars  because
    54  of bodily injury to or one [hundred thousand] million dollars because of
    55  death  of  two  or  more  persons in any one accident, and to a limit of
    56  [ten] twenty-five thousand dollars because of injury to  or  destruction

        S. 551                              3
     1  of  property  of  others  in  any  one accident. The limit, exclusive of
     2  interest and costs, with respect to a tow  truck  shall  be  a  combined
     3  single  limit of three hundred thousand dollars because of bodily injury
     4  of  death  to one or more persons or because of injury or destruction of
     5  property of others in any one accident, and to a  limit  of  twenty-five
     6  thousand dollars because of damage to a vehicle in the care, custody and
     7  control of the insured.
     8    §  3.  Paragraph  1 of subsection (f) of section 3420 of the insurance
     9  law, as amended by chapter 305 of the laws of 1995, is amended  to  read
    10  as follows:
    11    (1)  No  policy insuring against loss resulting from liability imposed
    12  by law for bodily injury or death suffered by any natural person arising
    13  out of the ownership, maintenance and use of  a  motor  vehicle  by  the
    14  insured  shall be issued or delivered by any authorized insurer upon any
    15  motor vehicle then principally garaged or principally used in this state
    16  unless it contains a provision whereby the insurer agrees that  it  will
    17  pay  to  the insured, as defined in such provision, subject to the terms
    18  and conditions set forth therein to be prescribed by the board of direc-
    19  tors of the  Motor  Vehicle  Accident  Indemnification  Corporation  and
    20  approved by the superintendent, all sums, not exceeding a maximum amount
    21  or  limit  of [twenty-five] two hundred fifty thousand dollars exclusive
    22  of interest and costs, on account of injury to and all sums, not exceed-
    23  ing a maximum amount or limit of [fifty] five hundred  thousand  dollars
    24  exclusive  of  interest and costs, on account of death of one person, in
    25  any one accident, and the maximum amount or limit, subject to such limit
    26  for any one person so injured of [fifty] five hundred  thousand  dollars
    27  or  so  killed  of  one [hundred thousand] million dollars, exclusive of
    28  interest and costs, on account of injury to, or death of, more than  one
    29  person  in  any  one  accident, which the insured or his legal represen-
    30  tative shall be entitled to recover as damages from an owner or operator
    31  of an uninsured motor vehicle, unidentified motor vehicle  which  leaves
    32  the scene of an accident, a motor vehicle registered in this state as to
    33  which  at  the  time of the accident there was not in effect a policy of
    34  liability insurance, a stolen vehicle, a motor vehicle operated  without
    35  permission  of  the  owner,  an  insured motor vehicle where the insurer
    36  disclaims liability  or  denies  coverage  or  an  unregistered  vehicle
    37  because of bodily injury, sickness or disease, including death resulting
    38  therefrom,  sustained  by  the  insured, caused by accident occurring in
    39  this state and arising out of the ownership, maintenance or use of  such
    40  motor vehicle. No payment for non-economic loss shall be made under such
    41  policy  provision  to a covered person unless such person has incurred a
    42  serious injury, as such terms are defined in section five  thousand  one
    43  hundred two of this chapter. Such policy shall not duplicate any element
    44  of  basic  economic  loss  provided  for under article fifty-one of this
    45  chapter. No payments of first party benefits  for  basic  economic  loss
    46  made  pursuant  to  such  article  shall diminish the obligations of the
    47  insurer under this policy provision for the payment of non-economic loss
    48  and economic loss in excess of basic economic loss. Notwithstanding  any
    49  inconsistent  provisions  of section three thousand four hundred twenty-
    50  five of this article, any such policy which does not contain the  afore-
    51  said  provisions  shall be construed as if such provisions were embodied
    52  therein.
    53    § 4. Subsection (a) of section 5210 of the insurance law,  as  amended
    54  by chapter 305 of the laws of 1995, is amended to read as follows:
    55    (a) When any qualified person who has complied with all the applicable
    56  requirements  of  this  article  recovers  a  final  judgment in a court

        S. 551                              4
     1  against a financially irresponsible motorist, for injury  to,  or  death
     2  of,  any  person arising out of the ownership, maintenance or use of the
     3  uninsured motor vehicle in this state, which  remains  unpaid,  and  all
     4  appeals have been concluded or the time for commencing them has expired,
     5  the judgment creditor may file a verified petition in the court in which
     6  the  judgment  was  entered  and,  upon  ten days' written notice to the
     7  corporation apply to the court for an order  directing  payment  by  the
     8  corporation  of the amount unpaid on the judgment.  However, there shall
     9  be no right of recovery by a covered person  from  the  corporation  for
    10  non-economic  loss  unless such person has incurred a serious injury, as
    11  such terms are defined in section five thousand one hundred two of  this
    12  chapter.    Such  judgment  exclusive  of  interest  and costs shall not
    13  exceed:
    14    (1) [twenty-five] two hundred fifty thousand  dollars  on  account  of
    15  injury to one person in any one accident, and
    16    (2)  [fifty]  five hundred thousand dollars on account of death to one
    17  person in any one accident, and
    18    (3) [fifty] five hundred thousand dollars on account of injury to more
    19  than one person in any one accident subject to the limit of  twenty-five
    20  thousand dollars for any one person, and
    21    (4) one [hundred thousand] million dollars on account of death to more
    22  than  one person in any one accident subject to the limit of fifty thou-
    23  sand dollars for any one person.
    24    § 5. This act shall take effect on the one hundred eightieth day after
    25  is shall have become a law.
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