A04011 Summary:
BILL NO | A04011 |
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SAME AS | SAME AS S01472 |
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SPONSOR | Weprin |
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COSPNSR | Dickens |
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MLTSPNSR | |
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Amd §§3425 & 3426, Ins L | |
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Requires the superintendent to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies. |
A04011 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)   BILL NUMBER: A4011 Revised 2/8/2023 SPONSOR: Weprin
  TITLE OF BILL: 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   SUMMARY OF PROVISIONS: This bill would require the Superintendent of the Department of Finan- cial Services, within six months of the effective date of this bill, to promulgate regulations which provide standardized definitions for commonly used terms and phrases found in homeowners policies and commer- cial lines policies that provide coverage for loss or damage to real property, personal property, or other liabilities for loss or damage to property. Insurers would be required to use the standardized terms and phrases in policies issued or delivered on or after the date, the regu- lations are finalized, which would be no later than January 1, 2025. The bill, would also allow insurers to use alternative definitions at the discretion of the Superintendent, so long as such definitions are not any less favorable to the policyholder or claimant than those required under the regulations.   JUSTIFICATION: Homeowners and commercial insurance policies provide necessary coverage to individuals and business owners that can prove vital in the aftermath of a disaster such as Superstorm Sandy. However, these policies can also be complex, and commonly used terms and phrases may have different mean- ings when used in different policies. This can cause confusion amongst policyholders, especially following a disaster when they need their insurance coverage the most. This bill would address this by ensuring that all homeowners policies and certain commercial policies contains standardized terms and phrases.   LEGISLATIVE HISTORY: 2021-2022: A.8637 - Ordered to Third Reading Cal. 414 2019-2020: A.75 - Ordered to Third Reading Cal. 327
A04011 Text:
Go to top 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. LBD05327-01-3A. 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.