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A01731 Summary:

BILL NOA01731A
 
SAME ASSAME AS S07138-A
 
SPONSORDinowitz
 
COSPNSRWeprin, Epstein, Dickens, Tapia
 
MLTSPNSR
 
Add §2619, Ins L
 
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.
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A01731 Actions:

BILL NOA01731A
 
01/20/2023referred to insurance
03/22/2023reported referred to codes
03/28/2023reported
03/30/2023advanced to third reading cal.103
05/31/2023passed assembly
05/31/2023delivered to senate
05/31/2023REFERRED TO INSURANCE
01/03/2024DIED IN SENATE
01/03/2024RETURNED TO ASSEMBLY
01/03/2024ordered to third reading cal.52
02/12/2024amended on third reading 1731a
03/18/2024passed assembly
03/18/2024delivered to senate
03/18/2024REFERRED TO INSURANCE
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A01731 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1731A
 
SPONSOR: Dinowitz
  TITLE OF BILL: 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   PURPOSE OR GENERAL IDEA OF BILL: Restricts insurers from demanding intrusive personal, financial and tax information from insured's as a. standard practice in ordinary theft claims.   SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill adds § 2619 to the Insurance Law to restrict insurers from demanding intrusive personal, financial, and tax informa- tion from an insured as a standard practice in ordinary theft claims. Section two of the bill provides the effective date.   JUSTIFICATION: Requests for personal and financial information which has nothing to do with .a theft claim made by an insured are inappropriate and intrusive. For example, companies have requested copies of personal and business tax returns, license and registration, other permits or licenses held in NYS, loan applications filed, statements setting forth the county and state in which the insured was registered to vote over the last five years, copies of any bank statements, and copies'of any "Doing Business As" Certificates or Certificates of Incorporation for any businesses owned in addition to requiring that the insured make a recorded state- ment regarding the circumstances of the theft. While an insurance compa- ny has a right to information pertinent to the claim in question, clear- ly many of these demands go beyond being reasonable requests and are exceedingly onerous and intrusive.   LEGISLATIVE HISTORY: 2022: A.2254 - Reported to Rules 2021: A.2254 - Insurance 2019-20: A.3718 - Insurance 2017-18: A.2532 - Third Reading Calendar 2015-16: A.1340 - Third Reading Calendar 2013-14: A.302 - Third Reading Calendar 2011-12: A.714 - Insurance 2009-10: A.534 - Insurance / S.3987 - Insurance 2007-08: A.490-A - Passed Assembly / S.3987 - Insurance 2005-06: A.1226-A - Passed Assembly 13.7060-A - Insurance 2003-04: A.6576 - Passed Assembly / S.3192 - Insurance 2001-02: A.1782 - Passed Assembly / S.2852 - Insurance 1999-00: A.5536/3.2116 - Assembly Calendar / S.2116 - Insurance   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rules and regulations necessary for the implementation of the foregoing section of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
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A01731 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1731--A
                                                                 Cal. No. 52
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 20, 2023
                                       ___________
 
        Introduced  by  M. of A. DINOWITZ, WEPRIN, EPSTEIN, DICKENS -- read once
          and referred to the Committee on Insurance -- ordered to a third read-
          ing, amended and ordered reprinted, retaining its place on  the  order
          of third reading

        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  2619
     2  to read as follows:
     3    §  2619.  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.
                                                                   LBD00825-02-4

        A. 1731--A                          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    § 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.  Effective immediate-
    11  ly, the addition, amendment and/or repeal of any  rules  or  regulations
    12  necessary for the implementation of the foregoing section of this act on
    13  its  effective date are authorized to be made and completed on or before
    14  such effective date.
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