-  This bill is not active in this session.
 

A00251 Summary:

BILL NOA00251
 
SAME ASSAME AS S02993, SAME AS A08130
 
SPONSORCahill
 
COSPNSR
 
MLTSPNSR
 
 
Relates to the creation of a study of the minimum coverage amounts for non-commercial auto insurance.
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A00251 Actions:

BILL NOA00251
 
01/09/2019referred to insurance
06/03/2019enacting clause stricken
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A00251 Committee Votes:

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A00251 Floor Votes:

There are no votes for this bill in this legislative session.
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A00251 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A251
 
SPONSOR: Cahill
  TITLE OF BILL: An act relating to the creation of a study of the minimum coverage amounts for non-commercial auto insurance   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to require DFS to conduct a study to deter- mine the impact of raising the minimum coverage limits of automobile insurance coverage.   SUMMARY OF SPECIFIC PROVISIONS: This bill would require the Department of Financial Services (DFS) to conduct a study that would include a review of the minimum coverage amounts for the following types of automobile insurance coverage: liability, uninsured motorist, no-fault, and additional coverage options, including but not limited to comprehensive collision, and supplemental uninsured/underinsured motorist coverage. Furthermore, the bill requires that a report detailing DFS' findings as well as recommen- dations as to whether the required minimum coverage amounts for liabil- ity, uninsured motorist coverage, and no-fault should be increased, the extent to which such coverage should be increased, and the impact this would have on premiums be submitted to the Governor, the temporary Pres- ident of the Senate, the Speaker of the Assembly, and the Chairs of the Senate and Assembly standing committees on insurance no later than April 15, 2021. The study shall be created in consultation with relevant stakeholders, including insurance companies, insurance producers, consumer advocacy groups, and any other person or entity DFS deems necessary.   JUSTIFICATION: New York State law requires that motorists carry a minimum amount of liability insurance of $25,000 for bodily injury to one person, $50,000 for bodily injury to all persons, and $10,000 for property damage in any one accident. Mandatory "no-fault" coverage of $50,000 is also required. However, many motorists carry higher liability limits and additional personal injury protection beyond these minimum benefits required by law. The law also requires all auto insurance policies to provide unin- sured motorists coverage (for bodily injury), subject to the same mini- mums. In addition, SUM (Supplementary Uninsured/Underinsured Motorists) coverage can also be purchased, in amounts up to the bodily injury liability limits of an insured's own policy. The New York State Assembly Standing Committee on Insurance held a hearing that examined the auto insurance market in this state. Witnesses testified that the current minimum coverage amounts may not be adequate to protect consumers in an auto accident. However, other witnesses raised concerns about the impact that raising the minimum amounts would have on premiums. This bill would get to the heart of the matter by requiring DFS to conduct a study of these issues and issue a report to the Governor and the Legis- lature.   PRIOR LEGISLATIVE HISTORY: 2017-2018: A.3787 - Passed Assembly 2014: A.10115 - Passed assembly   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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A00251 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           251
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2019
                                       ___________
 
        Introduced by M. of A. CAHILL -- read once and referred to the Committee
          on Insurance
 
        AN  ACT  relating  to  the  creation  of a study of the minimum coverage
          amounts for non-commercial auto insurance
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The department of financial services shall conduct a study
     2  of the minimum coverage amounts for  liability  and  uninsured  motorist
     3  coverage  currently  required under article 3 of the vehicle and traffic
     4  law for non-commercial auto insurance in New  York  state,  the  minimum
     5  amount of no-fault coverage required by article 51 of the insurance law,
     6  and additional coverage options, including but not limited to comprehen-
     7  sive, collision, and supplemental uninsured/underinsured motorist cover-
     8  age.    In conducting this study, such department shall consider whether
     9  the current minimum coverage amounts are adequate to protect  consumers;
    10  whether  and  to what extent consumers purchase higher coverage amounts;
    11  the impact higher coverage amounts have on premiums, claims  processing,
    12  and  consumer  satisfaction; and any other factors such department deems
    13  relevant. Such department  shall  consult  with  relevant  stakeholders,
    14  including  insurance  companies,  insurance producers, consumer advocacy
    15  groups, and any other person or entity such department deems  necessary.
    16  Such  department  shall issue a report of its findings as well as recom-
    17  mendations as to whether  the  required  minimum  coverage  amounts  for
    18  liability,   uninsured   motorist   coverage,  and  no-fault  should  be
    19  increased, the extent to which such amounts should be increased, and the
    20  impact this would have on premiums. Such  department  shall  submit  its
    21  report  to  the  governor,  the  temporary  president of the senate, the
    22  speaker of the assembly, and the  chairs  of  the  senate  and  assembly
    23  standing committees on insurance no later than April 15, 2021.
    24    § 2. This act shall take effect immediately.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03113-01-9
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A00251 LFIN:

 NO LFIN
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A00251 Chamber Video/Transcript:

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