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.
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