Repeals no fault insurance five years after the effective date of this act; requires the superintendent of financial services to review and recommend to the governor, the temporary president of the senate, and the speaker of the assembly any other provisions of law which require amendments or repeal thereof.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A11026
SPONSOR: Rules (Cahill)
 
TITLE OF BILL:
An act to repeal article 51 of the insurance law, in relation to no
fault insurance
 
PURPOSE:
To repeal New York State's no-fault automobile insurance system.
 
SUMMARY OF PROVISIONS:
Section 1: Repeals Article 51 of the Insurance Law.
Section 2: Authorizes the Superintendent of the Department of Financial
Services to review and recommend to the. Governor, Senate and Assembly
any other provisions of law that require amendments or repeal within 60
days of the effective date.
Section 3: Effective date of five years after becoming law; immediately
permits addition, amendment and/or repeal of any rule or regulation
necessary to implement this act on its effective date.
 
JUSTIFICATION:
New York is a "no-fault" state. Vehicle owners are required to maintain
personal injury protection as part of their overall automobile insur-
ance. This "no fault" coverage was intended to quickly pay medical
expenses, lost earnings and certain other out-of-pocket expenses result-
ing from injuries sustained in an accident regardless of which driver
was at fault.
However, policymakers, consumers and members of the industry have all
raised substantial questions regarding the efficacy, integrity and
general success of no-fault insurance in New York and in other states as
well. Advocates for comprehensive no-fault reform have demonstrated its
failures, including abuse due to fraudulent claims and activities, sky-
rocketing premiums and costs, questionable benefit thresholds,
protracted processes and redundancy in primary health insurance. In
fact, states such as Nevada, Georgia, Connecticut and Colorado have
repealed their no-fault laws in favor of other insurance models.
Therefore, this legislation would entirely abolish the current no-fault
automobile insurance system in New York State. The distant effective
date of five years provides ample time for the industry, consumers and
regulators to wind down and develop a better insurance product and
structure for all New York drivers.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
TBD
 
EFFECTIVE DATE:
This act shall take effect five years after it shall have become a law.
Effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date are authorized to be made and completed on or before such
effective date.
STATE OF NEW YORK
________________________________________________________________________
11026
IN ASSEMBLY
October 7, 2020
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Cahill) --
read once and referred to the Committee on Insurance
AN ACT to repeal article 51 of the insurance law, in relation to no
fault insurance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Article 51 of the insurance law is REPEALED.
2 § 2. Within 60 days of the effective date of this act, the superinten-
3 dent of financial services shall review and recommend to the governor,
4 the temporary president of the senate, and the speaker of the assembly
5 any other provisions of law which require amendments or repeal thereof.
6 § 3. This act shall take effect five years after it shall have become
7 a law. Effective immediately, the addition, amendment and/or repeal of
8 any rule or regulation necessary for the implementation of this act on
9 its effective date are authorized to be made and completed on or before
10 such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD17402-01-0