Relates to uninsured and underinsured motorist coverage for corporate and business entities, volunteer fire departments and volunteer ambulance services.

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S7312B-2011 Actions

• Jun 21, 2012: SUBSTITUTED BY A10090B
• Jun 20, 2012: ORDERED TO THIRD READING CAL.1439
• Jun 20, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Jun 18, 2012: PRINT NUMBER 7312B
• Jun 18, 2012: AMEND (T) AND RECOMMIT TO INSURANCE
• Jun 11, 2012: PRINT NUMBER 7312A
• Jun 11, 2012: AMEND AND RECOMMIT TO INSURANCE
• May 2, 2012: REFERRED TO INSURANCE

S7312B-2011 Meetings

Rules: Jun 21, 2012

S7312B-2011 Calendars

Active List: Jun 21, 2012 , Floor Calendar: Jun 20, 2012 , Floor Calendar: Jun 21, 2012

S7312B-2011 Votes

S7312B-2011 Memo

BILL NUMBER:S7312B

TITLE OF BILL:
An act
to amend the insurance law, in relation to uninsured and underinsured
motorist coverage for ambulance services, volunteer fire
departments and voluntary ambulance services

PURPOSE:
To ensure that volunteer firefighters and
ambulance crews,
while acting in the scope of their duties shall be covered by the
maximum available supplemental uninsured/underinsured motorist
coverage in an insurance policy that names such volunteer fire
department or ambulance service as a named insured.

SUMMARY OF PROVISIONS:;
This bill amends section 3420(f) of the
insurance law pertaining to mandatory uninsured motorist coverage and
optional supplemental uninsured/underinsured motorist coverage
("SUM") by clarifying the definition of the term "named insured" when
the "named insured" is a corporate or business entity or a volunteer
fire department or volunteer ambulance service.

This bill provides that an insurance policy that includes SUM coverage
that names a volunteer fire department or ambulance service as a
named insured shall be deemed to provide the maximum SUM coverage
available under that particular policy to any individual who is a
member of such volunteer fire department or ambulance service,
regardless of whether the individual is an additional named insured
under that policy, or is a named insured, or is covered under any
other policy providing SUM coverage.

JUSTIFICATION:
This issue arises because the
mandatory New York SUM
endorsement required by II NYCRR Section 60-23 defines the term
"insured" to mean, in relevant part, "You, as the named insured and,
while residents of the same household, your spouse and the relatives
of either you or your spouse.. ." II NYCRR Sect 60-2.3(f)(1).
Starting with Buckner v. MVAIC, 66 NY2d 211 (1985) and continuing with
an increasing number of Appellate Division decisions since, our
Courts have consistently held that when the "named insured" is an
entity such as a a volunteer fire department, the individual
officers. directors, employees or volunteers will not be covered as
"named insureds" even when they were injured within the scope of
their duties for the insured entity. While these individuals might
still be covered under 11NYCRR Section 60-2.3(f)(2) if they were
"occupying" a covered vehicle, the definition of "named insured" as
interpreted by our Courts creates a gap in coverage for employees and
volunteer firefighters and ambulance crews injured by uninsured or
underinsured vehicles in the scope of their duties for the "named
insured" entity while outside of a covered vehicle.

This means that unless the definition of the term "insured" is
clarified a volunteer fire department, or ambulance service will be


unable to provide SUM coverage to its officers, employees or members
who face risks from uninsured or underinsured vehicles in the course
of their employment after exiting from covered vehicles. The danger
is particularly acute for volunteer firefighters and ambulance crews,
all of whom are exposed to vehicle hazards after they have exited a
covered vehicle.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
120th day after it shall become law and shall apply
to any policies issued or renewed on or after such date. Effective
immediately, the addition, amendment and/or repeal of any rules or
regulations necessary for the implementation of this act on its
effective date are authorized to be made on or before such effective
date.

S7312B-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   7312--B

                              I N  SENATE

                                 May 2, 2012
                                 ___________

  Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
    printed to be committed to the Committee  on  Insurance  --  committee
    discharged, bill amended, ordered reprinted as amended and recommitted
    to  said  committee  --  committee  discharged,  bill amended, ordered
    reprinted as amended and recommitted to said committee

  AN ACT to amend the insurance law, in relation to uninsured and underin-
    sured motorist coverage for ambulance services, volunteer fire depart-
    ments and voluntary ambulance services

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  Subsection  (f)  of  section 3420 of the insurance law is
  amended by adding a new paragraph 5 to read as follows:

    (5) A POLICY THAT NAMES A  VOLUNTEER  FIRE  DEPARTMENT,  AN  AMBULANCE
  SERVICE  OR  A  VOLUNTARY  AMBULANCE SERVICE AS DEFINED IN SECTION THREE
  THOUSAND ONE OF THE PUBLIC HEALTH LAW,  AS  A  NAMED  INSURED  SHALL  BE
  DEEMED  TO PROVIDE THE MAXIMUM UNINSURED OR UNDERINSURED MOTORIST COVER-
  AGE AVAILABLE UNDER THE  PROVISIONS  OF  THE  POLICY  TO  AN  INDIVIDUAL
  EMPLOYED  BY  THE  AMBULANCE  SERVICE  OR A MEMBER OF THE VOLUNTEER FIRE
  DEPARTMENT OR VOLUNTARY AMBULANCE SERVICE OR A MEMBER OF  THE  BOARD  OF
  DIRECTORS OF SUCH AMBULANCE SERVICE, VOLUNTEER FIRE DEPARTMENT OR VOLUN-
  TARY  AMBULANCE  SERVICE  AND WHO IS INJURED BY AN UNINSURED OR UNDERIN-
  SURED VEHICLE WHILE ACTING IN THE SCOPE OF THE INDIVIDUAL'S  DUTIES  FOR
  THE  VOLUNTEER FIRE DEPARTMENT, AMBULANCE SERVICE OR VOLUNTARY AMBULANCE
  SERVICE LISTED AS THE NAMED INSURED.
    S 2. This act shall take effect on the one hundred twentieth day after
  it shall have become a law and shall apply to  any  policies  issued  or
  renewed  on  or  after  such  date. Effective immediately, the addition,
  amendment and/or repeal of any rules or regulations  necessary  for  the
  implementation  of  this  act  on its effective date is authorized to be
  made on or before such effective date.


   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD15699-06-2