Relates to clarifying the provisions of certain supplementary insurance coverage.
TITLE OF BILL: An act to amend the insurance law, in relation to supplementary uninsured and underinsured motorist coverage for ambulance services, volunteer fire departments and voluntary ambulance services
PURPOSE: The purpose of this bill is to amend chapter 496 of the laws of 2012 to clarify when firefighters and emergency services workers are covered under a fire department or ambulance service's supplementary uninsured and underinsured motorist (SUM) coverage.
SUMMARY OF PROVISIONS: This chapter amendment would clarify that when a fire department or ambulance service purchases an insurance policy that includes SUM coverage, such coverage extends to both professional and volunteer fire fighters and emergency services workers who are employed by or members of the fire department or ambulance service and who are injured while acting within the scope of the their duties, except with respect to the use or operation by such individuals of a motor vehicle not covered under the policy
JUSTIFICATION: Courts have consistently held that when the insured named on a policy is an entity such as a fire department or ambulance service, SUM coverage does not extend to individual fire fighters and emergency service workers who are injured if they were outside a covered vehicle at the time the injury occurred. Chapter 496 of the laws of 2012 was intended to ensure that when a fire department or ambulance service purchases an auto insurance policy that includes SUM coverage, such coverage extends to the fire fighters and emergency service workers while acting within the scope of their duties. However, chapter 496 has some technical deficiencies that could make the bill inapplicable to professional firefighters. This chapter amendment provides clarification to ensure that chapter 496 applies to all the individuals and in all the situations that the sponsors intended.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the same date and in the same manner as Chapter 496 of the Laws of 2012 takes effect
STATE OF NEW YORK ________________________________________________________________________ 2757 2013-2014 Regular Sessions IN SENATE January 23, 2013 ___________Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to supplementary unin- sured and underinsured motorist coverage for ambulance services, volunteer fire departments and voluntary ambulance services THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 5 of subsection (f) of section 3420 of the insur- ance law, as added by chapter 496 of the laws of 2012, is amended to read as follows: (5)
[A]THIS PARAGRAPH SHALL APPLY TO A POLICY THAT PROVIDES SUPPLE- MENTARY UNINSURED/UNDERINSURED MOTORIST INSURANCE COVERAGE FOR BODILY INJURY AND IS A POLICY: (A) ISSUED OR DELIVERED IN THIS STATE THAT INSURES AGAINST LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, AND USE OF A FIRE VEHICLE, AS DEFINED IN SECTION ONE HUNDRED FIFTEEN-A OF THE VEHICLE AND TRAFFIC LAW, WHERE THE FIRE VEHICLE IS PRINCIPALLY GARAGED OR USED IN THIS STATE; OR (B) AS SPECIFIED IN PARAGRAPH ONE OF THIS SUBSECTION. EVERY SUCH policy that [names]INSURES a [volunteer]fire department, FIRE COMPANY, AS DEFINED IN SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW, 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]SUCH SUPPLEMENTARY UNINSURED/UNDERINSURED motorist INSURANCE coverage [available under the provisions of the poli- cy]to an individual employed by OR WHO IS A MEMBER OF the FIRE DEPART- MENT, FIRE COMPANY, 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 voluntary ambulance service]and who is injured by an uninsured or underinsured MOTOR vehicle while acting in the scope of the individual's duties for the [volunteer]fire department, FIRE COMPANY, ambulanceEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05810-01-3 S. 2757 2
service, or voluntary ambulance service
[listed as the named insured]COVERED UNDER THE POLICY, EXCEPT WITH RESPECT TO THE USE OR OPERATION BY SUCH AN INDIVIDUAL OF A MOTOR VEHICLE NOT COVERED UNDER THE POLICY. S 2. This act shall take effect on the same date and in the same manner as chapter 496 of the laws of 2012, takes effect.