Relates to motorcycle insurance policies and requires owners' policies of liability to inform the insured that motor vehicle no-fault insurance does not apply to motorcycles and that state uninsured motorist coverage is available in the alternative.
TITLE OF BILL: An act to amend the insurance law, in relation to motorcycle insurance policies
PURPOSE OR GENERAL IDEA OF BILL:
To ensure that the owners of motorcycles are aware that automobile no fault Insurance law does not apply to motorcycles and that New York State underinsured motorist coverage is available.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - Provides that insurance companies provide policy language advising motorcyclists that no fault insurance provisions for automobiles do not apply to motorcycles and that, as an alternative, state under insured motorist coverage is available; and requires that motorcyclists who refuse state underinsured motorist coverage sign a statement confirming they were informed of the availability of that coverage.
Section 2 - Sets the effective date.
Motorcyclists currently do not have coverage for actual damages and lost wages if they do not possess State under insured motorist coverage which puts assets at risk and/or leaves judgments for damages unpaid.
This bill will encourage motorcyclists to obtain this insurance by ensuring that they are aware of the potential risk in not possessing state under insured motorist coverage and also afford protection for individuals who seek damages which damages might otherwise not be collected.
None to the State.
The 120th day after it shall have become law or on such date that any rules and regulations necessary to implement the provisions of this act are authorized to be promulgated and shall become effective.
STATE OF NEW YORK ________________________________________________________________________ 6512 IN SENATE January 31, 2014 ___________Introduced by Sen. TKACZYK -- 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 motorcycle insurance policies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 5103 of the insurance law is amended by adding a new subsection (f-1) to read as follows: (F-1) EVERY OWNER'S POLICY OF LIABILITY INSURANCE ISSUED ON A MOTORCY- CLE IN SATISFACTION OF THE REQUIREMENTS OF ARTICLE SIX OR EIGHT OF THE VEHICLE AND TRAFFIC LAW OR SECTION TWENTY-FOUR HUNDRED SEVEN OF SUCH LAW SHALL INFORM THE INSURED THAT NO-FAULT INSURANCE PROVISIONS FOR AUTOMO- BILES OR MOTOR VEHICLES DO NOT APPLY TO MOTORCYCLES AND THAT STATE UNDE- RINSURED MOTORIST COVERAGE IS AVAILABLE, AND THAT THE LACK OF NO-FAULT INSURANCE UNDER SOME CIRCUMSTANCES CAN BE OFFSET BY THE PURCHASE OF STATE UNDERINSURED MOTORIST COVERAGE, SINCE DAMAGES MAY EXCEED TWENTY-FIVE THOUSAND DOLLARS, WHICH IS THE AMOUNT OF COVERAGE REQUIRED BY LAW. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law; provided that any rules and regulations necessary to implement the provisions of this act on its effective date are authorized and directed to be promulgated and shall become effective on such date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07025-01-3