Bill S833-2011

Requires notice of cancellation and renewal of insurance policies to be sent by registered or certified mail

Requires notice of cancellation or non-renewal of property/casualty insurance policies to be sent by an insurer to an insured by registered or certified mail, return receipt requested.

Details

Actions

  • Jan 4, 2012: REFERRED TO INSURANCE
  • Jan 5, 2011: REFERRED TO INSURANCE

Memo

BILL NUMBER:S833

TITLE OF BILL: An act to amend the insurance law, in relation to the cancellation and renewal provisions of insurance policies

PURPOSE OR GENERAL IDEA OF BILL: Requires insurance companies to give adequate notice to the insured if the insurance company terminates, modifies or intends to terminate the existing insurer-insured relationship.

SUMMARY OF SPECIFIC PROVISIONS: Paragraph 1 of Subsection (h) of section 3425 of the insurance law, as amended by chapter 675 of the laws of 2003 is amended. This legislation provides that the following communications from an insurance company to an insured shall be mailed by registered or certified mail return receipt requested:

1. A notice of cancellation.

2. Elimination of coverage.

3. Intention not to renew or reasons therefor.

JUSTIFICATION: If mail is lost or misdirected an individual may be open to personal liability merely because he/she is unaware that his/her insurance has been canceled.

PRIOR LEGISLATIVE HISTORY: Previously introduced.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect on the sixtieth day after it shall have become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 833 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. STAVISKY -- 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 the cancellation and renewal provisions of insurance policies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subsection (h) of section 3425 of the insurance law, as amended by chapter 675 of the laws of 2003, is amended to read as follows: (1) [Proof of mailing of a] A notice of [cancellation,] A reduction of limits[, substitution of policy form, elimination of coverages, condi- tioned renewal or of intention not to renew,] IN COVERAGE or proof of the mailing of the reasons therefor, to the named insured at the address shown in the policy, shall be sufficient proof of the giving of notice and the giving of reasons required by this section; PROVIDED, HOWEVER, THAT A NOTICE OF CANCELLATION OF COVERAGE, THE ELIMINATION OF COVERAGE OR OF THE INTENTION NOT TO RENEW, OR THE MAILING OF THE REASONS THEREFOR SHALL BE MAILED BY REGISTERED OR CERTIFIED MAIL RETURN RECEIPT REQUESTED TO THE NAMED INSURED AT THE ADDRESS SHOWN IN THE POLICY. S 2. This act shall take effect on the sixtieth day after it shall have become a law.

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