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.

---

S833-2011 Actions

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

S833-2011 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.

S833-2011 Text

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

                                     833

                         2011-2012 Regular Sessions

                              I N  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.




   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02488-01-1