Requires the superintendent of financial services to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1572
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 10, 2025
                                ___________
 
 Introduced  by  M.  of  A. WEPRIN, OTIS -- read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to requiring  the  super-
   intendent  of  financial  services  to  promulgate  regulations  which
   provide standardized definitions for commonly used terms  and  phrases
   in certain insurance policies

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3425 of the insurance law is amended  by  adding  a
 new subsection (t) to read as follows:
   (T) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
 SUPERINTENDENT  SHALL  PROMULGATE REGULATIONS IN ACCORDANCE WITH SECTION
 TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH  PROVIDE
 STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
 THAT  PROVIDE  COVERAGE FOR PERSONAL LINES INSURANCE AS DEFINED IN PARA-
 GRAPH TWO OF SUBSECTION (A) OF THIS SECTION. SUCH STANDARDIZED TERMS AND
 PHRASES SHALL BE USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE
 ON OR AFTER THE DATE THE REGULATIONS ARE FINALIZED, WHICH  SHALL  BE  NO
 LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN.  AN INSURER MAY USE
 ALTERNATIVE  DEFINITIONS,  SO  LONG AS SUCH DEFINITIONS ARE NOT ANY LESS
 FAVORABLE TO THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY  THE  SUPER-
 INTENDENT.
   §  2.  Section  3426  of  the insurance law is amended by adding a new
 subsection (p) to read as follows:
   (P) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE
 SUPERINTENDENT SHALL PROMULGATE REGULATIONS IN ACCORDANCE  WITH  SECTION
 TWO  HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT WHICH PROVIDE
 STANDARDIZED DEFINITIONS FOR COMMONLY USED TERMS AND PHRASES IN POLICIES
 THAT PROVIDE COVERAGE FOR COMMERCIAL LINES INSURANCE POLICIES THAT COVER
 LOSS OR DAMAGE TO REAL PROPERTY, PERSONAL PROPERTY, OR OTHER LIABILITIES
 FOR LOSS OR DAMAGE TO PROPERTY.  SUCH  STANDARDIZED  TERMS  AND  PHRASES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03686-01-5
 A. 1572                             2
 
 SHALL  BE  USED IN SUCH POLICIES ISSUED OR DELIVERED IN THIS STATE ON OR
 AFTER THE DATE THE REGULATIONS ARE FINALIZED, WHICH SHALL  BE  NO  LATER
 THAN  JANUARY  FIRST,  TWO  THOUSAND  TWENTY-SEVEN.   AN INSURER MAY USE
 ALTERNATIVE  DEFINITIONS,  SO  LONG AS SUCH DEFINITIONS ARE NOT ANY LESS
 FAVORABLE TO THE POLICYHOLDER OR CLAIMANT, AS DETERMINED BY  THE  SUPER-
 INTENDENT.
   § 3. This act shall take effect immediately.