BILL NUMBER: S2685
SPONSOR: BRESLIN
 
TITLE OF BILL:
An act relating to the creation of a study of the minimum coverage
amounts for non-commercial auto insurance
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to require DFS to conduct a study to deter-
mine the impact of raising the minimum coverage limits of automobile
insurance coverage.
 
SUMMARY OF SPECIFIC PROVISIONS:
This bill would require the Department of Financial Services (DFS.) to
conduct a study that would include a review of the minimum coverage
amounts for the following types of automobile insurance coverage:
liability, uninsured motorist, no-fault, and additional coverage
options, including but not limited to comprehensive collision, and
supplemental uninsured/underinsured motorist coverage. Furthermore, the
bill requires that a report detailing DFS' findings as well as recommen-
dations as to whether the required minimum coverage amounts for liabil-
ity, uninsured motorist coverage, and no-fault should be increased, the
extent to which such coverage should be increased, and the impact this
would have on premiums be submitted to the Governor, the temporary Pres-
ident of the Senate, the Speaker of the Assembly, and the Chairs of the
Senate and Assembly standing committees on insurance no later than April
15, 2021. The study shall be created in consultation with relevant
stakeholders, including insurance companies, insurance producers,
consumer advocacy groups, and any other person or entity DFS deems
necessary.
 
JUSTIFICATION:
New York State law requires that motorists carry a minimum amount of
liability insurance of $25,000 for bodily injury to one person, $50,000
for bodily injury to all persons, and $10,000 for property damage in any
one accident. Mandatory "no-fault" coverage of $50,000 is also required.
However, many motorists carry higher liability limits and additional
personal injury protection beyond these minimum benefits required by
law. The law also requires all auto insurance policies to provide unin-
sured motorists coverage (for bodily injury), subject to the same mini-
mums. In addition, SUM (Supplementary Uninsured/Underin sured Motor-
ists) coverage can also be purchased, in amounts up to the bodily injury
liability limits of an insured's own policy. The New York State Assembly
Standing Committee on Insurance held a hearing that examined the auto
insurance market in this state. Witnesses testified that the current
minimum coverage amounts may not be adequate to protect consumers in an
auto accident. However, other witnesses raised concerns about the impact
that raising-the minimum amounts would have on premiums. This bill would
get to the heart of the matter by requiring DFS to conduct a study of
these issues and issue a report to the Governor and the Legislature.
 
PRIOR LEGISLATIVE HISTORY:
2022-2022 S499 - Referred to Insurance
2019-2020 S,2993 - Referred to Insurance Committee
2017-2018: A.3787 - Passed Assembly
S.5883 - Referred to Insurance Committee
2014: A.10115 - Passed assembly
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.