BILL NUMBER: S7138A
SPONSOR: KENNEDY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to restricting insurers
from demanding intrusive personal, financial and tax information from
insureds as a standard practice in processing ordinary theft claims
 
PURPOSE OR GENERAL IDEA OF BILL:
Restricts insurers from demanding intrusive personal, financial and tax
information from insured's as a. standard practice in ordinary theft
claims.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill adds § 2619 to the Insurance Law to restrict
insurers from demanding intrusive personal, financial, and tax informa-
tion from an insured as a standard practice in ordinary theft claims.
Section two of the bill provides the effective date.
 
JUSTIFICATION:
Requests for personal and financial information which has nothing to do
with a theft claim made by an insured are inappropriate and intrusive.
For example, companies have requested copies of personal and business
tax returns, license and registration, other permits or licenses held in
NYS, loan applications filed, statements setting forth the county and
state in which the insured was registered to vote over the last five
years, copies of any bank statements, and copies of any "Doing Business
As" Certificates or Certificates of Incorporation for any businesses
owned in addition to requiring that the insured make a recorded state-
ment regarding the circumstances of the theft. While an insurance compa-
ny has a right to information pertinent to the claim in question, clear-
ly many of these demands go beyond being reasonable requests and are
exceedingly onerous and intrusive.
 
LEGISLATIVE HISTORY:
2022: A.2254 - Reported to Rules
2021: A.2254 - Insurance
2019-20: A.3718 - Insurance
2017-18: A.2532 - Third Reading Calendar
2015-16: A.1340 - Third Reading Calendar
2013-14: A.302 - Third Reading Calendar
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law. Effective immediately, the
addition, amendment and/or repeal of any rules and regulations necessary
for the implementation of the foregoing section of this act on its
effective date are authorized and directed to be made and completed on
or before such effective date.