A New York State bill concerning the Supplemental Uninsured/Underinsured Motorists (SUM) coverage has recently been delivered to New York Gov. Andrew Cuomo, who has until the middle of next week to either sign or veto the measure.
If the pending legislation, S.7787/A.10784, gets signed into law, it could bring changes to how the SUM coverage is offered to New York State motorists.
Under the current requirement, insurance companies have to offer SUM coverage to their customers, in amounts up to the amount of the customer’s Bodily Injury/Property Damage Liability coverage — but they can issue policies without the coverage unless the customer specifically accepts the offer, said Tim Dodge, director of research at the Independent Insurance Agents & Brokers of New York Inc.
New York State Assembly Bill No. 10784 would require insurance companies to issue the policies with SUM coverage, with limits equal to the BI/PD Liability limits. The coverage remains on the policy unless the customer specifically requests that it be removed or reduced, Dodge said.
The bill also would allow the New York State Department of Financial Services to bar durable medical equipment providers who commit insurance fraud from receiving reimbursements under the state’s no-fault insurance system.
Although both chambers of the New York State legislature approved the bill last June, they did not actually deliver it to Gov. Cuomo until last Wednesday, Dec. 5. If he signs it into law, it would take effect 180 days from that date, and it will apply to insurance policies issued, entered into or renewed on and after that date, according to the Independent Insurance Agents & Brokers of New York Inc.
Gov. Cuomo has 10 business days after the receipt of a bill to either sign or veto it, according to the governor’s press office.
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