(1) Except as provided in paragraph (2) of this subdivision, this Subpart implements:
(i) Insurance Law section 3420(f)(2), which requires a motor vehicle liability insurer to provide, at the option of the insured, supplementary uninsured/underinsured motorists (SUM) insurance coverage to all policyholders in New York State; and
(ii) Vehicle and Traffic Law section 1693(3), which requires minimum SUM coverage on all policies satisfying the financial responsibility requirements of that subsection.
(2) This Subpart also implements Insurance Law section 3420(f)(2-a), which requires an insurer that issues a motor vehicle liability insurance policy originally entered into on or after June 16, 2018, other than a commercial risk insurance policy, to provide SUM insurance for bodily injury, in an amount equal to the bodily injury liability insurance limits of coverage provided under the motor vehicle liability insurance policy, unless the first named insured declines the SUM insurance or selects a lower amount of coverage through a written, signed waiver; provided, however, the insurer may require that the insured’s SUM coverage limit equal the insured’s bodily injury liability insurance limit under the policy.
(b) This Subpart interprets Insurance Law sections 3420(f)(2), (2-a), and (5), and establishes a standard form for SUM coverage, in order to eliminate ambiguity, minimize confusion and maximize its utility.
(c) The prescribed standard form for SUM coverage shall be exempt from compliance with Insurance Law section 3102(c)(1)(D) pursuant to Insurance Law section 3102(c)(2)(F)(ii).
(d) As used in this Subpart:
(1) the terms digital network, transportation network company driver, TNC driver, transportation network company, TNC prearranged trip, and TNC shall have the meanings set forth in Vehicle and Traffic Law section 1691;
(2) commercial risk insurance means insurance against losses or liabilities arising out of the ownership, operation, or use of a motor vehicle, other than a motor vehicle predominantly used for non-business purposes when a natural person is the named insured under the policy, provided, however, that the use or operation of the motor vehicle by a transportation network company driver in accordance with Vehicle and Traffic Law article 44-B shall not be included in determining whether the motor vehicle is being used predominantly for non-business purposes; and
(3) first named insured means the individual specified first on the declarations page of a motor vehicle liability insurance policy, and the individual’s spouse, if the spouse is a resident of the same household and specified on the declarations page.
(e) This Subpart applies to every insurance policy:
(1) insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any natural person arising out of the ownership, maintenance and use of a motor vehicle, by the insured; and
(2) issued or delivered by any insurer upon any motor vehicle then principally garaged or principally used in this State.
11 CRR-NY 60-2.0 Current through July 31, 2018