S 4963: Requires the superintendent to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies.

  
  STATE OF NEW YORK ________________________________________________________________________ 4963 2025-2026 Regular Sessions  IN SENATE February 14, 2025 ___________ Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed 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: 1 Section 1. Section 3425 of the insurance law is amended by adding a 2 new subsection (t) to read as follows: 3 (t) Within six months after the effective date of this subsection, the 4 superintendent shall promulgate regulations in accordance with section 5 two hundred two of the state administrative procedure act which provide 6 standardized definitions for commonly used terms and phrases in policies 7 that provide coverage for personal lines insurance as defined in para- 8 graph two of subsection (a) of this section. Such standardized terms and 9 phrases shall be used in such policies issued or delivered in this state 10 on or after the date the regulations are finalized, which shall be no 11 later than January first, two thousand twenty-seven. An insurer may use 12 alternative definitions, so long as such definitions are not any less 13 favorable to the policyholder or claimant, as determined by the super- 14 intendent. 15 § 2. Section 3426 of the insurance law is amended by adding a new 16 subsection (p) to read as follows: 17 (p) Within six months after the effective date of this subsection, the 18 superintendent shall promulgate regulations in accordance with section 19 two hundred two of the state administrative procedure act which provide 20 standardized definitions for commonly used terms and phrases in policies 21 that provide coverage for commercial lines insurance policies that cover 22 loss or damage to real property, personal property, or other liabilities 23 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 
 S. 4963 2 1 shall be used in such policies issued or delivered in this state on or 2 after the date the regulations are finalized, which shall be no later 3 than January first, two thousand twenty-seven. An insurer may use 4 alternative definitions, so long as such definitions are not any less 5 favorable to the policyholder or claimant, as determined by the super- 6 intendent. 7 § 3. This act shall take effect immediately.