New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter I - GENERAL PROVISIONS
Part 15 - Simplified Comprehensive Policies Of Insurance
Section 15.1 - Preamble

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 15.1

Current through Register Vol. 46, No. 12, March 20, 2024

(a) Section 3101 of the Insurance Law, relating to simplified policies of insurance providing broad coverage of all or various combinations of risks, became effective on May 30, 1974. This section provides for the promulgation of a regulation

"specifying the standards which must be met by insurers for issuing such policies and assuring to policyholders and claimants protections not less favorable than they would be entitled to under a substantially similar policy which is not subject to this section."

(b) The purpose of the law and of this Part is to encourage insurance companies to offer consumers both broader and simpler coverages which will be easy to understand and should result in prompt and fair settlement of claims. This Part is not intended to provide for minor, basically editorial changes or general improvements in the readability of insurance policies. While these are worthwhile goals in and of themselves, there is no provision in the Insurance Law or other statute which, even in the absence of section 3101 and this Part, would substantially prevent the attainment of these goals. This Part is designed to promote the development of both dramatically simplified and comprehensive policies which are otherwise unattainable without section 3101.

(c) In order to facilitate the writing of such broad or simplified policies, section 3101 authorizes the superintendent to waive requirements of the Insurance Law and of other laws which specify the content of insurance policies. At the same time, the statute requires that policyholders be afforded no less protection than they would otherwise have received.

(d) This Part will eventually encompass all types of insurance protection. If successful, this experimental program has the potential to accomplish the following:

(1) People will be better able to understand their insurance policies, and, in particular, to know what they are and are not covered for;

(2) Insurance protection will be substantially broadened, and generally will not depend on the cause of the loss, which is irrelevant to the policyholder's need for financial protection; and

(3) Claims will be paid according to common sense expectations, without the annoying and unexpected technicalities which so often, today, delay claims payments and frustrate consumers.

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