Current through Register Vol. 46, No. 39, September 25, 2024
(a) SUM
provides additional insurance coverage for bodily injury, including death
resulting therefrom, sustained by an insured, as a result of an accident
involving a negligent owner or operator of another motor vehicle who:
(1) may have no insurance whatsoever;
or
(2) even if insured, is only
insured for third-party bodily injury coverage at relatively low liability
limits, in comparison to the policyholder's own liability limits for bodily
injury sustained by third-parties.
(b) An insurer shall not offer SUM coverage
in an amount exceeding the third-party liability coverage limits purchased by
the policyholder . The policy shall provide coverage for any insured under the
policy for:
(1) bodily injury to such person,
up to the limit of the SUM coverage purchased; and
(2) receive from the policyholder's own
insurer payment for bodily injury sustained due to the negligence of the other
motor vehicle's owner or operator.
(c) The maximum amount payable under the SUM
coverage shall be the policy's SUM limit reduced and thus offset by any motor
vehicle bodily injury liability insurance policy or bond payments received
from, or on behalf of, any negligent party involved in the accident.
(d) The rate and premium for SUM coverage
shall, in accordance with Insurance Law article 23, take into appropriate
account the offsetting characteristic of SUM coverage stated in subdivision (c)
of this section.
(e) Except as
provided in subdivision (f) of this section:
(1) An insurer shall offer:
(i) SUM limits, in a motor vehicle liability
insurance policy with split limits, up to $250,000 per person per accident and,
subject to such limit for one person, $500,000 per accident; or
(ii) a SUM limit, in a motor vehicle
liability insurance policy with a combined single limit, up to $500,000 per
accident.
(2) An insurer
is not required to offer SUM limits in the motor vehicle liability insurance
policy in the amounts specified in paragraph (1) of this subdivision, if, in
lieu thereof:
(i) the insurer offers motor
vehicle liability limits in amounts:
(a)
greater than $100,000 because of bodily injury to or death of one person in any
one accident, and, subject to such limit for one person, $300,000 because of
bodily injury to or death of two or more persons in any one accident;
or
(b) greater than a combined
single limit of $300,000 because of bodily injury to or death of one or more
persons in any one accident; and
(ii) the insurer offers, in the motor vehicle
liability policy:
(a) SUM coverage with split
limits of $100,000 per person per accident and, subject to such limit for one
person, $300,000 per accident; or
(b) SUM coverage with a combined single limit
of $300,000 per accident; and
(iii) the insurer also makes available a
personal umbrella liability policy with limits up to at least $500,000, and the
insurer provides SUM coverage in the umbrella policy so that the total SUM
coverage in the motor vehicle liability insurance policy and the personal
umbrella liability policy shall be up to at least $500,000.
(3) An insurer may offer SUM
limits that exceed the amounts specified in paragraph (1) or (2) of this
subdivision.
(4) Notwithstanding
any other provision of this subdivision, an insurer shall not provide SUM
limits in an amount that exceeds the third-party bodily injury liability limits
offered by the insurer and purchased by the policyholder.
(f)
(1)
With regard to a motor vehicle liability insurance policy originally entered
into on or after June 16, 2018 other than a commercial risk insurance policy,
an insurer shall provide SUM limits in an amount equal to the bodily injury
liability insurance limits of coverage provided under the motor vehicle
liability insurance policy unless a first named insured declines the SUM
coverage or selects a lower amount of coverage through a written waiver signed
by the first named insured, subject to the requirements of Insurance Law
section 3420(f)(2-a)(B); provided however, the insurer may require that the
insured's SUM coverage limit be equal to the insured's bodily injury liability
insurance limit under the policy.
(2) A first named insured's signed written
waiver declining SUM coverage or selecting a lower amount of SUM coverage shall
apply to all subsequent renewals of coverage and to all policies or
endorsements that extend, change, supersede, or replace an existing policy
issued to the first named insured, unless changed in writing by a first named
insured.
(3) Whenever SUM coverage
is declined, the policy shall provide the mandatory uninsured motorists (UM)
coverage required by Insurance Law section 3420(f)(1).
(4) The insurer, on subsequent renewals,
shall provide to the insured the applicable notice required by section
60-2.2(a) of this
Subpart.
(g)
Notwithstanding subdivisions (e) and (f) of this section:
(1) an insurer providing coverage in
satisfaction of the financial responsibility requirements of Vehicle and
Traffic Law article 44-B:
(i) shall provide
SUM coverage, in the amount of $1,250,000 because of bodily injury to or death
of one or more persons in any one accident, while the TNC driver is engaged in
a TNC prearranged trip if the policy provides liability coverage as required by
Vehicle and Traffic Law section 1693(3); and
(ii) if the policy provides liability
coverage as required by Vehicle and Traffic Law section 1693(2), shall:
(a) offer SUM coverage as provided in
subdivision (e) of this section, under an insurance policy other than an
insurance policy described in subparagraph (ii) of this paragraph, while the
driver is logged onto the TNC's digital network but is not engaged in a TNC
prearranged trip; or
(b) provide
SUM coverage as provided in subdivision (f) of this section, under an insurance
policy originally entered into on or after June 16, 2018, other than a
commercial risk insurance policy, while the driver is logged onto the TNC's
digital network but is not engaged in a TNC prearranged trip;
(2) an insurer
providing coverage 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 an altered motor vehicle, commonly
referred to as a stretch limousine, having a seating capacity of eight or more
passengers used in the business of carrying or transporting passengers for
hire, shall provide SUM coverage in the amount of $1,500,000 because of bodily
injury to or death of one or more persons in any one accident for any policy
issued, renewed, altered, or modified on or after January 1, 2020. For the
purposes of this paragraph, an altered motor vehicle or stretch limousine shall
mean a vehicle altered so as to have an extended chassis, lengthened wheel
base, or elongated seating area and in the case of a truck, has been modified
to transport passengers in addition to having been altered; and
(3) an insurer providing coverage in
satisfaction of the financial responsibility requirements of General Business
Law article 40 shall provide SUM coverage in the amount of $1,250,000 because
of bodily injury to or death of one or more persons in any one accident, while
the motor vehicle is used or operated under a peer-to-peer car sharing program
during the peer-to-peer car sharing period.
(h) Nothing in this section shall be
construed to require an insurer to offer any particular minimum or maximum
amount of third-party bodily injury liability limits.