New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter B - Property and Casualty Insurance
Part 60 - Minimum Provisions For Automobile Liability Insurance Policies And Supplementary Uninsured Motorists Insurance
Subpart 60-2 - Supplementary Uninsured/underinsured Motorists Insurance
Section 60-2.2 - Notice about sum coverage
Current through Register Vol. 46, No. 39, September 25, 2024
(a)
(b) The following examples, using per person limits unless otherwise noted, illustrate the proper application of SUM coverage:
Insured's Bodily Injury Damages |
$300,000 |
Insured's Liability Limit |
$500,000 |
Insured's SUM Limit |
$250,000 |
Other Motor Vehicle Liability Limit |
$25,000 |
Result: In this example, the insured has purchased the maximum amount of SUM coverage that must be offered by the insurer, provided that the insured has purchased bodily injury liability limits of at least $250,000. Insured recovers $25,000 from the negligent owner or operator of the other motor vehicle, and $225,000 ($250,000 minus $25,000) under the SUM coverage, for a total recovery of $250,000.
In the event that the negligent owner or operator of the other motor vehicle had no liability insurance at all, the insured would collect $250,000 in SUM coverage from the insured's own insurer. However, if the owner or operator of the other motor vehicle was not negligent, then the insured would receive no SUM payments.
Insured's Bodily Injury Damages |
$100,000 |
Insured's Liability Limit |
$25,000 |
Insured's SUM Limit |
$25,000 |
Other Motor Vehicle Liability Limit |
$25,000 |
Result: Insured recovers $25,000 from the negligent owner or operator of the other motor vehicle. The insured receives nothing under the SUM coverage, which equals the mandatory UM coverage, since the liability limits on the other owner or operator's motor vehicle were not lower than the liability insurance limits on the insured's motor vehicle. If the insured's liability and SUM limits were both $50,000, then the insured would collect another $25,000 in SUM coverage from the insured's own insurer.
Insured's Bodily Injury Damages |
$60,000 |
Insured's Liability Limit |
$100,000 |
Insured's SUM Limit |
$100,000 |
Other Motor Vehicle Liability Limit |
$50,000 |
Result: Insured recovers $50,000 from the negligent owner or operator of the other motor vehicle and $10,000 under the SUM coverage, which is the difference between the amount of the insured's SUM coverage and the liability coverage available from the other motor vehicle owner or operator, limited by the amount of the insured's bodily injury damages.
Insured's Bodily Injury Damages |
$150,000 |
Insured's Liability Limit |
$100,000 |
Insured's SUM Limit |
$100,000 |
Other Motor Vehicle Liability Limit |
$25,000 |
Result: If the insured and the owner or operator of the other motor vehicle were each 50 percent at fault for the accident, then the insured's total recovery would be $75,000, in light of comparative negligence of the parties involved in the accident. The insured would recover $25,000 from the negligent owner or operator of the other motor vehicle and $50,000 under the SUM coverage.
On the other hand, if the owner or operator of the other motor vehicle was totally at fault for the accident, then the insured would recover $25,000 from the negligent owner or operator and would then receive $75,000 in SUM coverage from the insured's own insurer. Had the insured purchased liability and SUM limits of $150,000 or more, the SUM recovery would then be $125,000.
Insured's Bodily Injury Damages |
$25,000 |
Passenger's Bodily Injury Damages |
$25,000 |
Another Passenger's Damages that resulted in death |
$50,000 |
Insured's Combined Single Liability (CSL) Limit |
$75,000 |
Insured's CSL SUM Limit |
$75,000 |
Other Motor Vehicle Liability Limit |
Uninsured (i.e. no coverage) |
Result: Since the other motor vehicle was uninsured, the full $75,000 CSL SUM limit is available for all insured persons from this accident under the policy. However, since the accident involves insured persons who were both injured and killed, the mandatory UM limits of $25,000 per person and $50,000 per accident for injured persons and $50,000 per person and $100,000 per accident for persons killed in the accident are available. Therefore, the insured and first passenger each recover $25,000 and the second passenger's estate recovers the full $50,000 under the SUM coverage.
If the insured's CSL and CSL SUM limit were each $300,000 and the insured's damages amounted to $200,000, then all insured persons would be covered under the SUM coverage as the total damages ($200,000 + $25,000 + $50,000 = $275,000) are less than the $300,000 CSL SUM limit.