N.Y.: Chapter amendments for Comprehensive Insurance Disclosure Act, electronic delivery

February 2, 2022

While year two of the 2021-22 New York legislative session is in full swing, the state Legislature passed several bills that are designed to amend laws passed at the end of the year one of the session.

Comprehensive Insurance Disclosure Act

Last month, PIANY reported that Gov. Kathy Hochul signed the Comprehensive Insurance Disclosure Act (S.7052/A.8041) into law and indicated that chapter amendments would be coming.

Those chapter amendments have been introduced and the legislation is making its way through the Legislature. S.7882—sponsored by Sen. Michael Gianaris, D-12—passed the state Senate last week. If it’s signed into law, the bill would amend the Comprehensive Insurance Disclosure Act in several ways, including the exclusion of insurance applications from the list of necessary insurance disclosures—which is most significant for PIANY members.

Electronic delivery of insurance documents

A second bill, which is related to the electronic delivery of insurance documents and designed to clean up legislation passed in 2021, also passed the Senate last week. The legislation (S.7797), sponsored by Sen. James Sanders Jr., D-10, would permit insurance carriers to send all insurance documents electronically. Previously, certain notices—mostly related to personal auto insurance notices—could not be sent electronically.

The bill makes it clear that, while documents can be sent electronically, the consumer would need to consent to electronic delivery first. Also, the bill makes it clear that a consumer’s consent is not to be considered blanket consent to send all documents electronically. Instead, insurance carriers would be required to provide clear and conspicuous information regarding the types of documents that the consumer would be consenting to receive electronically.

What happens next?

Both bills have been sent to the state Assembly for consideration. If passed, they will be sent to the Gov. Hochul for her signature.

Get involved

If you want to get involved with PIANY’s legislative and advocacy work, there are many ways to engage with the association:

Berkshire Hathaway Guard Insurance Companies protecting your business and employees with their Workers' Compensation.

About the author…

Bradford J. Lachut, Esq.

Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.

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