Relates to summaries of readable and understandable insurance policies

• Democratic8
• Republican5

◆ The sponsor's argument

Why Jeremy Cooney says this is needed

Millions of New Yorkers buy auto, homeowners and renters insurance poli- cies every year, but most have very limited understanding as to what exactly their policies do and do not cover. It is not widely known, for example, that standard homeowner policies will not cover flood damage and auto insurance will not cover accidents occurring while someone is operating their vehicle as an Uber or Lyft driver. Few consumers take the time to read the terms and conditions of their policy, since they are not presented in a clear and concise format, thereby discouraging consumers from even attempting to read the details of their coverage. This bill would require insurers to send policyholders a summary docu- ment including the coverage limits, term of the policy, annual premium, and the principal exclusions from coverage. It would also need to include a disclaimer that the document is only a summary of the policy, that the amount and scope of coverage are determined only by the actual terms of the policy, and that if the policyholder has any questions they should contact the insurer, or the agent or broker who sold the policy. Providing a policy summary is a beneficial tool to ensure consumers are informed and have a clearer understanding of their insurance coverage.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.