*Implementation of Chapter 305 of the Laws of 1995 Increasing the Required Minimum Limits of Liability for Motor Vehicle Insurance

Supplement No. 1 to Circular Letter No. 15 (1995): Required Minimum Limits of Liability for Motor Vehicle Insurance SHARE Supplement No. 1 to Circular Letter No. 15 (1995) Date: April 4, 1996 Subject: Implementation of Chapter 305 of the Laws of 1995 Increasing The Required Minimum Limits Of Liability For Motor Vehicle Insurance To: All Insurers Licensed to Write Motor Vehicle Liability Insurance In New York State And All Rate Service Organizations Which File Policy Forms and Endorsements on Behalf of Motor Vehicle Liability Insurers The superintendent of insurance has approved the revised uninsured motorists coverage endorsement form. This endorsement was prescribed in accordance with subsection (b) of section 5206 of the insurance law by the motor vehicle accident indemnification corporation (mvaic). The form embodies the coverage required by subsection (f)(1) of section 3420 of the insurance law (uninsured motorists coverage). The revised form containing the prescribed language is attached hereto. Insurers were advised in department circular letter no. 15 (1995) to notify all insureds who have uninsured motorists coverage, that pursuant to chapter 305 of the laws of 1995, for accidents occurring on or after January 1, 1996, the statutory uninsured motorists coverage limits increased to $25,000 for injury to one person in a motor vehicle accident and to $50,000 for injury to two or more persons in any one accident. Minimum statutory uninsured motorist limits continue to be $50,000 for any injury resulting in death sustained by any one person in any one accident, and $100,000 for any injuries resulting in death sustained by two or more persons in any one accident. The original circular letter also advised all insurers to file the revised "automobile accident indemnification coverage - New York" endorsement (revised as the "uninsured motorists endorsement - New York"), as soon as MVAIC prescribes and obtains approval for it. This supplement modifies such form filing requirement by extending the implementation date. Implementation All insurers licensed to write motor vehicle insurance must file a form, for approval no later than July 15, 1996, containing the prescribed language. Rate service organizations may file the prescribed language on behalf of their members and subscribers. The revised form shall be used on all new and renewal motor vehicle insurance policies effective September 1, 1996 and subsequent which do not provide supplementary uninsured motorists coverage. Since all insureds affected by the statutory change in limits were advised of the change pursuant to circular letter no. 15 (1995) and since no other statutory change is being made to this endorsement, retroactive endorsements are not required to be issued. The July 15th date for filing and the September 1st date for implementation were selected to give the industry sufficient time to make any necessary changes to their systems. Insurers may, at their option, file for an earlier implementation date. Please direct any questions concerning this circular letter to Benita Hirsch, principal examiner, property/casualty bureau, 160 West Broadway, New York, New York 10013 (212) 602-0356). Stewart Keir, CPCU, CFE, CIE Assistant Deputy Superintendent and Chief Property/Casualty Bureau Required Minimum Limits of Liability for Motor Vehicle Insurance Endorsement (PDF)