The most substantial area of law in New York pertaining to insurance relates to automobile insurance. In order to register a vehicle in New York State, you must fulfill certain statutorily mandated insurance requirements. These include no-fault insurance, uninsured motorist insurance and liability insurance. In addition to automobile insurance, New York has broad statues applicable to health insurance, homeowner's insurance and life insurance.
No-Fault Automobile Insurance
New York State requires automobile owners to obtain no-fault insurance protection. No-fault insurance, frequently referred to as "personal injury protection," covers personal injuries to a passenger, pedestrian or driver of your car in the event of an accident. You must show proof of no-fault insurance in order to obtain a New York automobile registration and license plates.
Uninsured Motorist Protection
New York State law also requires uninsured motorist protection. This type of insurance applies to both the driver and passengers in the car. It covers bodily harm that comes about due to negligence involving an uninsured automobile or due to a hit-and-run accident. Uninsured motorist protection doesn't apply to property damage of any kind, including but not limited to damage to the vehicle.
Automobile Liability Insurance
New York drivers must also have liability insurance for property and bodily injury. This insurance applies when another person or persons files a claim against you due to an accident. Certain limits are required. According to the New York State Vehicle and Traffic law, a motorist must have "$25,000 for bodily injury (not resulting in death), or $50,000 for any injury resulting in death, sustained by any one person in any one accident; $50,000 for bodily injury (not resulting in death) sustained by two or more persons in any one accident, or $100,000 for any injuries resulting in death sustained by two or more persons in any one accident."
Health Insurance
New York State law prohibits insurers from denying a potential insured based upon his health record. In addition, HMOs and health insurers must provide family coverage. Moreover, for small business owners (those who employ fewer than 50 but more than 2 employees), group health insurance cannot be denied by an insurer based upon the size of the group. In addition, the small business group insurance cannot be terminated based upon an illness of a person in the group.
Homeowner's Insurance
New York homeowner's insurance providers are competitive and can offer various rates. Once the insurance has been obtained, an insurer may cancel the policy within the first 60 days of the policy, but only if the notice provides the specific reason for the cancellation. Following 60 days, the insurer cannot cancel a policy unless the policyholder fails to pay the premiums, is convicted of a crime, has damaged the property to the extent that the property cannot be insured, or obtained the policy by providing false information.
Life Insurance
New York State also has regulations applicable to life insurance. Based upon the laws, you can purchase either a term-of-years life insurance policy or a whole life insurance policy. In addition, the law requires the insurer to base the policy's cost only on three items: mortality, interest and expense. Mortality refers to consideration based upon the life expectancy of a particular person's age. Moreover, an insurer may consider the interest to be gained from a policy. Finally, the law allows the insurer to include expense issues, such as the costs to the insurer for designing and implementing the insurance plan.
