Bill > S04963

This bill requires the superintendent of financial services to develop standardized definitions for commonly used terms and phrases in two types of insurance policies within six months of the bill's effective date: personal lines insurance (which typically covers individual consumers' personal property and liability) and commercial lines insurance policies that cover property loss or damage. The superintendent must create these standardized definitions through regulations following the State Administrative Procedure Act, with the final regulations to be completed no later than January 1, 2027. While insurers will be required to use these standardized terms in policies issued or delivered in New York state after the regulations are finalized, they will have some flexibility to use alternative definitions, provided those definitions are not less favorable to policyholders or claimants as determined by the superintendent. The goal of this bill appears to be increasing clarity and consistency in insurance policy language, which could help consumers better understand their insurance coverage by ensuring that common terms have uniform meanings across different insurance policies.

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https://www.nysenate.gov/legislation/bills/2025/S4963