Requires the superintendent of financial services to promulgate regulations which provide standardized definitions for commonly used terms and phrases in certain insurance policies

2025 Regular Session Introduced by Steve Otis and 1 co-sponsor

A 1572 would require DFS to issue regulations standardizing definitions for common terms in certain insurance policies, reducing ambiguity for consumers and insurers.

TABLED

Summary: Assembly Bill A 1572

Overview

A 1572 would require the New York State Department of Financial Services (DFS) to promulgate regulations that establish standardized definitions for commonly used terms and phrases in certain insurance policies. The goal is to reduce ambiguity in policy language and improve clarity for consumers and insurers.

Purpose and Intent

Ensure uniform definitions across specified insurance policies.

Improve transparency and predictability in policy interpretation and claim handling.

Provide a clear regulatory framework that insurers and consumers can rely on when reading and enforcing policy terms.

Key Provisions (as currently drafted)

The DFS would be directed to promulgate regulations that create standardized definitions for commonly used terms and phrases found in certain insurance policies.

Regulations would presumably apply to the identified subset of insurance products, with definitions to be used consistently across issuers and interpretations by the DFS.

The bill does not specify the exact terms to be standardized in the text provided, nor a detailed implementation timeline. The regulatory process would determine the exact scope, terms covered, and effective dates.

Who/What Would Be Affected

Regulated Entity: Insurers offering the specified insurance policies subject to DFS regulation.

Policyholders/Consumers: Individuals and businesses purchasing or claims-processing within the insured policies would benefit from clearer, standardized terminology.

DFS: Responsible for developing, publishing, and enforcing the standardized definitions through regulations.

Legislative History and Status

Introduced: January 10, 2025

Sponsor(s): Primary - David Weprin; Co-sponsor - Steven Otis

Related Bills: Companion S 4963; several prior-session A bills (A 1230, A 7453, A 391, A 72, A 8637, A 4011)

Major actions:

Referred to Insurance (Jan 10, 2025)
Reported (Feb 24, 2025) and delivered to Senate (Mar 25, 2025)
Passed Assembly (Mar 25, 2025)
Delivered to Senate and passed Senate (June 11, 2025)
Returned to Assembly; considered in subsequent sessions
Delivered to Governor (Oct 9, 2025)
Veto memo 35 issued (Oct 16, 2025)
Tabled (Oct 17, 2025)

Current status: TABLED, effectively pausing advancement in the Legislature. The governor has received the bill and issued a veto memo, suggesting possible executive action or concerns that would need to be addressed for further progression.

Potential Impact and Considerations

Positive impacts: Greater clarity in policy language, reduced disputes over terminology, and more uniform treatment across insurers and claims. Potential improvements in consumer understanding and satisfaction.

Regulatory considerations: DFS would need to define the scope of “certain insurance policies” and specify which terms are standardized, which could affect underwriting, claims handling, and policy drafting practices.

Timeline: As the bill is currently tabled, any movement would require further legislative action or an agreed-upon path, especially if the veto considerations are addressed by amendments or negotiations with the sponsor(s).

Next Steps

Monitor for any movement from the Governor or the Legislature to reintroduce or amend the bill.

Review DFS regulations once issued to understand the exact terms standardized and the effective dates.