Sec. 60-2.1. Basics of SUM coverage

(a) SUM provides additional insurance coverage for bodily injury, including death resulting therefrom, sustained by an insured, as a result of an accident involving a negligent owner or operator of another motor vehicle who:

(1) may have no insurance whatsoever; or

(2) even if insured, is only insured for third-party bodily injury coverage at relatively low liability limits, in comparison to the policyholder's own liability limits for bodily injury sustained by third-parties.

(b) An insurer shall not offer SUM coverage in an amount exceeding the third-party liability coverage limits purchased by the policyholder. The policy shall provide coverage for any insured under the policy for:

(1) bodily injury to such person, up to the limit of the SUM coverage purchased; and

(2) receive from the policyholder's own insurer payment for bodily injury sustained due to the negligence of the other motor vehicle's owner or operator.

(c) The maximum amount payable under the SUM coverage shall be the policy's SUM limit reduced and thus offset by any motor vehicle bodily injury liability insurance policy or bond payments received from, or on behalf of, any negligent party involved in the accident.

(d) The rate and premium for SUM coverage shall, in accordance with Insurance Law article 23, take into appropriate account the offsetting characteristic of SUM coverage stated in subdivision (c) of this section.

(e) Except as provided in subdivision (f) of this section:

(1) An insurer shall offer:

(i) SUM limits, in a motor vehicle liability insurance policy with split limits, up to $250,000 per person per accident and, subject to such limit for one person, $500,000 per accident; or

(ii) a SUM limit, in a motor vehicle liability insurance policy with a combined single limit, up to $500,000 per accident.

(2) An insurer is not required to offer SUM limits in the motor vehicle liability insurance policy in the amounts specified in paragraph (1) of this subdivision, if, in lieu thereof:

(i) the insurer offers motor vehicle liability limits in amounts:

(a) greater than $100,000 because of bodily injury to or death of one person in any one accident, and, subject to such limit for one person, $300,000 because of bodily injury to or death of two or more persons in any one accident; or

(b) greater than a combined single limit of $300,000 because of bodily injury to or death of one or more persons in any one accident; and

(ii) the insurer offers, in the motor vehicle liability policy:

(a) SUM coverage with split limits of $100,000 per person per accident and, subject to such limit for one person, $300,000 per accident; or

(b) SUM coverage with a combined single limit of $300,000 per accident; and

(iii) the insurer also makes available a personal umbrella liability policy with limits up to at least $500,000, and the insurer provides SUM coverage in the umbrella policy so that the total SUM coverage in the motor vehicle liability insurance policy and the personal umbrella liability policy shall be up to at least $500,000.

(3) An insurer may offer SUM limits that exceed the amounts specified in paragraph (1) or (2) of this subdivision.

(4) Notwithstanding any other provision of this subdivision, an insurer shall not provide SUM limits in an amount that exceeds the third-party bodily injury liability limits offered by the insurer and purchased by the policyholder.

(f)

(1) With regard to a motor vehicle liability insurance policy originally entered into on or after June 16, 2018 other than a commercial risk insurance policy, an insurer shall provide SUM limits in an amount equal to the bodily injury liability insurance limits of coverage provided under the motor vehicle liability insurance policy unless a first named insured declines the SUM coverage or selects a lower amount of coverage through a written waiver signed by the first named insured, subject to the requirements of Insurance Law section 3420(f)(2-a)(B); provided however, the insurer may require that the insured’s SUM coverage limit be equal to the insured’s bodily injury liability insurance limit under the policy.

(2) A first named insured’s signed written waiver declining SUM coverage or selecting a lower amount of SUM coverage shall apply to all subsequent renewals of coverage and to all policies or endorsements that extend, change, supersede, or replace an existing policy issued to the first named insured, unless changed in writing by a first named insured.

(3) Whenever SUM coverage is declined, the policy shall provide the mandatory uninsured motorists (UM) coverage required by Insurance Law section 3420(f)(1).

(4) The insurer, on subsequent renewals, shall provide to the insured the applicable notice required by section 60-2.2(a) of this Subpart.

(g) Notwithstanding subdivisions (e) and (f) of this section:

(1) an insurer providing coverage in satisfaction of the financial responsibility requirements of Vehicle and Traffic Law article 44-B:

(i) shall provide SUM coverage, in the amount of $1,250,000 because of bodily injury to or death of one or more persons in any one accident, while the TNC driver is engaged in a TNC prearranged trip if the policy provides liability coverage as required by Vehicle and Traffic Law section 1693(3); and

(ii) if the policy provides liability coverage as required by Vehicle and Traffic Law section 1693(2), shall:

(a) offer SUM coverage as provided in subdivision (e) of this section, under an insurance policy other than an insurance policy described in subparagraph (ii) of this paragraph, while the driver is logged onto the TNC’s digital network but is not engaged in a TNC prearranged trip; or

(b) provide SUM coverage as provided in subdivision (f) of this section, under an insurance policy originally entered into on or after June 16, 2018, other than a commercial risk insurance policy, while the driver is logged onto the TNC’s digital network but is not engaged in a TNC prearranged trip; and

(2) an insurer providing coverage insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any natural person arising out of the ownership, maintenance and use of an altered motor vehicle, commonly referred to as a stretch limousine, having a seating capacity of eight or more passengers used in the business of carrying or transporting passengers for hire, shall provide SUM coverage in the amount of $1,500,000 because of bodily injury to or death of one or more persons in any one accident for any policy issued, renewed, altered, or modified on or after January 1, 2020. For the purposes of this paragraph, an altered motor vehicle or stretch limousine shall mean a vehicle altered so as to have an extended chassis, lengthened wheel base, or elongated seating area and in the case of a truck, has been modified to transport passengers in addition to having been altered.

(h) Nothing in this section shall be construed to require an insurer to offer any particular minimum or maximum amount of third-party bodily injury liability limits.