Want SUM? You Should!

We at The Taub Law Firm, P.C. have been able tosignificantly increase the compensation to our clients whenthey carry SUM policies on their insurance. In one instance aman was crossing a street in Queens and was struck by adriver who then fled the scene. Because our client hadpurchased additional SUM insurance, we were able toproceed to arbitration and obtain a sizable recovery for himwhich would not have been possible if he did not have suchcoverage. Another one of our clients was struck by a vehiclewith minimum liability coverage. We were able obtain theentire amount of the insurance on the other vehicle and thenproceed to secure a recovery for our client under her SUMpolicy. If either of these clients did not have SUM insurance,there would not have been a chance for adequate financialrecovery due to the irresponsibility of the drivers who causedthe accidents.

Governor Andrew Cuomo and the New York State Legislature have acknowledged the importance of SUM insurance and have been working together to expand its presence in New York State. While a bill to expand SUM coverage in New York was vetoed in December of 2012 due to technical details, the Legislature acted to re-introduce a similar bill with additional changes. Currently in committee in the New York State Senate is Senate Bill S4674 entitled “An act to amend the insurance law, in relation to limits on certain supplementary insurance” sponsored by Sen. James L. Seward (R, C, IP). This bill would require that the amount of SUM coverage thatinsurance carriers must make available to consumers isequal to the liability limits on a policy, removing a $250,000cap on coverage. In addition, this bill would require that, at thetime a policy is purchased, consumers be offered a choice of purchasing:

1. SUM coverage equal to the level of bodily injury limits on the policy;
2. SUM coverage at limits less than bodily injury limits on the policy; or 
3. Mandatory minimum SUM coverage. The insurer or agent would be required to disclose to the insured what SUM coverage is and what premiums apply at each level of coverage.