NY A08698

Allows insurers to offer liability insurance policies with terms of less than one year, provided the insured is also offered a one-year policy option.

Requires short-term liability policies to be written on an occurrence basis or defense cost outside limits basis, with no annual aggregate liability limits but may have aggregate limits for the policy term.

Restricts short-term policies from covering medical malpractice, vehicle insurance required by law, or public entity insurance, and prohibits timely filing claim limitations.

Limits policy extensions to a maximum total period of eleven months and requires pro-rata premium refunds if the insured cancels before expiration.

Mandates written disclosure to insureds that short-term policies may be more expensive than one-year policies, with minimum coverage term of at least one month.