New York Laws
Article 31 - Insurance Contracts - General
3102 - Requirements for the Use of Readable and Understandable Insurance Policies.

(1) form subject to approval under either section three thousand two
hundred one or four thousand three hundred eight of this chapter;
(2) comprehensive health services plan as defined in section four
thousand four hundred one of the public health law;
(3) contract of insurance for owners of dwellings consisting of not
more than four dwelling units, and for household furnishings and
personal property contained in any household unit, written for a
divisible or indivisible premium which provides coverage for the peril
of fire and extended coverage with or without any other kind of
insurance as provided pursuant to subsection (a) of section one thousand
one hundred thirteen of this chapter;
(4) contract of insurance insuring against losses or liabilities
arising out of the ownership, operation, or use of a motor vehicle
predominantly used for non-business purposes, when a natural person is
the named insured.
(b) Exclusions. (1) This section shall not apply to:
(A) any insurance policy which has been determined to be a security
subject to federal jurisdiction;
(B) certificates issued pursuant to a group life or accident and
health insurance policy or group annuity contract issued to an employer
covering persons employed in more than one state;
(C) any group insurance policy covering a group of one hundred or more
lives, other than dependents, at date of issue, and a group credit life
insurance policy or a group credit accident and health insurance policy;
provided, however, this shall not exempt any certificate issued pursuant
to a group insurance policy delivered or issued for delivery in this
state;
(D) any group annuity contract which serves as a funding vehicle for
pension, profit sharing or deferred compensation plans; provided,
however, this shall not exempt any certificate issued pursuant to such
group annuity contract;
(E) any insurance policy of life and accident and health insurance
used in connection with, as a conversion from, as an addition to, or in
exchange pursuant to a contractual provision for, an insurance policy
approved prior to October first, nineteen hundred eighty-two;
(F) the renewal of an insurance policy of life and accident and health
insurance made, issued or delivered on a form provided prior to October
first, nineteen hundred eighty-two;
(G) any insurance policy issued pursuant to article sixty-three of
this chapter;
(H) any funding agreement issued pursuant to section three thousand
two hundred twenty-two of this chapter; or
(I) any service contract issued pursuant to article seventy-nine of
this chapter.
(2) No other statute of this state or provision of this chapter
establishing language simplification standards shall apply to any
insurance policy.
(3) Any non-English language insurance policy made, issued or
delivered in this state on a risk located or resident in this state
shall be deemed to be in compliance with subparagraph (D) of paragraph
one of subsection (c) of this section if the insurer certifies that such
insurance policy is translated from an English language insurance policy
which does comply with such subparagraph.
(c) Readability requirements. (1) In addition to any other
requirements of law, no insurance policy, except as set forth in

subsection (b) of this section, shall be made, issued or delivered in
this state on a risk located or resident in this state, unless:
(A) it is written in a clear and coherent manner;
(B) wherever practicable, it uses words with common and everyday
meanings to facilitate readability and to aid the insured or
policyholder in understanding the coverage provided;
(C) it has been filed with and approved by the superintendent;
(D) the text achieves a minimum score of forty-five on the Flesch
reading ease test or an equivalent score on any other comparable test as
provided in paragraph three of this subsection;
(E) it is printed, except for specification pages, schedules and
tables, in not less than ten point type, and except for applications,
specification pages, schedules and tables, such type is at least one
point leaded;
(F) it is appropriately divided and captioned and presented in
meaningful sequence; each section to contain an underlined, boldface or
otherwise conspicuous title or caption at the beginning that indicates
the nature of the subject matter included in or covered by the section;
(G) it contains a table of contents or an index of the principal
sections of the insurance policy if the insurance policy has more than
three thousand words or if the insurance policy has more than three
pages regardless of the number of words;
(H) it has margins that are adequate for the purposes of readability;
and
(I) it is printed in such manner that it includes sufficient contrast
of ink and paper to be legible.
(2) For the purposes of this subsection, a Flesch reading ease test
score shall be measured by the following method:
(A) For an insurance policy containing ten thousand words or less of
text, the entire form shall be analyzed. For an insurance policy
containing more than ten thousand words, the readability of two hundred
word samples per page may be analyzed instead of the entire form. The
samples shall be separated by at least twenty printed lines.
(B) The number of words and sentences in the text shall be counted and
the total number of words divided by the total number of sentences. The
figure obtained shall be multipled by a factor of 1.015.
(C) The total number of syllables shall be counted and divided by the
total number of words. The figure obtained shall be multiplied by a
factor of 84.6.
(D) The sum of the figures computed under subparagraphs (B) and (C)
hereof subtracted from 206.835 equals the Flesch reading ease score for
the insurance policy.
(E) For purposes of subparagraphs (B), (C) and (D) hereof, the
following procedures shall be used:
(i) a contraction, hyphenated word, or numbers and letters, when
separated by spaces, shall be counted as one word;
(ii) a unit of words ending with a period, semicolon, or colon, but
excluding headings and captions, shall be counted as a sentence; and
(iii) a syllable means a unit of spoken language consisting of one or
more letters of a word as divided by an accepted dictionary. Where the
dictionary shows two or more equally acceptable pronunciations of a
word, the pronunciation containing fewer syllables may be used.
(F) In this subsection "text" includes all printed matter except the
following:
(i) the name and address of the insurer; the name, number or title of
the policy; the table of contents or index; captions and subcaptions;
specification pages, schedules or tables; and
(ii) any language which is drafted to conform to the requirements of
any state or federal law, regulation or agency interpretation; any
language required by any collectively bargained agreement; any medical
terminology; and words which are defined in the insurance policy; and
any language required by law or regulation; provided, however, the
insurer identifies the language or terminology excepted by this
subparagraph and certifies in writing that the language or terminology
is entitled to be excepted by this subparagraph.
(3) Any other reading test may be designated by the superintendent for
use as an alternative to the Flesch reading ease test.
(4) Filings subject to this subsection shall be certified by an
officer of the insurer that they meet the minimum reading ease score on
the test used or state that the score is lower than the minimum required
but should be approved in accordance with subsection (d) of this
section. To confirm the accuracy of any certification, the
superintendent may require the submission of further information to
verify the certification in question.
(5) At the option of the insurer, riders, endorsements, applications
and other forms may be scored as separate forms or as part of the
insurance policy with which they may be used.
(d) Lower score permitted. The superintendent may authorize a lower
score than the Flesch reading ease score required in subparagraph (D) of
paragraph one of subsection (c) of this section whenever, in the
superintendent's sole discretion, he finds that a lower score:
(1) nevertheless reflects a readable and an understandable insurance
policy which is consistent with the purposes of this section;
(2) is warranted by the nature of a particular insurance policy or
type or class of insurance policies; or
(3) is caused by certain language which is drafted to conform to the
requirements of any state law, regulation, agency or departmental
interpretation.
(e) Other laws. (1) Any insurance policy meeting the requirements of
subparagraphs (D) through (I) of paragraph one of subsection (c) of this
section may be approved notwithstanding the provisions of any other laws
which specify the content of insurance policies, if in the opinion of
the superintendent the insurance policy provides the policyholders and
claimants protection not less favorable than they would be entitled to
under such laws.
(2) This section shall not prohibit the use of words or phrases or
contractual provisions required by state or federal law, rule or
regulation or by a governmental instrumentality or by any collectively
bargained agreement.
(f) Prohibition of non-conforming policies. Except as provided in
subsection (b) of this section:
(1) no insurance policy described in paragraph one or two of
subsection (a) of this section shall be made, issued or delivered in
this state on a risk located or resident in this state, unless the
policy complies with the requirements of this section;
(2) no insurance policy described in paragraph three or four of
subsection (a) of this section and no renewal or extension certificate
in connection therewith shall be made, issued or delivered in this state
unless the insurance policy complies with the requirements of this
section.