Bill Text: NY A07430 | 2011-2012 | General Assembly | Introduced
Bill Title: Extends certain provisions of law relating to the New York property insurance underwriting association and certain powers of such association.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2011-06-01 - substituted by s4426 [A07430 Detail]
Download: New_York-2011-A07430-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7430
2011-2012 Regular Sessions
I N A S S E M B L Y
May 4, 2011
___________
Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the insurance law, in relation to extending the effec-
tiveness of certain provisions relating to automobile and
property/casualty insurance rates
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subsection (g) of section 5412 of the insurance law, as
2 amended by chapter 136 of the laws of 2008, is amended to read as
3 follows:
4 (g) The provisions of this section shall cease to be of any force or
5 effect on or after June thirtieth, two thousand [eleven] FOURTEEN,
6 except that policies issued or other obligations incurred by the associ-
7 ation shall not be impaired by the expiration of this section and the
8 association shall continue for the purpose of servicing such policies
9 and performing such obligations.
10 S 2. Sections 2328 and 2329 of the insurance law, as amended by chap-
11 ter 136 of the laws of 2008, are amended to read as follows:
12 S 2328. Certain motor vehicle insurance rates; prior approval. For the
13 periods February first, nineteen hundred seventy-four through August
14 second, two thousand one, and the effective date of the
15 property/casualty insurance availability act through June thirtieth, two
16 thousand [eleven] FOURTEEN, no changes in rates, rating plans, rating
17 rules and rate manuals applicable to motor vehicle insurance, including
18 no-fault coverages under article fifty-one of this chapter, shall be
19 made effective until approved by the superintendent, notwithstanding any
20 inconsistent provisions of this article; provided, however, that changes
21 in such rates, rating plans, rating rules and rate manuals may be made
22 effective without such approval if the rates which result from such
23 changes are no higher than the insurer's rates last approved by the
24 superintendent. This section shall apply only to policies covering loss-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10606-01-1
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1 es or liabilities arising out of ownership of a motor vehicle used prin-
2 cipally for the transportation of persons for hire, including a bus or a
3 school bus as defined in sections one hundred four and one hundred
4 forty-two of the vehicle and traffic law.
5 S 2329. Motor vehicle insurance rates; excess profits. In accordance
6 with regulations prescribed by the superintendent, each insurer issuing
7 policies which are subject to article fifty-one of this chapter, includ-
8 ing policies of motor vehicle personal injury liability insurance or
9 policies of motor vehicle property damage liability insurance or insur-
10 ance for loss or damage to a motor vehicle, shall establish a fair,
11 practicable, and nondiscriminatory plan for refunding or otherwise cred-
12 iting to those purchasing such policies their share of the insurer's
13 excess profit, if any, on such policies. An excess profit shall be a
14 profit beyond a percentage rate of return on net worth attributable to
15 such policies, computed in accordance with the regulation required by
16 section two thousand three hundred twenty-three of this article, and
17 determined by the superintendent to be so far above a reasonable average
18 profit as to amount to an excess profit, taking into consideration the
19 fact that losses or profits below a reasonable average profit will not
20 be recouped from such policyholders. Each plan shall apply to policy
21 periods for the periods January first, nineteen hundred seventy-four
22 through August second, two thousand one, and the effective date of the
23 property/casualty insurance availability act through June thirtieth, two
24 thousand [eleven] FOURTEEN. In prescribing such regulations the super-
25 intendent may limit the duration of such plans, waive any requirement
26 for refund or credit which he or she determines to be de minimis or
27 impracticable, adopt forms of returns which shall be made to him or her
28 in order to establish the amount of any refund or credit due, establish
29 periods and times for the determination and distribution of refunds and
30 credits, and shall provide that insurers receive appropriate credit
31 against any refunds or credits required by any such plan for policyhold-
32 er dividends and for return premiums which may be due under rate credit
33 or retrospective rating plans based on experience.
34 S 3. Paragraph 2 of subsection (l) of section 3425 of the insurance
35 law, as amended by chapter 136 of the laws of 2008, is amended to read
36 as follows:
37 (2) The superintendent shall collect, analyze and compile such reports
38 with regard to the number of new insureds, non-renewed insureds and
39 business written by each insurer in each rating territory of each such
40 insurer and, in each case, the class of insureds (including age and sex)
41 affected so that a statistical analysis of the results obtained pursuant
42 to subsections (f) and (m) of this section shall be provided to each
43 house of the legislature by March fifteenth, in the years nineteen
44 hundred ninety-two, nineteen hundred ninety-six, nineteen hundred nine-
45 ty-eight, two thousand one, two thousand six, two thousand seven, two
46 thousand eight [and], two thousand eleven AND TWO THOUSAND FOURTEEN.
47 S 4. Paragraphs 1 and 2 and the opening paragraph of paragraph 3 of
48 subsection (m) of section 3425 of the insurance law, as amended by chap-
49 ter 136 of the laws of 2008, are amended to read as follows:
50 (1) Paragraphs eight and nine of subsection (a), subsection (f) and
51 subparagraphs (B) and (E) of paragraph one of subsection (j) of this
52 section shall not apply to any new covered policy of automobile insur-
53 ance voluntarily written on or after August first, nineteen hundred
54 eighty-five and prior to January first, nineteen hundred eighty-six, and
55 on or after August second, two thousand one and prior to the effective
56 date of the property/casualty insurance availability act, and on or
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1 after June thirtieth, two thousand [eleven] FOURTEEN, but the legal
2 rights granted to insurers or policyholders under such provisions shall
3 not be extinguished or impaired thereby.
4 (2) In lieu of such provisions, paragraph seven of subsection (a),
5 subparagraph (A) of paragraph one of subsection (j) and paragraph three
6 of this subsection shall apply to such automobile insurance policies
7 which are newly and voluntarily written to have an effective date on or
8 after August first, nineteen hundred eighty-five and prior to January
9 first, nineteen hundred eighty-six, and on or after August second, two
10 thousand one and prior to the effective date of the property/casualty
11 insurance availability act, and on or after June thirtieth, two thousand
12 [eleven] FOURTEEN.
13 On and after August first, nineteen hundred eighty-five and prior to
14 January first, nineteen hundred eighty-six, and on or after August
15 second, two thousand one and prior to the effective date of the
16 property/casualty insurance availability act, and on or after June thir-
17 tieth, two thousand [eleven] FOURTEEN, no notice of nonrenewal or condi-
18 tional renewal of such covered automobile insurance policies referred to
19 in this subsection shall be issued to become effective during the
20 required policy period unless it is based upon a ground for which the
21 policy could have been cancelled or unless it is based upon one or more
22 of the following grounds which occurred during the thirty-six month
23 period ending on the last day of the fourth month preceding the month of
24 the effective date of such notice of nonrenewal or conditional renewal:
25 S 5. Subsection (f) of section 2305 of the insurance law, as amended
26 by chapter 136 of the laws of 2008, is amended to read as follows:
27 (f) Subsection (a) of this section shall be of no force or effect
28 during the period August third, two thousand one through the day before
29 the effective date of the property/casualty insurance availability act,
30 and after June thirtieth, two thousand [eleven] FOURTEEN. During the
31 period August third, two thousand one through the day before the effec-
32 tive date of the property/casualty insurance availability act, and again
33 commencing on July first, two thousand [eleven] FOURTEEN, all rates
34 previously subject to subsection (a) of this section, other than rates
35 which are not required to be filed pursuant to subsection (b) of section
36 two thousand three hundred ten of this article or which have been
37 suspended from the filing requirement pursuant to section two thousand
38 three hundred eleven of this article, shall become subject to
39 subsections (b), (c) and (d) of this section. All other provisions of
40 this article applicable to kinds of insurance or insurance activities
41 the rates for which are subject to prior approval under subsection (b)
42 of this section shall apply to kinds of insurance the rates for which
43 were previously subject to subsection (a) of this section or the rates
44 for which are not required to be filed pursuant to subsection (b) of
45 section two thousand three hundred ten of this article or the rates for
46 which have been suspended from the filing requirement pursuant to
47 section two thousand three hundred eleven of this article.
48 S 6. Section 2342 of the insurance law, as amended by chapter 136 of
49 the laws of 2008, is amended to read as follows:
50 S 2342. Expiration of certain provisions. The provisions of subsection
51 (c) of section two thousand three hundred seven, section two thousand
52 three hundred eight, subsection (a) of section two thousand three
53 hundred ten, sections two thousand three hundred sixteen, two thousand
54 three hundred twenty, two thousand three hundred twenty-three, two thou-
55 sand three hundred twenty-six, and two thousand three hundred thirty-
56 five, subsection (b) of section two thousand three hundred thirty-six
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1 and section two thousand three hundred forty-one of this article shall
2 cease to be of any force or effect during the period August third, two
3 thousand one through the day before the effective date of the
4 property/casualty insurance availability act, and after June thirtieth,
5 two thousand [eleven] FOURTEEN.
6 S 7. Subsection (h) of section 2344 of the insurance law, as amended
7 by chapter 136 of the laws of 2008, is amended to read as follows:
8 (h) This section shall cease to be of any force or effect during the
9 period August third, two thousand one through the day before the effec-
10 tive date of the property/casualty insurance availability act, and after
11 June thirtieth, two thousand [eleven] FOURTEEN, except that rates shall
12 reflect the likely reductive cost effects reasonably attributable to the
13 statutory provisions specified in paragraph one of subsection (g) of
14 this section.
15 S 8. This act shall take effect immediately.
