Bill Text: NY S02314 | 2011-2012 | General Assembly | Introduced

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Bill Title: Exempts individual or group policies of medicare supplemental insurance from certain provisions regarding increase or decrease of premiums without a public hearing.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-01-18 - REFERRED TO INSURANCE [S02314 Detail]

Download: New_York-2011-S02314-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2314
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                   January 18, 2011
                                      ___________
       Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
         printed to be committed to the Committee on Insurance
       AN ACT to amend the insurance law, in relation to  individual  or  group
         policies of medicare supplemental insurance
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subparagraph (A)  of  paragraph  2  of  subsection  (e)  of
    2  section 3231 of the insurance law, as amended by chapter 107 of the laws
    3  of 2010, is amended to read as follows:
    4    (A)  Until  September  thirtieth,  two  thousand  ten, as an alternate
    5  procedure to the requirements of paragraph one of  this  subsection,  an
    6  insurer  desiring  to  increase or decrease premiums for any policy form
    7  subject to this section, WITH THE EXCEPTION OF INDIVIDUAL OR GROUP POLI-
    8  CIES OF MEDICARE SUPPLEMENTAL  INSURANCE,  may  instead  submit  a  rate
    9  filing  or  application  to  the  superintendent and such application or
   10  filing shall be deemed approved,  provided  that:  (i)  the  anticipated
   11  minimum  loss  ratio for a policy form shall not be less than eighty-two
   12  percent of the premium; and (ii) the insurer submits, as  part  of  such
   13  filing, a certification by a member of the American Academy of Actuaries
   14  or other individual acceptable to the superintendent that the insurer is
   15  in  compliance  with  the  provisions of this paragraph, based upon that
   16  person's examination, including a review of the appropriate records  and
   17  of  the  actuarial assumptions and methods used by the insurer in estab-
   18  lishing premium rates for policy  forms  subject  to  this  section.  An
   19  insurer shall not utilize the alternate procedure pursuant to this para-
   20  graph to implement a change in rates to be effective on or after October
   21  first, two thousand ten.
   22    S  2.  Paragraph  1 of subsection (g) of section 4308 of the insurance
   23  law, as amended by chapter 107 of the laws of 2010, is amended  to  read
   24  as follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07112-01-1
       S. 2314                             2
    1    (1)  Until  September  thirtieth,  two  thousand  ten, as an alternate
    2  procedure to the requirements of  subsection  (c)  of  this  section,  a
    3  corporation  subject  to  the  provisions  of  this  article desiring to
    4  increase or decrease premiums for any contract subject to  this  section
    5  may,  EXCEPT  FOR  INDIVIDUAL OR GROUP POLICIES OF MEDICARE SUPPLEMENTAL
    6  INSURANCE, instead submit a rate filing or  application  to  the  super-
    7  intendent  and  such  application  or  filing  shall be deemed approved,
    8  provided that (A) the anticipated incurred loss  ratio  for  a  contract
    9  form  shall  not  be  less than eighty-two percent for individual direct
   10  payment contracts or eighty-two percent for small group and small  group
   11  remittance  contracts,  nor,  except  in  the  case of individual direct
   12  payment contracts with a loss ratio of greater  than  one  hundred  five
   13  percent  during  nineteen  hundred ninety-four, shall the loss ratio for
   14  any direct payment, group or group remittance contract be more than  one
   15  hundred  five  percent  of  the  anticipated earned premium, and (B) the
   16  corporation submits, as part of such filing, a certification by a member
   17  of the American Academy of Actuaries or other individual  acceptable  to
   18  the  superintendent  that  that  corporation  is  in compliance with the
   19  provisions of this subsection, based  upon  that  person's  examination,
   20  including  a  review  of  the  appropriate  records and of the actuarial
   21  assumptions and methods used by the corporation in establishing  premium
   22  rates  for  contracts  subject  to this section. A corporation shall not
   23  utilize the alternate procedure pursuant to this subsection to implement
   24  a change in rates to be effective on or after October first,  two  thou-
   25  sand ten. For purposes of this section, a small group is any group whose
   26  contract  is  subject to the requirements of section forty-three hundred
   27  seventeen of this article.
   28    S 3. This act shall take effect on the first of April next  succeeding
   29  the date on which it shall have become a law.