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