Bill Text: NY S08486 | 2019-2020 | General Assembly | Introduced

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Bill Title: Requires the superintendent of financial services to conduct a review of the classification used by authorized insurers in this state issuing auto insurance coverage for commuter vans, including coverage in the assigned risk plan; makes related provisions.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-06-05 - REFERRED TO RULES [S08486 Detail]

Download: New_York-2019-S08486-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8486

                    IN SENATE

                                      June 5, 2020
                                       ___________

        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the insurance law, in relation to commuter  van  classi-
          fication review

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The insurance law is amended by adding a new section 344 to
     2  read as follows:
     3    § 344. Commuter van classification review. (a)  For  the  purposes  of
     4  this section:
     5    (1) "Commuter van" shall have the same meaning as such term is defined
     6  in section 19-502 of the administrative code of the city of New York.
     7    (2)  "Assigned  risk  plan"  or "plan" shall mean the plan established
     8  pursuant to article fifty-three of this chapter.
     9    (b) The superintendent shall conduct a review  of  the  classification
    10  used  by authorized insurers in this state issuing auto insurance cover-
    11  age for commuter vans, including coverage in  the  assigned  risk  plan.
    12  This  review  shall  include determinations of whether commuter vans are
    13  properly classified, including a review of:
    14    (1) whether the assumed risks used in the calculation of premiums  for
    15  commuter vans by authorized insurers are appropriate;
    16    (2) whether the current classification and risk assessment of commuter
    17  vans  by  authorized  insurers is the most cost effective classification
    18  based on the assumed risks, if another classification could be more cost
    19  effective, and a detailed analysis of the reason or   reasons  for  such
    20  differences in costs and the average amount of difference in costs; and
    21    (3)  the cost differential between the premium for being classified as
    22  "other buses" by authorized insurers, and the premium for being  classi-
    23  fied  as  a commuter van where such premium is based solely on the risks
    24  specific to commuter vans in such plan.
    25    (c) If, after review, the  premium  for  being  classified  as  "other
    26  buses"  is  greater  than the premium for being classified as a commuter
    27  van, the superintendent shall make a  determination  of  whether  a  new
    28  classification  for  commuter  vans  should be created and, if so, shall

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15099-01-0
        S. 8486                             2

     1  require authorized insurers issuing  auto  insurance  policies  in  this
     2  state,  including policies issued through the assigned risk plan, to use
     3  such classification for commuter vans at the inception of all new  poli-
     4  cies and, with respect to all other policies, upon renewal.
     5    (d) The superintendent shall conduct and complete this review and make
     6  all  required determinations within ninety days after the effective date
     7  of this section. The superintendent shall also provide a report  to  the
     8  governor,  the  temporary  president  of  the senate, the speaker of the
     9  assembly, the chair of the assembly insurance committee and the chair of
    10  the senate insurance committee, of the department's findings and  deter-
    11  minations within sixty days after completing such review.
    12    § 2. This act shall take effect immediately.