senate Bill S2683B

Relates to motor vehicle liability insurance rates

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 28 / Jan / 2011
    • REFERRED TO INSURANCE
  • 14 / Feb / 2011
    • 1ST REPORT CAL.87
  • 15 / Feb / 2011
    • 2ND REPORT CAL.
  • 28 / Feb / 2011
    • ADVANCED TO THIRD READING
  • 22 / Mar / 2011
    • AMENDED ON THIRD READING (T) 2683A
  • 16 / May / 2011
    • AMENDED ON THIRD READING 2683B
  • 24 / Jun / 2011
    • COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO INSURANCE

Summary

Relates to motor vehicle liability insurance rates.

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Bill Details

Versions:
S2683
S2683A
S2683B
Legislative Cycle:
2011-2012
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง2335, Ins L

Sponsor Memo

BILL NUMBER:S2683B

TITLE OF BILL:
An act
to amend the insurance law,
in relation to motor vehicle liability insurance
rates

PURPOSE:
To address technical issues which have
arisen with regard to
the implementation of chapter 277 of the laws of 201O.

SUMMARY OF PROVISIONS:
This bill would remedy certain technical issues
which have arisen in the implementation of chapter 277 of the laws of
2010, which took effect on November 27, 2010. Specifically, this bill
clarifies that the $2,000 accident surcharge threshold is applicable
to accidents occurring on or after June 1, 2011.
The bill further clarifies that the higher threshold will also apply
to policies issued, modified or renewed between November 27, 2010 and
June 1, 2011. This bill would also restore the superintendent of
insurance's authority to amend the surcharge threshold by regulation.

JUSTIFICATION:
This bill is necessary to address certain unanticipated
technical concerns which have arisen in connection with the
implementation of chapter 277 of the laws of 2010. Specifically,
this bill would ensure and codify the legislature's original intent
that there is no retroactive application of the provisions of chapter
277 of the laws of 2010. This measure would also restore the
superintendent of insurance's authority to amend the surcharge
threshold by regulation.

LEGISLATIVE HISTORY:
Similar to S.8519 of 2010.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2683--B
    Cal. No. 87

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 28, 2011
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Insurance  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its  place  in the order of third reading -- again amended and ordered
  reprinted, retaining its place in the order of third reading

AN ACT to amend the insurance law, in relation to motor vehicle  liabil-
  ity insurance rates

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (a) of section 2335 of  the  insurance  law,  as
amended  by  chapter  277  of  the  laws  of 2010, is amended to read as
follows:
  (a)(1) WITH RESPECT TO POLICIES ISSUED,  MODIFIED  OR  RENEWED  ON  OR
AFTER NOVEMBER TWENTY-SEVENTH, TWO THOUSAND TEN AND PRIOR TO JUNE FIRST,
TWO  THOUSAND  ELEVEN AND ANY RENEWALS THEREOF WITH RESPECT TO ANY ACCI-
DENT WHICH OCCURRED PRIOR TO JUNE FIRST, TWO THOUSAND ELEVEN has had  an
accident  that does not result in aggregate damage to property in excess
of two thousand dollars, provided that any  policy  surcharge  shall  be
permissible  for  any  accident which results in bodily injury or if the
insured has more than one accident in the merit rating experience  peri-
od.  Nothing  in  this  subsection shall change the dollar amount of the
accident reporting threshold required under paragraph one of subdivision
(a) of section six hundred five of the vehicle and traffic law; AND
  (2) WITH RESPECT TO POLICIES ISSUED OR RENEWED ON OR AFTER JUNE FIRST,
TWO THOUSAND ELEVEN HAS HAD AN ACCIDENT ON  OR  AFTER  JUNE  FIRST,  TWO
THOUSAND  ELEVEN THAT DOES NOT RESULT IN AGGREGATE DAMAGE TO PROPERTY IN
EXCESS OF TWO THOUSAND DOLLARS, PROVIDED THAT ANY POLICY SURCHARGE SHALL
BE PERMISSIBLE FOR ANY ACCIDENT WHICH RESULTS IN BODILY INJURY OR IF THE
INSURED HAS MORE THAN  ONE  ACCIDENT  IN  THE  MERIT  RATING  EXPERIENCE
PERIOD.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08541-06-1

S. 2683--B                          2

  (3)  THE  SUPERINTENDENT MAY, PURSUANT TO REGULATION, INCREASE THE TWO
THOUSAND DOLLAR THRESHOLD FOR INFLATION OR ANY OTHER  REASON  FOR  WHICH
THE  SUPERINTENDENT  DETERMINES THE INCREASE TO BE REASONABLE AND APPRO-
PRIATE.  WHENEVER  THE  SUPERINTENDENT  INCREASES  THE  THRESHOLD,  SUCH
INCREASE  SHALL  APPLY  TO ACCIDENTS OCCURRING ON OR AFTER THE EFFECTIVE
DATE OF THE REGULATION. NOTHING IN  THIS  SUBSECTION  SHALL  CHANGE  THE
DOLLAR  AMOUNT  OF THE ACCIDENT REPORTING THRESHOLD REQUIRED UNDER PARA-
GRAPH ONE OF SUBDIVISION (A) OF SECTION SIX HUNDRED FIVE OF THE  VEHICLE
AND TRAFFIC LAW.
  S  2.  This act shall take effect immediately; provided, however, that
the amendments to subsection (a) of section 2335 of  the  insurance  law
made  by section one of this act shall not affect the expiration of such
section and shall be deemed to expire therewith.

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