senate Bill S2705

Signed by Governor Amended

Permits insurers to make available multiple rating programs for private passenger motor vehicle insurance within the same company

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Co-Sponsors

Bill Status


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

actions

  • 28 / Jan / 2011
    • REFERRED TO INSURANCE
  • 14 / Feb / 2011
    • 1ST REPORT CAL.89
  • 15 / Feb / 2011
    • 2ND REPORT CAL.
  • 28 / Feb / 2011
    • ADVANCED TO THIRD READING
  • 14 / Jun / 2011
    • AMENDED ON THIRD READING (T) 2705A
  • 20 / Jun / 2011
    • PASSED SENATE
  • 20 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 20 / Jun / 2011
    • REFERRED TO INSURANCE
  • 22 / Jun / 2011
    • SUBSTITUTED FOR A6881A
  • 22 / Jun / 2011
    • ORDERED TO THIRD READING RULES CAL.574
  • 22 / Jun / 2011
    • PASSED ASSEMBLY
  • 22 / Jun / 2011
    • RETURNED TO SENATE
  • 05 / Aug / 2011
    • DELIVERED TO GOVERNOR
  • 17 / Aug / 2011
    • SIGNED CHAP.457

Summary

Permits insurers to make available multiple rating plans for private passenger motor vehicle insurance within the same company.

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Bill Details

Versions:
S2705
S2705A
Legislative Cycle:
2011-2012
Law Section:
Insurance Law
Laws Affected:
Add ยง2352, Ins L

Votes

16
0
16
Aye
0
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Insurance committee vote details

Sponsor Memo

BILL NUMBER:S2705

TITLE OF BILL:
An act
to amend the insurance law, in relation to permitting insurers to make
available multiple rating plans for private passenger motor vehicle
insurance within the same company

PURPOSE:
To permit property/casualty insurers to make available
multiple rating plans within the same company
for personal lines insurance in the voluntary market.

SUMMARY OF PROVISIONS:
Section 1: Adds Insurance Law Section 2352 to
permit insurers to make available multiple rating plans within the
same company for personal lines insurance in the voluntary market.

EXISTING LAW:
Currently, insurance companies are prohibited from
having more than one rating plan within the same company.

JUSTIFICATION:
While insurance companies are prohibited from having
more than one rating plan within the same company, in practice, this
restriction only affects smaller, regional insurance companies that
do business primarily in New York. Larger insurers, like those that
operate on a national basis that want to offer multiple rating plans
to their customers, simply establish a separate subsidiary or
affiliate company that is set up for the primary purpose of offering
the new rating plan. Since smaller insurers lack the financial
resources to set up separate corporations each time they want to
offer a new rating plan, they are placed at a competitive
disadvantage by the prohibition.

To remain competitive, insurance companies need to be able to
continually develop new rating plans that introduce different rating
elements that allow them to better segment and price business.

Adding a new section to the insurance law that specifically authorizes
multiple rating plans within the same company will level the playing
field so that all insurers, not just large companies, can offer more
than one rating plan to their customers. Each time a company develops
a new plan, the plan would be provided only to new business
customers, as is the current practice used when larger insurers
establish a separate corporation to offer a new plan.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.


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

                                  2705

                       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

AN ACT to amend the insurance law, in relation to permitting insurers to
  make available multiple rating plans for private passenger motor vehi-
  cle insurance within the same company

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

  Section  1.  The insurance law is amended by adding a new section 2352
to read as follows:
  S 2352. MULTIPLE RATING PLANS.  (A)  AN  INSURER  MAY  MAKE  AVAILABLE
MULTIPLE  RATING PLANS WITHIN THE SAME COMPANY FOR PERSONAL LINES INSUR-
ANCE IN THE VOLUNTARY MARKET, PROVIDED THAT EACH TIME A NEW RATING  PLAN
IS  DEVELOPED,  IT  SHALL APPLY ONLY TO POLICIES ISSUED ON AND AFTER THE
EFFECTIVE DATE OF THE NEW PLAN.
  (B) FOR PURPOSES OF THIS SECTION "PERSONAL LINES INSURANCE" SHALL MEAN
PROPERTY/CASUALTY INSURANCE COVERAGE SOLD TO  INDIVIDUALS  AND  FAMILIES
FOR PRIMARILY NON-COMMERCIAL PURPOSES.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08794-01-1

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