senate Bill S2705A

Signed by Governor

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

download pdf

Sponsor

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.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A6881A
Versions:
S2705
S2705A
Legislative Cycle:
2011-2012
Law Section:
Insurance Law
Laws Affected:
Add ยง2352, Ins L

Sponsor Memo

BILL NUMBER:S2705A REVISED 06/20/11

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

PURPOSE:
To permit property/casualty insurers to make available multiple rating
programs 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 programs within the same company for personal
lines insurance in the voluntary market. Such programs would be subject
to prior approval by the superintendent. The superintendent is author-
ized to promulgate rules and regulations which may include criteria that
would merit the superintendent's approval.

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 small-
er 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 contin-
ually 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:
This act shall take effect on the 90th day after it shall become law.

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

                                 2705--A
    Cal. No. 89

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 28, 2011
                               ___________

Introduced by Sens. SEWARD, KLEIN -- 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

AN ACT to amend the insurance law, in relation to permitting insurers to
  make  available  multiple  rating programs for private passenger motor
  vehicle 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 PROGRAMS. (A) SUBJECT TO THE  SUPERINTENDENT'S
PRIOR  APPROVAL,  AN  INSURER MAY ESTABLISH MORE THAN ONE RATING PROGRAM
WITHIN THE SAME COMPANY FOR POLICIES OF INSURANCE THAT  ARE  SUBJECT  TO
SECTION  THREE  THOUSAND  FOUR  HUNDRED  TWENTY-FIVE  OF  THIS  CHAPTER;
PROVIDED THAT:
  (1) EACH RATING PROGRAM SHALL APPLY ONLY TO POLICIES NEWLY WRITTEN  ON
OR  AFTER  THE  EFFECTIVE  DATE  OF  THE RATING PROGRAM BUT PRIOR TO THE
EFFECTIVE DATE OF ANY SUBSEQUENTLY  APPROVED  RATING  PROGRAM;  PROVIDED
HOWEVER  IF  AN  INSURER  TERMINATES  A RATING PROGRAM, THEN THE INSURER
SHALL RENEW THE POLICIES THAT WERE  SUBJECT  TO  THE  TERMINATED  RATING
PROGRAM IN A SUBSEQUENTLY APPROVED RATING PROGRAM.
  (2)  THE  PROVISIONS  OF SUBSECTION (F) OF SECTION THREE THOUSAND FOUR
HUNDRED TWENTY-FIVE AND SUBSECTION (B) OF  SECTION  TWO  THOUSAND  THREE
HUNDRED  FORTY-NINE  OF  THIS  CHAPTER  SHALL  BE APPLIED TO EACH RATING
PROGRAM SEPARATELY.
  (B) THE SUPERINTENDENT MAY PROMULGATE RULES AND REGULATIONS TO  IMPLE-
MENT THE PROVISIONS OF THIS SECTION.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08794-02-1

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.