senate Bill S803

Reduces a retired or disabled owner's no fault insurance premium by providing appropriate automobile insurance rates to reflect a reduced exposure to loss

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Sponsor

Bill Status


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

  • 05 / Jan / 2011
    • REFERRED TO INSURANCE
  • 04 / Jan / 2012
    • REFERRED TO INSURANCE

Summary

Reduces a retired or disabled owner's no fault insurance premium by providing appropriate automobile insurance rates to reflect a reduced exposure to loss due to situations where drivers either have no wages to lose or are covered for lost wages by another first payer insurance policy; defines "retired" and "disabled".

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Bill Details

See Assembly Version of this Bill:
A530
Versions:
S803
Legislative Cycle:
2011-2012
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง2330, Ins L
Versions Introduced in 2009-2010 Legislative Cycle:
S1187, A3485

Sponsor Memo

BILL NUMBER:S803

TITLE OF BILL:
An act
to amend the insurance law, in relation to automobile insurance
rates for persons who are retired or disabled

PURPOSE:
Reduces a retired or disabled owner's no fault insurance premium by
providing appropriate automobile insurance rates to reflect a reduced
exposure to loss.

SUMMARY OF PROVISIONS:
Section 2330 of insurance law is amended.

JUSTIFICATION:
No-fault provides first party coverage when someone is injured as a
result of a car accident.
No-fault consists of health coverage, loss of earnings from work, and
certain incidental expenses.
Certain operators of motor vehicles either have no earnings from work
or are covered for lost earnings from work by other first payer
insurance policies. Thus, there is less exposure from the motorist's
insurance company on the loss earnings component of no-fault
insurance. However, many insurance companies do not adjust the
premiums to take into account this reduced exposure to loss.

This bill requires that an insurance company demonstrate to the
Superintendent of Insurance that its premiums reflect reduced exposure.

LEGISLATIVE HISTORY:
2009-2010: S.1187

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect on the 180th day after it shall have become
a law and shall apply to all policies issued, modified, altered, or
renewed on or after such date.

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

    S. 803                                                    A. 530

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Insurance

IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
  to the Committee on Insurance

AN ACT to amend the insurance law, in relation to  automobile  insurance
  rates for persons who are retired or disabled

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

  Section 1. Section 2330 of the insurance law is  amended  to  read  as
follows:
  S  2330. No fault motor vehicle insurance rates; reflection of reduced
exposure to loss. (A) Where the principal operator of a motor vehicle or
such operator's spouse is eligible for medicare benefits  for  items  of
basic  economic  loss  specified  in  paragraph one of subsection (a) of
section five thousand one hundred two of  this  chapter,  or  where  the
insurer's  obligation  to  pay first party benefits for loss of earnings
from work is reduced by virtue of the provisions of such subsection,  OR
BY  VIRTUE  OF  THE  PRINCIPAL  OPERATOR OR SUCH OPERATOR'S SPOUSE BEING
RETIRED OR DISABLED, the premium  attributable  to  coverage  under  the
automobile  insurance policy for such items shall be appropriately modi-
fied to reflect the insurer's reduced exposure to loss.
  (B) FOR PURPOSES OF THIS SECTION, THE TERM (1) "RETIRED" SHALL MEAN  A
PERSON  WHO  HAS ATTAINED AGE SIXTY-FIVE YEARS AND IS NOT ENGAGED IN ANY
ACTIVITIES FOR INCOME; AND THE TERM (2) "DISABLED" SHALL MEAN  A  PERSON
WHO IS NOT ENGAGED IN ANY ACTIVITIES FOR INCOME AND WHO (A) IS CERTIFIED
AS DISABLED AND ELIGIBLE TO RECEIVE SOCIAL SECURITY DISABILITY INSURANCE
(SSDI)  OR SUPPLEMENTAL SECURITY INCOME (SSI) BENEFITS UNDER THE FEDERAL
SOCIAL SECURITY ACT, OR (B) IS CERTIFIED AS  DISABLED  AND  ELIGIBLE  TO
RECEIVE  RAILROAD RETIREMENT DISABILITY BENEFITS UNDER THE FEDERAL RAIL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03737-01-1

S. 803                              2                             A. 530

ROAD RETIREMENT ACT, OR (C) HAS RECEIVED A CERTIFICATE  FROM  THE  STATE
COMMISSION  FOR  THE  BLIND  AND  VISUALLY HANDICAPPED STATING THAT SUCH
PERSON IS LEGALLY BLIND.
  AN  AWARD  LETTER FROM THE SOCIAL SECURITY ADMINISTRATION OR THE RAIL-
ROAD RETIREMENT BOARD OR A CERTIFICATE FROM THE STATE COMMISSION FOR THE
BLIND AND VISUALLY HANDICAPPED MAY BE SUBMITTED AS PROOF OF DISABILITY.
  THE INSURER, AT THE TIME OF RENEWAL,  MAY  DETERMINE  BY  THE  RENEWAL
QUESTIONNAIRE IF THE PRINCIPAL OPERATOR OR SUCH OPERATOR'S SPOUSE QUALI-
FIES FOR A CONTINUATION OF THE MODIFIED PREMIUM.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall apply to all policies issued, modi-
fied, amended, altered, or renewed on or after such date.

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