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

                                  8374

                            I N  S E N A T E

                              June 25, 2010
                               ___________

Introduced  by  Sen. BRESLIN -- 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 premiums for  individ-
  ual and small group health insurance policies

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

  Section 1. Subparagraph (A)  of  paragraph  1  of  subsection  (e)  of
section 3231 of the insurance law, as amended by chapter 107 of the laws
of 2010, is amended to read as follows:
  (A) An insurer desiring to increase or decrease premiums for any poli-
cy  form  subject to this section shall submit a rate filing or applica-
tion to the superintendent.
  An insurer shall send written notice of the proposed rate  adjustment,
including  the  [specific]  change requested, to each policy holder [and
certificate holder] affected by the adjustment on or before the date the
rate filing or application  is  submitted  to  the  superintendent.  The
notice  shall prominently include mailing and website addresses for both
the insurance department and the insurer through  which  a  person  may,
within  thirty  days  from  the  date  the rate filing or application is
submitted to the superintendent, contact  the  insurance  department  or
insurer  to receive additional information or to submit written comments
to the insurance department on  the  rate  filing  or  application.  The
superintendent  shall  establish  a  process to post on the department's
website, in a timely manner,  all  relevant  written  comments  received
pertaining  to rate filings or applications. The insurer shall provide a
copy of the notice to the superintendent with the rate filing or  appli-
cation.  The  superintendent  shall  immediately  cause the notice to be
posted on the insurance department's website. The  superintendent  shall
determine  whether  the  filing or application shall become effective as
filed, shall become effective as modified, or shall be disapproved.  The
superintendent  may  modify or disapprove the rate filing or application
if the superintendent finds that the premiums are  unreasonable,  exces-
sive,  inadequate,  or  unfairly  discriminatory,  and  may consider the
financial condition of the insurer when approving, modifying  or  disap-

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

                                                           LBD17887-02-0

S. 8374                             2

proving  any premium adjustment. The determination of the superintendent
shall be supported by sound actuarial assumptions and methods, and shall
be rendered in writing between thirty and sixty days from the  date  the
rate  filing  or  application is submitted to the superintendent. Should
the superintendent require additional information from  the  insurer  in
order  to  make  a  determination,  the superintendent shall require the
insurer to furnish such information, and in such event, the  sixty  days
shall  be  tolled  and shall resume as of the date the insurer furnishes
the information to the superintendent. If  the  superintendent  requests
additional  information  less  than  ten days from the expiration of the
sixty days (exclusive of tolling), the  superintendent  may  extend  the
sixty  day period an additional twenty days to make a determination. The
application or rate filing will be deemed approved if a determination is
not rendered within the time allotted under  this  section.  An  insurer
shall  not  implement  a  rate adjustment unless the insurer provides at
least sixty days advance written notice of the premium  rate  adjustment
approved  by  the  superintendent  to each policy holder and certificate
holder affected by the rate adjustment.
  S 2. Paragraph 2 of subsection (c) of section 4308  of  the  insurance
law,  as  amended by chapter 107 of the laws of 2010, is amended to read
as follows:
  (2) A corporation desiring to increase or decrease  premiums  for  any
contract subject to this subsection shall submit a rate filing or appli-
cation to the superintendent. A corporation shall send written notice of
the proposed rate adjustment, including the [specific] change requested,
to  each  contract holder [and subscriber] affected by the adjustment on
or before the date the rate filing or application is  submitted  to  the
superintendent. The notice shall prominently include mailing and website
addresses  for both the insurance department and the corporation through
which a person may, within thirty days from the date the rate filing  or
application  is  submitted  to the superintendent, contact the insurance
department or corporation to receive additional information or to submit
written comments to the insurance  department  on  the  rate  filing  or
application. The superintendent shall establish a process to post on the
department's  website, in a timely manner, all relevant written comments
received pertaining to rate filings  or  applications.  The  corporation
shall  provide  a copy of the notice to the superintendent with the rate
filing or application. The superintendent shall  immediately  cause  the
notice  to  be  posted on the insurance department's website. The super-
intendent shall determine whether the filing or application shall become
effective as filed, shall become effective  as  modified,  or  shall  be
disapproved. The superintendent may modify or disapprove the rate filing
or  application if the superintendent finds that the premiums are unrea-
sonable, excessive, inadequate,  or  unfairly  discriminatory,  and  may
consider  the financial condition of the corporation in approving, modi-
fying or disapproving any premium adjustment. The determination  of  the
superintendent  shall  be  supported  by sound actuarial assumptions and
methods, and shall be rendered in writing between thirty and sixty  days
from  the date the rate filing or application is submitted to the super-
intendent. Should the superintendent require additional information from
the corporation in order to make  a  determination,  the  superintendent
shall  require  the corporation to furnish such information, and in such
event, the sixty days shall be tolled and shall resume as  of  the  date
the  corporation furnishes the information to the superintendent. If the
superintendent requests additional information less than ten  days  from
the expiration of the sixty days (exclusive of tolling), the superinten-

S. 8374                             3

dent  may extend the sixty day period an additional twenty days, to make
a determination.  The application or rate filing will be deemed approved
if a determination is not rendered within the time allotted  under  this
section.  A corporation shall not implement a rate adjustment unless the
corporation provides at least sixty days advance written notice  of  the
premium  rate adjustment approved by the superintendent to each contract
holder and subscriber affected by the rate adjustment.
  S 3. This act shall take effect immediately.