S T A T E O F N E W Y O R K
________________________________________________________________________
4426
2011-2012 Regular Sessions
I N S E N A T E
April 5, 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 extending the effec-
tiveness of certain provisions relating to automobile and
property/casualty insurance rates
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (g) of section 5412 of the insurance law, as
amended by chapter 136 of the laws of 2008, is amended to read as
follows:
(g) The provisions of this section shall cease to be of any force or
effect on or after June thirtieth, two thousand [eleven] FOURTEEN,
except that policies issued or other obligations incurred by the associ-
ation shall not be impaired by the expiration of this section and the
association shall continue for the purpose of servicing such policies
and performing such obligations.
S 2. Sections 2328 and 2329 of the insurance law, as amended by chap-
ter 136 of the laws of 2008, are amended to read as follows:
S 2328. Certain motor vehicle insurance rates; prior approval. For the
periods February first, nineteen hundred seventy-four through August
second, two thousand one, and the effective date of the
property/casualty insurance availability act through June thirtieth, two
thousand [eleven] FOURTEEN, no changes in rates, rating plans, rating
rules and rate manuals applicable to motor vehicle insurance, including
no-fault coverages under article fifty-one of this chapter, shall be
made effective until approved by the superintendent, notwithstanding any
inconsistent provisions of this article; provided, however, that changes
in such rates, rating plans, rating rules and rate manuals may be made
effective without such approval if the rates which result from such
changes are no higher than the insurer's rates last approved by the
superintendent. This section shall apply only to policies covering loss-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S LBD10606-01-1
S. 4426 2
es or liabilities arising out of ownership of a motor vehicle used prin-
cipally for the transportation of persons for hire, including a bus or a
school bus as defined in sections one hundred four and one hundred
forty-two of the vehicle and traffic law.
S 2329. Motor vehicle insurance rates; excess profits. In accordance
with regulations prescribed by the superintendent, each insurer issuing
policies which are subject to article fifty-one of this chapter, includ-
ing policies of motor vehicle personal injury liability insurance or
policies of motor vehicle property damage liability insurance or insur-
ance for loss or damage to a motor vehicle, shall establish a fair,
practicable, and nondiscriminatory plan for refunding or otherwise cred-
iting to those purchasing such policies their share of the insurer's
excess profit, if any, on such policies. An excess profit shall be a
profit beyond a percentage rate of return on net worth attributable to
such policies, computed in accordance with the regulation required by
section two thousand three hundred twenty-three of this article, and
determined by the superintendent to be so far above a reasonable average
profit as to amount to an excess profit, taking into consideration the
fact that losses or profits below a reasonable average profit will not
be recouped from such policyholders. Each plan shall apply to policy
periods for the periods January first, nineteen hundred seventy-four
through August second, two thousand one, and the effective date of the
property/casualty insurance availability act through June thirtieth, two
thousand [eleven] FOURTEEN. In prescribing such regulations the super-
intendent may limit the duration of such plans, waive any requirement
for refund or credit which he or she determines to be de minimis or
impracticable, adopt forms of returns which shall be made to him or her
in order to establish the amount of any refund or credit due, establish
periods and times for the determination and distribution of refunds and
credits, and shall provide that insurers receive appropriate credit
against any refunds or credits required by any such plan for policyhold-
er dividends and for return premiums which may be due under rate credit
or retrospective rating plans based on experience.
S 3. Paragraph 2 of subsection (l) of section 3425 of the insurance
law, as amended by chapter 136 of the laws of 2008, is amended to read
as follows:
(2) The superintendent shall collect, analyze and compile such reports
with regard to the number of new insureds, non-renewed insureds and
business written by each insurer in each rating territory of each such
insurer and, in each case, the class of insureds (including age and sex)
affected so that a statistical analysis of the results obtained pursuant
to subsections (f) and (m) of this section shall be provided to each
house of the legislature by March fifteenth, in the years nineteen
hundred ninety-two, nineteen hundred ninety-six, nineteen hundred nine-
ty-eight, two thousand one, two thousand six, two thousand seven, two
thousand eight [and], two thousand eleven AND TWO THOUSAND FOURTEEN.
S 4. Paragraphs 1 and 2 and the opening paragraph of paragraph 3 of
subsection (m) of section 3425 of the insurance law, as amended by chap-
ter 136 of the laws of 2008, are amended to read as follows:
(1) Paragraphs eight and nine of subsection (a), subsection (f) and
subparagraphs (B) and (E) of paragraph one of subsection (j) of this
section shall not apply to any new covered policy of automobile insur-
ance voluntarily written on or after August first, nineteen hundred
eighty-five and prior to January first, nineteen hundred eighty-six, and
on or after August second, two thousand one and prior to the effective
date of the property/casualty insurance availability act, and on or
S. 4426 3
after June thirtieth, two thousand [eleven] FOURTEEN, but the legal
rights granted to insurers or policyholders under such provisions shall
not be extinguished or impaired thereby.
(2) In lieu of such provisions, paragraph seven of subsection (a),
subparagraph (A) of paragraph one of subsection (j) and paragraph three
of this subsection shall apply to such automobile insurance policies
which are newly and voluntarily written to have an effective date on or
after August first, nineteen hundred eighty-five and prior to January
first, nineteen hundred eighty-six, and on or after August second, two
thousand one and prior to the effective date of the property/casualty
insurance availability act, and on or after June thirtieth, two thousand
[eleven] FOURTEEN.
On and after August first, nineteen hundred eighty-five and prior to
January first, nineteen hundred eighty-six, and on or after August
second, two thousand one and prior to the effective date of the
property/casualty insurance availability act, and on or after June thir-
tieth, two thousand [eleven] FOURTEEN, no notice of nonrenewal or condi-
tional renewal of such covered automobile insurance policies referred to
in this subsection shall be issued to become effective during the
required policy period unless it is based upon a ground for which the
policy could have been cancelled or unless it is based upon one or more
of the following grounds which occurred during the thirty-six month
period ending on the last day of the fourth month preceding the month of
the effective date of such notice of nonrenewal or conditional renewal:
S 5. Subsection (f) of section 2305 of the insurance law, as amended
by chapter 136 of the laws of 2008, is amended to read as follows:
(f) Subsection (a) of this section shall be of no force or effect
during the period August third, two thousand one through the day before
the effective date of the property/casualty insurance availability act,
and after June thirtieth, two thousand [eleven] FOURTEEN. During the
period August third, two thousand one through the day before the effec-
tive date of the property/casualty insurance availability act, and again
commencing on July first, two thousand [eleven] FOURTEEN, all rates
previously subject to subsection (a) of this section, other than rates
which are not required to be filed pursuant to subsection (b) of section
two thousand three hundred ten of this article or which have been
suspended from the filing requirement pursuant to section two thousand
three hundred eleven of this article, shall become subject to
subsections (b), (c) and (d) of this section. All other provisions of
this article applicable to kinds of insurance or insurance activities
the rates for which are subject to prior approval under subsection (b)
of this section shall apply to kinds of insurance the rates for which
were previously subject to subsection (a) of this section or the rates
for which are not required to be filed pursuant to subsection (b) of
section two thousand three hundred ten of this article or the rates for
which have been suspended from the filing requirement pursuant to
section two thousand three hundred eleven of this article.
S 6. Section 2342 of the insurance law, as amended by chapter 136 of
the laws of 2008, is amended to read as follows:
S 2342. Expiration of certain provisions. The provisions of subsection
(c) of section two thousand three hundred seven, section two thousand
three hundred eight, subsection (a) of section two thousand three
hundred ten, sections two thousand three hundred sixteen, two thousand
three hundred twenty, two thousand three hundred twenty-three, two thou-
sand three hundred twenty-six, and two thousand three hundred thirty-
five, subsection (b) of section two thousand three hundred thirty-six
S. 4426 4
and section two thousand three hundred forty-one of this article shall
cease to be of any force or effect during the period August third, two
thousand one through the day before the effective date of the
property/casualty insurance availability act, and after June thirtieth,
two thousand [eleven] FOURTEEN.
S 7. Subsection (h) of section 2344 of the insurance law, as amended
by chapter 136 of the laws of 2008, is amended to read as follows:
(h) This section shall cease to be of any force or effect during the
period August third, two thousand one through the day before the effec-
tive date of the property/casualty insurance availability act, and after
June thirtieth, two thousand [eleven] FOURTEEN, except that rates shall
reflect the likely reductive cost effects reasonably attributable to the
statutory provisions specified in paragraph one of subsection (g) of
this section.
S 8. This act shall take effect immediately.