Assembly Actions -
Senate Actions - UPPERCASE
|Jun 06, 2012||
referred to insurance
Senate Bill S7603
2011-2012 Legislative Session
Archive: Last Bill Status - In Senate Committee Insurance Committee
- In Committee Assembly
- On Floor Calendar Assembly
- Passed Assembly
- Delivered to Governor
- Signed By Governor
2011-S7603 (ACTIVE) - Details
2011-S7603 (ACTIVE) - Sponsor Memo
BILL NUMBER:S7603 TITLE OF BILL: An act to amend the insurance law, in relation to prohibiting insurer from cancelling or refusing to renew or condition its renewal of automo- bile insurance policies in certain cases PURPOSE: To prohibit insurance companies from canceling the automobile policies of policyholders solely as a result of a dispute or a complaint that may have been filed against the carrier by the policyholder. SUMMARY OF SPECIFIC PROVISIONS: This bill amends section 3425 of the insurance law by adding a new subsection (t) to require that no automobile insurance policy, except for nonpayment of premium, shall be cancelled or a refusal to renew issued while a claim filed by the insured against the insurer is pend- ing, or within one year following the date of which a dispute was settled or resolved. The superintendent however, after a hearing, may determine that the cancellation or refusal to renew is unrelated or independent of such complaint. JUSTIFICATION: Currently the law allows insurance companies to terminate two percent of their policyholders each year. No questions asked, no explanation given, they can simply refuse to renew any policy they choose. As a result,
2011-S7603 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7603 I N S E N A T E June 6, 2012 ___________ Introduced by Sen. ALESI -- 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 prohibiting insurer from cancelling or refusing to renew or condition its renewal of auto- mobile insurance policies in certain cases THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 3425 of the insurance law is amended by adding a new subsection (t) to read as follows: (T) NO INSURER SHALL CANCEL OR REFUSE TO RENEW A COVERED POLICY, OR TO CONDITION ITS RENEWAL UPON CHANGE OF LIMITS OR ELIMINATION OF ANY COVER- AGES SOLELY ON THE BASIS THAT A DISPUTE AS TO A PENDING CLAIM FILED BY THE INSURED WITH THE INSURER IS PENDING OR THAT A DISPUTE AS TO A CLAIM FILED WITH THE INSURER IS PENDING WITH THE DEPARTMENT. S 2. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02517-03-2
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