| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| May 15, 2014 |
referred to insurance |
Senate Bill S7566
2013-2014 Legislative Session
Sponsored By
(R, C) Senate District
Archive: Last Bill Status - In Senate Committee Insurance Committee
Actions
2013-S7566 (ACTIVE) - Details
2013-S7566 (ACTIVE) - Sponsor Memo
BILL NUMBER:S7566
TITLE OF BILL: An act to amend the insurance law, in relation to the
effectiveness of flexible rating for nonbusiness automobile insurance
plans
PURPOSE: The purpose of this bill is to protect consumers from high
premium increases by ensuring that the process used to establish rate
increases is reviewed on a regular basis.
SUMMARY OF PROVISIONS: This legislation would sunset section 2350 of
the Insurance Law on June 30, 2017.
EXISTING LAW: Amends § 2350 of the Insurance Law.
JUSTIFICATION: New York State's automobile insurance premiums are
some of the highest in the nation. Since 2008, New York State has used
flex rating, a process by which auto insurers are authorized to
increase or decrease premiums by up to five percent without approval
from the Department of Financial Services. This process was also used
in the 1990's and the statutory provisions allowing for flex rating
were reviewed and extended every three years until they were allowed
to sunset subjecting all rates to prior approval. Currently, the
provisions of New York State Law related to flex rating are permanent.
This bill would reinstate the three year sunset to the provisions of
law related to flex rating to ensure that the rate increases are fair,
2013-S7566 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
7566
I N S E N A T E
May 15, 2014
___________
Introduced by Sen. LARKIN -- 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 the effectiveness of
flexible rating for nonbusiness automobile insurance plans
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 2350 of the insurance law is amended by adding a
new subsection (e) to read as follows:
(E) THIS SECTION SHALL CEASE TO BE OF ANY FORCE AND EFFECT AFTER JUNE
30, 2017.
S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15068-01-4
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