senate Bill S2091

2013-2014 Legislative Session

Relates to rate filings for title insurance

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to insurance
Jun 03, 2013 reported and committed to rules
Jan 10, 2013 referred to insurance

Votes

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Jun 3, 2013 - Insurance committee Vote

S2091
13
0
committee
13
Aye
0
Nay
6
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Insurance committee vote details

Co-Sponsors

S2091 - Bill Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง2305, Ins L

S2091 - Bill Texts

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Relates to rate filings for title insurance.

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BILL NUMBER:S2091

TITLE OF BILL: An act to amend the insurance law, in relation to rate
filings

PURPOSE: This bill will reduce the cost of title insurance in New
York by no longer requiring the Superintendent of Financial Services
to approve rates, rating plans and rules manuals before title
insurance can be sold.

SUMMARY OF PROVISIONS:

Section 1 removes title insurance from the list of insurances that
require prior approval of rates, rating plans and rules manuals by the
Superintendent of Financial Services.

Section 2 provides for an immediate effective date.

JUSTIFICATION: Title insurance is included among the types of
insurance that require prior approval of rates, rating plans and rules
manuals by the Superintendent of Financial Services. This requirement
reduces competition among title insurance companies and yet there is
no reason for title insurance to be so rigorously regulated. In New
York, only a fraction of one percent of title insurance policies ever
have to pay against a claim, and only about five percent of premiums
are paid out to meet claims. This is far less than other insurance
types that require prior approval, such as automobile insurance with a
comparative sixty to seventy percent. Despite the low rates of claims
and payouts, title insurance costs in New York are the highest in the
county because state regulations restrict price competition. The
average title insurance premium in New York State is nearly twice the
national average and over three times the average in North Carolina.
The high cost of title insurance is a major, if not primary
contributor to New York having the highest closing costs in the
nation. High closing costs reduce the amount of real estate investment
taking place in New York, and make it more costly for residents to buy
and sell properties, ultimately reducing both the value of properties
and the monies available for residents to spend on other goods and
services in the state.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: The act shall take effect immediately

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

                                  2091

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 10, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- 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 rate filings

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

  Section  1.  Subsection  (b)  of section 2305 of the insurance law, as
amended by chapter 11 of the laws of 2008, paragraph 13  as  amended  by
chapter 136 of the laws of 2008, is amended to read as follows:
  (b) rate filings for:
  (1) workers' compensation insurance;
  (2)  motor  vehicle  insurance,  or  surety bonds, required by section
three hundred seventy of the vehicle and traffic law;
  (3) joint underwriting;
  (4) motor vehicle assigned risk insurance;
  (5) insurance issued by the New York Property  Insurance  Underwriting
Association;
  (6)  risk  sharing  plans  authorized  by  section  two thousand three
hundred eighteen of this article;
  (7) [title insurance;
  (8)] medical malpractice liability insurance;
  [(9)] (8) insurance issued by the Medical Malpractice Insurance  Asso-
ciation;
  [(10)] (9) mortgage guaranty insurance;
  [(11)] (10) credit property insurance, as defined in section two thou-
sand three hundred forty of this article; and
  [(12)] (11) gap insurance
  [(13)] (12) Private passenger automobile insurance, except as provided
in section two thousand three hundred fifty of this article.
shall  be  filed  with the superintendent and shall not become effective
unless either the filing has been approved or  thirty  days,  which  the
superintendent  may with cause extend an additional thirty days and with

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02101-01-3

S. 2091                             2

further cause extend an additional fifteen days, have  elapsed  and  the
filing  has  not been disapproved as failing to meet the requirements of
this article, including the standard that rates be not otherwise  unrea-
sonable.  After a rate filing becomes effective, the filing and support-
ing information shall be open to  public  inspection.  If  a  filing  is
disapproved, notice of such disapproval order shall be given, specifying
in  what  respects  such  filing  fails to meet the requirements of this
article. Upon his or her request, the superintendent shall  be  provided
with  support  and  assistance  from the workers' compensation board and
other state agencies and departments with appropriate jurisdiction.  The
loss  cost  multiplier  for each insurer providing coverage for workers'
compensation, as defined by regulation promulgated  by  the  superinten-
dent,  shall  be  promptly  displayed  on  the  department's website and
updated in the event of any change.
  S 2. This act shall take effect immediately.

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