senate Bill S2891

2013-2014 Legislative Session

Permits insurers to make available multiple rating programs for commercial insurance within the same company

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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
returned to senate
died in assembly
Apr 29, 2013 referred to insurance
delivered to assembly
passed senate
Apr 24, 2013 advanced to third reading
Apr 23, 2013 2nd report cal.
Apr 22, 2013 1st report cal.354
Jan 24, 2013 referred to insurance

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S2891 - Bill Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd ยง2352, Ins L
Versions Introduced in 2011-2012 Legislative Session:
S6454

S2891 - Bill Texts

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Permits insurers to make available multiple rating programs for commercial insurance within the same company.

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BILL NUMBER:S2891

TITLE OF BILL: An act to amend the insurance law, in relation to
permitting insurers to make available multiple rating programs for
commercial insurance within the same company

PURPOSE: To permit property/casualty insurers to make available multiple
rating programs within the same company for commercial lines insurance
in the voluntary market.

SUMMARY OF PROVISIONS: Section 1: Amends Insurance Law Section 2352 to
permit insurers to make available multiple rating programs within the
same company for commercial lines insurance in the voluntary market.

EXISTING LAW: Section 2352 of the insurance law currently permits multi-
ple rating. plans for personal lines insurance

JUSTIFICATION: In 2011, legislation was enacted to authorize insurers to
make available multiple rating programs within the same company for
personal lines insurance Prior to the enactment of this law, if an
insurance company wished to have more than one rating plan for personal
lines insurance, they would be required to establish a separate subsid-
iary or affiliate company for the primary purpose of offering, a new
rating plan. Obviously, this was a cumbersome and expensive process
which added unnecessary costs to personal lines insurance. Accordingly,
legislation was enacted to authorize multiple rating plans for personal
lines insurance and remove these unnecessary burdens and costs associ-
ated with offering multiple rating plans for personal lines insurance.

The same rationale applies for commercial lines policies and this legis-
lation would similarly allow insurers to make available multiple rating
plans for commercial lines without having to form a subsidiary or affil-
iate company. To remain competitive, insurance companies, both commer-
cial and personal lines companies, need to be able to continually devel-
op new rating plans that introduce different rating elements that allow
them to better segment and price business. This bill allows insurers on
the commercial lines side to adopt these innovations in the most effi-
cient and cost effective way possible by authorizing the establishment
of an additional rating plan within the same insurance company

It should be noted that, as is currently the case for personal lines
policies, each time a company develops a new rating plan, the plan would
be subject to the prior approval of the Superintendent of Financial
Services and would be provided only to new business customers

LEGISLATIVE HISTORY: S 6454 of 2012

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect on the ninetieth day after it
shall have become a law.

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

                                  2891

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 24, 2013
                               ___________

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 permitting insurers to
  make available multiple rating programs for commercial insurance with-
  in the same company

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

  Section  1. Section 2352 of the insurance law, as added by chapter 457
of the laws of 2011, is amended to read as follows:
  S 2352. Multiple rating programs. (a) Subject to the  superintendent's
prior  approval,  an  insurer may establish more than one rating program
within the same company for policies of insurance that  are  subject  to
section  three  thousand four hundred twenty-five OR SECTION THREE THOU-
SAND FOUR HUNDRED TWENTY-SIX of this chapter; provided that:
  (1) each rating program shall apply only to policies newly written  on
or  after  the  effective  date  of  the rating program but prior to the
effective date of any subsequently  approved  rating  program;  provided
however  if  an  insurer  terminates  a rating program, then the insurer
shall renew the policies that were  subject  to  the  terminated  rating
program in a subsequently approved rating program.
  (2)  the  provisions  of subsection (f) of section three thousand four
hundred twenty-five and subsection (b) of  section  two  thousand  three
hundred  forty-nine  of  this  chapter  shall  be applied to each rating
program TO WHICH THEY ARE APPLICABLE separately.
  (b) The superintendent may promulgate rules and regulations to  imple-
ment the provisions of this section.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06651-01-3

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