senate Bill S4172

2013-2014 Legislative Session

Relates to extending authorization for certain exemptions from filing requirements

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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 21, 2013 committed to rules
Mar 20, 2013 advanced to third reading
Mar 19, 2013 2nd report cal.
Mar 18, 2013 1st report cal.207
Mar 12, 2013 referred to insurance

Votes

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Mar 18, 2013 - Insurance committee Vote

S4172
17
0
committee
17
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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S4172 - Bill Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd ยงยง6302 & 6303, Ins L

S4172 - Bill Texts

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Relates to extending authorization for certain exemptions from filing requirements.

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BILL NUMBER:S4172

TITLE OF BILL: An act to amend the insurance law, in relation to
extending authorization for certain exemptions from filing
requirements

PURPOSE:

To make permanent certain exemptions from regulatory requirements
necessitating prior approval of rates and forms for large, commercial
insureds and special risks and to make changes to certain notice
requirements.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 6302 (c)(3) of the insurance law
to extend the minimum surplus to policyholder ratio required of
medical malpractice insurers, from June 30, 2014 to December 31, 2016.
This extension has already been authorized pursuant to chapter 489 of
the laws of 2012.

Section 2 of the bill amends section 6303 (a)(3) of the insurance law
to make permanent the current provision which permits certain
qualified insurers to write insurance without the Department of
Financial Services' prior approval of rates and forms

This section further eliminates the requirement that the insurer must
file a certificate of insurance evidencing the existence and terms of
the policy within one business day of binding the insurance coverage
and extends the required amount of time for an insurer to file a
policy form for informational purposes with the superintendent from
three business days to fifteen business days after first delivery of
the policy.

EXISTING LAW:

The current law expires on June 30, 2013.

JUSTIFICATION:

In 2011, legislation was enacted which modernized and streamlined the
regulation of commercial insurance by expanding the types of insurance
which may be written without the Department's prior approval of rates
and forms when sold to large commercial policyholders. This law has
proven successful in ensuring that commercial policyholders have
maximum flexibility to create policies that are tailored to their
needs, as they must respond rapidly to competitive forces. the economy
and the needs of their customers. For this reason, this legislation
seeks to make these provisions permanent This legislation also
eliminates the requirement that an insurer file a certificate of
insurance evidencing the existence and terms of the policy with the
Department within one business day of binding- the insurance coverage.
The legislation further extends the amount of time for an insurer to
file a policy form for informational purposes with the Department from
three to fifteen business days. These two filing requirements have
proven to be a major impediment to insurers seeking to write insurance


under the current law and have been of limited value to the
Department.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:

Immediately

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

                                  4172

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 12, 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  extending  authori-
  zation for certain exemptions from filing requirements

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

  Section 1. Paragraph 3 of subsection (c) of section 6302 of the insur-
ance law, as amended by chapter 490 of the laws of 2011, is  amended  to
read as follows:
  (3)   until   [June   thirtieth,   two   thousand  fourteen]  DECEMBER
THIRTY-FIRST, TWO THOUSAND SIXTEEN, a domestic property/casualty  insur-
ance  company  that maintains at all times a surplus to policyholders of
at least twice the minimum surplus to policyholders required to be main-
tained for the kinds of insurance that it is authorized to write in this
state, or an insurer licensed pursuant  to  article  sixty-one  of  this
chapter as a reciprocal insurer that maintains at all times a surplus to
policyholders  of at least the minimum surplus to policyholders required
to be maintained for the kinds of insurance that  it  is  authorized  to
write in this state, provided that the domestic property/casualty insur-
ance  company  or  reciprocal  insurer:    (A) has total direct premiums
comprised of at least ninety percent medical malpractice insurance;  (B)
assumes reinsurance premiums in an amount that is less than five percent
of  total  direct premiums written; and (C) writes ninety percent of its
total direct premiums in this state.
  S 2. Paragraph 3 of subsection (a) of section 6303  of  the  insurance
law,  as  amended by chapter 490 of the laws of 2011, is amended to read
as follows:
  (3) [until June thirtieth, two thousand thirteen,] the  policy,  other
than  a  medical  malpractice  insurance  policy,  is  issued to a large
commercial insured that employs or retains a  special  risk  manager  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09724-01-3

S. 4172                             2

assist  in  the negotiation and purchase of a policy exempted under this
article, provided, however, that:
  (A)(i) the special risk manager is not employed by the insurer issuing
the policy or any person in the insurer's holding company system; and
  (ii)  the special risk manager is licensed as an insurance producer in
this state pursuant  to  article  twenty-one  of  this  chapter,  unless
exempted from licensing therein;
  (B)  [the  insurer shall file with the superintendent a certificate of
insurance evidencing the existence and terms of the  policy  within  one
business day of binding the insurance coverage; and
  (C)]  a policy form that has not been previously filed with the super-
intendent shall be  filed  with  the  superintendent  for  informational
purposes  within [three] FIFTEEN business days after first delivery of a
policy using such form, but no later than sixty calendar days after  the
inception date of such policy.
  S 3. This act shall take effect immediately.

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