senate Bill S7566

2013-2014 Legislative Session

Relates to the effectiveness of flexible rating for nonbusiness automobile insurance plans

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


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

do you support this bill?

Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 15, 2014 referred to insurance

S7566 - Bill Details

See Assembly Version of this Bill:
A9641
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd §2350, Ins L

S7566 - Bill Texts

view summary

Relates to the effectiveness of flexible rating for nonbusiness automobile insurance plans.

view 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,
appropriate and are subject to the necessary Department of Financial
Services oversight.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect immediately.

view full 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

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.