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

                                   328

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  M. of A. WEINSTEIN, ZEBROWSKI, DINOWITZ, PEOPLES-STOKES,
  COLTON, JAFFEE, CYMBROWITZ, ABINANTI, MARKEY, TITONE, PERRY,  BENEDET-
  TO,  SCHIMEL, BRINDISI, STECK, THIELE, SCARBOROUGH, RODRIGUEZ, MILLER,
  ORTIZ, SKOUFIS, STIRPE, MONTESANO -- Multi-Sponsored by --  M.  of  A.
  BRAUNSTEIN,  MAGNARELLI  -- read once and referred to the Committee on
  Insurance

AN ACT to amend the insurance law, in relation to  requiring  all  motor
  vehicle  insurers  to  file  annual  financial statements and detailed
  claim data with the superintendent of financial services

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

  Section 1. This act shall be known and may be cited as the "automobile
insurance sunshine act of 2015".
  S  2.  Legislative  intent.  The legislature hereby finds and declares
that insurance companies issuing motor vehicle policies  in  this  state
owe  a  duty  to  the  consumers they insure and to those who may in the
future be insured by them, to fully disclose in a public and transparent
manner all elements relating to their financial condition and  solvency.
Automobile  use  and operation is a cornerstone of modern life; in fact,
auto insurance is the only coverage most New Yorkers are required by law
to purchase.  New York's consumers have a right to know the details  and
specifics of the factors and circumstances behind the financial solvency
of their insurer as well as the bases for the rates they are required to
pay to retain their legally mandated coverage. The determination of auto
insurance  premiums  in New York has, unfortunately, gone on too long in
obscurity, with those who bear the premium rates unable to learn reasons
why they are set where they are. As a matter of public trust, automobile
liability insurers should make public the  pertinent  facts  related  to
their  premium determinations and financial solvency. It is the sense of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00089-01-5
              

A. 328                              2

the legislature that this data should be disclosed in an open and public
manner.
  S  3. The insurance law is amended by adding a new section 342 to read
as follows:
  S 342. FINANCIAL STATEMENT AND DETAILED CLAIM DATA TO  BE  FILED  WITH
THE  DEPARTMENT.    (A) FOR PURPOSES OF THIS SECTION, THE TERM "INSURER"
SHALL MEAN ANY PERSON, CORPORATION, ASSOCIATION OR OTHER BUSINESS ENTITY
AUTHORIZED TO ISSUE A MOTOR VEHICLE INSURANCE POLICY IN THIS STATE.
  (B) ON OR BEFORE APRIL FIRST OF EACH YEAR, EVERY INSURER SHALL PROVIDE
THE SUPERINTENDENT WITH A DETAILED FINANCIAL STATEMENT TO SUPPLEMENT AND
EXPAND UPON THE INFORMATION CONTAINED IN THE STATUTORY ANNUAL  STATEMENT
FOR  THE  MOST RECENTLY CONCLUDED CALENDAR YEAR. THE FINANCIAL STATEMENT
SHALL CONTAIN INFORMATION ON A COMBINED BASIS FOR ALL LINES OF INSURANCE
AS WELL AS INFORMATION SEPARATELY FOR EACH OF  THE  FOLLOWING  LINES  OF
INSURANCE: (1) PRIVATE PASSENGER AUTOMOBILE OTHER LIABILITY, (2) PRIVATE
PASSENGER  AUTOMOBILE  PERSONAL INJURY PROTECTION, (3) PRIVATE PASSENGER
AUTOMOBILE PHYSICAL DAMAGE, (4) COMMERCIAL AUTOMOBILE  OTHER  LIABILITY,
(5) COMMERCIAL AUTOMOBILE PERSONAL INJURY PROTECTION, AND (6) COMMERCIAL
AUTOMOBILE  PHYSICAL DAMAGE.  SUCH FINANCIAL STATEMENT SHALL INCLUDE THE
ENTIRETY  OF  ITS  BUSINESS  ACTIVITIES  CONDUCTED  IN  THIS  STATE,  OR
CONDUCTED  OUTSIDE  THIS STATE, BUT HAVING A NEXUS TO INSURANCE POLICIES
OR CONTRACTS OF INSURANCE INSURING  PERSONS  OR  RISKS  IN  THIS  STATE,
CONSISTENT  WITH THE PROCEDURES FOR DETERMINING NEW YORK STATE INSURANCE
BUSINESS FOR STATUTORY ANNUAL STATEMENT REPORTING PURPOSES. SUCH  STATE-
MENT SHALL BE IN A FORM DETERMINED BY THE SUPERINTENDENT. THE FORM SHALL
BE  SUFFICIENTLY  ITEMIZED  IN  A  MANNER THAT ALLOWS FOR AN ACTUARIALLY
SOUND ANALYSIS OF THE INCOME REALIZED BY THE INSURER  FROM  ALL  SOURCES
DURING  SUCH  YEAR,  INCLUDING  BUT  NOT LIMITED TO PREMIUMS, INVESTMENT
INCOME, PROFIT FROM SALE OF ASSETS AND ANY OTHER CATEGORY OR  CATEGORIES
OF  INCOME  AS  DETERMINED  BY  THE  SUPERINTENDENT  TO REFLECT THE FULL
DISCLOSURE REQUIREMENTS OF THIS SECTION. AT A MINIMUM, SUCH  INFORMATION
SHALL CONSIST OF THE ITEMS SET FORTH IN THE STATEMENT OF INCOME, EXCLUD-
ING  THE  CAPITAL  AND  SURPLUS ACCOUNT SECTION OF THE PROPERTY/CASUALTY
STATUTORY ANNUAL STATEMENT, AS APPLICABLE  TO  THE  INSURER'S  NEW  YORK
STATE  BUSINESS,  AS  WELL  AS  THE OTHER INFORMATION DELINEATED IN THIS
SUBSECTION. SUCH FINANCIAL STATEMENT SHALL ALSO CONTAIN A  COMPREHENSIVE
AND  DETAILED DISCLOSURE OF THE INSURER'S EXPENSES ACTUALLY INCURRED AND
PAID DURING SUCH CALENDAR YEAR, TO  INCLUDE  NORMAL  BUSINESS  EXPENSES,
SALARIES,  COMMISSIONS,  CONSULTING  FEES,  LEGAL  EXPENSES, ADVERTISING
COSTS AND ANY OTHER CATEGORY DEEMED PERTINENT  TO  THE  INTENT  OF  THIS
SECTION. AT A MINIMUM, THE EXPENSE INFORMATION REQUIRED SHALL CONSIST OF
THE  ITEMS SET FORTH IN THE UNDERWRITING AND INVESTMENT EXHIBIT - PART 3
- EXPENSES OF THE PROPERTY / CASUALTY  STATUTORY  ANNUAL  STATEMENT,  AS
APPLICABLE  TO  THE  INSURER'S  NEW YORK STATE BUSINESS. WITH RESPECT TO
SALARIES (INCLUDING ALL OTHER FORMS OF COMPENSATION), EACH INSURER SHALL
ITEMIZE THE SALARY OF THE TWENTY MOST HIGHLY  COMPENSATED  EMPLOYEES  OF
SUCH  INSURER DURING SUCH YEAR, PROVIDED THAT THE NAME OF SUCH EMPLOYEES
NEED NOT BE DISCLOSED. SUCH FINANCIAL STATEMENT SHALL ALSO  PROVIDE  THE
PUBLIC  WITH  A  SYNOPSIS OF CLAIMS OR SETTLEMENTS PAID PURSUANT TO SUCH
POLICIES OR CONTRACTS, LISTING THE TOTAL OF SUCH CLAIMS AND  SETTLEMENTS
BY TYPE OF INSURANCE OR THE RISK INSURED. AT A MINIMUM, THE CLAIM INFOR-
MATION  REQUIRED  SHALL CONSIST OF THE ITEMS SET FORTH IN THE EXHIBIT OF
PREMIUMS AND LOSSES OF THE PROPERTY / CASUALTY STATUTORY  ANNUAL  STATE-
MENT, AS APPLICABLE TO THE INSURER'S NEW YORK STATE BUSINESS AND IDENTI-
FIED  AND  CATEGORIZED SEPARATELY FOR EACH ZIP CODE IN THIS STATE.  SUCH
FINANCIAL STATEMENT SHALL BE SIGNED AND ATTESTED AS FULL,  COMPLETE  AND

A. 328                              3

ACCURATE  BY  THE  CHIEF EXECUTIVE OFFICER OF THE INSURER, AND HE OR SHE
SHALL BE HELD PERSONALLY RESPONSIBLE WITH RESPECT TO THE ACCURACY OF THE
CONTENT OF SUCH STATEMENT. THE  SUPERINTENDENT  SHALL  PROVIDE  INSURERS
WITH  A  METHOD  TO SUBMIT THEIR FINANCIAL STATEMENTS ELECTRONICALLY VIA
THE INTERNET, WHICH METHOD SHALL INCLUDE INSTRUCTIONS  RELATING  TO  THE
USE  OF AN ELECTRONIC SIGNATURE WHICH SHALL BE SUBJECT TO, AND SUBMITTED
IN ACCORDANCE WITH  SECTION  THREE  HUNDRED  SIXTEEN  OF  THIS  ARTICLE;
PROVIDED,  HOWEVER,  THAT NO EXCEPTION AUTHORIZED IN SUCH SECTION MAY BE
REQUESTED OR GRANTED.
  (C) ON OR BEFORE APRIL FIRST OF EACH YEAR, EVERY INSURER SHALL PROVIDE
THE SUPERINTENDENT WITH DETAILED CLOSED CLAIM INFORMATION FOR  THE  SAME
LINES  OF  INSURANCE  PROVIDED FOR IN SUBSECTION (B) OF THIS SECTION FOR
THE MOST RECENTLY CONCLUDED  CALENDAR  YEAR.  UNTIL  THE  SUPERINTENDENT
PROMULGATES  DATA  COLLECTION FORMS AND PROCEDURES FOR PRIVATE PASSENGER
AUTOMOBILE INSURANCE, DATA SHALL BE COLLECTED USING, AT A  MINIMUM,  THE
MOST  RECENT  PUBLICLY  AVAILABLE  FORMS  USED BY THE INSURANCE RESEARCH
COUNCIL FOR ITS AUTO INJURY SURVEY. THE SUPERINTENDENT MAY REQUIRE ADDI-
TIONAL INFORMATION BEYOND THAT WHICH IS CONTAINED IN SUCH SURVEY  IF  HE
OR SHE DEEMS IT NECESSARY AND WARRANTED.  INSTEAD OF COLLECTING INFORMA-
TION  FOR ALL PRIVATE PASSENGER AUTOMOBILE CLAIMS THE SUPERINTENDENT MAY
COLLECT DATA FOR A STATISTICALLY VALID SAMPLE  OF  CLAIMS.  THE  MINIMUM
SAMPLE  SIZE SHALL REPRESENT FIVE PER CENTUM OF THE NUMBER OF CLAIMS FOR
EACH YEAR. UNTIL THE SUPERINTENDENT PROMULGATES  DATA  COLLECTION  FORMS
AND  PROCEDURES  FOR  COMMERCIAL  AUTOMOBILE  INSURANCE,  DATA  SHALL BE
COLLECTED USING INFORMATION  WHICH  MAY  BE  AVAILABLE  FROM  ANY  OTHER
SOURCE. FOR COMMERCIAL AUTOMOBILE CLAIMS, INSTEAD OF COLLECTING INFORMA-
TION  FOR  ALL  CLAIMS THE SUPERINTENDENT MAY COLLECT DATA FOR A STATIS-
TICALLY VALID SAMPLE OF CLAIMS. THE MINIMUM SAMPLE SIZE SHALL  REPRESENT
TEN  PER  CENTUM  OF THE NUMBER OF CLAIMS FOR EACH YEAR FOR SUCH LINE OF
INSURANCE. SUCH DETAILED CLAIM DATA SHALL  BE  SIGNED  AND  ATTESTED  AS
FULL, COMPLETE AND ACCURATE BY THE CHIEF EXECUTIVE OFFICER OF THE INSUR-
ER,  AND  HE OR SHE SHALL BE HELD PERSONALLY RESPONSIBLE WITH RESPECT TO
THE ACCURACY OF THE DATA. THE DETAILED CLAIM DATA SHALL BE SUBMITTED  IN
THE SAME MANNER AS PROVIDED FOR IN SUBSECTION (B) OF THIS SECTION.
  (D)  THE SUPERINTENDENT SHALL, IN BOTH WRITTEN FORM AND AS PART OF THE
DEPARTMENT WEB SITE, MAKE SUCH FINANCIAL STATEMENTS AND  DETAILED  CLAIM
INFORMATION  AVAILABLE  TO  THE  PUBLIC.  THE DETAILED CLAIM INFORMATION
SHALL BE PROVIDED IN AGGREGATE FORM FOR ALL  INSURERS  COMBINED  WITHOUT
ANY  IDENTIFICATION  OF  A SPECIFIC CLAIM TO A SPECIFIC INSURER. NONE OF
THE PUBLICLY AVAILABLE DETAILED CLAIM  INFORMATION  SHALL  IDENTIFY  THE
INDIVIDUAL  INSURER,  DEFENDANT  OR PLAINTIFF ASSOCIATED WITH THE CLAIM.
SUCH FINANCIAL STATEMENTS AND DETAILED CLAIM INFORMATION SHALL BE DEEMED
A PUBLIC DOCUMENT AND NO PERSON SHALL BE REQUIRED TO FILE A REQUEST  FOR
SUCH FINANCIAL STATEMENTS PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS
LAW  IN ORDER TO RECEIVE A COPY THEREOF, BUT UPON REQUEST AND PAYMENT OF
THE FEE FOR COPYING SUCH DOCUMENT, IT SHALL BE PROVIDED. WITH RESPECT TO
THE ELECTRONIC COPY OF SUCH  FINANCIAL  STATEMENTS  AND  DETAILED  CLAIM
INFORMATION, WHICH SHALL BE ACCESSIBLE ON THE DEPARTMENT'S WEB SITE, THE
DEPARTMENT  SHALL  HIGHLIGHT THE AVAILABILITY OF SUCH INFORMATION TO THE
PUBLIC ON SUCH WEB SITE, AND THE LINK TO EACH INSURER'S FINANCIAL STATE-
MENT AND THE AGGREGATED DETAILED CLAIM INFORMATION SHALL  BE  ACCESSIBLE
IN A SIMPLE AND EASY MANNER. BOTH THE FINANCIAL STATEMENT AND AGGREGATED
DETAILED CLAIM INFORMATION ON THE DEPARTMENT WEB SITE SHALL BE AVAILABLE
IN  SPREADSHEET  FORMAT, IN ADDITION TO ANY OTHER FORMAT THE SUPERINTEN-
DENT DETERMINES IS APPROPRIATE.

A. 328                              4

  (E) ON OR BEFORE JULY FIRST OF EACH  YEAR,  THE  SUPERINTENDENT  SHALL
ISSUE  REPORTS SUMMARIZING AND EXPLAINING THE INFORMATION COLLECTED FROM
THE FINANCIAL STATEMENTS AND THE DETAILED CLAIM INFORMATION.  COPIES  OF
SUCH  REPORTS  SHALL  BE  FORWARDED  TO  THE  TEMPORARY PRESIDENT OF THE
SENATE,  THE  SPEAKER  OF THE ASSEMBLY AND THE CHAIRS OF BOTH THE SENATE
AND ASSEMBLY INSURANCE COMMITTEES. SUCH REPORTS SHALL  BE  PUBLIC  DOCU-
MENTS AND SHALL BE ACCESSIBLE BOTH IN PAPER COPY AND ON THE DEPARTMENT'S
WEB SITE.
  (F)  WHERE  AN  INSURER FAILS OR REFUSES TO PROVIDE THE SUPERINTENDENT
WITH A FULL AND COMPLETE DISCLOSURE AS REQUIRED  BY  THIS  SECTION,  THE
SUPERINTENDENT SHALL TAKE SUCH ACTION HE OR SHE DEEMS NECESSARY TO BRING
THE INSURER INTO FULL COMPLIANCE.  SUCH ACTION MAY INCLUDE IMPOSITION OF
A  CIVIL  PENALTY  OF  UP TO FIFTY THOUSAND DOLLARS ASSESSED AGAINST THE
INSURER FOR EACH VIOLATION, TEMPORARY SUSPENSION OF ANY RIGHT  TO  ISSUE
ADDITIONAL  POLICIES  OR  CONTRACTS UNTIL THE INSURER BRINGS ITSELF INTO
FULL COMPLIANCE, AN AUDIT OF THE INSURER'S RECORDS BY THE DEPARTMENT  OR
ITS  DESIGNATED REPRESENTATIVE TO OBTAIN THE INFORMATION AND WHICH AUDIT
SHALL BE PAID FOR BY THE INSURER, OR ANY OTHER CIVIL REMEDY  THE  SUPER-
INTENDENT   DEEMS  WARRANTED  OR  NECESSARY  UNTIL  SUCH  INSURER  FULLY
COMPLIES. IN ADDITION THE OFFICER WHOSE SIGNATURE  IS  AFFIXED  TO  SUCH
STATEMENT MAY BE PERSONALLY PENALIZED TO THE SAME EXTENT.
  (G) THE SUPERINTENDENT MAY PROMULGATE SUCH RULES AND REGULATIONS HE OR
SHE  DEEMS  NECESSARY FOR THE PROPER ADMINISTRATION OF THE PROVISIONS OF
THIS SECTION, AND SUCH RULES AND REGULATIONS MAY BE  PROMULGATED  ON  AN
EMERGENCY  BASIS IF THE SUPERINTENDENT WARRANTS SUCH ACTION TO BE NECES-
SARY.
  S 4. Severability. If any item, clause, sentence, subparagraph, subdi-
vision or other part of this act, or  the  application  thereof  to  any
person  or circumstances shall be held to be invalid, such holding shall
not affect, impair or invalidate the remainder of this act but it  shall
be  confined  in  its  operation to the item, clause, sentence, subpara-
graph, subdivision or other part of this act directly involved  in  such
holding, or to the person and circumstances therein involved.
  S 5. This act shall take effect immediately.

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

                                 328--A
                                                        Cal. No. 280

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  M. of A. WEINSTEIN, ZEBROWSKI, DINOWITZ, PEOPLES-STOKES,
  COLTON, JAFFEE, CYMBROWITZ, ABINANTI, MARKEY, TITONE, PERRY,  BENEDET-
  TO, SCHIMEL, BRINDISI, STECK, THIELE, RODRIGUEZ, MILLER, ORTIZ, SKOUF-
  IS,  STIRPE,  MONTESANO  -- Multi-Sponsored by -- M. of A. BRAUNSTEIN,
  MAGNARELLI -- read once and referred to the Committee on Insurance  --
  reported  and  referred  to  the  Committee  on Codes -- reported from
  committee, advanced to a third reading, amended and ordered reprinted,
  retaining its place on the order of third reading

AN ACT to amend the insurance law, in relation to  requiring  all  motor
  vehicle  insurers  to  file  annual  financial statements and detailed
  claim data with the superintendent of financial services

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

  Section 1. This act shall be known and may be cited as the "automobile
insurance sunshine act of 2015".
  S  2.  Legislative  intent.  The legislature hereby finds and declares
that insurance companies issuing motor vehicle policies  in  this  state
owe  a  duty  to  the  consumers they insure and to those who may in the
future be insured by them, to fully disclose in a public and transparent
manner all elements relating to their financial condition and  solvency.
Automobile  use  and operation is a cornerstone of modern life; in fact,
auto insurance is the only coverage most New Yorkers are required by law
to purchase.  New York's consumers have a right to know the details  and
specifics of the factors and circumstances behind the financial solvency
of their insurer as well as the bases for the rates they are required to
pay to retain their legally mandated coverage. The determination of auto
insurance  premiums  in New York has, unfortunately, gone on too long in
obscurity, with those who bear the premium rates unable to learn reasons
why they are set where they are. As a matter of public trust, automobile
liability insurers should make public the  pertinent  facts  related  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD00089-03-5

A. 328--A                           2

their  premium determinations and financial solvency. It is the sense of
the legislature that this data should be disclosed in an open and public
manner.
  S  3. The insurance law is amended by adding a new section 343 to read
as follows:
  S 343. FINANCIAL STATEMENT AND DETAILED CLAIM DATA TO  BE  FILED  WITH
THE  DEPARTMENT.    (A) FOR PURPOSES OF THIS SECTION, THE TERM "INSURER"
SHALL MEAN ANY PERSON, CORPORATION, ASSOCIATION OR OTHER BUSINESS ENTITY
AUTHORIZED TO ISSUE A MOTOR VEHICLE INSURANCE POLICY IN THIS STATE.
  (B) ON OR BEFORE APRIL FIRST OF EACH YEAR, EVERY INSURER SHALL PROVIDE
THE SUPERINTENDENT WITH A DETAILED FINANCIAL STATEMENT TO SUPPLEMENT AND
EXPAND UPON THE INFORMATION CONTAINED IN THE STATUTORY ANNUAL  STATEMENT
FOR  THE  MOST RECENTLY CONCLUDED CALENDAR YEAR. THE FINANCIAL STATEMENT
SHALL CONTAIN INFORMATION ON A COMBINED BASIS FOR ALL LINES OF INSURANCE
AS WELL AS INFORMATION SEPARATELY FOR EACH OF  THE  FOLLOWING  LINES  OF
INSURANCE: (1) PRIVATE PASSENGER AUTOMOBILE OTHER LIABILITY, (2) PRIVATE
PASSENGER  AUTOMOBILE  PERSONAL INJURY PROTECTION, (3) PRIVATE PASSENGER
AUTOMOBILE PHYSICAL DAMAGE, (4) COMMERCIAL AUTOMOBILE  OTHER  LIABILITY,
(5) COMMERCIAL AUTOMOBILE PERSONAL INJURY PROTECTION, AND (6) COMMERCIAL
AUTOMOBILE  PHYSICAL DAMAGE.  SUCH FINANCIAL STATEMENT SHALL INCLUDE THE
ENTIRETY  OF  ITS  BUSINESS  ACTIVITIES  CONDUCTED  IN  THIS  STATE,  OR
CONDUCTED  OUTSIDE  THIS STATE, BUT HAVING A NEXUS TO INSURANCE POLICIES
OR CONTRACTS OF INSURANCE INSURING  PERSONS  OR  RISKS  IN  THIS  STATE,
CONSISTENT  WITH THE PROCEDURES FOR DETERMINING NEW YORK STATE INSURANCE
BUSINESS FOR STATUTORY ANNUAL STATEMENT REPORTING PURPOSES. SUCH  STATE-
MENT SHALL BE IN A FORM DETERMINED BY THE SUPERINTENDENT. THE FORM SHALL
BE  SUFFICIENTLY  ITEMIZED  IN  A  MANNER THAT ALLOWS FOR AN ACTUARIALLY
SOUND ANALYSIS OF THE INCOME REALIZED BY THE INSURER  FROM  ALL  SOURCES
DURING  SUCH  YEAR,  INCLUDING  BUT  NOT LIMITED TO PREMIUMS, INVESTMENT
INCOME, PROFIT FROM SALE OF ASSETS AND ANY OTHER CATEGORY OR  CATEGORIES
OF  INCOME  AS  DETERMINED  BY  THE  SUPERINTENDENT  TO REFLECT THE FULL
DISCLOSURE REQUIREMENTS OF THIS SECTION. AT A MINIMUM, SUCH  INFORMATION
SHALL CONSIST OF THE ITEMS SET FORTH IN THE STATEMENT OF INCOME, EXCLUD-
ING  THE  CAPITAL  AND  SURPLUS ACCOUNT SECTION OF THE PROPERTY/CASUALTY
STATUTORY ANNUAL STATEMENT, AS APPLICABLE  TO  THE  INSURER'S  NEW  YORK
STATE  BUSINESS,  AS  WELL  AS  THE OTHER INFORMATION DELINEATED IN THIS
SUBSECTION. SUCH FINANCIAL STATEMENT SHALL ALSO CONTAIN A  COMPREHENSIVE
AND  DETAILED DISCLOSURE OF THE INSURER'S EXPENSES ACTUALLY INCURRED AND
PAID DURING SUCH CALENDAR YEAR, TO  INCLUDE  NORMAL  BUSINESS  EXPENSES,
SALARIES,  COMMISSIONS,  CONSULTING  FEES,  LEGAL  EXPENSES, ADVERTISING
COSTS AND ANY OTHER CATEGORY DEEMED PERTINENT  TO  THE  INTENT  OF  THIS
SECTION. AT A MINIMUM, THE EXPENSE INFORMATION REQUIRED SHALL CONSIST OF
THE  ITEMS SET FORTH IN THE UNDERWRITING AND INVESTMENT EXHIBIT - PART 3
- EXPENSES OF THE PROPERTY / CASUALTY  STATUTORY  ANNUAL  STATEMENT,  AS
APPLICABLE  TO  THE  INSURER'S  NEW YORK STATE BUSINESS. WITH RESPECT TO
SALARIES (INCLUDING ALL OTHER FORMS OF COMPENSATION), EACH INSURER SHALL
ITEMIZE THE SALARY OF THE TWENTY MOST HIGHLY  COMPENSATED  EMPLOYEES  OF
SUCH  INSURER DURING SUCH YEAR, PROVIDED THAT THE NAME OF SUCH EMPLOYEES
NEED NOT BE DISCLOSED. SUCH FINANCIAL STATEMENT SHALL ALSO  PROVIDE  THE
PUBLIC  WITH  A  SYNOPSIS OF CLAIMS OR SETTLEMENTS PAID PURSUANT TO SUCH
POLICIES OR CONTRACTS, LISTING THE TOTAL OF SUCH CLAIMS AND  SETTLEMENTS
BY TYPE OF INSURANCE OR THE RISK INSURED. AT A MINIMUM, THE CLAIM INFOR-
MATION  REQUIRED  SHALL CONSIST OF THE ITEMS SET FORTH IN THE EXHIBIT OF
PREMIUMS AND LOSSES OF THE PROPERTY / CASUALTY STATUTORY  ANNUAL  STATE-
MENT, AS APPLICABLE TO THE INSURER'S NEW YORK STATE BUSINESS AND IDENTI-
FIED  AND  CATEGORIZED SEPARATELY FOR EACH ZIP CODE IN THIS STATE.  SUCH

A. 328--A                           3

FINANCIAL STATEMENT SHALL BE SIGNED AND ATTESTED AS FULL,  COMPLETE  AND
ACCURATE  BY  THE  CHIEF EXECUTIVE OFFICER OF THE INSURER, AND HE OR SHE
SHALL BE HELD PERSONALLY RESPONSIBLE WITH RESPECT TO THE ACCURACY OF THE
CONTENT  OF  SUCH  STATEMENT.  THE SUPERINTENDENT SHALL PROVIDE INSURERS
WITH A METHOD TO SUBMIT THEIR FINANCIAL  STATEMENTS  ELECTRONICALLY  VIA
THE  INTERNET,  WHICH  METHOD SHALL INCLUDE INSTRUCTIONS RELATING TO THE
USE OF AN ELECTRONIC SIGNATURE WHICH SHALL BE SUBJECT TO, AND  SUBMITTED
IN  ACCORDANCE  WITH  SECTION  THREE  HUNDRED  SIXTEEN  OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT NO EXCEPTION AUTHORIZED IN SUCH SECTION  MAY  BE
REQUESTED OR GRANTED.
  (C) ON OR BEFORE APRIL FIRST OF EACH YEAR, EVERY INSURER SHALL PROVIDE
THE  SUPERINTENDENT  WITH DETAILED CLOSED CLAIM INFORMATION FOR THE SAME
LINES OF INSURANCE PROVIDED FOR IN SUBSECTION (B) OF  THIS  SECTION  FOR
THE  MOST  RECENTLY  CONCLUDED  CALENDAR  YEAR. UNTIL THE SUPERINTENDENT
PROMULGATES DATA COLLECTION FORMS AND PROCEDURES FOR  PRIVATE  PASSENGER
AUTOMOBILE  INSURANCE,  DATA SHALL BE COLLECTED USING, AT A MINIMUM, THE
MOST RECENT PUBLICLY AVAILABLE FORMS  USED  BY  THE  INSURANCE  RESEARCH
COUNCIL FOR ITS AUTO INJURY SURVEY. THE SUPERINTENDENT MAY REQUIRE ADDI-
TIONAL  INFORMATION  BEYOND THAT WHICH IS CONTAINED IN SUCH SURVEY IF HE
OR SHE DEEMS IT NECESSARY AND WARRANTED.  INSTEAD OF COLLECTING INFORMA-
TION FOR ALL PRIVATE PASSENGER AUTOMOBILE CLAIMS THE SUPERINTENDENT  MAY
COLLECT  DATA  FOR  A  STATISTICALLY VALID SAMPLE OF CLAIMS. THE MINIMUM
SAMPLE SIZE SHALL REPRESENT FIVE PER CENTUM OF THE NUMBER OF CLAIMS  FOR
EACH  YEAR.  UNTIL  THE SUPERINTENDENT PROMULGATES DATA COLLECTION FORMS
AND PROCEDURES  FOR  COMMERCIAL  AUTOMOBILE  INSURANCE,  DATA  SHALL  BE
COLLECTED  USING  INFORMATION  WHICH  MAY  BE  AVAILABLE  FROM ANY OTHER
SOURCE. FOR COMMERCIAL AUTOMOBILE CLAIMS, INSTEAD OF COLLECTING INFORMA-
TION FOR ALL CLAIMS THE SUPERINTENDENT MAY COLLECT DATA  FOR  A  STATIS-
TICALLY  VALID SAMPLE OF CLAIMS. THE MINIMUM SAMPLE SIZE SHALL REPRESENT
TEN PER CENTUM OF THE NUMBER OF CLAIMS FOR EACH YEAR FOR  SUCH  LINE  OF
INSURANCE.  SUCH  DETAILED  CLAIM  DATA  SHALL BE SIGNED AND ATTESTED AS
FULL, COMPLETE AND ACCURATE BY THE CHIEF EXECUTIVE OFFICER OF THE INSUR-
ER, AND HE OR SHE SHALL BE HELD PERSONALLY RESPONSIBLE WITH  RESPECT  TO
THE  ACCURACY OF THE DATA. THE DETAILED CLAIM DATA SHALL BE SUBMITTED IN
THE SAME MANNER AS PROVIDED FOR IN SUBSECTION (B) OF THIS SECTION.
  (D) THE SUPERINTENDENT SHALL, IN BOTH WRITTEN FORM AND AS PART OF  THE
DEPARTMENT  WEB  SITE, MAKE SUCH FINANCIAL STATEMENTS AND DETAILED CLAIM
INFORMATION AVAILABLE TO THE  PUBLIC.  THE  DETAILED  CLAIM  INFORMATION
SHALL  BE  PROVIDED  IN AGGREGATE FORM FOR ALL INSURERS COMBINED WITHOUT
ANY IDENTIFICATION OF A SPECIFIC CLAIM TO A SPECIFIC  INSURER.  NONE  OF
THE  PUBLICLY  AVAILABLE  DETAILED  CLAIM INFORMATION SHALL IDENTIFY THE
INDIVIDUAL INSURER, DEFENDANT OR PLAINTIFF ASSOCIATED  WITH  THE  CLAIM.
SUCH FINANCIAL STATEMENTS AND DETAILED CLAIM INFORMATION SHALL BE DEEMED
A  PUBLIC DOCUMENT AND NO PERSON SHALL BE REQUIRED TO FILE A REQUEST FOR
SUCH FINANCIAL STATEMENTS PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS
LAW IN ORDER TO RECEIVE A COPY THEREOF, BUT UPON REQUEST AND PAYMENT  OF
THE FEE FOR COPYING SUCH DOCUMENT, IT SHALL BE PROVIDED. WITH RESPECT TO
THE  ELECTRONIC  COPY  OF  SUCH  FINANCIAL STATEMENTS AND DETAILED CLAIM
INFORMATION, WHICH SHALL BE ACCESSIBLE ON THE DEPARTMENT'S WEB SITE, THE
DEPARTMENT SHALL HIGHLIGHT THE AVAILABILITY OF SUCH INFORMATION  TO  THE
PUBLIC ON SUCH WEB SITE, AND THE LINK TO EACH INSURER'S FINANCIAL STATE-
MENT  AND  THE AGGREGATED DETAILED CLAIM INFORMATION SHALL BE ACCESSIBLE
IN A SIMPLE AND EASY MANNER. BOTH THE FINANCIAL STATEMENT AND AGGREGATED
DETAILED CLAIM INFORMATION ON THE DEPARTMENT WEB SITE SHALL BE AVAILABLE
IN SPREADSHEET FORMAT, IN ADDITION TO ANY OTHER FORMAT  THE  SUPERINTEN-
DENT DETERMINES IS APPROPRIATE.

A. 328--A                           4

  (E)  ON  OR  BEFORE  JULY FIRST OF EACH YEAR, THE SUPERINTENDENT SHALL
ISSUE REPORTS SUMMARIZING AND EXPLAINING THE INFORMATION COLLECTED  FROM
THE  FINANCIAL  STATEMENTS AND THE DETAILED CLAIM INFORMATION. COPIES OF
SUCH REPORTS SHALL BE  FORWARDED  TO  THE  TEMPORARY  PRESIDENT  OF  THE
SENATE,  THE  SPEAKER  OF THE ASSEMBLY AND THE CHAIRS OF BOTH THE SENATE
AND ASSEMBLY INSURANCE COMMITTEES. SUCH REPORTS SHALL  BE  PUBLIC  DOCU-
MENTS AND SHALL BE ACCESSIBLE BOTH IN PAPER COPY AND ON THE DEPARTMENT'S
WEB SITE.
  (F)  WHERE  AN  INSURER FAILS OR REFUSES TO PROVIDE THE SUPERINTENDENT
WITH A FULL AND COMPLETE DISCLOSURE AS REQUIRED  BY  THIS  SECTION,  THE
SUPERINTENDENT SHALL TAKE SUCH ACTION HE OR SHE DEEMS NECESSARY TO BRING
THE INSURER INTO FULL COMPLIANCE.  SUCH ACTION MAY INCLUDE IMPOSITION OF
A  CIVIL  PENALTY  OF  UP TO FIFTY THOUSAND DOLLARS ASSESSED AGAINST THE
INSURER FOR EACH VIOLATION, TEMPORARY SUSPENSION OF ANY RIGHT  TO  ISSUE
ADDITIONAL  POLICIES  OR  CONTRACTS UNTIL THE INSURER BRINGS ITSELF INTO
FULL COMPLIANCE, AN AUDIT OF THE INSURER'S RECORDS BY THE DEPARTMENT  OR
ITS  DESIGNATED REPRESENTATIVE TO OBTAIN THE INFORMATION AND WHICH AUDIT
SHALL BE PAID FOR BY THE INSURER, OR ANY OTHER CIVIL REMEDY  THE  SUPER-
INTENDENT   DEEMS  WARRANTED  OR  NECESSARY  UNTIL  SUCH  INSURER  FULLY
COMPLIES. IN ADDITION THE OFFICER WHOSE SIGNATURE  IS  AFFIXED  TO  SUCH
STATEMENT MAY BE PERSONALLY PENALIZED TO THE SAME EXTENT.
  (G) THE SUPERINTENDENT MAY PROMULGATE SUCH RULES AND REGULATIONS HE OR
SHE  DEEMS  NECESSARY FOR THE PROPER ADMINISTRATION OF THE PROVISIONS OF
THIS SECTION, AND SUCH RULES AND REGULATIONS MAY BE  PROMULGATED  ON  AN
EMERGENCY  BASIS IF THE SUPERINTENDENT WARRANTS SUCH ACTION TO BE NECES-
SARY.
  S 4. Severability. If any item, clause, sentence, subparagraph, subdi-
vision or other part of this act, or  the  application  thereof  to  any
person  or circumstances shall be held to be invalid, such holding shall
not affect, impair or invalidate the remainder of this act but it  shall
be  confined  in  its  operation to the item, clause, sentence, subpara-
graph, subdivision or other part of this act directly involved  in  such
holding, or to the person and circumstances therein involved.
  S 5. This act shall take effect immediately.