S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7861
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 17, 2017
                                ___________
 
 Introduced  by  M. of A. HUNTER, CAHILL -- (at request of the Department
   of Financial Services) -- read once and referred to the  Committee  on
   Insurance
 
 AN ACT to amend the insurance law in relation to extending provisions of
   the property/casualty insurance availability act

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 2342 of the insurance law, as amended by section  6
 of  part  B  of  chapter  78  of the laws of 2014, is amended to read as
 follows:
   § 2342. Expiration of certain provisions. The provisions of subsection
 (c) of section two thousand three hundred seven,  section  two  thousand
 three  hundred  eight,  subsection  (a)  of  section  two thousand three
 hundred ten, sections two thousand three hundred sixteen,  two  thousand
 three hundred twenty, two thousand three hundred twenty-three, two thou-
 sand  three  hundred  twenty-six, and two thousand three hundred thirty-
 five, and subsection (b) of section two thousand three  hundred  thirty-
 six  of this article shall cease to be of any force or effect during the
 period August third, two thousand one through the day before the  effec-
 tive date of the property/casualty insurance availability act, and after
 June thirtieth, two thousand [seventeen] TWENTY.
   §  2.  Subsection (f) of section 2305 of the insurance law, as amended
 by section 4 of part B of chapter 78 of the laws of 2014, is amended  to
 read as follows:
   (f)  Subsection  (a)  of  this  section shall be of no force or effect
 during the period August third, two thousand one through the day  before
 the  effective date of the property/casualty insurance availability act,
 and after June thirtieth, two thousand [seventeen]  TWENTY.  During  the
 period  August third, two thousand one through the day before the effec-
 tive date of the property/casualty insurance availability act, and again
 commencing on July first, two thousand  [seventeen]  TWENTY,  all  rates
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10205-01-7

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 previously  subject  to subsection (a) of this section, other than rates
 that are not required to be filed pursuant to subsection (b) of  section
 two  thousand  three  hundred  ten  of  this  article  or that have been
 suspended  from  the filing requirement pursuant to section two thousand
 three  hundred  eleven  of  this  article,  shall  become   subject   to
 subsections  (b),  (c)  and (d) of this section. All other provisions of
 this article applicable to kinds of insurance  or  insurance  activities
 the  rates  for which are subject to prior approval under subsection (b)
 of this section shall apply to kinds of insurance the  rates  for  which
 were  previously  subject to subsection (a) of this section or the rates
 for which are not required to be filed pursuant  to  subsection  (b)  of
 section  two thousand three hundred ten of this article or the rates for
 which have been  suspended  from  the  filing  requirement  pursuant  to
 section two thousand three hundred eleven of this article.
   §  3.  Subsection (h) of section 2344 of the insurance law, as amended
 by section 7 of part B of chapter 78 of the laws of 2014, is amended  to
 read as follows:
   (h)  This  section shall cease to be of any force or effect during the
 period August third, two thousand one through the day before the  effec-
 tive date of the property/casualty insurance availability act, and after
 June thirtieth, two thousand [seventeen] TWENTY, except that rates shall
 reflect the likely reductive cost effects reasonably attributable to the
 statutory  provisions  specified  in  paragraph one of subsection (g) of
 this section.
   § 4. Paragraphs 1 and 2 and the opening paragraph of  paragraph  3  of
 subsection  (m)  of  section  3425  of  the insurance law, as amended by
 section 3 of part B of chapter 78 of the laws of 2014,  are  amended  to
 read as follows:
   (1)  Paragraphs  eight  and nine of subsection (a), subsection (f) and
 subparagraphs (B) and (E) of paragraph one of  subsection  (j)  of  this
 section  shall  not apply to any new covered policy of automobile insur-
 ance voluntarily written on or  after  August  first,  nineteen  hundred
 eighty-five and prior to January first, nineteen hundred eighty-six, and
 on  or  after August second, two thousand one and prior to the effective
 date of the property/casualty insurance  availability  act,  and  on  or
 after  June  thirtieth,  two  thousand [seventeen] TWENTY, but the legal
 rights granted to insurers or policyholders under such provisions  shall
 not be extinguished or impaired thereby.
   (2)  In  lieu  of  such provisions, paragraph seven of subsection (a),
 subparagraph (A) of paragraph one of subsection (j) OF THIS SECTION  and
 paragraph three of this subsection shall apply to such automobile insur-
 ance  policies  that are newly and voluntarily written to have an effec-
 tive date on or after August first,  nineteen  hundred  eighty-five  and
 prior  to  January  first,  nineteen hundred eighty-six, and on or after
 August second, two thousand one and prior to the effective date  of  the
 property/casualty insurance availability act, and on or after June thir-
 tieth, two thousand [seventeen] TWENTY.
   On  and  after August first, nineteen hundred eighty-five and prior to
 January first, nineteen hundred  eighty-six,  and  on  or  after  August
 second,  two  thousand  one  and  prior  to  the  effective  date of the
 property/casualty insurance availability act, and on or after June thir-
 tieth, two thousand [seventeen]  TWENTY,  no  notice  of  nonrenewal  or
 conditional  renewal  of  such  covered  automobile  insurance  policies
 referred to in this subsection  shall  be  issued  to  become  effective
 during  the  required policy period unless it is based upon a ground for
 which the policy could have been cancelled or unless it  is  based  upon

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 one or more of the following grounds that occurred during the thirty-six
 month  period  ending  on the last day of the fourth month preceding the
 month of the effective date of such notice of nonrenewal or  conditional
 renewal:
   §  5.  Sections  2328  and  2329  of  the insurance law, as amended by
 section 1 of part B of chapter 78 of the laws of 2014,  are  amended  to
 read as follows:
   § 2328. Certain motor vehicle insurance rates; prior approval. For the
 periods  February  first,  nineteen  hundred seventy-four through August
 second,  two   thousand   one,   and   the   effective   date   of   the
 property/casualty insurance availability act through June thirtieth, two
 thousand  [seventeen]  TWENTY, no changes in rates, rating plans, rating
 rules and rate manuals applicable to motor vehicle insurance,  including
 no-fault  coverages  under  article  fifty-one of this chapter, shall be
 made effective until approved by the superintendent, notwithstanding any
 inconsistent provisions of this article; provided, however, that changes
 in such rates, rating plans, rating rules and rate manuals may  be  made
 effective  without  such  approval  if  the  rates that result from such
 changes are no higher than the insurer's  rates  last  approved  by  the
 superintendent. This section shall apply only to policies covering loss-
 es or liabilities arising out of ownership of a motor vehicle used prin-
 cipally for the transportation of persons for hire, including a bus or a
 school  bus  as  defined  in  sections  one hundred four and one hundred
 forty-two of the vehicle and traffic law.
   § 2329. Motor vehicle insurance rates; excess profits.  In  accordance
 with  regulations prescribed by the superintendent, each insurer issuing
 policies that are subject to article fifty-one of this chapter,  includ-
 ing  policies  of  motor  vehicle personal injury liability insurance or
 policies of motor vehicle property damage liability insurance or  insur-
 ance  for  loss  or  damage  to a motor vehicle, shall establish a fair,
 practicable, and nondiscriminatory plan for refunding or otherwise cred-
 iting to those purchasing such policies their  share  of  the  insurer's
 excess  profit,  if  any,  on such policies. An excess profit shall be a
 profit beyond a percentage rate of return on net worth  attributable  to
 such  policies,  computed  in accordance with the regulation required by
 section two thousand three hundred twenty-three  of  this  article,  and
 determined by the superintendent to be so far above a reasonable average
 profit  as  to amount to an excess profit, taking into consideration the
 fact that losses or profits below a reasonable average profit  will  not
 be  recouped  from  such  policyholders. Each plan shall apply to policy
 periods for the periods January  first,  nineteen  hundred  seventy-four
 through  August  second, two thousand one, and the effective date of the
 property/casualty insurance availability act through June thirtieth, two
 thousand [seventeen] TWENTY.  In prescribing such regulations the super-
 intendent may limit the duration of such plans,  waive  any  requirement
 for  refund  or  credit  that  he  or she determines to be de minimis or
 impracticable, adopt forms of returns that shall be made to him  or  her
 in  order to establish the amount of any refund or credit due, establish
 periods and times for the determination and distribution of refunds  and
 credits,  and  shall  provide  that  insurers receive appropriate credit
 against any refunds or credits required by any such plan for policyhold-
 er dividends and for return premiums that may be due under  rate  credit
 or retrospective rating plans based on experience.
   §  6.  Subsection (g) of section 5412 of the insurance law, as amended
 by section 8 of part B of chapter 78 of the laws of 2014, is amended  to
 read as follows:

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   (g)  The  provisions of this section shall cease to be of any force or
 effect on or after June  thirtieth,  two  thousand  [seventeen]  TWENTY,
 except that policies issued or other obligations incurred by the associ-
 ation  shall  not  be impaired by the expiration of this section and the
 association  shall  continue  for the purpose of servicing such policies
 and performing such obligations.
   § 7. This act shall take effect immediately.