LBD03626-03-7
S. 4469 2
CONSUMERS ARE AWARE OF THESE WIDE COST AND QUALITY OF SERVICE VARI-
ATIONS, THAT AS A RESULT CONSUMERS AS A GROUP MAY PAY HUNDREDS OF
MILLIONS OF DOLLARS ANNUALLY FOR OVERPRICED POLICIES AND THAT INDIVIDUAL
CONSUMERS MAY ENCOUNTER UNNECESSARY DIFFICULTY IN HAVING THEIR AUTOMO-
BILE INSURANCE CLAIMS AND COMPLAINTS HANDLED EXPEDITIOUSLY. THE LEGIS-
LATURE FURTHER FINDS AND DECLARES THAT IT INTENDS FOR THE SUPERINTENDENT
AND THE DEPARTMENT TO HAVE BROAD AUTHORITY UNDER THIS ARTICLE TO ESTAB-
LISH MECHANISMS TO FULLY INFORM CONSUMERS AS TO WHICH POLICIES ARE
AVAILABLE TO THEM AT THE LOWEST POSSIBLE COST AND WHICH INSURERS PROVIDE
THE HIGHEST QUALITY OF SERVICE. THE LEGISLATURE INTENDS WITH THIS ARTI-
CLE TO CREATE CERTAIN DISCLOSURE REQUIREMENTS THAT WILL MAKE SUCH INFOR-
MATION MORE READILY AVAILABLE TO ALL CONSUMERS. INCREASED AVAILABILITY
OF INFORMATION IS INTENDED TO MAKE THE AUTOMOBILE INSURANCE SYSTEM MORE
COMPETITIVE WITH RESPECT TO BOTH COST OF COVERAGE AND THE QUALITY OF
SERVICE.
§ 602. AUTOMOBILE INSURANCE CONSUMER INFORMATION AND COMPLAINT RANK-
INGS. (A) THE SUPERINTENDENT SHALL MAINTAIN A DATABASE CONTAINING
NONBUSINESS AUTOMOBILE INSURANCE RATE INFORMATION AND COMPLAINT RANKINGS
FOR ALL COMPANIES LICENSED TO DO BUSINESS IN THE STATE.
(B) EVERY PERSON, UPON MAKING AN INQUIRY TO THE DEPARTMENT AND PROVID-
ING THE INFORMATION SPECIFIED IN SECTION SIX HUNDRED THREE OF THIS ARTI-
CLE, SHALL BE MAILED WITHIN FIVE BUSINESS DAYS, OR, AT THE OPTION OF THE
PERSON, RECEIVE AT THE TIME OF SUCH INQUIRY:
(1) THE NAMES, ADDRESSES, TELEPHONE NUMBERS AND, IF APPROPRIATE, WEB
SITE ADDRESSES OF THE FIVE COMPANIES HAVING THE LOWEST PREMIUMS FOR THE
REQUESTED PACKAGE OF COVERAGE THAT WOULD WRITE INSURANCE FOR SUCH
PERSON; THE TOTAL COST FOR THE PACKAGE OF COVERAGE FROM EACH SUCH INSUR-
ER; AND THE MOST RECENT COMPLAINT RANKING OF EACH SUCH INSURER;
(2) THE NAMES, ADDRESSES, TELEPHONE NUMBERS AND, IF APPROPRIATE, WEB
SITE ADDRESSES OF THE FIVE COMPANIES HAVING THE BEST COMPLAINT RANKINGS
THAT WOULD WRITE INSURANCE FOR SUCH PERSON, AND THE TOTAL COST FOR THE
PACKAGE OF COVERAGE FROM EACH INSURER LISTED;
(3) AN EXPLANATION OF HOW TO OBTAIN FROM SUCH COMPANIES THE NAMES,
ADDRESSES, TELEPHONE NUMBERS, AND, IF APPROPRIATE, WEB SITE ADDRESSES OF
THOSE AGENTS, BROKERS OR SALES REPRESENTATIVES OF SUCH COMPANIES THAT
ARE SITUATED IN A LOCATION REASONABLY CONVENIENT TO THE PERSON; AND
(4) UNTIL SUCH DATABASE IS ESTABLISHED, THE DEPARTMENT SHALL PROVIDE
PERSONS MAKING AN INQUIRY THE DEPARTMENT'S ANNUAL RANKING OF AUTOMOBILE
INSURANCE COMPLAINTS AND CONSUMERS GUIDE TO AUTO INSURANCE. AFTER THE
DATABASE IS ESTABLISHED, IF THE PERSON MAKING AN INQUIRY PREFERS, THE
DEPARTMENT MAY PROVIDE, IN LIEU OF THE INFORMATION SPECIFIED IN PARA-
GRAPHS ONE, TWO AND THREE OF THIS SUBSECTION, THE DEPARTMENT'S ANNUAL
RANKING OF AUTOMOBILE INSURANCE COMPLAINTS, AND CONSUMER GUIDE TO AUTO
INSURANCE.
§ 603. CONSUMER RATING FACTORS. IN ORDER TO RECEIVE THE LIST OF LOWEST
COST INSURERS DESCRIBED IN SECTION SIX HUNDRED TWO OF THIS ARTICLE, THE
PERSON SHALL PROVIDE THE FOLLOWING INFORMATION:
(A) THE PLACE IN WHICH THE VEHICLE IS GARAGED OR STORED, OR OTHER
INFORMATION NEEDED TO DETERMINE GEOGRAPHICAL TERRITORY;
(B) THE AGE, SEX, MARITAL STATUS AND OTHER INFORMATION NEEDED TO
DETERMINE THE DRIVER CLASS OF THE PRINCIPAL AND OCCASIONAL OPERATORS;
(C) THE MAKE, MODEL AND YEAR OF THE AUTOMOBILE;
(D) INFORMATION RELATING TO QUALIFICATION FOR DISCOUNTS;
(E) INFORMATION RELATING TO SURCHARGES OR CREDITS BASED ON DRIVING
RECORD OR DRIVING COURSES TAKEN;
(F) DESIRED EFFECTIVE DATE OF THE POLICY;
S. 4469 3
(G) DESIRED COVERAGES; AND
(H) SUCH OTHER INFORMATION AS THE SUPERINTENDENT MAY BY REGULATION
REQUIRE.
§ 604. DISCLOSURE PROCEDURES. EVERY POLICY OF NONBUSINESS AUTOMOBILE
INSURANCE DELIVERED, ISSUED FOR DELIVERY, RENEWED OR ISSUED FOR RENEWAL
IN THIS STATE SHALL INCLUDE A NOTICE PRESCRIBED BY THE SUPERINTENDENT IN
REGULATION OF THE AVAILABILITY OF THE INFORMATION AND PROCEDURE FOR
OBTAINING SUCH INFORMATION DESCRIBED IN SECTIONS SIX HUNDRED TWO AND SIX
HUNDRED THREE OF THIS ARTICLE. SUCH NOTICE SHALL INCLUDE THE DEPART-
MENT'S ADDRESS, TELEPHONE NUMBER AND WEB SITE ADDRESS.
§ 605. NONINTERFERENCE WITH OBTAINING COVERAGE. NO APPLICANT FOR AUTO-
MOBILE INSURANCE SHALL BE PREVENTED OR DELAYED IN EFFECTING OR APPLYING
FOR COVERAGE BY THE REQUIREMENTS OF SECTION SIX HUNDRED FOUR OF THIS
ARTICLE. IN THOSE CASES WHERE, PRIOR TO OR AT THE TIME AN APPLICATION IS
TAKEN, IT IS IMPRACTICAL TO PROVIDE ANY DISCLOSURE DOCUMENTS PRESCRIBED
BY SECTION SIX HUNDRED FOUR OF THIS ARTICLE, SUCH DOCUMENTS SHALL BE
FURNISHED AS SOON THEREAFTER AS PRACTICAL AND, IN ANY EVENT, NO LATER
THAN AT THE TIME THE POLICY IS DELIVERED. WHERE ANY SUCH DOCUMENT IS
NOT PROVIDED AS REQUIRED BY SECTION SIX HUNDRED FOUR OF THIS ARTICLE,
THE APPLICANT MAY, NO LATER THAN THIRTY DAYS FOLLOWING RECEIPT OF THE
POLICY, AND NOTWITHSTANDING THE PROVISIONS OF SECTION THREE THOUSAND
FOUR HUNDRED TWENTY-EIGHT OF THIS CHAPTER, RETURN THE POLICY FOR A PRO
RATA REFUND OF PREMIUMS PAID. A CLEAR AND CONSPICUOUS WRITTEN NOTICE
EXPLAINING THIS REFUND PROVISION, IN LANGUAGE PROMULGATED BY THE SUPER-
INTENDENT, SHALL BE DELIVERED WITH THE POLICY.
§ 606. PUBLIC OUTREACH. THE DEPARTMENT SHALL CONDUCT PUBLIC EDUCATION
AND OUTREACH TO INFORM CONSUMERS AS TO THE AVAILABILITY OF AND HOW TO
ACCESS THE CONSUMER INFORMATION PRESCRIBED BY THIS ARTICLE. NOTWITH-
STANDING ANY INCONSISTENT LAW TO THE CONTRARY, NO ADVERTISEMENT UTILIZ-
ING ELECTRONIC MEANS, (INCLUDING BUT NOT LIMITED TO RADIO, TELEVISION
AND THE INTERNET) PUBLIC SERVICE ANNOUNCEMENT OR OTHER BROADCAST
PRODUCED OR DISTRIBUTED PURSUANT TO THIS SECTION SHALL FEATURE THE LIKE-
NESS, PICTURE OR VOICE OF A STATEWIDE ELECTED OFFICIAL OR A FAMILY
MEMBER OF SUCH OFFICIAL.
§ 2. If any provision of section one of this act or the application
thereof to any person or circumstances be adjudged invalid by any court
of competent jurisdiction, such judgment shall be confined in its opera-
tion to the provision or application or persons or circumstances direct-
ly involved in the controversy in which such judgment shall have been
rendered and shall not affect or impair the validity of the remainder of
this act or the application thereof to other persons or circumstances.
§ 3. The executive law is amended by adding a new article 44-A to read
as follows:
ARTICLE 44-A
OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE
SECTION 945. OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE.
946. PUBLIC INSURANCE CONSUMER ADVOCATE.
947. POWERS AND DUTIES.
§ 945. OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE. THERE IS HEREBY
CREATED IN THE EXECUTIVE DEPARTMENT AN INDEPENDENT OFFICE OF PUBLIC
INSURANCE CONSUMER ADVOCATE (HEREINAFTER REFERRED TO IN THIS ARTICLE AS
"OFFICE") TO REPRESENT THE INTERESTS OF NONBUSINESS AUTOMOBILE AND
HEALTH INSURANCE CONSUMERS IN THE STATE.
§ 946. PUBLIC INSURANCE CONSUMER ADVOCATE. 1. THE GOVERNOR, WITH THE
ADVICE AND CONSENT OF THE SENATE, SHALL APPOINT A PUBLIC INSURANCE
CONSUMER ADVOCATE (HEREINAFTER REFERRED TO IN THIS ARTICLE AS "ADVO-
S. 4469 4
CATE") WHO SHALL SERVE AS THE EXECUTIVE DIRECTOR OF THE OFFICE OF PUBLIC
INSURANCE CONSUMER ADVOCATE AND SHALL RECEIVE AN ANNUAL SALARY TO BE
FIXED BY THE GOVERNOR WITHIN THE AMOUNT AVAILABLE THEREFOR BY APPROPRI-
ATION.
2. (A) TO BE ELIGIBLE TO SERVE AS ADVOCATE, A PERSON MUST BE A RESI-
DENT OF THE STATE. THE ADVOCATE SHALL BE A PERSON WHO HAS DEMONSTRATED A
STRONG COMMITMENT TO AND INVOLVEMENT IN EFFORTS TO SAFEGUARD THE RIGHTS
OF THE PUBLIC, AND WHO POSSESSES THE KNOWLEDGE AND EXPERIENCE NECESSARY
TO PRACTICE EFFECTIVELY IN INSURANCE PROCEEDINGS.
(B) A PERSON SHALL NOT BE ELIGIBLE FOR APPOINTMENT AS ADVOCATE IF SUCH
PERSON OR THE PERSON'S SPOUSE:
(I) IS EMPLOYED BY OR PARTICIPATES IN THE MANAGEMENT OF A BUSINESS
ENTITY OR OTHER ORGANIZATION REGULATED BY THE DEPARTMENT OF FINANCIAL
SERVICES OR RECEIVING FUNDS FROM SUCH DEPARTMENT;
(II) OWNS OR CONTROLS, DIRECTLY OR INDIRECTLY, MORE THAN TEN PERCENT
INTEREST IN A BUSINESS ENTITY OR OTHER ORGANIZATION REGULATED BY THE
DEPARTMENT OF FINANCIAL SERVICES OR RECEIVING FUNDS FROM THE DEPARTMENT
OF FINANCIAL SERVICES OR THE OFFICE;
(III) USES OR RECEIVES A SUBSTANTIAL AMOUNT OF TANGIBLE GOODS,
SERVICES OR FUNDS FROM THE DEPARTMENT OF FINANCIAL SERVICES OR THE
OFFICE, OTHER THAN COMPENSATION OR REIMBURSEMENT AUTHORIZED BY LAW FOR
THE DEPARTMENT OF FINANCIAL SERVICES OR OFFICE MEMBERSHIP, ATTENDANCE OR
EXPENSES.
3. THE ADVOCATE SHALL SERVE FOR A TERM OF TWO YEARS.
4. IT SHALL BE A GROUND FOR REMOVAL FROM OFFICE IF THE ADVOCATE:
(A) DOES NOT HAVE AT THE TIME OF APPOINTMENT THE QUALIFICATIONS
REQUIRED BY THIS SECTION;
(B) DOES NOT MAINTAIN DURING SERVICE AS ADVOCATE THE QUALIFICATIONS
REQUIRED BY THIS SECTION;
(C) VIOLATES A PROHIBITION ESTABLISHED BY THIS SECTION; OR
(D) CANNOT DISCHARGE THE ADVOCATE'S DUTIES FOR A SUBSTANTIAL PART OF
THE TERM FOR WHICH THE ADVOCATE IS APPOINTED BECAUSE OF ILLNESS OR DISA-
BILITY.
5. THE VALIDITY OF AN ACTION OF THE OFFICE SHALL NOT BE AFFECTED BY
THE FACT THAT IT IS TAKEN WHEN A GROUND FOR REMOVAL OF THE ADVOCATE
EXISTS.
6. (A) A PERSON SHALL NOT SERVE AS THE ADVOCATE OR ACT AS THE GENERAL
COUNSEL FOR THE OFFICE OF ADVOCATE IF THE PERSON IS REQUIRED TO REGISTER
AS A LOBBYIST PURSUANT TO ARTICLE ONE-A OF THE LEGISLATIVE LAW.
(B) A PERSON SERVING AS THE ADVOCATE SHALL NOT, FOR A PERIOD OF TWO
YEARS AFTER THE DATE THE PERSON CEASES TO BE AN ADVOCATE, REPRESENT ANY
PERSON IN A PROCEEDING BEFORE THE SUPERINTENDENT OF FINANCIAL SERVICES
OR THE DEPARTMENT OF FINANCIAL SERVICES OR RECEIVE COMPENSATION FOR
SERVICES RENDERED ON BEHALF OF ANY PERSON REGARDING A CASE BEFORE THE
SUPERINTENDENT OF FINANCIAL SERVICES OR THE DEPARTMENT OF FINANCIAL
SERVICES.
(C) A PERSON SHALL NOT SERVE AS THE ADVOCATE OR BE AN EMPLOYEE OF THE
OFFICE IF THE PERSON IS AN OFFICER, EMPLOYEE OR PAID CONSULTANT OF A
TRADE ASSOCIATION IN THE FIELD OF INSURANCE.
(D) A PERSON WHO IS THE SPOUSE OF AN OFFICER, MANAGER OR PAID CONSULT-
ANT OF A TRADE ASSOCIATION IN THE FIELD OF INSURANCE SHALL NOT SERVE AS
THE ADVOCATE AND MAY NOT BE AN OFFICE EMPLOYEE.
(E) FOR THE PURPOSES OF THIS SECTION, A TRADE ASSOCIATION IS A NONPRO-
FIT, COOPERATIVE AND VOLUNTARILY JOINED ASSOCIATION OF BUSINESS OR
PROFESSIONAL COMPETITORS DESIGNED TO ASSIST ITS MEMBERS AND ITS INDUSTRY
S. 4469 5
OR PROFESSION IN DEALING WITH MUTUAL BUSINESS OR PROFESSIONAL PROBLEMS
AND IN PROMOTING THEIR COMMON INTEREST.
§ 947. POWERS AND DUTIES. 1. THE ADVOCATE, AS EXECUTIVE DIRECTOR OF
THE OFFICE, SHALL BE CHARGED WITH THE RESPONSIBILITY OF ADMINISTERING,
ENFORCING AND CARRYING OUT THE PROVISIONS OF THIS ARTICLE, INCLUDING
PREPARATION OF A BUDGET FOR THE OFFICE, EMPLOYING ALL NECESSARY PROFES-
SIONAL, TECHNICAL AND OTHER EMPLOYEES TO CARRY OUT PROVISIONS OF THIS
ARTICLE, APPROVAL OF EXPENDITURES FOR PROFESSIONAL SERVICES, TRAVEL, PER
DIEM AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED IN ADMINISTERING
THE OFFICE. THE COMPENSATION OF EMPLOYEES OF THE OFFICE SHALL BE FIXED
BY THE ADVOCATE WITHIN THE APPROPRIATION PROVIDED THEREFOR.
2. THE OFFICE SHALL FILE ANNUALLY WITH THE GOVERNOR, TEMPORARY PRESI-
DENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY A COMPLETE AND DETAILED
WRITTEN REPORT ACCOUNTING FOR ALL FUNDS RECEIVED AND DISBURSED BY THE
OFFICE DURING THE PRECEDING FISCAL YEAR. THE ANNUAL REPORT SHALL BE IN
THE FORM AND REPORTED AS PART OF THE EXECUTIVE BUDGET.
3. ALL MONEY PAID TO THE OFFICE UNDER THIS ARTICLE SHALL BE DEPOSITED
IN THE STATE TREASURY.
4. THE OFFICE MAY ASSESS THE IMPACT OF INSURER PRACTICES AND PROPOSED
AND IN-FORCE INSURANCE RATES, RULES AND REGULATIONS ON NONBUSINESS AUTO-
MOBILE AND HEALTH INSURANCE CONSUMERS IN THE STATE; IN ITS OWN NAME,
ADVOCATE ON BEHALF OF POSITIONS THAT ARE MOST ADVANTAGEOUS TO A SUBSTAN-
TIAL NUMBER OF INSURANCE CONSUMERS AS DETERMINED BY THE ADVOCATE; AND DO
ALL THINGS NECESSARY AND PROPER FOR THESE PURPOSES, INCLUDING ENGAGING
ATTORNEYS, AND EXPERTS IN ACTUARIAL SCIENCE, ECONOMICS, ACCOUNTING,
FINANCE OR ANY OTHER DISCIPLINE WHICH MAY BE APPROPRIATE.
5. THE ADVOCATE:
(A) MAY APPEAR OR INTERVENE AS A MATTER OF RIGHT BEFORE THE SUPER-
INTENDENT OF FINANCIAL SERVICES OR DEPARTMENT OF FINANCIAL SERVICES AS A
PARTY OR OTHERWISE ON BEHALF OF INSURANCE CONSUMERS AS A CLASS IN
MATTERS INVOLVING INSURER PRACTICES AND PROPOSED AND IN-FORCE RATES,
RULES AND REGULATIONS AFFECTING NONBUSINESS AUTOMOBILE AND HEALTH INSUR-
ANCE;
(B) MAY INITIATE OR INTERVENE AS A MATTER OF RIGHT OR OTHERWISE APPEAR
IN ANY JUDICIAL PROCEEDING INVOLVING OR ARISING OUT OF ANY ACTION TAKEN
BY AN ADMINISTRATIVE AGENCY IN A PROCEEDING IN WHICH THE ADVOCATE PREVI-
OUSLY APPEARED UNDER THE AUTHORITY GRANTED BY THIS ARTICLE;
(C) IS ENTITLED TO ACCESS ANY RECORDS OF THE DEPARTMENT OF FINANCIAL
SERVICES THAT ARE AVAILABLE TO ANY PARTY IN A PROCEEDING BEFORE THE
SUPERINTENDENT OF FINANCIAL SERVICES OR DEPARTMENT OF FINANCIAL SERVICES
UNDER THE AUTHORITY GRANTED BY THIS ARTICLE;
(D) IS ENTITLED TO OBTAIN DISCOVERY OF ANY NON-PRIVILEGED MATTER THAT
IS RELEVANT TO THE SUBJECT MATTER INVOLVED IN A PROCEEDING OR SUBMISSION
BEFORE THE SUPERINTENDENT OF FINANCIAL SERVICES OR DEPARTMENT OF FINAN-
CIAL SERVICES AS AUTHORIZED BY THIS ARTICLE;
(E) MAY RECOMMEND LEGISLATION TO THE LEGISLATURE THAT, IN THE JUDGMENT
OF THE ADVOCATE, WOULD AFFECT POSITIVELY THE INTERESTS OF NONBUSINESS
AUTOMOBILE AND HEALTH INSURANCE CONSUMERS;
(F) MAY APPEAR OR INTERVENE AS A MATTER OF RIGHT AS A PARTY OR OTHER-
WISE ON BEHALF OF NONBUSINESS AUTOMOBILE AND HEALTH INSURANCE CONSUMERS
AS A CLASS IN ALL PROCEEDINGS AND ACTIONS IN WHICH THE ADVOCATE DETER-
MINES THAT SUCH CONSUMERS NEED REPRESENTATION, EXCEPT THAT THE ADVOCATE
SHALL NOT INTERVENE IN ANY ENFORCEMENT OR PARENS PATRIAE PROCEEDING
BROUGHT BY THE ATTORNEY GENERAL;
(G) MAY CONDUCT ANY INQUIRY, HEARING, INVESTIGATION, SURVEY OR STUDY
WHICH THE ADVOCATE DEEMS NECESSARY TO EFFECTIVELY CARRY OUT THE
S. 4469 6
PROVISIONS OF THIS ARTICLE AND, FOR THAT PURPOSE, TO TAKE AND HEAR
PROOFS AND TESTIMONY, SUBPOENA WITNESSES, COMPEL THEIR ATTENDANCE,
ADMINISTER OATHS, EXAMINE ANY PERSON UNDER OATH AND TO COMPEL ANY PERSON
TO SUBSCRIBE TO HIS OR HER TESTIMONY AFTER IT HAS BEEN CORRECTLY REDUCED
TO WRITING, AND IN CONNECTION THEREWITH TO REQUIRE THE PRODUCTION OF ANY
BOOKS, PAPERS, RECORDS, ACCOUNTS, CORRESPONDENCE OR OTHER DOCUMENTS
WHICH THE ADVOCATE DEEMS RELEVANT TO THE INQUIRY. A SUBPOENA ISSUED
UNDER THIS SECTION SHALL BE REGULATED BY THE CIVIL PRACTICE LAW AND
RULES.
6. (A) THE OFFICE SHALL PREPARE INFORMATION OF PUBLIC INTEREST
DESCRIBING THE FUNCTIONS OF THE OFFICE. THE OFFICE SHALL MAKE THE INFOR-
MATION AVAILABLE TO THE PUBLIC, LAWMAKERS AND APPROPRIATE STATE AGEN-
CIES.
(B) THE OFFICE SHALL PREPARE AND MAINTAIN A WRITTEN PLAN THAT
DESCRIBES HOW EACH PERSON WHO DOES NOT SPEAK ENGLISH CAN BE PROVIDED
REASONABLE ACCESS TO THE OFFICE'S PROGRAMS.
(C) THE OFFICE SHALL PREPARE AND DISTRIBUTE PUBLIC EDUCATION MATERIALS
FOR CONSUMERS, LEGISLATORS AND REGULATORS.
(D) THE OFFICE MAY PARTICIPATE IN TRADE ASSOCIATIONS.
7. THE OFFICE SHALL BE SUBJECT TO ARTICLES SIX AND SIX-A OF THE PUBLIC
OFFICERS LAW; PROVIDED, HOWEVER, THAT DOCUMENTS, RECORDS, FILES, REPORTS
OR OTHER INFORMATION CONCERNING CONFIDENTIAL MATTERS OF THE BOARD, AS
DEFINED AND DESCRIBED IN REGULATIONS PROMULGATED BY THE BOARD, ARE
SPECIFICALLY EXEMPTED FROM DISCLOSURE PURSUANT TO SECTION EIGHTY-SEVEN
OF THE PUBLIC OFFICERS LAW.
§ 4. Subsection (d) of section 2321 of the insurance law is amended to
read as follows:
(d) Proceedings pursuant to subsections (b) and (c) [hereof] OF THIS
SECTION may be instituted upon the initiative of the superintendent or
upon written application to the superintendent by any aggrieved person
or organization, other than a rate service organization, for a hearing,
if the superintendent finds that the application is made in good faith
and that the grounds otherwise justify holding such a hearing WHICH
SHALL BE HELD WITHIN FIFTEEN DAYS OF THE REQUEST; PROVIDED, HOWEVER,
THAT THE SUPERINTENDENT SHALL HOLD SUCH A HEARING WITHIN FIFTEEN DAYS OF
AN APPLICATION THEREFOR FROM THE PUBLIC INSURANCE CONSUMER ADVOCATE
ESTABLISHED UNDER ARTICLE FORTY-FOUR-A OF THE EXECUTIVE LAW. IN THE CASE
OF A DENIAL OF AN APPLICATION FOR A HEARING FILED BY ANY AGGRIEVED
PERSON OR ANY OTHER ORGANIZATION, THE SUPERINTENDENT SHALL PROVIDE THE
REASONS THEREFOR IN WRITING TO THE APPLICANT WITHIN FIFTEEN DAYS OF SUCH
DENIAL.
§ 5. Subsection (c) of section 2305 of the insurance law is amended to
read as follows:
(c) (1) Rates filed with the superintendent shall be accompanied by
the information upon which the insurer supports the rate as set forth in
subsection (b) of section two thousand three hundred four of this arti-
cle.
(2) WITH RESPECT TO RATES FILED FOR NONBUSINESS AUTOMOBILE POLICIES,
SUCH FILINGS SHALL INCLUDE ALL STATISTICAL DATA RELIED UPON TO SUPPORT
THE FILING AND SUCH OTHER INFORMATION AS THE SUPERINTENDENT SHALL
REQUIRE. SUCH FILINGS AND SUPPORTING INFORMATION SHALL CONFORM WITH
STANDARDS OF UNIFORMITY WHICH THE SUPERINTENDENT SHALL PRESCRIBE BY
REGULATION WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS
PARAGRAPH.
§ 6. The insurance law is amended by adding a new section 2353 to read
as follows:
S. 4469 7
§ 2353. MUNICIPAL PETITIONS; MOTOR VEHICLE INSURANCE FOR NONBUSINESS
AUTOMOBILES. (A) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, ANY
MUNICIPALITY OR COMBINATION OF CONTIGUOUS MUNICIPALITIES MAY PETITION
THE DEPARTMENT FOR A REDUCTION IN RATES OF POLICIES COVERING LOSSES OR
LIABILITIES ARISING OUT OF THE OWNERSHIP OF A MOTOR VEHICLE PREDOMINANT-
LY USED FOR NONBUSINESS PURPOSES, WHEN A NATURAL PERSON IS THE NAMED
INSURED UNDER A POLICY OF AUTO INSURANCE, WHEN SUCH RATES DO NOT REFLECT
ACCURATELY THE CURRENT DATA PERTINENT TO THE RISK OF LOSS IN THE MUNICI-
PALITY OR MUNICIPALITIES BASED ON REASONABLE AND SOUND UNDERWRITING AND
ACTUARIAL CRITERIA.
(B) WITHIN FIFTEEN DAYS OF RECEIPT OF SUCH A PETITION, THE DEPARTMENT
SHALL HOLD A PUBLIC HEARING THEREON, AT WHICH MUNICIPAL REPRESENTATIVES,
INSURERS AND THE PUBLIC SHALL HAVE THE RIGHT TO BE HEARD. THE DEPARTMENT
SHALL EXPLAIN IN WRITING ITS REASONS FOR GRANTING OR DENYING, IN WHOLE
OR IN PART, THE RELIEF SOUGHT IN THE PETITION. IF THE DEPARTMENT GRANTS
SUCH RELIEF, IT SHALL IMMEDIATELY ORDER AN APPROPRIATE REDUCTION, WHICH
MAY INCLUDE RETROACTIVE RELIEF, IF JUSTIFIED, NOTWITHSTANDING ANY INCON-
SISTENT PROVISION OF LAW.
(C) FOR THE PURPOSES OF THIS SECTION, THE TERM "MUNICIPALITY" SHALL
MEAN ANY COUNTY NOT WHOLLY CONTAINED WITHIN A CITY AND ANY CITY COMPRIS-
ING MORE THAN ONE COUNTY.
§ 7. The insurance law is amended by adding a new section 343 to read
as follows:
§ 343. COOPERATION WITH OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE.
(A) THE SUPERINTENDENT, AND EVERY DEPUTY AND EMPLOYEE OF THE DEPARTMENT
SHALL COOPERATE FULLY AND COMPLETELY WITH THE OFFICE OF PUBLIC INSURANCE
CONSUMER ADVOCATE AND PROVIDE WITHOUT CHARGE TO SUCH OFFICE, ACCESS AND,
UPON REQUEST OF THE PUBLIC INSURANCE CONSUMER ADVOCATE, COPIES OF ALL
BOOKS, RECORDS AND FILES OF THE DEPARTMENT AND OF EACH LICENSEE OF THE
DEPARTMENT TO THE EXTENT THAT THE DEPARTMENT HAS ACCESS OR COPIES OF
SUCH BOOKS, RECORDS AND FILES, WHICH SUCH ADVOCATE DEEMS NECESSARY AND
APPROPRIATE TO CARRY OUT THE PURPOSES OF ARTICLE FORTY-FOUR-A OF THE
EXECUTIVE LAW, INCLUDING, BUT NOT LIMITED TO FILINGS AND APPLICATIONS
WHICH MAY BE SUBJECT TO A HEARING PURSUANT TO THIS SECTION, AND ALL
INFORMATION FURNISHED THE SUPERINTENDENT IN SUPPORT OF SUCH FILINGS AND
APPLICATIONS.
(B) NOTWITHSTANDING ANY INCONSISTENT LAW, RULE OR REGULATION TO THE
CONTRARY, THE SUPERINTENDENT SHALL NOTIFY THE OFFICE OF PUBLIC INSURANCE
CONSUMER ADVOCATE OF ALL RATE-RELATED FILINGS MADE UNDER ARTICLE TWEN-
TY-THREE OF THIS CHAPTER WITH RESPECT TO NONBUSINESS AUTOMOBILE INSUR-
ANCE, FILINGS FOR RATE INCREASES PURSUANT TO SECTIONS THREE THOUSAND TWO
HUNDRED THIRTY-ONE AND FOUR THOUSAND THREE HUNDRED EIGHT OF THIS CHAPTER
AND APPLICATIONS FOR MATERIAL CHANGE IN BENEFITS OR DELIVERY OF BENEFITS
UNDER A CONTRACT, WITHIN FIVE BUSINESS DAYS OF HAVING RECEIVED SUCH
FILINGS AND APPLICATIONS. SUCH NOTIFICATION SHALL INCLUDE A SUMMARY OF
EACH FILING OR APPLICATION, TO INCLUDE, BUT NOT BE LIMITED TO: THE
NUMBER OF POLICYHOLDERS, SUBSCRIBERS OR ENROLLEES AFFECTED; THE AMOUNT
OF RATE INCREASE; THE REGIONS OR TERRITORIES AFFECTED; AND A DESCRIPTION
OF THE CHANGE IN BENEFITS OR DELIVERY OF BENEFITS. THE SUPERINTENDENT
SHALL SIMULTANEOUSLY SUBMIT FOR PUBLICATION IN THE STATE REGISTER ALL
SUCH NOTIFICATIONS TO THE PUBLIC INSURANCE CONSUMER ADVOCATE. WITHIN
FIVE BUSINESS DAYS OF THE REQUEST OF SUCH ADVOCATE, THE SUPERINTENDENT
SHALL FORWARD ANY FILINGS AND APPLICATIONS SO REQUESTED AND ALL INFORMA-
TION FURNISHED IN SUPPORT OF SUCH FILINGS AND APPLICATIONS.
(C) THE PUBLIC INSURANCE CONSUMER ADVOCATE MAY REQUEST THE SUPERINTEN-
DENT HOLD A HEARING ON ANY MATTER DEEMED NECESSARY AND APPROPRIATE TO
S. 4469 8
CARRY OUT THE PURPOSES OF ARTICLE FORTY-FOUR-A OF THE EXECUTIVE LAW,
WHICH SHALL BE HELD WITHIN FIFTEEN DAYS OF THE REQUEST. NO PROPOSED
CHANGE IN RULE OR REGULATION, FILING FOR A NONBUSINESS AUTOMOBILE RATE-
RELATED CHANGE OR RATE INCREASE, FILING FOR A RATE INCREASE PURSUANT TO
SECTIONS THREE THOUSAND TWO HUNDRED THIRTY-ONE AND FOUR THOUSAND THREE
HUNDRED EIGHT OF THIS CHAPTER, OR APPLICATION FOR MATERIAL CHANGE IN
BENEFITS OR DELIVERY OF BENEFITS SUBJECT TO A HEARING UNDER THIS SECTION
SHALL BECOME EFFECTIVE PENDING THE CLOSE OF SUCH HEARING, PROVIDED THAT
SUCH REQUEST IS MADE WITHIN THIRTY DAYS OF SUCH ADVOCATE HAVING RECEIVED
NOTICE OF SUCH PROPOSED CHANGE, FILING OR APPLICATION. WITHIN FIFTEEN
DAYS AFTER THE CLOSE OF THE HEARING, OR SUCH TIME AS THE SUPERINTENDENT
APPROVES THE PROPOSED RULE, REGULATION, FILING OR APPLICATION, THE
SUPERINTENDENT SHALL ISSUE A WRITTEN OPINION BASED UPON THE HEARING
RECORD, EXPLAINING THE REASONS FOR APPROVING OR DENYING, IN WHOLE OR IN
PART, THE CHANGE SOUGHT.
§ 8. Subparagraph (A) of paragraph 2 of subsection (e) of section 3231
of the insurance law, as amended by chapter 107 of the laws of 2010, is
amended to read as follows:
(A) Until September thirtieth, two thousand ten, as an alternate
procedure to the requirements of paragraph one of this subsection, an
insurer desiring to increase or decrease premiums for any policy form
subject to this section may instead submit a rate filing or application
to the superintendent and such application or filing shall be deemed
approved, provided that: (i) the anticipated minimum loss ratio for a
policy form shall not be less than eighty-two percent of the premium;
and (ii) the insurer submits, as part of such filing, a certification by
a member of the American Academy of Actuaries or other individual
acceptable to the superintendent that the insurer is in compliance with
the provisions of this paragraph, based upon that person's examination,
including a review of the appropriate records and of the actuarial
assumptions and methods used by the insurer in establishing premium
rates for policy forms subject to this section, UNLESS THE PUBLIC INSUR-
ANCE CONSUMER ADVOCATE HAS REQUESTED A PUBLIC HEARING ON SUCH RATE
FILING OR APPLICATION PURSUANT TO SECTION THREE HUNDRED FORTY-THREE OF
THIS CHAPTER. An insurer shall not utilize the alternate procedure
pursuant to this paragraph to implement a change in rates to be effec-
tive on or after October first, two thousand ten.
§ 9. Paragraph 1 of subsection (g) of section 4308 of the insurance
law, as amended by chapter 107 of the laws of 2010, is amended to read
as follows:
(1) Until September thirtieth, two thousand ten, as an alternate
procedure to the requirements of subsection (c) of this section, a
corporation subject to the provisions of this article desiring to
increase or decrease premiums for any contract subject to this section
may instead submit a rate filing or application to the superintendent
and such application or filing shall be deemed approved, provided that
(A) the anticipated incurred loss ratio for a contract form shall not be
less than eighty-two percent for individual direct payment contracts or
eighty-two percent for small group and small group remittance contracts,
nor, except in the case of individual direct payment contracts with a
loss ratio of greater than one hundred five percent during nineteen
hundred ninety-four, shall the loss ratio for any direct payment, group
or group remittance contract be more than one hundred five percent of
the anticipated earned premium, and (B) the corporation submits, as part
of such filing, a certification by a member of the American Academy of
Actuaries or other individual acceptable to the superintendent that that
S. 4469 9
corporation is in compliance with the provisions of this subsection,
based upon that person's examination, including a review of the appro-
priate records and of the actuarial assumptions and methods used by the
corporation in establishing premium rates for contracts subject to this
section, UNLESS THE PUBLIC INSURANCE CONSUMER ADVOCATE HAS REQUESTED A
PUBLIC HEARING ON SUCH RATE FILING OR APPLICATION PURSUANT TO SECTION
THREE HUNDRED FORTY-THREE OF THIS CHAPTER. A corporation shall not
utilize the alternate procedure pursuant to this subsection to implement
a change in rates to be effective on or after October first, two thou-
sand ten. For purposes of this section, a small group is any group whose
contract is subject to the requirements of section [forty-three] FOUR
THOUSAND THREE hundred seventeen of this article.
§ 10. Section 149 of the executive law is amended by adding a new
subdivision 4 to read as follows:
4. NOTICES SUBMITTED PURSUANT TO SECTION THREE HUNDRED FORTY-THREE OF
THE INSURANCE LAW SHALL BE IN SUCH FORMAT AS THE SECRETARY OF STATE
SHALL REQUIRE, AND SHALL BE PUBLISHED IN A SEPARATE SECTION OF THE
REGISTER WHICH SHALL INCLUDE TELEPHONE NUMBERS, ADDRESSES AND E-MAIL
ADDRESSES WHICH THE PUBLIC MAY USE TO CONTACT THE OFFICE OF PUBLIC
INSURANCE CONSUMER ADVOCATE AND THE DEPARTMENT OF FINANCIAL SERVICES.
§ 11. Section 202 of the state administrative procedure act is amended
by adding a new subdivision 1-a to read as follows:
1-A. IN ADDITION TO THE REQUIREMENTS OF THIS SECTION, ANY NOTICE OF
PROPOSED RULEMAKING, NOTICE OF REVISED RULEMAKING OR NOTICE OF EMERGENCY
ADOPTION SUBMITTED BY THE DEPARTMENT OF FINANCIAL SERVICES THAT IMPACTS
NONBUSINESS AUTOMOBILE OR HEALTH INSURANCE CONSUMERS SHALL ALSO INCLUDE
THE TELEPHONE NUMBER, ADDRESS AND E-MAIL ADDRESS WHICH THE PUBLIC MAY
USE TO CONTACT THE OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE.
§ 12. This act shall take effect immediately; provided, however, that
within twelve months of the effective date of this act, the database
required by section 602 of the insurance law, as added by section one of
this act, shall be completed; and, provided further, that within ninety
days of the effective date of this act, notice of the availability of
the department of financial services' Annual Ranking of Automobile
Insurance Complaints and Consumers Guide to Auto Insurance, and the
department of financial services' address, telephone number and web site
address shall be provided with all nonbusiness automobile policies
delivered, issued for delivery, renewed or issued for renewal in this
state. The disclosure requirement of section 604 of the insurance law,
as added by section one of this act shall take effect twelve months
after the effective date of this act. The public insurance consumer
advocate shall be appointed, pursuant to article 44-A of the executive
law, as added by section three of this act for a two year term. Any
regulations necessary for the implementation of the provisions of this
act shall be promulgated within one hundred eighty days after the effec-
tive date of this act.
