S T A T E O F N E W Y O R K
________________________________________________________________________
10903
I N A S S E M B L Y
August 17, 2020
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Carroll) --
read once and referred to the Committee on Insurance
AN ACT in relation to requiring insurers to make insurance premium
refunds and other adjustments to all policyholders adversely impacted
by COVID-19
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Notwithstanding any provisions of law, rule or regulation
to the contrary, the department of financial services is authorized and
directed to require insurers to make initial premium refund or other
adjustments to all adversely impacted New York policyholders. Such
refund or adjustment shall be for each month during the declared state
emergency due to the coronavirus disease 2019 (COVID-19) pandemic begin-
ning March 7, 2020 and apply to the following lines of insurance:
1. Private passenger automobile insurance;
2. Commercial automobile insurance;
3. Workers' compensation insurance;
4. Commercial multiple-peril insurance;
5. Commercial liability insurance;
6. Medical malpractice insurance; and
7. Any other line of coverage where the measures of risk have become
substantially overstated as a result of the coronavirus disease 2019
(COVID-19) pandemic.
§ 2. Insurers shall comply with the mandated premium refund to policy-
holders by providing a premium credit, reduction, return of premium,
dividend or other appropriate premium adjustment, based on reclassifica-
tion of exposures to comport with current exposure, or a reduction of
the exposure base to reflect actual or anticipated exposure.
§ 3. Insurers shall provide such refund or other adjustments to poli-
cyholders no later than 30 days after the effective date of this act.
§ 4. This act shall take effect immediately, and shall be deemed to
have been in full force and effect on and after March 7, 2020 and shall
apply to insurance policies in force on and after that date.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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