S T A T E O F N E W Y O R K
________________________________________________________________________
9764
I N A S S E M B L Y
February 10, 2020
___________
Introduced by M. of A. COOK -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to commuter van classi-
fication review
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The insurance law is amended by adding a new section 344 to
read as follows:
§ 344. COMMUTER VAN CLASSIFICATION REVIEW. (A) FOR THE PURPOSES OF
THIS SECTION:
(1) "COMMUTER VAN" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED
IN SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
(2) "ASSIGNED RISK PLAN" OR "PLAN" SHALL MEAN THE PLAN ESTABLISHED
PURSUANT TO ARTICLE FIFTY-THREE OF THIS CHAPTER.
(B) THE SUPERINTENDENT SHALL CONDUCT A REVIEW OF THE CLASSIFICATION
USED BY AUTHORIZED INSURERS IN THIS STATE ISSUING AUTO INSURANCE COVER-
AGE FOR COMMUTER VANS, INCLUDING COVERAGE IN THE ASSIGNED RISK PLAN.
THIS REVIEW SHALL INCLUDE DETERMINATIONS OF WHETHER COMMUTER VANS ARE
PROPERLY CLASSIFIED, INCLUDING A REVIEW OF:
(1) WHETHER THE ASSUMED RISKS USED IN THE CALCULATION OF PREMIUMS FOR
COMMUTER VANS BY AUTHORIZED INSURERS ARE APPROPRIATE;
(2) WHETHER THE CURRENT CLASSIFICATION AND RISK ASSESSMENT OF COMMUTER
VANS BY AUTHORIZED INSURERS IS THE MOST COST EFFECTIVE CLASSIFICATION
BASED ON THE ASSUMED RISKS, IF ANOTHER CLASSIFICATION COULD BE MORE COST
EFFECTIVE, AND A DETAILED ANALYSIS OF THE REASON OR REASONS FOR SUCH
DIFFERENCES IN COSTS AND THE AVERAGE AMOUNT OF DIFFERENCE IN COSTS; AND
(3) THE COST DIFFERENTIAL BETWEEN THE PREMIUM FOR BEING CLASSIFIED AS
"OTHER BUSES" BY AUTHORIZED INSURERS, AND THE PREMIUM FOR BEING CLASSI-
FIED AS A COMMUTER VAN WHERE SUCH PREMIUM IS BASED SOLELY ON THE RISKS
SPECIFIC TO COMMUTER VANS IN SUCH PLAN.
(C) IF, AFTER REVIEW, THE PREMIUM FOR BEING CLASSIFIED AS "OTHER
BUSES" IS GREATER THAN THE PREMIUM FOR BEING CLASSIFIED AS A COMMUTER
VAN, THE SUPERINTENDENT SHALL MAKE A DETERMINATION OF WHETHER A NEW
CLASSIFICATION FOR COMMUTER VANS SHOULD BE CREATED AND, IF SO, SHALL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15099-01-0
A. 9764 2
REQUIRE AUTHORIZED INSURERS ISSUING AUTO INSURANCE POLICIES IN THIS
STATE, INCLUDING POLICIES ISSUED THROUGH THE ASSIGNED RISK PLAN, TO USE
SUCH CLASSIFICATION FOR COMMUTER VANS AT THE INCEPTION OF ALL NEW POLI-
CIES AND, WITH RESPECT TO ALL OTHER POLICIES, UPON RENEWAL.
(D) THE SUPERINTENDENT SHALL CONDUCT AND COMPLETE THIS REVIEW AND MAKE
ALL REQUIRED DETERMINATIONS WITHIN NINETY DAYS AFTER THE EFFECTIVE DATE
OF THIS SECTION. THE SUPERINTENDENT SHALL ALSO PROVIDE A REPORT TO THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE CHAIR OF THE ASSEMBLY INSURANCE COMMITTEE AND THE CHAIR OF
THE SENATE INSURANCE COMMITTEE, OF THE DEPARTMENT'S FINDINGS AND DETER-
MINATIONS WITHIN SIXTY DAYS AFTER COMPLETING SUCH REVIEW.
§ 2. This act shall take effect immediately.