S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2504
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 19, 2021
                                ___________
 
 Introduced  by  M. of A. WEINSTEIN, ZEBROWSKI, DINOWITZ, PEOPLES-STOKES,
   CYMBROWITZ, THIELE, RODRIGUEZ, SEAWRIGHT, TAYLOR -- Multi-Sponsored by
   -- M. of A.  BRAUNSTEIN, GALEF, LUPARDO, 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".
   § 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
 the legislature that this data should be disclosed in an open and public
 manner.
   §  3. The insurance law is amended by adding a new section 346 to read
 as follows:

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

                                                            LBD00005-01-1

 A. 2504                             2
 
   § 346. 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 STATEMENT,
 AS  APPLICABLE  TO  THE INSURER'S NEW YORK STATE BUSINESS AND IDENTIFIED
 AND CATEGORIZED SEPARATELY FOR EACH ZIP CODE IN THIS STATE.  SUCH FINAN-
 CIAL STATEMENT SHALL BE SIGNED AND ATTESTED AS FULL, COMPLETE AND  ACCU-
 RATE  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

 A. 2504                             3

 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.
   (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

 A. 2504                             4
 
 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.
   § 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.
   § 5. This act shall take effect immediately.