NY State Senate Bill 2021-S5664

Senate Bill S5664

2021-2022 Legislative Session

Prohibits cancellation, non-renewal or conditioning renewal of automobile insurance when dispute as to pending claim exists

download bill text pdf

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to insurance
Mar 15, 2021	referred to insurance

2021-S5664 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3425, Ins L
Versions Introduced in 2023-2024 Legislative Session:: S2534

2021-S5664 (ACTIVE) - Summary

Prohibits cancellation, non-renewal or conditioning renewal of automobile insurance of a policyholder solely as a result of a dispute or a complaint pending against the insurer.

2021-S5664 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5664

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to prohibiting an insurer
from cancelling or refusing to renew or condition its renewal of automo-
bile insurance policies in certain cases

 
PURPOSE:

To prohibit insurers from canceling or refusing to renew or condition
its renewal of automobile insurance policies solely on the bases that
there is a pending complaint filed by the insured, or that a claim filed
by the insured with the insurer is in dispute.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill adds subsection (t) to § 3425 of the insurance
law to require that automobile insurance policies, except for nonpayment
of premium, shall not be cancelled or refused renewal due to a pending

claim filed against the insured.

Section two of the bill provides the effective date.

 
JUSTIFICATION:

Currently, under subsection (f) of § 3425 of the insurance law, an
insurer may non-renew up to two percent of its non-commercial motor
vehicle policies during each calendar year. The purpose of the two
percent provision was to afford insurance companies some protection from
policyholders who may be high risks, and to allow for some flexibility
in these cases.Consequently, many insurance companies have abused this
two percent provision by using it in cases where policyholders have had
claim disputes and subsequently have filed complaints with the depart-
ment against the carrier. This legislation seeks to help protect consum-
ers from having their policies terminated due to claim disputes or their
tiling of complaints.Consumers should not have to suppress or lose their
right to openly and appropriately protest arbitrary and unfair claim
settlement practices by insurance companies due to fear of the loss of
coverage.

 
PRIOR LEGISLATIVE HISTORY:

2019-2020: A.86 - Third Reading Calendar
2018: A.635/S.3757 - Third Reading Calendar / Insurance
2017: A.635/S.3757 - Passed assembly/insurance
2016: A.4944 - Third Reading Calendar
2015: A.4944 - Referred to insurance
2014: A.3696-B - Passed Assembly
2013: A.3696-B - Passed Assembly
2012: A.2744-A - Third Reading Calendar
2011: A.2744-A - Third Reading Calendar
2010: A.3348 - Third Reading Calendar
2009: A.3348 - Referred to Insurance
2007-2008: A.5183 - Referred to Insurance
2006: A.4059 - Referred to Insurance
2005.: A.4059 - Third Reading Calendar
2004: A.5199 - Third Reading Calendar
 
EFFECTIVE DATE:
Immediately.

2021-S5664 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5664
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 15, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to prohibiting an insurer
   from cancelling or refusing to renew or condition its renewal of auto-
   mobile insurance policies in certain cases

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  3425 of the insurance law is amended by adding a
 new subsection (t) to read as follows:
   (T) NO INSURER SHALL CANCEL OR REFUSE TO RENEW  A  POLICY  COVERING  A
 PRIVATE PASSENGER AUTOMOBILE, OR TO CONDITION ITS RENEWAL UPON CHANGE OF
 LIMITS  OR ELIMINATION OF ANY COVERAGES SOLELY ON THE BASIS THAT A CLAIM
 FILED BY THE INSURED WITH THE INSURER IS IN DISPUTE, OR THAT A COMPLAINT
 BY THE INSURED AGAINST THE INSURER RESULTING FROM THE DISPUTED CLAIM  IS
 PENDING WITH THE DEPARTMENT.
   § 2. This act shall take effect immediately.
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04333-01-1

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