S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7352
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 17, 2023
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred to the Committee
   on Insurance
 
 AN  ACT  to amend the insurance law, in relation to extending provisions
   of the property/casualty insurance availability act and the  authority
   of the New York property insurance underwriting association

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 2342 of the insurance law, as amended by section  1
 of  item  JJ of subpart B of part XXX of chapter 58 of the laws of 2020,
 is amended to read as follows:
   § 2342. Expiration of certain provisions. The provisions of subsection
 (c) of section two thousand three hundred seven,  section  two  thousand
 three  hundred  eight,  subsection  (a)  of  section  two thousand three
 hundred ten, sections two thousand three hundred sixteen,  two  thousand
 three hundred twenty, two thousand three hundred twenty-three, two thou-
 sand  three  hundred  twenty-six, and two thousand three hundred thirty-
 five, and subsection (b) of section two thousand three  hundred  thirty-
 six  of this article shall cease to be of any force or effect during the
 period August third, two thousand one through the day before the  effec-
 tive date of the property/casualty insurance availability act, and after
 June thirtieth, two thousand [twenty-three] TWENTY-SIX.
   §  2.  Subsection (f) of section 2305 of the insurance law, as amended
 by section 2 of item JJ of subpart B of part XXX of chapter  58  of  the
 laws of 2020, is amended to read as follows:
   (f)  Subsection  (a)  of  this  section shall be of no force or effect
 during the period August third, two thousand one through the day  before
 the  effective date of the property/casualty insurance availability act,
 and after June thirtieth, two thousand [twenty-three] TWENTY-SIX. During
 the period August third, two thousand one through  the  day  before  the
 effective  date of the property/casualty insurance availability act, and
 again commencing on July first, two thousand [twenty-three]  TWENTY-SIX,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11524-01-3
              

 A. 7352                             2
 
 all  rates  previously  subject to subsection (a) of this section, other
 than rates that are not required to be filed pursuant to subsection  (b)
 of  section  two thousand three hundred ten of this article or that have
 been suspended from the filing requirement pursuant to section two thou-
 sand  three  hundred  eleven  of  this  article, shall become subject to
 subsections (b), (c) and (d) of this section. All  other  provisions  of
 this  article  applicable  to kinds of insurance or insurance activities
 the rates for which are subject to prior approval under  subsection  (b)
 of  this  section  shall apply to kinds of insurance the rates for which
 were previously subject to subsection (a) of this section or  the  rates
 for  which  are  not  required to be filed pursuant to subsection (b) of
 section two thousand three hundred ten of this article or the rates  for
 which  have  been  suspended  from  the  filing  requirement pursuant to
 section two thousand three hundred eleven of this article.
   § 3. Subsection (h) of section 2344 of the insurance law,  as  amended
 by  section  3  of item JJ of subpart B of part XXX of chapter 58 of the
 laws of 2020, is amended to read as follows:
   (h) This section shall cease to be of any force or effect  during  the
 period  August third, two thousand one through the day before the effec-
 tive date of the property/casualty insurance availability act, and after
 June thirtieth, two  thousand  [twenty-three]  TWENTY-SIX,  except  that
 rates shall reflect the likely reductive cost effects reasonably attrib-
 utable  to  the  statutory  provisions  specified  in  paragraph  one of
 subsection (g) of this section.
   § 4. Sections 2328 and 2329  of  the  insurance  law,  as  amended  by
 section  5 of item JJ of subpart B of part XXX of chapter 58 of the laws
 of 2020, are amended to read as follows:
   § 2328. Certain motor vehicle insurance rates; prior approval. For the
 periods February first, nineteen  hundred  seventy-four  through  August
 second,   two   thousand   one,   and   the   effective   date   of  the
 property/casualty insurance availability act through June thirtieth, two
 thousand [twenty-three] TWENTY-SIX, no changes in rates,  rating  plans,
 rating  rules  and  rate  manuals applicable to motor vehicle insurance,
 including no-fault coverages under article fifty-one  of  this  chapter,
 shall  be  made effective until approved by the superintendent, notwith-
 standing any inconsistent provisions of this article; provided, however,
 that changes in such rates, rating plans, rating rules and rate  manuals
 may  be  made  effective  without such approval if the rates that result
 from such changes are no higher than the insurer's rates  last  approved
 by  the superintendent. This section shall apply only to policies cover-
 ing losses or liabilities arising out of ownership of  a  motor  vehicle
 used principally for the transportation of persons for hire, including a
 bus  or  a  school  bus  as defined in sections one hundred four and one
 hundred forty-two of the vehicle and traffic law.
   § 2329. Motor vehicle insurance rates; excess profits.  In  accordance
 with  regulations prescribed by the superintendent, each insurer issuing
 policies that are subject to article fifty-one of this chapter,  includ-
 ing  policies  of  motor  vehicle personal injury liability insurance or
 policies of motor vehicle property damage liability insurance or  insur-
 ance  for  loss  or  damage  to a motor vehicle, shall establish a fair,
 practicable, and nondiscriminatory plan for refunding or otherwise cred-
 iting to those purchasing such policies their  share  of  the  insurer's
 excess  profit,  if  any,  on such policies. An excess profit shall be a
 profit beyond a percentage rate of return on net worth  attributable  to
 such  policies,  computed  in accordance with the regulation required by
 section two thousand three hundred twenty-three  of  this  article,  and
 A. 7352                             3
 
 determined by the superintendent to be so far above a reasonable average
 profit  as  to amount to an excess profit, taking into consideration the
 fact that losses or profits below a reasonable average profit  will  not
 be  recouped  from  such  policyholders. Each plan shall apply to policy
 periods for the periods January  first,  nineteen  hundred  seventy-four
 through  August  second, two thousand one, and the effective date of the
 property/casualty insurance availability act through June thirtieth, two
 thousand [twenty-three] TWENTY-SIX.  In prescribing such regulations the
 superintendent may limit the duration of such plans, waive any  require-
 ment for refund or credit that [he or she] THE SUPERINTENDENT determines
 to  be de minimis or impracticable, adopt forms of returns that shall be
 made to [him or her] THE SUPERINTENDENT in order to establish the amount
 of any refund or credit due, establish periods and times for the  deter-
 mination and distribution of refunds and credits, and shall provide that
 insurers  receive  appropriate  credit  against  any  refunds or credits
 required by any such plan for  policyholder  dividends  and  for  return
 premiums that may be due under rate credit or retrospective rating plans
 based on experience.
   §  5.  Paragraphs  1 and 2 and the opening paragraph of paragraph 3 of
 subsection (m) of section 3425 of  the  insurance  law,  as  amended  by
 section  4 of item JJ of subpart B of part XXX of chapter 58 of the laws
 of 2020, are amended to read as follows:
   (1) Paragraphs eight and nine of subsection (a),  subsection  (f)  and
 subparagraphs  (B)  and  (E)  of paragraph one of subsection (j) of this
 section shall not apply to any new covered policy of  automobile  insur-
 ance  voluntarily  written  on  or  after August first, nineteen hundred
 eighty-five and prior to January first, nineteen hundred eighty-six, and
 on or after August second, two thousand one and prior to  the  effective
 date  of  the  property/casualty  insurance  availability act, and on or
 after June thirtieth, two thousand [twenty-three]  TWENTY-SIX,  but  the
 legal  rights granted to insurers or policyholders under such provisions
 shall not be extinguished or impaired thereby.
   (2) In lieu of such provisions, paragraph  seven  of  subsection  (a),
 subparagraph  (A) of paragraph one of subsection (j) of this section and
 paragraph three of this subsection shall apply to such automobile insur-
 ance policies that are newly and voluntarily written to have  an  effec-
 tive  date  on  or  after August first, nineteen hundred eighty-five and
 prior to January first, nineteen hundred eighty-six,  and  on  or  after
 August  second,  two thousand one and prior to the effective date of the
 property/casualty insurance availability act, and on or after June thir-
 tieth, two thousand [twenty-three] TWENTY-SIX.
   On and after August first, nineteen hundred eighty-five and  prior  to
 January  first,  nineteen  hundred  eighty-six,  and  on or after August
 second, two thousand  one  and  prior  to  the  effective  date  of  the
 property/casualty insurance availability act, and on or after June thir-
 tieth,  two  thousand [twenty-three] TWENTY-SIX, no notice of nonrenewal
 or conditional renewal of such  covered  automobile  insurance  policies
 referred  to  in  this  subsection  shall  be issued to become effective
 during the required policy period unless it is based upon a  ground  for
 which  the  policy  could have been cancelled or unless it is based upon
 one or more of the following grounds that occurred during the thirty-six
 month period ending on the last day of the fourth  month  preceding  the
 month  of the effective date of such notice of nonrenewal or conditional
 renewal:
   § 6. Subsection (g) of section 5402 of the insurance law,  as  amended
 by chapter 70 of the laws of 2019, is amended to read as follows:
 A. 7352                             4
 
   (g)  In  addition  to  fire insurance, extended coverage, coverage for
 additional perils and homeowners  insurance  should  the  same  be  made
 available  through the association in accordance with a determination of
 necessity pursuant to section five thousand four hundred twelve of  this
 article,  the  association  may  offer broad form coverage to applicants
 seeking to insure real property at fixed locations of this state, or the
 tangible personal property located thereon. The  association  may  offer
 broad  form  coverage [for a period of fifteen years beginning on] UNTIL
 June thirtieth, two thousand [eight] TWENTY-EIGHT.  On or before October
 first, two thousand [seventeen] TWENTY-SEVEN  the  superintendent  shall
 require  the association to report to [him or her] THE SUPERINTENDENT as
 to the number of policies written pursuant to this subsection and  para-
 graph three of subsection (f) of section five thousand four hundred five
 of  this  article,  and  any  other  information  the superintendent may
 require. On or before January first,  two  thousand  [eighteen]  TWENTY-
 EIGHT,  the superintendent shall report to the governor and the legisla-
 ture regarding the number of policies issued pursuant  to  this  section
 and such paragraph and shall include recommendations as to the continua-
 tion of such insurance offerings.
   §  7.  Subsection (g) of section 5412 of the insurance law, as amended
 by section 6 of item JJ of subpart B of part XXX of chapter  58  of  the
 laws of 2020, is amended to read as follows:
   (g)  The  provisions of this section shall cease to be of any force or
 effect on or after June thirtieth, two thousand  [twenty-three]  TWENTY-
 SIX,  except  that  policies issued or other obligations incurred by the
 association shall not be impaired by the expiration of this section  and
 the  association  shall continue for the purpose of servicing such poli-
 cies and performing such obligations.
   § 8. This act shall take effect immediately.