NY State Senate Bill 2023-S1627

Senate Bill S1627

2023-2024 Legislative Session

Requires that an insurer participating in the assigned risk plan shall review the risk profiles of each policy holder

download bill text pdf

Current 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Jan 13, 2023	referred to insurance

co-Sponsors

2023-S1627 (ACTIVE) - Details

See Assembly Version of this Bill:: A2588
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §5305, amd §309, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8487, A9762
2021-2022: S4158, A3827

2023-S1627 (ACTIVE) - Summary

Requires that an insurer participating in the assigned risk plan shall review the risk profiles of each policy holder that has been assigned to such insurer through the plan to determine if such policy holders are eligible for motor vehicle insurance coverage written by such insurer in the voluntary market.

2023-S1627 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1627

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to certain policy review

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide auto insurance policy holders in the assigned risk plan with
increased access to auto coverage in the voluntary market.

 
SUMMARY OF PROVISIONS:

Section one of the bill would add a new section 5305 to the Insurance
Law. This section would require:

* Insurers in the assigned risk plan to review the risk profiles of each
of their policy holders to determine if such policy holders are eligible
for motor vehicle coverage in the voluntary market and to provide such
coverage to any policy holder determined to be eligible;

* Insurers to provide written notice of the review to policy holders at
least 30 days prior to the date, such review is conducted and also
provide written notice of determinations of eligibility within 10 days
after such determinations are made; and The Superintendent of the
Department of Financial Services to review the determinations made by
insurers to ensure such determinations are issued in compliance with the
provisions of this bill, that- such determinations are based on sound
underwriting and actuarial principles and that policy holders eligible
for coverage in the voluntary market are being provided with such cover-
age. This section would also permit policy holders to file complaints
with the superintendent regarding any violations of the provisions of
this bill.

Section two of the bill would provide the effective date.

 
JUSTIFICATION:

The New York Automobile Insurance Plan (NYAIP), otherwise known as the
"assigned risk plan," is a mechanism established pursuant to Article 53
of the insurance law which provides auto insurance coverage to persons
unable to obtain coverage on the voluntary market. As the market of last
resort, rates under the NYAIP are more expensive than those found on the
voluntary market. This bill seeks to provide policy holders in line
NYAIP greater access to more affordable coverage on the voluntary market
by requiring insurers in the NYAIP to review the risk profiles of each
of their policy holders to determine if such policy holders are eligible
for motor vehicle coverage in the voluntary market and to provide such
coverage to any policy holder determined to iv eligible. This bill would
also establish the necessary oversight by the department of financial
services to ensure any determinations made by insurers are based on
sound underwriting and actuarial principles.

 
PRIOR LEGISLATIVE HISTORY:

2022: S4158

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

 
EFFECTIVE DATE:
Immediately.

2023-S1627 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1627
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2023
                                ___________
 
 Introduced  by  Sens.  COMRIE,  MYRIE,  PARKER -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Insur-
   ance
 
 AN ACT to amend the insurance law, in relation to certain policy 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  5305
 to read as follows:
   § 5305. POLICY REVIEW. (A) WITHIN NINETY DAYS AFTER THE EFFECTIVE DATE
 OF THIS SECTION AND EVERY TWO YEARS THEREAFTER, AN INSURER PARTICIPATING
 IN THE ASSIGNED RISK PLAN PURSUANT TO THIS ARTICLE SHALL REVIEW THE RISK
 PROFILES  OF  EACH  POLICY HOLDER THAT HAS BEEN ASSIGNED TO SUCH INSURER
 THROUGH THE PLAN TO DETERMINE IF SUCH POLICY HOLDERS  ARE  ELIGIBLE  FOR
 MOTOR  VEHICLE  INSURANCE COVERAGE WRITTEN BY SUCH INSURER IN THE VOLUN-
 TARY MARKET. SUCH INSURER  SHALL,  UPON  RENEWAL,  WRITE  MOTOR  VEHICLE
 INSURANCE  COVERAGE IN THE VOLUNTARY MARKET FOR ANY POLICY HOLDER DETER-
 MINED TO BE ELIGIBLE FOR SUCH COVERAGE.
   (B) AN INSURER SHALL SEND WRITTEN NOTICE OF  THE  REVIEW  REQUIRED  BY
 SUBSECTION  (A)  OF  THIS  SECTION TO EACH POLICY HOLDER AT LEAST THIRTY
 DAYS PRIOR TO THE DATE THAT SUCH REVIEW IS CONDUCTED. SUCH NOTICE  SHALL
 ALSO  INFORM EACH POLICY HOLDER OF A POLICY HOLDER'S RIGHT TO SEARCH FOR
 AND OBTAIN COVERAGE ON THE VOLUNTARY MARKET AT ANY TIME.
   (C) AN INSURER SHALL ALSO SEND WRITTEN NOTICE OF THE DETERMINATION  OF
 ELIGIBILITY  FOR  COVERAGE  IN  THE  VOLUNTARY  MARKET  MADE PURSUANT TO
 SUBSECTION (A) OF THIS SECTION TO A POLICY HOLDER WITHIN TEN DAYS  AFTER
 SUCH DETERMINATION IS MADE.
   (D)  ANY  PERSON INSURED PURSUANT TO THIS ARTICLE MAY FILE A COMPLAINT
 WITH THE SUPERINTENDENT REGARDING ANY  VIOLATIONS  OF  THIS  SECTION  BY
 INSURERS PARTICIPATING IN THE ASSIGNED RISK PLAN.
   §  2.  Section  309  of  the  insurance law is amended by adding a new
 subsection (d) to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03683-01-3

 S. 1627                             2
 
   (D) AS PART OF AN EXAMINATION, THE SUPERINTENDENT SHALL REVIEW  DETER-
 MINATIONS  MADE  PURSUANT TO SECTION FIVE THOUSAND THREE HUNDRED FIVE OF
 THIS CHAPTER REGARDING THE ELIGIBILITY OF POLICY HOLDERS FOR COVERAGE ON
 THE VOLUNTARY MARKET TO  ENSURE  SUCH  DETERMINATIONS    ARE  ISSUED  IN
 COMPLIANCE  WITH  SUCH  SECTION,  THAT  SUCH DETERMINATIONS ARE BASED ON
 SOUND UNDERWRITING AND ACTUARIAL  PRINCIPLES  AND  THAT  POLICY  HOLDERS
 ELIGIBLE  FOR  COVERAGE  IN THE VOLUNTARY MARKET ARE BEING PROVIDED WITH
 SUCH COVERAGE IN COMPLIANCE WITH SUCH SECTION.
   § 3. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S1627

Share this bill

Sponsored By

Leroy Comrie