BILL NUMBER: S2799

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to paintless dent repair
rate filing

 
PURPOSE:

This bill amends the Insurance Law by removing the requirement to fil
Certain rates with the NY Department of Financial Services ("DFS") in
order to increase competition among providers and lower prices for
consumers.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends paragraph (a) of Insurance Law S 7903 by
removing the rate filing requirement for service contract providers
selling paintless dent repair and/or windshield repair services.

Section 2 provides that this bill is effective immediately..
              

 
EXISTING LAW:

The DFS has interpreted Insurance Law S 7903(a) to require service
contract providers to file with it the exact rates charged for paintless
dent repair and windshield repair contracts.

 
LEGISLATIVE HISTORY:

S9099 - 2021/22

 
STATEMENT IN SUPPORT:

Traditional insurance companies are often required to file rates with
regulators. However, service contracts are exempt from typical insurance
regulation and therefore, service providers are also typically exempt
from these rate filing requirements. (New York exempts service contracts
from the Insurance Law, save for Article 79 which specifically addresses
such contracts.)

The DFS currently requires service contract providers selling paintless
dent repair or windshield repair service contracts to file the rates
charged for these products. Service contract providers are further
required to notify the DFS at least thirty days before implementing any
rate change. These requirements pin service contract providers to a
specific rate, often forcing them to file higher rates in anticipation
of potential, though yet unsubstantiated market changes. Further the
DFS's interpretation of the current law (as requiring providers to file
the exact rate to be charged, rather than the maximum rate to be
charged) stifles consumers, preventing them from negotiating a lower
rate with the provider at the time of sale.

This bill removes the onerous rate filing requirements, empowering
consumers to negotiate lower rates when purchasing paintless dent repair
or windshield repair protection. It also allows providers to adjust
their rates to more closely match current market conditions, alleviating

the need for providers to overestimate costs and promoting lower rates
and cost savings for consumers.

 
BUDGET IMPLICATIONS:

This bill will not have an impact on State finances.

 
EFFECTIVE DATE:
This bill would take effect immediately.