NY State Senate Bill 2023-S7189

Senate Bill S7189

Signed By Governor

2023-2024 Legislative Session

Extends provisions of the property/casualty insurance availability act and the authority of the New York property insurance underwriting association

download bill text pdf

Current Bill Status - Signed by Governor

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
Jun 30, 2023	signed chap.182
Jun 26, 2023	delivered to governor
May 31, 2023	returned to senate passed assembly ordered to third reading rules cal.409 substituted for a7352
May 30, 2023	referred to insurance delivered to assembly passed senate
May 24, 2023	advanced to third reading
May 23, 2023	2nd report cal.
May 22, 2023	1st report cal.1193
May 18, 2023	referred to insurance

Votes

- May 30, 2023 - Floor Vote
  S7189
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 30, 2023
      
      aye (61)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      excused (2)
      
      Cooney
      
      Weik
  May 22, 2023 - Insurance Committee Vote
  S7189
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: May 22, 2023
      
      aye (11)
      
      Addabbo Jr.
      
      Borrello
      
      Breslin
      
      Cooney
      
      Harckham
      
      Helming
      
      Kennedy
      
      Martinez
      
      O'Mara
      
      Sanders Jr.
      
      Scarcella-Spanton

2023-S7189 (ACTIVE) - Details

See Assembly Version of this Bill:: A7352
Law Section:: Insurance Law
Laws Affected:: Amd §§2342, 2305, 2344, 2328, 2329, 3425, 5402 & 5412, Ins L

2023-S7189 (ACTIVE) - Summary

Extends provisions of the property/casualty insurance availability act and the authority of the New York property insurance underwriting association.

2023-S7189 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7189

SPONSOR: BRESLIN
 
TITLE OF BILL:

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

 
PURPOSE OF THE BILL:

This bill would extend several provisions of the Insurance Law that
promote the stability of the property/casualty insurance market.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Insurance Law § 2342 to extend the
sunset dates for Insurance Law §§ 2307(c), 2308, 2310(a), 2316, 2320,
2323, 2326, 2335, and 2336(b) for three years to June 30, 2026.

Section 2 would amend Insurance Law § 2305(f) to extend, until June 30,
2026, provisions in Insurance Law § 2305(a) relating to prior approval

of certain insurance rates.

Section 3 would amend Insurance Law § 2344(h) to extend, until June 30,
2026, the applicability of the flexible rate limitations in problem
markets for certain commercial property/casualty insurance rates.

Section 4 also would amend Insurance Law § 2328 and § 2329 to extend,
until June 30, 2026, certain provisions regarding excess profits and
motor vehicle insurance rates.

Section 5 would amend Insurance Law § 3425(m) to extend, until June, 30,
2026, the "two, percent rule" and "two-for-one credit" set forth in
Insurance Law § 3425(f), which pertain to non-renewal requirements for
voluntary non-commercial motor vehicle insurance.

Section 6 would amend Insurance Law § 5402(g) to extend, until June 30,
2028, provisions allowing the New York Property Insurance Underwriting
Association ("NYPIUA") to write broad form coverage. It would also
require NYPIUA to report to the Superintendent, on or before October 1,
2027, the number of policies written pursuant to Insurance Law §§
5402(g) and 5405(f)(3) and any other information the Superintendent may
require.

Section 7 would amend Insurance Law § 5412(g) to extend, until June 30,
2026, provisions allowing NYPIUA to write certain coverage upon a deter-
mination by the Superintendent that coverage is unavailable in a partic-
ular market.

Section 8 would provide for an immediate effective date.

 
JUSTIFICATION:

This bill extends the expiration dates of certain provisions of Insur-
ance Law Article 23, which pertains to property/casualty insurance
rates. Extending the expiration dates for these provisions assures the
insurance industry that the file-and-use and flexible rating provisions
set forth in Article 23 will stay in effect for the next three years.
These file-and-use and flexible rating approaches enable insurers to
respond more quickly to changing market conditions in a more expeditious
manner than the prior approval approach, to which the law would revert
if these key provisions of Article 23 are permitted to expire.

In addition, the bill extends provisions set forth in Insurance Law §
3425(f). Section 3425 contains the minimum nonrenewal and cancellation
requirements for most voluntarily written personal lines insurance.
Specifically, § 3425(f) establishes the "two percent rule" for personal
motor vehicle insurance, which permits an insurer to nonrenew or condi-
tionally renew up to a maximum of two percent of the total number of
motor vehicle covered policies in force at last year-end in each of the
insurer's rating territories, and the "two-for one credit", which
provides that an insurer may nonrenew or conditionally renew one addi-
tional motor vehicle policy in each territory beyond the two percent
limitation, for every two newly issued automobile insurance policies
voluntarily written by that insurer in such territory. Section 3425
provides an equitable balance among the often-competing forces of poli-
cyholders' expectations, insurers' legitimate prerogatives in evaluating
and assuming risk, and the realities of the non-commercial motor vehicle
insurance marketplace. It provides the foundation for a reliable noncom-
mercial motor vehicle insurance market that promotes stability and
protects consumers against arbitrary cancellation or nonrenewal of
coverage.

Finally, the bill extends the sunset dates for Insurance Law §§ 5402(g)
and 5412(g), promoting the availability and affordability of
property/casualty insurance and the stability of the property/casualty
insurance market in New York by extending the Superintendent's authority
to authorize NYPIUA to write broad form coverage and coverage for an
underserved market.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediate.

2023-S7189 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7189
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- 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  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

 S. 7189                             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
 S. 7189                             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:
 S. 7189                             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.

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