S T A T E O F N E W Y O R K
________________________________________________________________________
7637
2025-2026 Regular Sessions
I N A S S E M B L Y
April 4, 2025
___________
Introduced by M. of A. STERN -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to requiring actuarial
certification of certain rate determinations made by the superinten-
dent of financial services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 1 of subsection (d) and subparagraph (A) of para-
graph 1 of subsection (e) of section 3231 of the insurance law, para-
graph 1 of subsection (d) as amended by section 1 of part A of chapter
494 of the laws of 2009, and subparagraph (A) of paragraph 1 of
subsection (e) as amended by chapter 107 of the laws of 2010 and as
further amended by section 104 of part A of chapter 62 of the laws of
2011, are amended to read as follows:
(1) Notwithstanding any other provision of this chapter to the contra-
ry, no policy form subject to this section shall be issued or delivered,
nor any insurance contract entered into, unless and until the insurer
has filed with the superintendent a schedule of premiums, not to exceed
twelve months in duration, to be paid under the policy forms and
obtained the superintendent's approval thereof. The superintendent may
refuse such approval if [he or she] THE SUPERINTENDENT finds that such
premiums are excessive, inadequate, or unfairly discriminatory. The
superintendent may consider the financial condition of such insurer in
approving or disapproving any premium. In determining whether to approve
the schedule of premiums filed, the superintendent shall, subject to the
provisions of section three thousand two hundred thirty-three of this
article, consider the prior experience of the insurer's community pool
and the insurer's projections relating to claim costs, utilization and
administrative expenses and shall not adjust the insurer's rates based
upon the rates approved for other insurers. ALL PREMIUM RATE DETERMI-
NATIONS SHALL BE CERTIFIED BY AN ACTUARY DESIGNATED BY THE SUPERINTEN-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04135-01-5
A. 7637 2
DENT WHO MEETS THE QUALIFICATION STANDARDS ESTABLISHED BY THE AMERICAN
ACADEMY OF ACTUARIES, WHO SHALL FOLLOW THE PRACTICE STANDARDS ESTAB-
LISHED BY THE ACTUARIAL STANDARDS BOARD, AND WHO SHALL DESCRIBE IN
DETAIL THE ACTUARIAL ASSUMPTIONS AND METHODS USED IN THE SUPERINTEN-
DENT'S DETERMINATION.
(A) An insurer desiring to increase or decrease premiums for any poli-
cy form subject to this section shall submit a rate filing or applica-
tion to the superintendent.
An insurer shall send written notice of the proposed rate adjustment,
including the specific change requested, to each policy holder and
certificate holder affected by the adjustment on or before the date the
rate filing or application is submitted to the superintendent. The
notice shall prominently include mailing and website addresses for both
the department of financial services and the insurer through which a
person may, within thirty days from the date the rate filing or applica-
tion is submitted to the superintendent, contact the department of
financial services or insurer to receive additional information or to
submit written comments to the department of financial services on the
rate filing or application. The superintendent shall establish a process
to post on the department's website, in a timely manner, all relevant
written comments received pertaining to rate filings or applications.
The insurer shall provide a copy of the notice to the superintendent
with the rate filing or application. The superintendent shall immediate-
ly cause the notice to be posted on the department of financial
services' website. The superintendent shall determine whether the filing
or application shall become effective as filed, shall become effective
as modified, or shall be disapproved. The superintendent may modify or
disapprove the rate filing or application if the superintendent finds
that the premiums are unreasonable, excessive, inadequate, or unfairly
discriminatory, and may consider the financial condition of the insurer
when approving, modifying or disapproving any premium adjustment. The
determination of the superintendent shall be supported by sound actuari-
al assumptions and methods, and shall be rendered in writing between
thirty and sixty days from the date the rate filing or application is
submitted to the superintendent. Should the superintendent require addi-
tional information from the insurer in order to make a determination,
the superintendent shall require the insurer to furnish such informa-
tion, and in such event, the sixty days shall be tolled and shall resume
as of the date the insurer furnishes the information to the superinten-
dent. If the superintendent requests additional information less than
ten days from the expiration of the sixty days (exclusive of tolling),
the superintendent may extend the sixty day period an additional twenty
days to make a determination. The application or rate filing will be
deemed approved if a determination is not rendered within the time
allotted under this section. ALL RATE DETERMINATIONS SHALL BE CERTIFIED
BY AN ACTUARY DESIGNATED BY THE SUPERINTENDENT WHO MEETS THE QUALIFICA-
TION STANDARDS ESTABLISHED BY THE AMERICAN ACADEMY OF ACTUARIES AND WHO
SHALL FOLLOW THE PRACTICE STANDARDS ESTABLISHED BY THE ACTUARIAL STAND-
ARDS BOARD. An insurer shall not implement a rate adjustment unless the
insurer provides at least sixty days advance written notice of the
premium rate adjustment approved by the superintendent to each policy
holder and certificate holder affected by the rate adjustment.
§ 2. Subsection (b) and paragraph 2 of subsection (c) of section 4308
of the insurance law, as amended by chapter 107 of the laws of 2010, and
paragraph 2 of subsection (c) as further amended by section 104 of part
A of chapter 62 of the laws of 2011, are amended to read as follows:
A. 7637 3
(b) No corporation subject to the provisions of this article shall
enter into any contract unless and until it shall have filed with the
superintendent a schedule of the premiums or, if appropriate, rating
formula from which premiums are determined, to be paid under the
contracts and shall have obtained the superintendent's approval thereof.
The superintendent may refuse such approval if [he] THE SUPERINTENDENT
finds that such premiums, or the premiums derived from the rating formu-
la, are excessive, inadequate or unfairly discriminatory, provided,
however, the superintendent may also consider the financial condition of
such corporation in approving or disapproving any premium or rating
formula. Any adjustments to an approved schedule of premiums or to the
approved rating formula for non-community rated contracts shall also be
subject to the approval of the superintendent provided, however, such
adjustments shall not be subject to the requirements of subsection (c)
of this section. Any premium or formula approved by the superintendent
shall make provision for such increase as may be necessary to meet the
requirements of a plan approved by the superintendent in the manner
prescribed in section four thousand three hundred ten of this article
for restoration of the statutory reserve fund required by such section.
Notwithstanding any other provision of law, the superintendent, as part
of the rate increase approval process, may defer, reduce or reject a
rate increase if, in the judgment of the superintendent, the salary
increases for senior level management executives employed at corpo-
rations subject to the provisions of this article are excessive or
unwarranted given the financial condition or overall performance of such
corporation. ALL RATE DETERMINATIONS SHALL BE CERTIFIED BY AN ACTUARY
DESIGNATED BY THE SUPERINTENDENT WHO MEETS THE QUALIFICATION STANDARDS
ESTABLISHED BY THE AMERICAN ACADEMY OF ACTUARIES AND WHO SHALL FOLLOW
THE PRACTICE STANDARDS ESTABLISHED BY THE ACTUARIAL STANDARDS BOARD. The
superintendent is authorized to promulgate rules and regulations which
the superintendent deems necessary to carry out such deferral, reduction
or rejection.
(2) A corporation desiring to increase or decrease premiums for any
contract subject to this subsection shall submit a rate filing or appli-
cation to the superintendent. A corporation shall send written notice of
the proposed rate adjustment, including the specific change requested,
to each contract holder and subscriber affected by the adjustment on or
before the date the rate filing or application is submitted to the
superintendent. The notice shall prominently include mailing and website
addresses for both the department of financial services and the corpo-
ration through which a person may, within thirty days from the date the
rate filing or application is submitted to the superintendent, contact
the department of financial services or corporation to receive addi-
tional information or to submit written comments to the department of
financial services on the rate filing or application. The superintendent
shall establish a process to post on the department's website, in a
timely manner, all relevant written comments received pertaining to rate
filings or applications. The corporation shall provide a copy of the
notice to the superintendent with the rate filing or application. The
superintendent shall immediately cause the notice to be posted on the
department of financial services' website. The superintendent shall
determine whether the filing or application shall become effective as
filed, shall become effective as modified, or shall be disapproved. The
superintendent may modify or disapprove the rate filing or application
if the superintendent finds that the premiums are unreasonable, exces-
sive, inadequate, or unfairly discriminatory, and may consider the
A. 7637 4
financial condition of the corporation in approving, modifying or disap-
proving any premium adjustment. The determination of the superintendent
shall be supported by sound actuarial assumptions and methods, and shall
be rendered in writing between thirty and sixty days from the date the
rate filing or application is submitted to the superintendent. Should
the superintendent require additional information from the corporation
in order to make a determination, the superintendent shall require the
corporation to furnish such information, and in such event, the sixty
days shall be tolled and shall resume as of the date the corporation
furnishes the information to the superintendent. If the superintendent
requests additional information less than ten days from the expiration
of the sixty days (exclusive of tolling), the superintendent may extend
the sixty day period an additional twenty days, to make a determination.
The application or rate filing will be deemed approved if a determi-
nation is not rendered within the time allotted under this section. ALL
RATE DETERMINATIONS SHALL BE CERTIFIED BY AN ACTUARY DESIGNATED BY THE
SUPERINTENDENT WHO MEETS THE QUALIFICATION STANDARDS ESTABLISHED BY THE
AMERICAN ACADEMY OF ACTUARIES AND WHO SHALL FOLLOW THE PRACTICE STAND-
ARDS ESTABLISHED BY THE ACTUARIAL STANDARDS BOARD. A corporation shall
not implement a rate adjustment unless the corporation provides at least
sixty days advance written notice of the premium rate adjustment
approved by the superintendent to each contract holder and subscriber
affected by the rate adjustment.
§ 3. This act shall take effect immediately.