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.