NY State Senate Bill 2025-S7344

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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 10, 2025	referred to insurance

2025-S7344 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add Art 6 §§601 - 606, Ins L

2025-S7344 (ACTIVE) - Summary

Establishes the New York insurance underwriting transparency act; requires material changes to an insured's automobile or homeowners insurance to be explained in clear and useful language.

2025-S7344 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7344

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the insurance law, in relation to the New York insurance
underwriting transparency act

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide consumers of personal auto and homeowner insurance with clear
and useful information explaining the basis for when a material change
is made to a consumer's policy.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the insurance law by adding a new Article 6 to be known
as "New York Insurance Underwriting Transparency act." The section
further establishes the act's scope, transparency requirements, and
rules.

JUSTIFICATION:

This bill acts as a framework to provide consumers of personal auto and
homeowner insurance valuable information explaining the basis for a
material change made to their policies. Such material changes include a
nonrenewal or cancellation; an increase of more than 10 percent over the
expiring premium; a reduction in coverage; or another adverse or unfa-
vorable change in the terms of coverage or amount of insurance.

The legislation will allow consumers and agents to understand why
certain changes are made to policies and enable them to make better
informed coverage-related decisions. As insurance companies continue to
integrate more technology in their business models, providing transpar-
ency is increasingly important.

This bill was adopted as a model bill at the 2023 National Council of
Insurance Legislators (NCOIL) Spring National Meeting.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
One year after it shall have become a law and shall apply to a policy
issued, amened, or renewed on and after such effective date.

2025-S7344 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7344
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 10, 2025
                                ___________
 
 Introduced  by  Sen.  BAILEY -- 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 the New York insurance
   underwriting transparency act
 
   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 article 6 to
 read as follows:
 
                                 ARTICLE 6
             NEW YORK INSURANCE UNDERWRITING TRANSPARENCY ACT
 SECTION 601. SHORT TITLE.
         602. PURPOSE.
         603. SCOPE.
         604. DEFINITIONS.
         605. TRANSPARENCY REQUIREMENTS.
         606. RULES AND REGULATIONS.
   § 601. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
 THE "NEW YORK INSURANCE UNDERWRITING TRANSPARENCY ACT".
   § 602. PURPOSE. THE PURPOSE OF THIS LEGISLATION IS TO PROVIDE PERSONAL
 AUTO  AND  HOMEOWNERS INSURANCE CONSUMERS WITH CLEAR AND USEFUL INFORMA-
 TION EXPLAINING THE BASIS FOR WHEN  A  MATERIAL  CHANGE  IS  MADE  TO  A
 CONSUMER'S POLICY.
   §  603.  SCOPE.  (A)  THIS  ARTICLE APPLIES TO PERSONAL AUTOMOBILE AND
 HOMEOWNER'S POLICIES THAT ARE UNDERWRITTEN ON AN INDIVIDUAL BASIS FOR AN
 INDIVIDUAL, FAMILY, OR HOUSEHOLD.
   (B) THIS ARTICLE SHALL NOT APPLY TO NOTICES REQUIRED  BY  THE  FEDERAL
 FAIR CREDIT REPORTING ACT (15 U.S.C. 1681 ET SEQ.).
   §  604.  DEFINITIONS.  FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11623-01-5
 S. 7344                             2

 
   (A) "INSURED"  MEANS  AN  INDIVIDUAL  ENTITLED  TO  COVERAGE  UNDER  A
 PERSONAL AUTOMOBILE OR HOMEOWNER'S INSURANCE POLICY.
   (B)   (1)  "MATERIAL  CHANGE"  MEANS,  IN  RELATION  TO  INSURANCE  IN
 CONNECTION WITH A PERSONAL AUTOMOBILE OR HOMEOWNER'S POLICY:
   (A) A NONRENEWAL OR CANCELLATION;
   (B) AN INCREASE OF MORE THAN TEN PERCENT OVER THE EXPIRING PREMIUM;
   (C) A REDUCTION IN COVERAGE; OR
   (D) ANOTHER ADVERSE OR UNFAVORABLE CHANGE IN THE TERMS OF COVERAGE  OR
 AMOUNT.
   (2) THE TERM "MATERIAL CHANGE" SHALL NOT INCLUDE:
   (A)  AN INCREASE IN THE INSURER'S FILED RATE PLAN AND AUTOMATIC INFLA-
 TIONARY INCREASES;
   (B) AN ADDITIONAL PREMIUM DUE TO A CHANGE INITIATED  BY  THE  INSURED,
 SUCH AS:
   (I) ADDING OR REMOVING VEHICLES OR DRIVERS;
   (II) ADDING AN ENDORSEMENT;
   (III) ADDING ADDITIONAL COVERAGES;
   (IV) ADDING COVERED PREMISES; OR
   (V) INCREASING COVERAGE LIMITS OR DEDUCTIBLES; AND
   (C) AN ADDITIONAL PREMIUM DUE TO A CHANGE IN RISK EXPOSURE AS A RESULT
 OF  THE INSURED'S PARTICIPATION IN A USAGE BASED OR TELEMATICS INSURANCE
 PROGRAM.
   § 605. TRANSPARENCY REQUIREMENTS. (A) AN INSURER THAT MAKES A MATERIAL
 CHANGE TO AN INSURED'S PERSONAL AUTOMOBILE OR HOMEOWNER'S  POLICY  SHALL
 PROVIDE A WRITTEN NOTICE TO THE INSURED THAT:
   (1) EXPLAINS THE PRINCIPAL FACTORS FOR THE MATERIAL CHANGE; OR
   (2)  STATES  THAT  THE  INSURED HAS THE RIGHT TO REQUEST AND OBTAIN AN
 EXPLANATION OF THE PRINCIPAL FACTORS FOR THE MATERIAL CHANGE.
   (B) AN INSURED WHO RECEIVES A NOTICE OF A MATERIAL CHANGE DESCRIBED IN
 PARAGRAPH TWO OF SUBSECTION (A) OF THIS SECTION MAY SUBMIT TO THE INSUR-
 ER A WRITTEN REQUEST FOR AN EXPLANATION OF THE PRINCIPAL FACTORS FOR THE
 MATERIAL CHANGE.
   (C) UPON RECEIVING A REQUEST FOR AN EXPLANATION UNDER  SUBSECTION  (B)
 OF  THIS  SECTION,  THE  INSURER  SHALL  PROVIDE A WRITTEN NOTICE TO THE
 INSURED EXPLAINING THE PRINCIPAL FACTORS FOR THE MATERIAL CHANGE.
   (D) AN INSURER SHALL PROVIDE A COPY OF A WRITTEN NOTICE PROVIDED UNDER
 PARAGRAPH ONE OF SUBSECTION (A) OR SUBSECTION (C) OF THIS SECTION TO THE
 INSURANCE PRODUCER, IF ANY, WHO:
   (1) REPRESENTED THE INSURED IN OBTAINING COVERAGE FROM THE INSURER, OR
 REPRESENTED THE INSURER IN REGARD TO THE PROVIDING OF  COVERAGE  TO  THE
 INSURED; AND
   (2)  IS NOT AN EMPLOYEE, AN EXCLUSIVE AGENT, OR A CAPTIVE AGENT OF THE
 INSURER.
   (E) A WRITTEN NOTICE:
   (1) PROVIDED UNDER SUBSECTION (A) OR (C) OF THIS SECTION, OR A WRITTEN
 REQUEST SUBMITTED  UNDER  SUBSECTION  (B)  OF  THIS  SECTION,  SHALL  BE
 PROVIDED  BY  FIRST  CLASS  MAIL OR ELECTRONIC DELIVERY TO AN ELECTRONIC
 MAIL ADDRESS AT WHICH A PARTY HAS CONSENTED TO RECEIVE NOTICES OR  DOCU-
 MENTS;
   (2)  PROVIDED  UNDER SUBSECTION (D) OF THIS SECTION MAY BE PROVIDED TO
 THE INSURANCE PRODUCER VIA THE INSURER'S PORTAL  FOR  PRODUCER  COMMUNI-
 CATIONS.
   (F) A WRITTEN NOTICE PROVIDED UNDER PARAGRAPH ONE OF SUBSECTION (A) OR
 SUBSECTION (C) OF THIS SECTION SHALL:
 S. 7344                             3
 
   (1)  BE  SUFFICIENTLY  CLEAR AND USE LANGUAGE SUFFICIENTLY SPECIFIC TO
 ENABLE THE INSURED TO IDENTIFY THE BASIS FOR THE INSURER'S  DECISION  TO
 MAKE THE MATERIAL CHANGE;
   (2)  INCLUDE  A  DESCRIPTION  OF  THE  PRINCIPAL  FACTORS MOST HEAVILY
 WEIGHED BY AN INSURER IN MAKING A MATERIAL CHANGE, LISTED IN NO  PARTIC-
 ULAR ORDER; AND
   (3)  PROVIDE  A POINT OF CONTACT THROUGH WHICH THE INSURED MAY DISCUSS
 THE REASONS FOR THE MATERIAL CHANGE.
   (G) THE FOLLOWING TYPE OF STATEMENTS SHALL NOT BE CONSIDERED  TO  MEET
 THE REQUIREMENTS SET FORTH IN SUBSECTION (F) OF THIS SECTION:
   (1)  THE MATERIAL CHANGE IS BASED ON THE INSURER'S INTERNAL STANDARDS,
 POLICIES, OR MODELS;
   (2) THE INSURED FAILED TO ACHIEVE A PARTICULAR SCORE ON THE  INSURER'S
 SCORING SYSTEM; OR
   (3)  ONE  CONTAINING GENERALIZED TERMS, SUCH AS "POOR CREDIT HISTORY",
 "POOR CREDIT RATING", OR "POOR INSURANCE SCORE".
   (H) THE REQUIREMENTS SET FORTH IN THIS SECTION DO NOT REPLACE AND  ARE
 IN ADDITION TO ANY OTHER REQUIREMENTS UNDER THIS CHAPTER.
   (I) NOTHING IN THIS ARTICLE SHALL PROHIBIT AN INSURER FROM VOLUNTARILY
 PROVIDING THE DISCLOSURES REQUIRED BY THIS ARTICLE.
   §  606.  RULES  AND REGULATIONS. THE SUPERINTENDENT MAY ADOPT RULES OR
 REGULATIONS AS THE SUPERINTENDENT CONSIDERS APPROPRIATE TO CARRY OUT THE
 PROVISIONS OF THIS ARTICLE.
   § 2. This act shall take effect one year after it shall have become  a
 law  and  shall  apply  to any policy issued, amended, or renewed on and
 after such effective date.

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Senate Bill S7344

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

Actions

2025-S7344 (ACTIVE) - Details

2025-S7344 (ACTIVE) - Summary

2025-S7344 (ACTIVE) - Sponsor Memo

2025-S7344 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jamaal T. Bailey

Current Bill Status - In Senate Committee Insurance Committee

Actions

2025-S7344 (ACTIVE) - Details

2025-S7344 (ACTIVE) - Summary

2025-S7344 (ACTIVE) - Sponsor Memo

2025-S7344 (ACTIVE) - Bill Text download pdf

Comments