Senate Bill S9281

2025-2026 Legislative Session

Requires prior approval of certain rates; requires insurers provide written explanations for certain premium increases; and authorizes the refiling of certain rates

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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
Feb 24, 2026	referred to insurance

2025-S9281 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §2305, add §§2354 & 2355, Ins L

2025-S9281 (ACTIVE) - Summary

Requires rate filings for prior approval for commercial property insurance, commercial general liability insurance, and personal residential property insurance; requires insurers provide written explanations for premium increases in certain covered policies; requires certain insurers of homeowners' insurance to refile its homeowners' insurance rates and, in certain circumstances, be required to reduce rates.

2025-S9281 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9281

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring rate filings
for prior approval for commercial property insurance, commercial general
liability insurance, and personal residential property insurance; to
amend the insurance law, in relation to requiring insurers to provide
explanations for certain premium increases; and to amend the insurance
law, in relation to the determination of a benchmark loss ratio and
investment return benchmark for certain insurers

 
PURPOSE:

This bill would eliminate the practice of 'file and use' in rate-setting
for commercial and personal residential property insurance, as well as
requiring insurers to explain premium increases for consumers and to
re-file rates with DFS when their demonstrated profitability exceeds
certain benchmarks.

 
SUMMARY OF PROVISIONS:

Section 1: Eliminates the practice of 'file and use' by amending para-
graphs 12 and 13 and the closing paragraph of subsection (b) of section
2305 of the insurance law, to include commercial property insurance,
personal residential property insurance, and commercial liability insur-
ance to the list of insurances requiring 'prior approval.'

Section 2: Amends insurance law by adding a new section 2354 which
requires insurers to provide a written explanation for any premium
increases upon renewal.

Section 3: Amends insurance law by adding a new section 2355 which
instructs DFS to study and establish benchmarks for actual loss ratio
and investment returns, instructs that any insurer whose actual loss
ratio falls below said benchmark two years in a row must re-file their
rates with DFS, and further requires DFS to authorize a rate reduction
in the event that the insurer's investment returns exceed their corre-
sponding benchmark.

Section 4: Sets the effective date.

 
JUSTIFICATION:

In August 2025, the Senate Committees on Insurance, Housing, and Inves-
tigations & Government Operations jointly initiated an investigation
into the affordability and accessibility of residential property insur-
ance. Among numerous other findings, the Committees uncovered a concern-
ing pattern of sustained, excessive profitability among insurers in the
New York market.

Data provided within the National Assbciation of Insurance Commission-
ers' (NAIC) 2023 'Profitability by Line by State' report illustrate that
New York's insurers have been achieving a nearly 16% profit on under-
writing for homeowners (HO) multi-peril coverage, and a nearly 18%
return on net worth for this coverage. These levels have remained more
or less consistent over the past ten years, and only six other states
posted higher rates of profit/return for homeowners multi-peril in 2023.
Nationally, carriers have fared far worse than in New. York, experienc-
ing an 11% loss on underwriting for HO multi-peril, and a York is expe-
riencing persistently high levels of profitability that could underscore
inadequate attraction of competition or, worse, that New Yorkers are
footing increasingly higher bills divorced from the actual risks they're
facing here on the east coast.

This bill tackles issues of insurance affordability and rate-setting in
several ways:

First, it eliminates the longstanding practice of 'file and use' for
commercial and personal residential property insurances as well as
commercial liability insurance, wherein insurers file their proposed
rates with DFS but, by law, can put these rates in place immediately,
without receiving. prior approval from DFS. This bill will require these
types of insurance to receive `prior approval' before being implemented
for consumers, just as personal vehicle insurance rates, title insurance
rates, and more are currently required. By eliminating 'file and use,'
consumers will be protected from overzealous rate-setting, while ensur-
ing prompt evaluation of all rates by DFS.

Second, it requires that insurers proactively justify any premium
increases to consumers when their policy is up for renewal.  Currently,
consumers do not have a right to such an explanation, and are often left
confused and angry when they see their annual premium skyrocketing with-
out a single claim to their name. This bill will force insurers to take
responsibility for premium increases and provide clarity and transparen-
cy in the process.

Third, it requires DFS to establish two separate benchmarks: one for
actual loss ratio, one of the figures used most often to measure a
company's profitability; and one for investment returns, another key
measure of profitability. If an insurer's actual loss ratio falls below
its corresponding benchmark, and their investment returns fall above the
corresponding benchmark two years running, DFS must automatically
require a rate reduction for the insurer, putting more money back in New
York property owners' pockets.

While regulators and lawmakers have a responsibility to ensure a thriv-
ing and profitable statewide insurance industry, they must balance this
with their responsibility to protect the financial interests of New
Yorkers.

 
LEGISLATIVE HISTORY:

Senate

New bill

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that section
one of this act shall take effect on the one hundred eightieth day after
it shall have become a law; and provided further, however, that section
two of this act shall take effect on the ninetieth day after it shall
have become a law.

2025-S9281 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9281
 
                             I N  S E N A T E
 
                             February 24, 2026
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- 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 requiring rate filings
   for prior  approval  for  commercial  property  insurance,  commercial
   general  liability insurance, and personal residential property insur-
   ance; to amend the insurance law, in relation to requiring insurers to
   provide explanations for certain premium increases; and to  amend  the
   insurance  law,  in  relation to the determination of a benchmark loss
   ratio and investment return benchmark for certain insurers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraphs  12  and  13  and  the  closing  paragraph  of
 subsection (b) of section 2305 of  the  insurance  law,  as  amended  by
 section 9 of part AAA of chapter 59 of the laws of 2017, are amended and
 three new paragraphs 14, 15 and 16 are added to read as follows:
   (12) gap insurance; [and]
   (13)  private  passenger  automobile  insurance, except as provided in
 section two thousand three hundred fifty of this article[,];
   (14) COMMERCIAL PROPERTY INSURANCE;
   (15) COMMERCIAL GENERAL LIABILITY INSURANCE; AND
   (16) PERSONAL RESIDENTIAL PROPERTY INSURANCE,
 shall be filed with the superintendent and shall  not  become  effective
 unless  either  the  filing  has been approved or thirty days, which the
 superintendent may with cause extend an additional thirty days and  with
 further  cause  extend  an additional fifteen days, have elapsed and the
 filing has not been disapproved as failing to meet the  requirements  of
 this  article, including the standard that rates be not otherwise unrea-
 sonable. After a rate filing becomes effective, the filing and  support-
 ing  information  shall  be  open  to  public inspection. If a filing is
 disapproved, then notice of such disapproval order shall be given, spec-
 ifying in what respects such filing fails to meet  the  requirements  of
 this  article. Upon [his or her] THEIR request, the superintendent shall
 be provided with support and assistance from the  workers'  compensation
 board  and  other state agencies and departments with appropriate juris-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14700-04-6
 S. 9281                             2
 
 diction. The loss cost multiplier for each  insurer  providing  coverage
 for  workers'  compensation, as defined by regulation promulgated by the
 superintendent, shall be promptly displayed on the department's  website
 and updated in the event of any change.
   § 2. The insurance law is amended by adding a new section 2354 to read
 as follows:
   §  2354.  PREMIUM  INCREASE  EXPLANATIONS. AN INSURER SHALL INCLUDE ON
 EITHER THE PREMIUM BILL OR THE  DECLARATIONS  PAGE  THE  AMOUNT  OF  THE
 PREMIUM  INCREASE FROM THE PRIOR POLICY PERIOD AND A WRITTEN EXPLANATION
 FOR THE PREMIUM FOR A COVERED POLICY AS DEFINED IN PARAGRAPH ONE AND  IN
 SUBPARAGRAPH  (A)  OF  PARAGRAPH  TWO OF SUBSECTION (A) OF SECTION THREE
 THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS  CHAPTER.    SUCH  EXPLANATION
 SHALL  INCLUDE,  BUT  NOT  BE LIMITED TO, THE PRIMARY RATING FACTORS AND
 MATERIAL CHANGES WHICH CAUSED THE INSURER TO  REQUEST  A  RATE  INCREASE
 FROM THE DEPARTMENT.
   § 3. The insurance law is amended by adding a new section 2355 to read
 as follows:
   § 2355. HOMEOWNERS' INSURANCE BENCHMARK LOSS RATIO.  (A) BEGINNING ONE
 YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION, AN INSURER THAT ISSUES OR
 DELIVERS  IN  THIS  STATE A HOMEOWNERS' INSURANCE POLICY AND HAD AVERAGE
 ANNUAL GROSS WRITTEN HOMEOWNERS' INSURANCE PREMIUMS IN THIS STATE OF  AT
 LEAST  TEN  MILLION DOLLARS DURING THE PREVIOUS TWO CALENDAR YEARS SHALL
 REFILE WITH THE SUPERINTENDENT, FOR THE SUPERINTENDENT'S PRIOR APPROVAL,
 ITS HOMEOWNERS' INSURANCE RATES IF THE INSURER HAD AN ACTUAL LOSS  RATIO
 FOR  EACH OF THE PREVIOUS TWO CALENDAR YEARS THAT IS BELOW THE BENCHMARK
 LOSS RATIO SPECIFIED BY THE SUPERINTENDENT IN REGULATIONS.  THE  INSURER
 SHALL  MAKE  THE  FILING WITH THE SUPERINTENDENT WITHIN SIXTY DAYS AFTER
 THE INSURER FILES ITS ANNUAL STATEMENT. IF  SUCH  INSURER  ALSO  HAD  AN
 INVESTMENT  RETURN  FOR  EACH OF THE PREVIOUS TWO CALENDAR YEARS THAT IS
 ABOVE THE BENCHMARK FOR INVESTMENT RETURNS SPECIFIED BY THE  SUPERINTEN-
 DENT  IN  REGULATIONS, THE SUPERINTENDENT SHALL REQUIRE A RATE REDUCTION
 AND SHALL DETERMINE SUCH RATE DEDUCTION  UPON  COMPLETION  OF  REVIEWING
 SUCH FILING.
   (B)  WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE SUPER-
 INTENDENT SHALL CONDUCT A STUDY AND DETERMINE  A  BENCHMARK  FOR  ACTUAL
 LOSS  RATIO AND A SEPARATE BENCHMARK FOR INVESTMENT RETURNS FOR HOMEOWN-
 ERS' INSURANCE FOR THE PURPOSES OF SUBSECTION (A) OF THIS SECTION.
   (C) FOR THE PURPOSE OF THIS SECTION, "HOMEOWNERS' INSURANCE"  MEANS  A
 CONTRACT  OF  INSURANCE  INSURING AGAINST THE CONTINGENCIES DESCRIBED IN
 SUBPARAGRAPHS (A), (B), AND (C) OR SUBPARAGRAPHS (B) AND  (C)  OF  PARA-
 GRAPH TWO OF SUBSECTION (A) OF SECTION THREE THOUSAND FOUR HUNDRED TWEN-
 TY-FIVE  OF  THIS  CHAPTER  AND  WHICH IS A "COVERED POLICY" OF PERSONAL
 LINES INSURANCE AS DEFINED IN SUCH PARAGRAPH;  PROVIDED,  HOWEVER,  THAT
 THE  COVERAGES PROVIDED UNDER SUBPARAGRAPHS (B) AND (C) OF PARAGRAPH TWO
 OF SUBSECTION (A) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE  OF
 THIS  CHAPTER  SHALL NOT APPLY WHERE THE NATURAL PERSON DOES NOT HAVE AN
 INSURABLE INTEREST IN THE REAL PROPERTY, OR A PORTION  THEREOF,  OR  THE
 RESIDENTIAL UNIT IN WHICH SUCH PERSON RESIDES.
   §  4.  This act shall take effect immediately; provided, however, that
 section one of this act shall take effect on the one  hundred  eightieth
 day  after  it  shall  have become a law; and provided further, however,
 that section two of this act shall take  effect  on  the  ninetieth  day
 after  it  shall have become a law. Effective immediately, the addition,
 amendment and/or repeal of any rule  or  regulation  necessary  for  the
 implementation  of  this  act on its effective date are authorized to be
 made and completed on or before such effective date.

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Senate Bill S9281

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

Actions

2025-S9281 (ACTIVE) - Details

2025-S9281 (ACTIVE) - Summary

2025-S9281 (ACTIVE) - Sponsor Memo

2025-S9281 (ACTIVE) - Bill Text download pdf

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Sponsored By

James Skoufis

Current Bill Status - In Senate Committee Insurance Committee

Actions

2025-S9281 (ACTIVE) - Details

2025-S9281 (ACTIVE) - Summary

2025-S9281 (ACTIVE) - Sponsor Memo

2025-S9281 (ACTIVE) - Bill Text download pdf

Comments