§ 2328. For hire motor vehicle insurance rates; flexible rating; prior
approval. (a) An insurer shall submit to the superintendent, for the
superintendent's prior approval, its rates, rating plans, rating rules,
and rate manuals applicable to motor vehicle insurance, including
no-fault coverages under article fifty-one of this chapter, by August
first, two thousand twenty-five and at least every two years thereafter,
unless the superintendent requests the rates, rating plans, rating
rules, or rating manuals more frequently. For rates submitted on or
before August first, two thousand twenty-five, the superintendent may
approve the phasing in of rates that meet the standards set forth in
section two thousand three hundred three of this article if the
superintendent determines that it would be in the best interests of the
people of this state.

(b) Except as provided in subsection (c) of this section, 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, notwithstanding any inconsistent provisions of this
article.

(c) Starting December first, two thousand twenty-five, overall average
(for all coverages combined) rate level increases above an insurer's
rates in effect that are up to a percentage specified in a regulation
promulgated by the superintendent but not to exceed five percent during
any twelve-month period, may take effect without the superintendent's
prior approval after submitting an informational filing pursuant to
section two thousand three hundred ten of this article. An insurer shall
not implement more than two rate increases pursuant to this section, the
total of which shall not exceed the limitation specified in a
regulation, during any twelve-month period. An insurer also shall not
implement a rate increase within the limitation specified in a
regulation until the onset of the new policy period and unless the
insurer, at least thirty but not more than sixty days in advance of the
end of the policy period, mails or delivers to the named insured, at the
address shown in the policy, a written notice of its intention to change
the rate. The specific reason or reasons for the rate change shall be
stated in or shall accompany the notice. An insurer shall not implement
a rate change under this subsection when the insurer: (1) has submitted
a rate filing under subsection (a) of this section and the
superintendent has not yet approved it; or (2) is in the process of
phasing in its rates pursuant to the superintendent's approval under
subsection (a) of this section.

(d) The superintendent shall monitor the degree and continued
existence of competition and the effectiveness of flexible rating in
this state on an on-going basis. In doing so, the superintendent shall
utilize the following standards or factors:

(1) the standards contained in section two thousand three hundred
eight of this article;

(2) existing relevant information, analytical systems and other
sources, or rely on some combination thereof;

(3) the number of insurers or group of affiliated insurers actively
engaged in providing coverage, taking into account the specialization
traditionally required for insurance in the particular rating territory;

(4) measures of market concentration and changes of market
concentration over time, which may include the use of
Herfindahl-Hirschman Index (HHI) and the United States Department of
Justice merge guidelines for an unconcentrated market ease of entry, and
the existence of financial or economical barriers that could prevent new
firms from entering the market;

(5) the extent to which any insurer or group of affiliated insurers
controls all or a dominant portion of the market has actively sought to
prevent competition;

(6) whether the total number of companies writing the line of
insurance in this state is sufficient to provide multiple options;

(7) the availability of insurance coverage to consumers;

(8) the opportunities available to consumers in the market to acquire
pricing and other consumer information; and

(9) any other factors relevant to inquiry.

Such activities may be conducted internally within the department, in
cooperation with other state insurance departments, through outside
contractors and/or in any other appropriate manner, provided that the
department shall report to the speaker of the assembly, temporary
president of the senate, and governor on the effectiveness of flexible
rating on the for hire motor vehicle market by December first, two
thousand twenty-seven and every two years thereafter.

(e) This section shall apply only to policies covering 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, provided, however, that subsections (a) and
(c) of this section shall not apply to a bus or a school bus as defined
in sections one hundred four and one hundred forty-two of the vehicle
and traffic law.