NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8413
SPONSOR: Steck TITLE OF BILL:
An act to amend the insurance law, in relation to extending authori-
zation for certain exemptions from filing requirements
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to extend certain exemptions from regulatory
requirements necessitating prior approval of rates and forms for large,
commercial insureds and special risks.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends section 6302 (c)(3) of the insurance law to
extend the minimum surplus to policyholder ratio required of medical
malpractice insurers, from June 30, 2025 to June 30, 2027.
Section 2 of the bill sets forth the effective date.
JUSTIFICATION:
In 2011, legislation was enacted which modernized and streamlined the
regulation of commercial insurance by expanding the types of insurance
which may be written without the Department's prior approval of rates
and forms when sold to large commercial policyholders. This law has
proven successful in ensuring that commercial policyholders have maximum
flexibility to create policies that are tailored to their needs, as they
must respond rapidly to competitive forces, the economy and the needs of
their customers. For this reason, this legislation seeks to extend these
provisions.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
8413
2025-2026 Regular Sessions
IN ASSEMBLY
May 14, 2025
___________
Introduced by M. of A. STECK -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to extending authori-
zation for certain exemptions from filing requirements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 3 of subsection (c) of section 6302 of the insur-
2 ance law, as amended by chapter 158 of the laws of 2023, is amended to
3 read as follows:
4 (3) until June thirtieth, two thousand [twenty-five] twenty-seven, a
5 domestic property/casualty insurance company that maintains at all times
6 a surplus to policyholders of at least twice the minimum surplus to
7 policyholders required to be maintained for the kinds of insurance that
8 it is authorized to write in this state, or an insurer licensed pursuant
9 to article sixty-one of this chapter as a reciprocal insurer that main-
10 tains at all times a surplus to policyholders of at least the minimum
11 surplus to policyholders required to be maintained for the kinds of
12 insurance that it is authorized to write in this state, provided that
13 the domestic property/casualty insurance company or reciprocal insurer:
14 (A) has total direct premiums comprised of at least ninety percent
15 medical malpractice insurance; (B) assumes reinsurance premiums in an
16 amount that is less than five percent of total direct premiums written;
17 and (C) writes ninety percent of its total direct premiums in this
18 state.
19 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10370-02-5
