|SAME AS||SAME AS S04469|
|MLTSPNSR||Colton, Cymbrowitz, Ortiz|
|Add Art 6 §§601 - 606, §§2353 & 343, amd §§2321, 2305, 3231 & 4308, Ins L; add Art 44-A §§945 - 947, amd §149, Exec L; amd §202, St Ad Proc Act|
|Enacts the "automobile insurance consumer information act"; provides for automobile insurance consumer information and complaint ranking; creates office of public insurance consumer advocate and powers and duties therefor; makes related provisions.|
|01/20/2017||referred to insurance|
|01/27/2017||amend and recommit to insurance|
|01/27/2017||print number 2596a|
|01/03/2018||referred to insurance|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2596A SPONSOR: Englebright (MS)
TITLE OF BILL: An act to amend the insurance law, in relation to improving disclosure to automobile insurance consumers; and to amend the executive law, the insurance law and the state administrative procedure act, in relation to establishing an independent office of public insurance consumer advocate and establishing its powers and duties   PURPOSE OR GENERAL IDEA OF BILL: To enact reforms to protect consumers and reduce premiums, including creation of an Office of Insurance Consumer Advocate, making premium and complaint information available to consumers from the department of financial services, and allowing municipalities to petition for reductions in auto insurance rates.   SUMMARY OF PROVISIONS: *Establish an Office of Insurance Consumer Advocate (the "office") in the executive department to represent consumers in ratemaking and other matters *Establishes the position of Public Insurance Consumer Advocate ("the advocate") *Requires the superintendent of the department of financial services to maintain a database containing automobile insurance rate information and complaint rankings for all companies licensed to do business in the State *Requires the department to hold hearings when called for by the advo- cate *The office shall create an annual report with accounting for all funds received and disbursed by the office. *The office may assess the impact of insurer practices and insurance rates and advocate on behalf of positions that are most advantageous to a substantial number of insurance consumers. *Authorize municipalities to petition the department of financial services for rate changes; the department must hold a public hearing within 15 days of receipt of such petition *Requires auto insurance rate filings to include full statistical justi- fication and conform to standards of uniformity established by the Superintendent in regulation   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):   JUSTIFICATION: New York's special Task Force on Automobile Insurance was created to investigate the cost and availability of private passenger auto insur- ance in New York State, and to review the effectiveness of laws due to expire that year that regulate access to, and affordability of these policies. The task made findings and recommendations in its report: "Asleep at the Wheel, 1994-1998, NY's Move to the Top of the List in Auto Insurance Rates," (http://assembly.state.ny.us/Reports/Auto/199805/). Among the Task Force findings is that overly generous rate increases granted to New York auto insurers have led New York to the brink of becoming the most expensive state for auto insurance in the nation. The Task Force found that during the period 1990-1996, New York average auto insurance premiums jumped by 36%, while the costs of providing coverage went up by a mere 12% (countrywide premiums increased by only 20%, closely tracking an 18% rise in costs). With premiums rising faster than costs, insurer profits have soared. In 1996, New York insurers' profits on insurance transactions were twice as high as those of their counterparts in the rest of the country. Rankings released in March 1999 by the National Association of Insurance Commissioners show a disturbing continuance of these trends. For the second year in a row, New York is the second most expensive state in the nation for auto insurance, with rates 35% above the national average. At the same time, New York insurers are pocketing underwriting profits four times the national average, and profits on insurance transactions more than 150% above the national norm. Modeled on such an office in Texas, it is expected that this new office could match that state's experience, in which auto insurance consumers saved $549 million in 1997, $602 million in 1996, and $778 million in 1995. Aiming to reverse New York's move to the top of the list in auto rates, the Task Force developed a comprehensive package of reforms, which, when fully implemented, could save consumers over $1 billion on auto insur- ance premiums per year.   PRIOR LEGISLATIVE HISTORY: 1999-00 A6171 passed assembly 2001-02 A7324 referred to insurance 2003-04 A4126 referred to insurance 2005-06 A2663 referred to insurance 2007-08 A890 referred to insurance 2009-10 A1746 referred to insurance 2011-12 A3744 referred to insurance 2013-14 A1937 referred to insurance 2015-16 A5064 referred to insurance   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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STATE OF NEW YORK ________________________________________________________________________ 2596--A 2017-2018 Regular Sessions IN ASSEMBLY January 20, 2017 ___________ Introduced by M. of A. ENGLEBRIGHT, CAHILL -- Multi-Sponsored by -- M. of A. COLTON, CYMBROWITZ, ORTIZ -- read once and referred to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to improving disclosure to automobile insurance consumers; and to amend the executive law, the insurance law and the state administrative procedure act, in relation to establishing an independent office of public insurance consumer advocate and establishing its powers and duties The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new article 6 to 2 read as follows: 3 ARTICLE 6 4 AUTOMOBILE INSURANCE CONSUMER INFORMATION 5 Section 601. Title; legislative declaration and purpose. 6 602. Automobile insurance consumer information and complaint 7 rankings. 8 603. Consumer rating factors. 9 604. Disclosure procedures. 10 605. Noninterference with obtaining coverage. 11 606. Public outreach. 12 § 601. Title; legislative declaration and purpose. This article shall 13 be known and may be cited as the "automobile insurance consumer informa- 14 tion act". 15 The legislature finds and declares that automobile insurance is 16 required by law for all residents who drive and that the cost of automo- 17 bile insurance represents a substantial expense for many consumers. The 18 legislature further finds that the premium costs for any given individ- 19 ual for identical insurance coverage from different licensed insurers 20 can vary widely and that wide variations also exist in the quality of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03626-02-7A. 2596--A 2 1 service provided by insurers as measured by the department's annual 2 complaint handling rankings. In addition, the legislature finds that few 3 consumers are aware of these wide cost and quality of service vari- 4 ations, that as a result consumers as a group may pay hundreds of 5 millions of dollars annually for overpriced policies and that individual 6 consumers may encounter unnecessary difficulty in having their automo- 7 bile insurance claims and complaints handled expeditiously. The legis- 8 lature further finds and declares that it intends for the superintendent 9 and the department to have broad authority under this article to estab- 10 lish mechanisms to fully inform consumers as to which policies are 11 available to them at the lowest possible cost and which insurers provide 12 the highest quality of service. The legislature intends with this arti- 13 cle to create certain disclosure requirements that will make such infor- 14 mation more readily available to all consumers. Increased availability 15 of information is intended to make the automobile insurance system more 16 competitive with respect to both cost of coverage and the quality of 17 service. 18 § 602. Automobile insurance consumer information and complaint rank- 19 ings. (a) The superintendent shall maintain a database containing 20 nonbusiness automobile insurance rate information and complaint rankings 21 for all companies licensed to do business in the state. 22 (b) Every person, upon making an inquiry to the department and provid- 23 ing the information specified in section six hundred three of this arti- 24 cle, shall be mailed within five business days, or, at the option of the 25 person, receive at the time of such inquiry: 26 (1) The names, addresses, telephone numbers and, if appropriate, web 27 site addresses of the five companies having the lowest premiums for the 28 requested package of coverage that would write insurance for such 29 person; the total cost for the package of coverage from each such insur- 30 er; and the most recent complaint ranking of each such insurer; 31 (2) The names, addresses, telephone numbers and, if appropriate, web 32 site addresses of the five companies having the best complaint rankings 33 that would write insurance for such person, and the total cost for the 34 package of coverage from each insurer listed; 35 (3) An explanation of how to obtain from such companies the names, 36 addresses, telephone numbers, and, if appropriate, web site addresses of 37 those agents, brokers or sales representatives of such companies that 38 are situated in a location reasonably convenient to the person; and 39 (4) Until such database is established, the department shall provide 40 persons making an inquiry the department's Annual Ranking of Automobile 41 Insurance Complaints and Consumers Guide to Auto Insurance. After the 42 database is established, if the person making an inquiry prefers, the 43 department may provide, in lieu of the information specified in para- 44 graphs one, two and three of this subsection, the department's Annual 45 Ranking of Automobile Insurance Complaints, and Consumer Guide to Auto 46 Insurance. 47 § 603. Consumer rating factors. In order to receive the list of lowest 48 cost insurers described in section six hundred two of this article, the 49 person shall provide the following information: 50 (a) The place in which the vehicle is garaged or stored, or other 51 information needed to determine geographical territory; 52 (b) The age, sex, marital status and other information needed to 53 determine the driver class of the principal and occasional operators; 54 (c) The make, model and year of the automobile; 55 (d) Information relating to qualification for discounts;A. 2596--A 3 1 (e) Information relating to surcharges or credits based on driving 2 record or driving courses taken; 3 (f) Desired effective date of the policy; 4 (g) Desired coverages; and 5 (h) Such other information as the superintendent may by regulation 6 require. 7 § 604. Disclosure procedures. Every policy of nonbusiness automobile 8 insurance delivered, issued for delivery, renewed or issued for renewal 9 in this state shall include a notice prescribed by the superintendent in 10 regulation of the availability of the information and procedure for 11 obtaining such information described in sections six hundred two and six 12 hundred three of this article. Such notice shall include the depart- 13 ment's address, telephone number and web site address. 14 § 605. Noninterference with obtaining coverage. No applicant for auto- 15 mobile insurance shall be prevented or delayed in effecting or applying 16 for coverage by the requirements of section six hundred four of this 17 article. In those cases where, prior to or at the time an application is 18 taken, it is impractical to provide any disclosure documents prescribed 19 by section six hundred four of this article, such documents shall be 20 furnished as soon thereafter as practical and, in any event, no later 21 than at the time the policy is delivered. Where any such document is 22 not provided as required by section six hundred four of this article, 23 the applicant may, no later than thirty days following receipt of the 24 policy, and notwithstanding the provisions of section three thousand 25 four hundred twenty-eight of this chapter, return the policy for a pro 26 rata refund of premiums paid. A clear and conspicuous written notice 27 explaining this refund provision, in language promulgated by the super- 28 intendent, shall be delivered with the policy. 29 § 606. Public outreach. The department shall conduct public education 30 and outreach to inform consumers as to the availability of and how to 31 access the consumer information prescribed by this article. Notwith- 32 standing any inconsistent law to the contrary, no advertisement utiliz- 33 ing electronic means, (including but not limited to radio, television 34 and the internet) public service announcement or other broadcast 35 produced or distributed pursuant to this section shall feature the like- 36 ness, picture or voice of a statewide elected official or a family 37 member of such official. 38 § 2. If any provision of section one of this act or the application 39 thereof to any person or circumstances be adjudged invalid by any court 40 of competent jurisdiction, such judgment shall be confined in its opera- 41 tion to the provision or application or persons or circumstances direct- 42 ly involved in the controversy in which such judgment shall have been 43 rendered and shall not affect or impair the validity of the remainder of 44 this act or the application thereof to other persons or circumstances. 45 § 3. The executive law is amended by adding a new article 44-A to read 46 as follows: 47 ARTICLE 44-A 48 OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE 49 Section 945. Office of public insurance consumer advocate. 50 946. Public insurance consumer advocate. 51 947. Powers and duties. 52 § 945. Office of public insurance consumer advocate. There is hereby 53 created in the executive department an independent office of public 54 insurance consumer advocate (hereinafter referred to in this article as 55 "office") to represent the interests of nonbusiness automobile and 56 health insurance consumers in the state.A. 2596--A 4 1 § 946. Public insurance consumer advocate. 1. The governor, with the 2 advice and consent of the senate, shall appoint a public insurance 3 consumer advocate (hereinafter referred to in this article as "advo- 4 cate") who shall serve as the executive director of the office of public 5 insurance consumer advocate and shall receive an annual salary to be 6 fixed by the governor within the amount available therefor by appropri- 7 ation. 8 2. (a) To be eligible to serve as advocate, a person must be a resi- 9 dent of the state. The advocate shall be a person who has demonstrated a 10 strong commitment to and involvement in efforts to safeguard the rights 11 of the public, and who possesses the knowledge and experience necessary 12 to practice effectively in insurance proceedings. 13 (b) A person shall not be eligible for appointment as advocate if such 14 person or the person's spouse: 15 (i) is employed by or participates in the management of a business 16 entity or other organization regulated by the department of financial 17 services or receiving funds from such department; 18 (ii) owns or controls, directly or indirectly, more than ten percent 19 interest in a business entity or other organization regulated by the 20 department of financial services or receiving funds from the department 21 of financial services or the office; 22 (iii) uses or receives a substantial amount of tangible goods, 23 services or funds from the department of financial services or the 24 office, other than compensation or reimbursement authorized by law for 25 the department of financial services or office membership, attendance or 26 expenses. 27 3. The advocate shall serve for a term of two years. 28 4. It shall be a ground for removal from office if the advocate: 29 (a) does not have at the time of appointment the qualifications 30 required by this section; 31 (b) does not maintain during service as advocate the qualifications 32 required by this section; 33 (c) violates a prohibition established by this section; or 34 (d) cannot discharge the advocate's duties for a substantial part of 35 the term for which the advocate is appointed because of illness or disa- 36 bility. 37 5. The validity of an action of the office shall not be affected by 38 the fact that it is taken when a ground for removal of the advocate 39 exists. 40 6. (a) A person shall not serve as the advocate or act as the general 41 counsel for the office of advocate if the person is required to register 42 as a lobbyist pursuant to article one-A of the legislative law. 43 (b) A person serving as the advocate shall not, for a period of two 44 years after the date the person ceases to be an advocate, represent any 45 person in a proceeding before the superintendent of financial services 46 or the department of financial services or receive compensation for 47 services rendered on behalf of any person regarding a case before the 48 superintendent of financial services or the department of financial 49 services. 50 (c) A person shall not serve as the advocate or be an employee of the 51 office if the person is an officer, employee or paid consultant of a 52 trade association in the field of insurance. 53 (d) A person who is the spouse of an officer, manager or paid consult- 54 ant of a trade association in the field of insurance shall not serve as 55 the advocate and may not be an office employee.A. 2596--A 5 1 (e) For the purposes of this section, a trade association is a nonpro- 2 fit, cooperative and voluntarily joined association of business or 3 professional competitors designed to assist its members and its industry 4 or profession in dealing with mutual business or professional problems 5 and in promoting their common interest. 6 § 947. Powers and duties. 1. The advocate, as executive director of 7 the office, shall be charged with the responsibility of administering, 8 enforcing and carrying out the provisions of this article, including 9 preparation of a budget for the office, employing all necessary profes- 10 sional, technical and other employees to carry out provisions of this 11 article, approval of expenditures for professional services, travel, per 12 diem and other actual and necessary expenses incurred in administering 13 the office. The compensation of employees of the office shall be fixed 14 by the advocate within the appropriation provided therefor. 15 2. The office shall file annually with the governor, temporary presi- 16 dent of the senate and speaker of the assembly a complete and detailed 17 written report accounting for all funds received and disbursed by the 18 office during the preceding fiscal year. The annual report shall be in 19 the form and reported as part of the executive budget. 20 3. All money paid to the office under this article shall be deposited 21 in the state treasury. 22 4. The office may assess the impact of insurer practices and proposed 23 and in-force insurance rates, rules and regulations on nonbusiness auto- 24 mobile and health insurance consumers in the state; in its own name, 25 advocate on behalf of positions that are most advantageous to a substan- 26 tial number of insurance consumers as determined by the advocate; and do 27 all things necessary and proper for these purposes, including engaging 28 attorneys, and experts in actuarial science, economics, accounting, 29 finance or any other discipline which may be appropriate. 30 5. The advocate: 31 (a) may appear or intervene as a matter of right before the super- 32 intendent of financial services or department of financial services as a 33 party or otherwise on behalf of insurance consumers as a class in 34 matters involving insurer practices and proposed and in-force rates, 35 rules and regulations affecting nonbusiness automobile and health insur- 36 ance; 37 (b) may initiate or intervene as a matter of right or otherwise appear 38 in any judicial proceeding involving or arising out of any action taken 39 by an administrative agency in a proceeding in which the advocate previ- 40 ously appeared under the authority granted by this article; 41 (c) is entitled to access any records of the department of financial 42 services that are available to any party in a proceeding before the 43 superintendent of financial services or department of financial services 44 under the authority granted by this article; 45 (d) is entitled to obtain discovery of any non-privileged matter that 46 is relevant to the subject matter involved in a proceeding or submission 47 before the superintendent of financial services or department of finan- 48 cial services as authorized by this article; 49 (e) may recommend legislation to the legislature that, in the judgment 50 of the advocate, would affect positively the interests of nonbusiness 51 automobile and health insurance consumers; 52 (f) may appear or intervene as a matter of right as a party or other- 53 wise on behalf of nonbusiness automobile and health insurance consumers 54 as a class in all proceedings and actions in which the advocate deter- 55 mines that such consumers need representation, except that the advocateA. 2596--A 6 1 shall not intervene in any enforcement or parens patriae proceeding 2 brought by the attorney general; 3 (g) may conduct any inquiry, hearing, investigation, survey or study 4 which the advocate deems necessary to effectively carry out the 5 provisions of this article and, for that purpose, to take and hear 6 proofs and testimony, subpoena witnesses, compel their attendance, 7 administer oaths, examine any person under oath and to compel any person 8 to subscribe to his or her testimony after it has been correctly reduced 9 to writing, and in connection therewith to require the production of any 10 books, papers, records, accounts, correspondence or other documents 11 which the advocate deems relevant to the inquiry. A subpoena issued 12 under this section shall be regulated by the civil practice law and 13 rules. 14 6. (a) The office shall prepare information of public interest 15 describing the functions of the office. The office shall make the infor- 16 mation available to the public, lawmakers and appropriate state agen- 17 cies. 18 (b) The office shall prepare and maintain a written plan that 19 describes how each person who does not speak English can be provided 20 reasonable access to the office's programs. 21 (c) The office shall prepare and distribute public education materials 22 for consumers, legislators and regulators. 23 (d) The office may participate in trade associations. 24 7. The office shall be subject to articles six and six-A of the public 25 officers law; provided, however, that documents, records, files, reports 26 or other information concerning confidential matters of the board, as 27 defined and described in regulations promulgated by the board, are 28 specifically exempted from disclosure pursuant to section eighty-seven 29 of the public officers law. 30 § 4. Subsection (d) of section 2321 of the insurance law is amended to 31 read as follows: 32 (d) Proceedings pursuant to subsections (b) and (c) [ hereof] of this 33 section may be instituted upon the initiative of the superintendent or 34 upon written application to the superintendent by any aggrieved person 35 or organization, other than a rate service organization, for a hearing, 36 if the superintendent finds that the application is made in good faith 37 and that the grounds otherwise justify holding such a hearing which 38 shall be held within fifteen days of the request; provided, however, 39 that the superintendent shall hold such a hearing within fifteen days of 40 an application therefor from the public insurance consumer advocate 41 established under article forty-four-A of the executive law. In the case 42 of a denial of an application for a hearing filed by any aggrieved 43 person or any other organization, the superintendent shall provide the 44 reasons therefor in writing to the applicant within fifteen days of such 45 denial. 46 § 5. Subsection (c) of section 2305 of the insurance law is amended to 47 read as follows: 48 (c) (1) Rates filed with the superintendent shall be accompanied by 49 the information upon which the insurer supports the rate as set forth in 50 subsection (b) of section two thousand three hundred four of this arti- 51 cle. 52 (2) With respect to rates filed for nonbusiness automobile policies, 53 such filings shall include all statistical data relied upon to support 54 the filing and such other information as the superintendent shall 55 require. Such filings and supporting information shall conform with 56 standards of uniformity which the superintendent shall prescribe byA. 2596--A 7 1 regulation within one hundred eighty days of the effective date of this 2 paragraph. 3 § 6. The insurance law is amended by adding a new section 2353 to read 4 as follows: 5 § 2353. Municipal petitions; motor vehicle insurance for nonbusiness 6 automobiles. (a) Notwithstanding any inconsistent provision of law, any 7 municipality or combination of contiguous municipalities may petition 8 the department for a reduction in rates of policies covering losses or 9 liabilities arising out of the ownership of a motor vehicle predominant- 10 ly used for nonbusiness purposes, when a natural person is the named 11 insured under a policy of auto insurance, when such rates do not reflect 12 accurately the current data pertinent to the risk of loss in the munici- 13 pality or municipalities based on reasonable and sound underwriting and 14 actuarial criteria. 15 (b) Within fifteen days of receipt of such a petition, the department 16 shall hold a public hearing thereon, at which municipal representatives, 17 insurers and the public shall have the right to be heard. The department 18 shall explain in writing its reasons for granting or denying, in whole 19 or in part, the relief sought in the petition. If the department grants 20 such relief, it shall immediately order an appropriate reduction, which 21 may include retroactive relief, if justified, notwithstanding any incon- 22 sistent provision of law. 23 (c) For the purposes of this section, the term "municipality" shall 24 mean any county not wholly contained within a city and any city compris- 25 ing more than one county. 26 § 7. The insurance law is amended by adding a new section 343 to read 27 as follows: 28 § 343. Cooperation with office of public insurance consumer advocate. 29 (a) The superintendent, and every deputy and employee of the department 30 shall cooperate fully and completely with the office of public insurance 31 consumer advocate and provide without charge to such office, access and, 32 upon request of the public insurance consumer advocate, copies of all 33 books, records and files of the department and of each licensee of the 34 department to the extent that the department has access or copies of 35 such books, records and files, which such advocate deems necessary and 36 appropriate to carry out the purposes of article forty-four-A of the 37 executive law, including, but not limited to filings and applications 38 which may be subject to a hearing pursuant to this section, and all 39 information furnished the superintendent in support of such filings and 40 applications. 41 (b) Notwithstanding any inconsistent law, rule or regulation to the 42 contrary, the superintendent shall notify the office of public insurance 43 consumer advocate of all rate-related filings made under article twen- 44 ty-three of this chapter with respect to nonbusiness automobile insur- 45 ance, filings for rate increases pursuant to sections three thousand two 46 hundred thirty-one and four thousand three hundred eight of this chapter 47 and applications for material change in benefits or delivery of benefits 48 under a contract, within five business days of having received such 49 filings and applications. Such notification shall include a summary of 50 each filing or application, to include, but not be limited to: the 51 number of policyholders, subscribers or enrollees affected; the amount 52 of rate increase; the regions or territories affected; and a description 53 of the change in benefits or delivery of benefits. The superintendent 54 shall simultaneously submit for publication in the state register all 55 such notifications to the public insurance consumer advocate. Within 56 five business days of the request of such advocate, the superintendentA. 2596--A 8 1 shall forward any filings and applications so requested and all informa- 2 tion furnished in support of such filings and applications. 3 (c) The public insurance consumer advocate may request the superinten- 4 dent hold a hearing on any matter deemed necessary and appropriate to 5 carry out the purposes of article forty-four-A of the executive law, 6 which shall be held within fifteen days of the request. No proposed 7 change in rule or regulation, filing for a nonbusiness automobile rate- 8 related change or rate increase, filing for a rate increase pursuant to 9 sections three thousand two hundred thirty-one and four thousand three 10 hundred eight of this chapter, or application for material change in 11 benefits or delivery of benefits subject to a hearing under this section 12 shall become effective pending the close of such hearing, provided that 13 such request is made within thirty days of such advocate having received 14 notice of such proposed change, filing or application. Within fifteen 15 days after the close of the hearing, or such time as the superintendent 16 approves the proposed rule, regulation, filing or application, the 17 superintendent shall issue a written opinion based upon the hearing 18 record, explaining the reasons for approving or denying, in whole or in 19 part, the change sought. 20 § 8. Subparagraph (A) of paragraph 2 of subsection (e) of section 3231 21 of the insurance law, as amended by chapter 107 of the laws of 2010, is 22 amended to read as follows: 23 (A) Until September thirtieth, two thousand ten, as an alternate 24 procedure to the requirements of paragraph one of this subsection, an 25 insurer desiring to increase or decrease premiums for any policy form 26 subject to this section may instead submit a rate filing or application 27 to the superintendent and such application or filing shall be deemed 28 approved, provided that: (i) the anticipated minimum loss ratio for a 29 policy form shall not be less than eighty-two percent of the premium; 30 and (ii) the insurer submits, as part of such filing, a certification by 31 a member of the American Academy of Actuaries or other individual 32 acceptable to the superintendent that the insurer is in compliance with 33 the provisions of this paragraph, based upon that person's examination, 34 including a review of the appropriate records and of the actuarial 35 assumptions and methods used by the insurer in establishing premium 36 rates for policy forms subject to this section, unless the public insur- 37 ance consumer advocate has requested a public hearing on such rate 38 filing or application pursuant to section three hundred forty-three of 39 this chapter. An insurer shall not utilize the alternate procedure 40 pursuant to this paragraph to implement a change in rates to be effec- 41 tive on or after October first, two thousand ten. 42 § 9. Paragraph 1 of subsection (g) of section 4308 of the insurance 43 law, as amended by chapter 107 of the laws of 2010, is amended to read 44 as follows: 45 (1) Until September thirtieth, two thousand ten, as an alternate 46 procedure to the requirements of subsection (c) of this section, a 47 corporation subject to the provisions of this article desiring to 48 increase or decrease premiums for any contract subject to this section 49 may instead submit a rate filing or application to the superintendent 50 and such application or filing shall be deemed approved, provided that 51 (A) the anticipated incurred loss ratio for a contract form shall not be 52 less than eighty-two percent for individual direct payment contracts or 53 eighty-two percent for small group and small group remittance contracts, 54 nor, except in the case of individual direct payment contracts with a 55 loss ratio of greater than one hundred five percent during nineteen 56 hundred ninety-four, shall the loss ratio for any direct payment, groupA. 2596--A 9 1 or group remittance contract be more than one hundred five percent of 2 the anticipated earned premium, and (B) the corporation submits, as part 3 of such filing, a certification by a member of the American Academy of 4 Actuaries or other individual acceptable to the superintendent that that 5 corporation is in compliance with the provisions of this subsection, 6 based upon that person's examination, including a review of the appro- 7 priate records and of the actuarial assumptions and methods used by the 8 corporation in establishing premium rates for contracts subject to this 9 section, unless the public insurance consumer advocate has requested a 10 public hearing on such rate filing or application pursuant to section 11 three hundred forty-three of this chapter. A corporation shall not 12 utilize the alternate procedure pursuant to this subsection to implement 13 a change in rates to be effective on or after October first, two thou- 14 sand ten. For purposes of this section, a small group is any group whose 15 contract is subject to the requirements of section [ forty-three] four 16 thousand three hundred seventeen of this article. 17 § 10. Section 149 of the executive law is amended by adding a new 18 subdivision 4 to read as follows: 19 4. Notices submitted pursuant to section three hundred forty-three of 20 the insurance law shall be in such format as the secretary of state 21 shall require, and shall be published in a separate section of the 22 register which shall include telephone numbers, addresses and e-mail 23 addresses which the public may use to contact the office of public 24 insurance consumer advocate and the department of financial services. 25 § 11. Section 202 of the state administrative procedure act is amended 26 by adding a new subdivision 1-a to read as follows: 27 1-a. In addition to the requirements of this section, any notice of 28 proposed rulemaking, notice of revised rulemaking or notice of emergency 29 adoption submitted by the department of financial services that impacts 30 nonbusiness automobile or health insurance consumers shall also include 31 the telephone number, address and e-mail address which the public may 32 use to contact the office of public insurance consumer advocate. 33 § 12. This act shall take effect immediately; provided, however, that 34 within twelve months of the effective date of this act, the database 35 required by section 602 of the insurance law, as added by section one of 36 this act, shall be completed; and, provided further, that within ninety 37 days of the effective date of this act, notice of the availability of 38 the department of financial services' Annual Ranking of Automobile 39 Insurance Complaints and Consumers Guide to Auto Insurance, and the 40 department of financial services' address, telephone number and web site 41 address shall be provided with all nonbusiness automobile policies 42 delivered, issued for delivery, renewed or issued for renewal in this 43 state. The disclosure requirement of section 604 of the insurance law, 44 as added by section one of this act shall take effect twelve months 45 after the effective date of this act. The public insurance consumer 46 advocate shall be appointed, pursuant to article 44-A of the executive 47 law, as added by section three of this act for a two year term. Any 48 regulations necessary for the implementation of the provisions of this 49 act shall be promulgated within one hundred eighty days after the effec- 50 tive date of this act.