NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6131A REVISED 5/27/15
SPONSOR: Steck
 
TITLE OF BILL: An act to amend the insurance law, in relation to
extending authorization for certain exemptions from filing requirements
 
PURPOSE: To extend certain exemptions from regulatory requirements
necessitating prior approval of rates and forms for large, commercial
insureds and special risks and to make changes to certain notice
requirements.
 
SUMMARY OF 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 December 31, 2016 to December 31, 2018.
Section 2 of the bill amends section 6303 (a)(3) of the insurance law to
extend the current provision which permits certain qualified insurers to
write insurance without the Department of Financial Services' prior
approval of rates and forms, from June 30, 2015 to June 30, 2019.
Section 3 is the effective date.
 
EXISTING LAW: The current law expires on June 30, 2015 and December
31, 2016.
 
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,
 
LEGISLATIVE HISTORY: S.4172 of 2014; A.6131 of 2015
 
FISCAL IMPLICATIONS: None.
 
EFFECTIVE DATE: Immediately