A07456 Summary:

BILL NOA07456A
 
SAME ASNo same as
 
SPONSORBrook-Krasny
 
COSPNSRMalliotakis, Cusick
 
MLTSPNSR
 
Add S339, Ins L
 
Relates to property/casualty insurer report cards.
Go to top    

A07456 Actions:

BILL NOA07456A
 
05/17/2013referred to insurance
05/23/2013reported referred to ways and means
05/30/2013reported
05/31/2013advanced to third reading cal.511
06/03/2013amended on third reading 7456a
06/10/2013passed assembly
06/10/2013delivered to senate
06/10/2013REFERRED TO INSURANCE
01/08/2014DIED IN SENATE
01/08/2014RETURNED TO ASSEMBLY
01/08/2014ordered to third reading cal.364
01/22/2014committed to insurance
Go to top

A07456 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7456A
 
SPONSOR: Brook-Krasny
  TITLE OF BILL: An act to amend the insurance law, in relation to property/casualty insurer report cards   SUMMARY OF SPECIFIC PROVISIONS: This bill would require the Superintendent of Financial Services to prepare a report card containing information on how insurers licensed to write personal lines insurance or certain commercial lines insurance policies respond to an emergency or disaster. The Superintendent would be required to post the report card on the Department's website and make it available in writing no later than twenty days following the declara- tion of a disaster or emergency. The Superintendent would also have to update the report card every seven days for at least six months or until the Superintendent determines that the report card is no longer neces- sary. The report card would contain information on how each insurer responded to the disaster or emergency, including the number of claims the insurer received and the status of those claims; the number of independent adjusters the insurer has working in the field; the number of policy- holders who have hired public adjusters; the average amount of time, in days, for the insurer to investigate a claim, make a payment, and close a claim; the number of complaints the insurer has received from its insureds; the number of complaints the Department has received on each insurer; and any other information the Superintendent deems necessary. The Superintendent would also have the discretion to waive the require- ments of this bill if the disaster or emergency does not result in a significant amount of insurance related claims and if the Superintendent does not believe the best interests of the public will be served by issuing a report card.   JUSTIFICATION: After a disaster such as Superstorm Sandy, families and businesses often rely on the insurance industry in the recovery process. Prompt assess- ments of damages and processing of claims are key to providing individ- uals and families a safe place to live and to providing businesses with the resources they need to continue operating and serving the public. Following Sandy, many issues that homeowners and businesses had with their insurance companies came to light, including delays in the settle- ment of insurance claims and the adequacy of settlement offers. This bill would address these issues by requiring the Superintendent of Financial Services to prepare and update a publicly available report card or how well each insurance company responds to a specific disaster. This transparency will allow members of the legislature, the public, and the insurance industry itself to evaluate how insurance companies respond to a disaster and to make improvements where necessary.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: Immediately.
Go to top

A07456 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7456--A
                                                                Cal. No. 511
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 17, 2013
                                       ___________
 
        Introduced  by  M.  of  A. BROOK-KRASNY -- read once and referred to the
          Committee on Insurance -- reported and referred to  the  Committee  on
          Ways  and  Means  --  advanced to a third reading, amended and ordered
          reprinted, retaining its place on the order of third reading
 

        AN ACT to amend the insurance  law,  in  relation  to  property/casualty
          insurer report cards
 
          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 section 339 to
     2  read as follows:
     3    § 339. Property/casualty insurer report cards. (a) If at  any  time  a
     4  local  state of emergency is declared pursuant to section twenty-four of
     5  the executive law, the governor declares a disaster  emergency  pursuant
     6  to  section twenty-eight of the executive law, or the President issues a
     7  major disaster or emergency declaration  pursuant to the Robert T. Staf-
     8  ford Disaster Relief and Emergency Assistance  Act  (P.L.  93-288),  the

     9  superintendent shall prepare a report card containing information on how
    10  each  insurer  licensed  to write personal lines insurance or commercial
    11  lines insurance policies that cover loss of or damage to real  property,
    12  personal  property,  or other liabilities for loss or damage to property
    13  responded to the emergency or disaster.
    14    (b) No later than twenty days following the declaration of the  disas-
    15  ter  or  emergency, the superintendent shall post the report card on the
    16  department's website. The report card shall also be available in writing
    17  upon request.
    18    (c) The superintendent shall update the report card every  seven  days
    19  for  at  least  six  months following the declaration of the disaster or

    20  emergency, or until the superintendent determines that such report  card
    21  is  no longer necessary. Such report card shall be in the aggregate. The
    22  updated version shall be posted on the department's website and shall be
    23  made available in writing upon request.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11124-03-3

        A. 7456--A                          2
 
     1    (d) Insurers specified in subsection (a) of this section shall provide
     2  the superintendent with all information necessary for the superintendent
     3  to prepare the report card, in a manner and on a date prescribed by  the

     4  superintendent.
     5    (e)  The  report  card  shall  indicate whether the information is for
     6  personal lines insurance policies or commercial  lines  insurance  poli-
     7  cies.  If  the insurer writes both personal lines insurance policies and
     8  commercial lines insurance policies, the report card shall differentiate
     9  between the two.
    10    (f) The report card shall contain the  following  information  on  how
    11  each  individual  insurer  specified  in  subsection (a) of this section
    12  responded to the disaster or emergency:
    13    (i) The number of claims the insurer has received;
    14    (ii) The number of claims closed with payment;
    15    (iii) The number of claims closed without payment;

    16    (iv) The total number of open claims and the average amount  of  time,
    17  in days, the claims have been open;
    18    (v)  The  number  of  open claims for which a partial payment has been
    19  made;
    20    (vi) The number of open claims for which a payment  has  been  offered
    21  that are being disputed and/or negotiated by the policyholder;
    22    (vii)  The  number of open claims that are still being investigated by
    23  the insurer, the status of the investigation and the reason the investi-
    24  gation is not complete,  compiled  into  categories  determined  by  the
    25  superintendent;
    26    (viii)  The number of independent adjusters that the insurer has work-
    27  ing in the field;

    28    (ix) The number of policyholders who have hired public adjusters;
    29    (x) The average time, in days: (A) from the  date  a  claim  is  filed
    30  until  the  date on which the inspection is initiated; (B) from the date
    31  on which the inspection is initiated until the date the insurer provides
    32  the insured with an estimate; (C) from the date the insurer provides the
    33  insured with an estimate until the date a payment is made; (D) from  the
    34  date  a payment is made until the claim is closed; and (E) from the date
    35  a claim is filed until the date the claim is closed;
    36    (xi) The number of complaints  that  the  insurer  has  received  from
    37  insureds  and the percentage of the insurer's claims for the disaster or
    38  emergency that these complaints represent;

    39    (xii) The number  of  complaints  that  the  department  has  received
    40  regarding the insurer and the percentage of the insurer's claims for the
    41  disaster or emergency that these complaints represent; and
    42    (xiii) Any other information that the superintendent deems necessary.
    43    (g)  The  superintendent  may,  at  his  or  her discretion, waive the
    44  requirement to prepare a  report  card  if  the  declared  disaster,  as
    45  defined  in subsection (a) of this section, does not result in a signif-
    46  icant amount of insurance related claims filed in New York state and the
    47  superintendent does not believe the best interest of the public will  be
    48  served by issuing a report card.
    49    § 2. This act shall take effect immediately.
Go to top