A06913 Summary:
| BILL NO | A06913 |
| SAME AS | SAME AS S05034 |
| SPONSOR | Sweeney (MS) |
| COSPNSR | Weisenberg, Englebright, Brennan, Robinson, Thiele, Titus, Skoufis, Abinanti, Otis, Malliotakis, Saladino, Cusick |
| MLTSPNSR | Jacobs, Magnarelli, Markey, Millman, Morelle, Perry |
| Rpld S5412 subS (g), amd S3425, Ins L | |
| Limits the scope of an insurer's reduction of coverage by limiting the volume of notices of intention to not renew or condition renewal to four percent of the total number of covered policies within such insurer's rating territory in this state. | |
A06913 Actions:
| BILL NO | A06913 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 04/24/2013 | referred to insurance | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/23/2013 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
| 05/23/2013 | advanced to third reading cal.425 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/04/2013 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/04/2013 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/04/2013 | REFERRED TO INSURANCE | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/08/2014 | DIED IN SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/08/2014 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/08/2014 | ordered to third reading cal.324 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/22/2014 | committed to insurance | |||||||||||||||||||||||||||||||||||||||||||||||||
A06913 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
TITLE OF BILL: An act to amend the insurance law, in relation to limiting the scope of an insurer's reduction of insurance coverage by limiting the volume of notices of intention to not renew or condition renewal to four percent of the total number of covered policies of such insurer's rating territory; and in relation to establishing standards for definitions contained within such law; and to repeal certain provisions of the insurance law relating thereto PURPOSE: To limit an insurer's reduction of coverage by limiting the volume of notices of intention to four percent, establishes standards for defi- nitions; repealer. SUMMARY OF PROVISIONS: Section 1 requires that a plan be filed with the superintendent if an insurer plans to reduce the net number of homeowner's insurance policies within any such insurer's rating territory in use in this state by 20% or reduce the net number of such policies it writes by five hundred, within 5 years, whichever is greater. A plan shall also be required to be filed with the superintendent when an insurer plans to reduce the net number of such policies it has in force in a twelve month period within any such insurer's rating territory in use in this state by 4% or more or the net number of such policies it writes by one hundred, whichever is greater. Section 2 of the bill repeals section 5412(g) of the Insur- ance law, thereby making NYPIUA permanent. JUSTIFICATION: Section 1. Currently, an insurer may withdraw its homeowners' insurance coverage from an entire region of New York State without approaching the threshold requiring them to file a plan with the superintendent of insurance. This legislation would limit the amount an insurer could reduce its coverage of homeowners insurance policies to no more than 20% over five years or no more than 4% over twelve months per rating terri- tory in use in this state, Section 2. NYPIUA, a joint underwriting association made up of insurers writing property insurance in New York, affords the following coverage to commercial and residential policyholders unable to obtain such cover- age in the voluntary market: fire and extended coverage (such as wind- storm); vandalism and malicious mischief; sprinkler leakage; loss of rent; and business NYPIUA has served as a vital economic safety net in New York, taking in a surge of new policies for properties in New York's coastal areas in the mid-1990's. More recently, NYPIUA has seen growth in new commercial policies, as it has become difficult for some businesses to obtain coverage in the voluntary market. More than 50,000 homeowners and 7,000 businesses currently insure their properties in NYPIUA. Chapter 220 of the laws of 1986 added a new Insurance Law Section 5412 to NYPIUA's authorizing statute granting standby powers to the Associ- ation to write commercial risk insurance, public entity insurance, and professional liability insurance. The Association will write this cover- age only if the superintendent determines, after a public hearing, that it is necessarily due to the unavailability of meaningful coverage in a particular voluntary market. Chapter 42 of the Laws of 1996 added home- owners' insurance to the coverage NYPIUA could be activated to write. It is important that NYPRJA be made permanent and that the superintendent's ability to invoke this authority be preserved to ensure the availability of insurance when restrictive market conditions arise. The temporary nature of NYPTUA has precluded it from drawing on resources such as letters of credit, or a line of credit to ensure a ready cash flow should a catastrophic situation require an immediate response. LEGISLATIVE HISTORY: 2011: Referred to Insurance 2010: Referred to Insurance 2009: Referred to Insurance 2008-A. 2678-a--passed assembly 2007-A. 2678-Passed Assembly 2006-A. 10790-- passed Assembly FISCAL IMPLICATIONS: None. EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
A06913 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 6913 2013-2014 Regular Sessions IN ASSEMBLY April 24, 2013 ___________ Introduced by M. of A. SWEENEY, WEISENBERG, ENGLEBRIGHT, BRENNAN, ROBIN- SON, THIELE, TITUS -- Multi-Sponsored by -- M. of A. BOYLAND, MAGNAR- ELLI, MARKEY, MILLMAN, MORELLE, PERRY -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to limiting the scope of an insurer's reduction of insurance coverage by limiting the volume of notices of intention to not renew or condition renewal to four percent of the total number of covered policies of such insurer's rating territory; and in relation to establishing standards for definitions contained within such law; and to repeal certain provisions of the insurance law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (C) of paragraph 2 of subsection (o) of 2 section 3425 of the insurance law, as added by chapter 42 of the laws of 3 1996, is amended to read as follows: 4 (C) The superintendent shall promulgate rules and regulations to 5 establish standards for the definition of "materially reduce its volume 6 of policies" as used in this paragraph. Such definition shall require 7 that a plan be filed with the superintendent if the insurer plans to 8 reduce the net number of homeowners insurance policies as defined in 9 subsection (a) of section twenty-three hundred fifty-one of this chapter 10 within any such insurer's rating territory in use in this state by twen- 11 ty percent or more, or plans to reduce the net number of such policies 12 it writes by five hundred, whichever is greater, within a five year 13 period of time; provided, however, that if an insurer is not otherwise 14 required to file a plan pursuant to this subparagraph, a plan shall be 15 filed if the insurer plans to reduce the net number of such policies it 16 has in force in a twelve month period within any such insurer's rating 17 territory in use in this state by four percent or more or the net number 18 of such policies it writes by one hundred, whichever is greater. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03790-01-3A. 6913 2 1 The provisions of this subparagraph shall not apply to policies 2 cancelled or nonrenewed by the insured or policies not renewed or 3 cancelled pursuant to subparagraph (A), (B), (C), (D) or (E) of para- 4 graph two of subsection (c) of this section. 5 § 2. Subsection (g) of section 5412 of the insurance law is REPEALED. 6 § 3. This act shall take effect on the first of January next succeed- 7 ing the date on which it shall have become a law.