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A07861 Summary:

A07861 Actions:

A07861 Committee Votes:

Committee:INSURANCE   Chair:Cahill      
DATE:05/23/2017AYE/NAY:21/0  Action: Favorable         
Cahill
Aye
Barclay
Aye
Cook
Aye
Butler
Aye
Pretlow
Aye
Hawley
Aye
Rivera
Excused
Blankenbush
Aye
Peoples-Stokes
Aye
Curran
Aye
Cymbrowitz
Aye
Walter
Aye
Lavine
Aye
Garbarino
Aye
Moya
Aye
Hevesi
Excused
Skoufis
Aye
Steck
Excused
Crespo
Aye
Joyner
Aye
Dilan
Excused
Hunter
Aye
Simotas
Aye
Walker
Aye
Niou
Aye

A07861 Floor Votes:

A07861 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7861
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 17, 2017
                                       ___________
 
        Introduced  by  M. of A. HUNTER, CAHILL -- (at request of the Department
          of Financial Services) -- read once and referred to the  Committee  on
          Insurance
 
        AN ACT to amend the insurance law in relation to extending provisions of
          the property/casualty insurance availability act

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 2342 of the insurance law, as amended by section  6
     2  of  part  B  of  chapter  78  of the laws of 2014, is amended to read as
     3  follows:
     4    § 2342. Expiration of certain provisions. The provisions of subsection
     5  (c) of section two thousand three hundred seven,  section  two  thousand
     6  three  hundred  eight,  subsection  (a)  of  section  two thousand three
     7  hundred ten, sections two thousand three hundred sixteen,  two  thousand
     8  three hundred twenty, two thousand three hundred twenty-three, two thou-
     9  sand  three  hundred  twenty-six, and two thousand three hundred thirty-
    10  five, and subsection (b) of section two thousand three  hundred  thirty-
    11  six  of this article shall cease to be of any force or effect during the
    12  period August third, two thousand one through the day before the  effec-
    13  tive date of the property/casualty insurance availability act, and after
    14  June thirtieth, two thousand [seventeen] twenty.
    15    §  2.  Subsection (f) of section 2305 of the insurance law, as amended
    16  by section 4 of part B of chapter 78 of the laws of 2014, is amended  to
    17  read as follows:
    18    (f)  Subsection  (a)  of  this  section shall be of no force or effect
    19  during the period August third, two thousand one through the day  before
    20  the  effective date of the property/casualty insurance availability act,
    21  and after June thirtieth, two thousand [seventeen]  twenty.  During  the
    22  period  August third, two thousand one through the day before the effec-
    23  tive date of the property/casualty insurance availability act, and again
    24  commencing on July first, two thousand  [seventeen]  twenty,  all  rates
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10205-01-7
        A. 7861                             2
 
     1  previously  subject  to subsection (a) of this section, other than rates
     2  that are not required to be filed pursuant to subsection (b) of  section
     3  two  thousand  three  hundred  ten  of  this  article  or that have been
     4  suspended  from  the filing requirement pursuant to section two thousand
     5  three  hundred  eleven  of  this  article,  shall  become   subject   to
     6  subsections  (b),  (c)  and (d) of this section. All other provisions of
     7  this article applicable to kinds of insurance  or  insurance  activities
     8  the  rates  for which are subject to prior approval under subsection (b)
     9  of this section shall apply to kinds of insurance the  rates  for  which
    10  were  previously  subject to subsection (a) of this section or the rates
    11  for which are not required to be filed pursuant  to  subsection  (b)  of
    12  section  two thousand three hundred ten of this article or the rates for
    13  which have been  suspended  from  the  filing  requirement  pursuant  to
    14  section two thousand three hundred eleven of this article.
    15    §  3.  Subsection (h) of section 2344 of the insurance law, as amended
    16  by section 7 of part B of chapter 78 of the laws of 2014, is amended  to
    17  read as follows:
    18    (h)  This  section shall cease to be of any force or effect during the
    19  period August third, two thousand one through the day before the  effec-
    20  tive date of the property/casualty insurance availability act, and after
    21  June thirtieth, two thousand [seventeen] twenty, except that rates shall
    22  reflect the likely reductive cost effects reasonably attributable to the
    23  statutory  provisions  specified  in  paragraph one of subsection (g) of
    24  this section.
    25    § 4. Paragraphs 1 and 2 and the opening paragraph of  paragraph  3  of
    26  subsection  (m)  of  section  3425  of  the insurance law, as amended by
    27  section 3 of part B of chapter 78 of the laws of 2014,  are  amended  to
    28  read as follows:
    29    (1)  Paragraphs  eight  and nine of subsection (a), subsection (f) and
    30  subparagraphs (B) and (E) of paragraph one of  subsection  (j)  of  this
    31  section  shall  not apply to any new covered policy of automobile insur-
    32  ance voluntarily written on or  after  August  first,  nineteen  hundred
    33  eighty-five and prior to January first, nineteen hundred eighty-six, and
    34  on  or  after August second, two thousand one and prior to the effective
    35  date of the property/casualty insurance  availability  act,  and  on  or
    36  after  June  thirtieth,  two  thousand [seventeen] twenty, but the legal
    37  rights granted to insurers or policyholders under such provisions  shall
    38  not be extinguished or impaired thereby.
    39    (2)  In  lieu  of  such provisions, paragraph seven of subsection (a),
    40  subparagraph (A) of paragraph one of subsection (j) of this section  and
    41  paragraph three of this subsection shall apply to such automobile insur-
    42  ance  policies  that are newly and voluntarily written to have an effec-
    43  tive date on or after August first,  nineteen  hundred  eighty-five  and
    44  prior  to  January  first,  nineteen hundred eighty-six, and on or after
    45  August second, two thousand one and prior to the effective date  of  the
    46  property/casualty insurance availability act, and on or after June thir-
    47  tieth, two thousand [seventeen] twenty.
    48    On  and  after August first, nineteen hundred eighty-five and prior to
    49  January first, nineteen hundred  eighty-six,  and  on  or  after  August
    50  second,  two  thousand  one  and  prior  to  the  effective  date of the
    51  property/casualty insurance availability act, and on or after June thir-
    52  tieth, two thousand [seventeen]  twenty,  no  notice  of  nonrenewal  or
    53  conditional  renewal  of  such  covered  automobile  insurance  policies
    54  referred to in this subsection  shall  be  issued  to  become  effective
    55  during  the  required policy period unless it is based upon a ground for
    56  which the policy could have been cancelled or unless it  is  based  upon
        A. 7861                             3
 
     1  one or more of the following grounds that occurred during the thirty-six
     2  month  period  ending  on the last day of the fourth month preceding the
     3  month of the effective date of such notice of nonrenewal or  conditional
     4  renewal:
     5    §  5.  Sections  2328  and  2329  of  the insurance law, as amended by
     6  section 1 of part B of chapter 78 of the laws of 2014,  are  amended  to
     7  read as follows:
     8    § 2328. Certain motor vehicle insurance rates; prior approval. For the
     9  periods  February  first,  nineteen  hundred seventy-four through August
    10  second,  two   thousand   one,   and   the   effective   date   of   the
    11  property/casualty insurance availability act through June thirtieth, two
    12  thousand  [seventeen]  twenty, no changes in rates, rating plans, rating
    13  rules and rate manuals applicable to motor vehicle insurance,  including
    14  no-fault  coverages  under  article  fifty-one of this chapter, shall be
    15  made effective until approved by the superintendent, notwithstanding any
    16  inconsistent provisions of this article; provided, however, that changes
    17  in such rates, rating plans, rating rules and rate manuals may  be  made
    18  effective  without  such  approval  if  the  rates that result from such
    19  changes are no higher than the insurer's  rates  last  approved  by  the
    20  superintendent. This section shall apply only to policies covering loss-
    21  es or liabilities arising out of ownership of a motor vehicle used prin-
    22  cipally for the transportation of persons for hire, including a bus or a
    23  school  bus  as  defined  in  sections  one hundred four and one hundred
    24  forty-two of the vehicle and traffic law.
    25    § 2329. Motor vehicle insurance rates; excess profits.  In  accordance
    26  with  regulations prescribed by the superintendent, each insurer issuing
    27  policies that are subject to article fifty-one of this chapter,  includ-
    28  ing  policies  of  motor  vehicle personal injury liability insurance or
    29  policies of motor vehicle property damage liability insurance or  insur-
    30  ance  for  loss  or  damage  to a motor vehicle, shall establish a fair,
    31  practicable, and nondiscriminatory plan for refunding or otherwise cred-
    32  iting to those purchasing such policies their  share  of  the  insurer's
    33  excess  profit,  if  any,  on such policies. An excess profit shall be a
    34  profit beyond a percentage rate of return on net worth  attributable  to
    35  such  policies,  computed  in accordance with the regulation required by
    36  section two thousand three hundred twenty-three  of  this  article,  and
    37  determined by the superintendent to be so far above a reasonable average
    38  profit  as  to amount to an excess profit, taking into consideration the
    39  fact that losses or profits below a reasonable average profit  will  not
    40  be  recouped  from  such  policyholders. Each plan shall apply to policy
    41  periods for the periods January  first,  nineteen  hundred  seventy-four
    42  through  August  second, two thousand one, and the effective date of the
    43  property/casualty insurance availability act through June thirtieth, two
    44  thousand [seventeen] twenty.  In prescribing such regulations the super-
    45  intendent may limit the duration of such plans,  waive  any  requirement
    46  for  refund  or  credit  that  he  or she determines to be de minimis or
    47  impracticable, adopt forms of returns that shall be made to him  or  her
    48  in  order to establish the amount of any refund or credit due, establish
    49  periods and times for the determination and distribution of refunds  and
    50  credits,  and  shall  provide  that  insurers receive appropriate credit
    51  against any refunds or credits required by any such plan for policyhold-
    52  er dividends and for return premiums that may be due under  rate  credit
    53  or retrospective rating plans based on experience.
    54    §  6.  Subsection (g) of section 5412 of the insurance law, as amended
    55  by section 8 of part B of chapter 78 of the laws of 2014, is amended  to
    56  read as follows:
        A. 7861                             4
 
     1    (g)  The  provisions of this section shall cease to be of any force or
     2  effect on or after June  thirtieth,  two  thousand  [seventeen]  twenty,
     3  except that policies issued or other obligations incurred by the associ-
     4  ation  shall  not  be impaired by the expiration of this section and the
     5  association  shall  continue  for the purpose of servicing such policies
     6  and performing such obligations.
     7    § 7. This act shall take effect immediately.