Requires the superintendent of financial services to conduct a review of the classification used by authorized insurers in this state issuing auto insurance coverage for commuter vans, including coverage in the assigned risk plan; makes related provisions.
STATE OF NEW YORK
________________________________________________________________________
9764
IN ASSEMBLY
February 10, 2020
___________
Introduced by M. of A. COOK -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to commuter van classi-
fication review
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 344 to
2 read as follows:
3 § 344. Commuter van classification review. (a) For the purposes of
4 this section:
5 (1) "Commuter van" shall have the same meaning as such term is defined
6 in section 19-502 of the administrative code of the city of New York.
7 (2) "Assigned risk plan" or "plan" shall mean the plan established
8 pursuant to article fifty-three of this chapter.
9 (b) The superintendent shall conduct a review of the classification
10 used by authorized insurers in this state issuing auto insurance cover-
11 age for commuter vans, including coverage in the assigned risk plan.
12 This review shall include determinations of whether commuter vans are
13 properly classified, including a review of:
14 (1) whether the assumed risks used in the calculation of premiums for
15 commuter vans by authorized insurers are appropriate;
16 (2) whether the current classification and risk assessment of commuter
17 vans by authorized insurers is the most cost effective classification
18 based on the assumed risks, if another classification could be more cost
19 effective, and a detailed analysis of the reason or reasons for such
20 differences in costs and the average amount of difference in costs; and
21 (3) the cost differential between the premium for being classified as
22 "other buses" by authorized insurers, and the premium for being classi-
23 fied as a commuter van where such premium is based solely on the risks
24 specific to commuter vans in such plan.
25 (c) If, after review, the premium for being classified as "other
26 buses" is greater than the premium for being classified as a commuter
27 van, the superintendent shall make a determination of whether a new
28 classification for commuter vans should be created and, if so, shall
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15099-01-0
A. 9764 2
1 require authorized insurers issuing auto insurance policies in this
2 state, including policies issued through the assigned risk plan, to use
3 such classification for commuter vans at the inception of all new poli-
4 cies and, with respect to all other policies, upon renewal.
5 (d) The superintendent shall conduct and complete this review and make
6 all required determinations within ninety days after the effective date
7 of this section. The superintendent shall also provide a report to the
8 governor, the temporary president of the senate, the speaker of the
9 assembly, the chair of the assembly insurance committee and the chair of
10 the senate insurance committee, of the department's findings and deter-
11 minations within sixty days after completing such review.
12 § 2. This act shall take effect immediately.
