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A10629 Summary:

BILL NOA10629
 
SAME ASSAME AS S09099
 
SPONSORRules (Lunsford)
 
COSPNSR
 
MLTSPNSR
 
Amd §7903, Ins L
 
Relates to paintless dent repair rate filing.
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A10629 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10629
 
SPONSOR: Rules (Lunsford)
  TITLE OF BILL: An act to amend the insurance law, in relation to paintless dent repair rate filing   PURPOSE OR GENERAL IDEA OF BILL: This bill amends the Insurance Law by removing the requirement to fill certain rates with the NY Department of Financial Services ("DFS") in order to increase competition among providers and lower prices for consumers.   SUMMARY OF PROVISIONS: Section 1 of the bill amends section 7903(a) of the insurance law by removing the rate filing requirement for service contract providers selling paintless dent repair and/or windshield repair services. Section 2 is the effective date.   JUSTIFICATION: Traditional insurance companies are often required to file rates with regulators. However, service contracts are exempt from typical insurance regulation and therefore, service providers are also typically exempt from these rate filing requirements. (New York exempts service contracts from the Insurance Law, save for Article 79 which specifically addresses such contracts.) DFS currently requires service contract providers selling paintless dent repair or windshield repair service contracts to file with it the exact rates charged for these products. Service contract providers are further required to notify DFS at least thirty days before implementing any rate change. These requirements pin service contract providers to a specific rate, often forcing them to file higher rates in anticipation of poten- tial, though yet unsubstantiated market changes. Further, DFS's inter- pretation of the current law (as requiring providers to file the exact rate to be charged, rather than the maximum rate to be charged) stifles consumers, preventing them from negotiating a lower rate with the provider at the time of sale. This bill removes the onerous rate filing requirements, empowering consumers to negotiate lower rates when purchasing paintless dent repair or windshield repair protection. It also allows providers to adjust their rates to more closely match current market conditions, alleviating the need for providers to overestimate costs and promoting lower rates and cost savings for consumers.   PRIOR LEGISLATIVE HISTORY: New bill FISCAL IMPLICATIONS: None to the State.   EFFECTIVE DATE: This act shall take effect immediately.
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A10629 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10629
 
                   IN ASSEMBLY
 
                                      July 6, 2022
                                       ___________
 
        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Lunsford) --
          read once and referred to the Committee on Insurance
 
        AN  ACT to amend the insurance law, in relation to paintless dent repair
          rate filing
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subsection  (a)  of section 7903 of the insurance law, as
     2  amended by chapter 409 of the laws  of  2012,  is  amended  to  read  as
     3  follows:
     4    (a) Notwithstanding any other provision of this chapter to the contra-
     5  ry,  the marketing, sale, offering for sale, issuance, making, proposing
     6  to make and administration of service contracts by any provider,  admin-
     7  istrator  or  other person, shall be exempt from all other provisions of
     8  this chapter. A provider may, but is not required to, appoint an  admin-
     9  istrator  or  other  designee  to  be  responsible for any or all of the
    10  administration of service contracts and compliance  with  this  article.
    11  Notwithstanding  any  other  provision  of this article, a provider of a
    12  service contract, as defined in paragraphs two and three  of  subsection
    13  (k)  of  section seven thousand nine hundred two of this article, shall,
    14  at least thirty days prior to the effective date of an initial  provider
    15  fee,  or a change in a provider fee, file the amount of the provider fee
    16  with the  superintendent  and  such  filing  shall  be  open  to  public
    17  inspection;  and provided further that the provider fee shall not exceed
    18  the amount filed; and provided  further  that  the  provisions  of  this
    19  subsection  shall  not  apply  to  contracts  under  paragraph  three of
    20  subsection (k) of section seven thousand nine hundred two of this  arti-
    21  cle.    The  requirement to file the amount of the provider fee with the
    22  superintendent in this subsection shall not apply to fees set  forth  in
    23  any agreement to which an authorized insurer is a party.
    24    § 2. This act shall take effect immediately.
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15494-01-2
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