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S07189 Summary:

S07189 Actions:

S07189 Committee Votes:

S07189 Floor Votes:

S07189 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7189
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                      May 18, 2023
                                       ___________
 
        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance
 
        AN ACT to amend the insurance law, in relation to  extending  provisions
          of  the property/casualty insurance availability act and the authority
          of the New York property insurance underwriting association

          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 1
     2  of item JJ of subpart B of part XXX of chapter 58 of the laws  of  2020,
     3  is amended to read as 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 [twenty-three] twenty-six.
    15    § 2. Subsection (f) of section 2305 of the insurance law,  as  amended
    16  by  section  2  of item JJ of subpart B of part XXX of chapter 58 of the
    17  laws of 2020, is amended to 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 [twenty-three] twenty-six. During
    22  the  period  August  third,  two thousand one through the day before the
    23  effective date of the property/casualty insurance availability act,  and
    24  again  commencing on July first, two thousand [twenty-three] twenty-six,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11524-01-3
        S. 7189                             2
 
     1  all rates previously subject to subsection (a) of  this  section,  other
     2  than  rates that are not required to be filed pursuant to subsection (b)
     3  of section two thousand three hundred ten of this article or  that  have
     4  been suspended from the filing requirement pursuant to section two thou-
     5  sand  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  3  of item JJ of subpart B of part XXX of chapter 58 of the
    17  laws of 2020, is amended to 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  [twenty-three]  twenty-six,  except  that
    22  rates shall reflect the likely reductive cost effects reasonably attrib-
    23  utable  to  the  statutory  provisions  specified  in  paragraph  one of
    24  subsection (g) of this section.
    25    § 4. Sections 2328 and 2329  of  the  insurance  law,  as  amended  by
    26  section  5 of item JJ of subpart B of part XXX of chapter 58 of the laws
    27  of 2020, are amended to read as follows:
    28    § 2328. Certain motor vehicle insurance rates; prior approval. For the
    29  periods February first, nineteen  hundred  seventy-four  through  August
    30  second,   two   thousand   one,   and   the   effective   date   of  the
    31  property/casualty insurance availability act through June thirtieth, two
    32  thousand [twenty-three] twenty-six, no changes in rates,  rating  plans,
    33  rating  rules  and  rate  manuals applicable to motor vehicle insurance,
    34  including no-fault coverages under article fifty-one  of  this  chapter,
    35  shall  be  made effective until approved by the superintendent, notwith-
    36  standing any inconsistent provisions of this article; provided, however,
    37  that changes in such rates, rating plans, rating rules and rate  manuals
    38  may  be  made  effective  without such approval if the rates that result
    39  from such changes are no higher than the insurer's rates  last  approved
    40  by  the superintendent. This section shall apply only to policies cover-
    41  ing losses or liabilities arising out of ownership of  a  motor  vehicle
    42  used principally for the transportation of persons for hire, including a
    43  bus  or  a  school  bus  as defined in sections one hundred four and one
    44  hundred forty-two of the vehicle and traffic law.
    45    § 2329. Motor vehicle insurance rates; excess profits.  In  accordance
    46  with  regulations prescribed by the superintendent, each insurer issuing
    47  policies that are subject to article fifty-one of this chapter,  includ-
    48  ing  policies  of  motor  vehicle personal injury liability insurance or
    49  policies of motor vehicle property damage liability insurance or  insur-
    50  ance  for  loss  or  damage  to a motor vehicle, shall establish a fair,
    51  practicable, and nondiscriminatory plan for refunding or otherwise cred-
    52  iting to those purchasing such policies their  share  of  the  insurer's
    53  excess  profit,  if  any,  on such policies. An excess profit shall be a
    54  profit beyond a percentage rate of return on net worth  attributable  to
    55  such  policies,  computed  in accordance with the regulation required by
    56  section two thousand three hundred twenty-three  of  this  article,  and
        S. 7189                             3
 
     1  determined by the superintendent to be so far above a reasonable average
     2  profit  as  to amount to an excess profit, taking into consideration the
     3  fact that losses or profits below a reasonable average profit  will  not
     4  be  recouped  from  such  policyholders. Each plan shall apply to policy
     5  periods for the periods January  first,  nineteen  hundred  seventy-four
     6  through  August  second, two thousand one, and the effective date of the
     7  property/casualty insurance availability act through June thirtieth, two
     8  thousand [twenty-three] twenty-six.  In prescribing such regulations the
     9  superintendent may limit the duration of such plans, waive any  require-
    10  ment for refund or credit that [he or she] the superintendent determines
    11  to  be de minimis or impracticable, adopt forms of returns that shall be
    12  made to [him or her] the superintendent in order to establish the amount
    13  of any refund or credit due, establish periods and times for the  deter-
    14  mination and distribution of refunds and credits, and shall provide that
    15  insurers  receive  appropriate  credit  against  any  refunds or credits
    16  required by any such plan for  policyholder  dividends  and  for  return
    17  premiums that may be due under rate credit or retrospective rating plans
    18  based on experience.
    19    §  5.  Paragraphs  1 and 2 and the opening paragraph of paragraph 3 of
    20  subsection (m) of section 3425 of  the  insurance  law,  as  amended  by
    21  section  4 of item JJ of subpart B of part XXX of chapter 58 of the laws
    22  of 2020, are amended to read as follows:
    23    (1) Paragraphs eight and nine of subsection (a),  subsection  (f)  and
    24  subparagraphs  (B)  and  (E)  of paragraph one of subsection (j) of this
    25  section shall not apply to any new covered policy of  automobile  insur-
    26  ance  voluntarily  written  on  or  after August first, nineteen hundred
    27  eighty-five and prior to January first, nineteen hundred eighty-six, and
    28  on or after August second, two thousand one and prior to  the  effective
    29  date  of  the  property/casualty  insurance  availability act, and on or
    30  after June thirtieth, two thousand [twenty-three]  twenty-six,  but  the
    31  legal  rights granted to insurers or policyholders under such provisions
    32  shall not be extinguished or impaired thereby.
    33    (2) In lieu of such provisions, paragraph  seven  of  subsection  (a),
    34  subparagraph  (A) of paragraph one of subsection (j) of this section and
    35  paragraph three of this subsection shall apply to such automobile insur-
    36  ance policies that are newly and voluntarily written to have  an  effec-
    37  tive  date  on  or  after August first, nineteen hundred eighty-five and
    38  prior to January first, nineteen hundred eighty-six,  and  on  or  after
    39  August  second,  two thousand one and prior to the effective date of the
    40  property/casualty insurance availability act, and on or after June thir-
    41  tieth, two thousand [twenty-three] twenty-six.
    42    On and after August first, nineteen hundred eighty-five and  prior  to
    43  January  first,  nineteen  hundred  eighty-six,  and  on or after August
    44  second, two thousand  one  and  prior  to  the  effective  date  of  the
    45  property/casualty insurance availability act, and on or after June thir-
    46  tieth,  two  thousand [twenty-three] twenty-six, no notice of nonrenewal
    47  or conditional renewal of such  covered  automobile  insurance  policies
    48  referred  to  in  this  subsection  shall  be issued to become effective
    49  during the required policy period unless it is based upon a  ground  for
    50  which  the  policy  could have been cancelled or unless it is based upon
    51  one or more of the following grounds that occurred during the thirty-six
    52  month period ending on the last day of the fourth  month  preceding  the
    53  month  of the effective date of such notice of nonrenewal or conditional
    54  renewal:
    55    § 6. Subsection (g) of section 5402 of the insurance law,  as  amended
    56  by chapter 70 of the laws of 2019, is amended to read as follows:
        S. 7189                             4
 
     1    (g)  In  addition  to  fire insurance, extended coverage, coverage for
     2  additional perils and homeowners  insurance  should  the  same  be  made
     3  available  through the association in accordance with a determination of
     4  necessity pursuant to section five thousand four hundred twelve of  this
     5  article,  the  association  may  offer broad form coverage to applicants
     6  seeking to insure real property at fixed locations of this state, or the
     7  tangible personal property located thereon. The  association  may  offer
     8  broad  form  coverage [for a period of fifteen years beginning on] until
     9  June thirtieth, two thousand [eight] twenty-eight.  On or before October
    10  first, two thousand [seventeen] twenty-seven  the  superintendent  shall
    11  require  the association to report to [him or her] the superintendent as
    12  to the number of policies written pursuant to this subsection and  para-
    13  graph three of subsection (f) of section five thousand four hundred five
    14  of  this  article,  and  any  other  information  the superintendent may
    15  require. On or before January first,  two  thousand  [eighteen]  twenty-
    16  eight,  the superintendent shall report to the governor and the legisla-
    17  ture regarding the number of policies issued pursuant  to  this  section
    18  and such paragraph and shall include recommendations as to the continua-
    19  tion of such insurance offerings.
    20    §  7.  Subsection (g) of section 5412 of the insurance law, as amended
    21  by section 6 of item JJ of subpart B of part XXX of chapter  58  of  the
    22  laws of 2020, is amended to read as follows:
    23    (g)  The  provisions of this section shall cease to be of any force or
    24  effect on or after June thirtieth, two thousand  [twenty-three]  twenty-
    25  six,  except  that  policies issued or other obligations incurred by the
    26  association shall not be impaired by the expiration of this section  and
    27  the  association  shall continue for the purpose of servicing such poli-
    28  cies and performing such obligations.
    29    § 8. This act shall take effect immediately.