S T A T E   O F   N E W   Y O R K
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                                  1746

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             January 9, 2009
                               ___________

Introduced  by  M.  of  A.  ENGLEBRIGHT,  SWEENEY, HOYT, CAHILL, WRIGHT,
  GABRYSZAK -- Multi-Sponsored by -- M. of A. BRENNAN, COLTON,  CYMBROW-
  ITZ, EDDINGTON, JACOBS, KOON, MAYERSOHN, ORTIZ, PHEFFER, TOWNS -- read
  once and referred to the Committee on Insurance

AN  ACT  to amend the insurance law, in relation to improving disclosure
  to automobile insurance consumers; and to amend the executive law, the
  insurance law and the state administrative procedure act, in  relation
  to  establishing  an  independent  office of public insurance consumer
  advocate and establishing its powers and duties

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The insurance law is amended by adding a new article 5 to
read as follows:
                                ARTICLE 5
                AUTOMOBILE INSURANCE CONSUMER INFORMATION
SECTION 501. TITLE; LEGISLATIVE DECLARATION AND PURPOSE.
        502. AUTOMOBILE INSURANCE  CONSUMER  INFORMATION  AND  COMPLAINT
               RANKINGS.
        503. CONSUMER RATING FACTORS.
        504. DISCLOSURE PROCEDURES.
        505. NONINTERFERENCE WITH OBTAINING COVERAGE.
        506. PUBLIC OUTREACH.
  S  501. TITLE; LEGISLATIVE DECLARATION AND PURPOSE. THIS ARTICLE SHALL
BE KNOWN AND MAY BE CITED AS THE "AUTOMOBILE INSURANCE CONSUMER INFORMA-
TION ACT".
  THE LEGISLATURE  FINDS  AND  DECLARES  THAT  AUTOMOBILE  INSURANCE  IS
REQUIRED BY LAW FOR ALL RESIDENTS WHO DRIVE AND THAT THE COST OF AUTOMO-
BILE  INSURANCE REPRESENTS A SUBSTANTIAL EXPENSE FOR MANY CONSUMERS. THE
LEGISLATURE FURTHER FINDS THAT THE PREMIUM COSTS FOR ANY GIVEN  INDIVID-
UAL  FOR  IDENTICAL  INSURANCE COVERAGE FROM DIFFERENT LICENSED INSURERS
CAN VARY WIDELY AND THAT WIDE VARIATIONS ALSO EXIST IN  THE  QUALITY  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05091-01-9
              

A. 1746                             2

SERVICE  PROVIDED  BY  INSURERS  AS  MEASURED BY THE DEPARTMENT'S ANNUAL
COMPLAINT HANDLING RANKINGS. IN ADDITION, THE LEGISLATURE FINDS THAT FEW
CONSUMERS ARE AWARE OF THESE WIDE COST  AND  QUALITY  OF  SERVICE  VARI-
ATIONS,  THAT  AS  A  RESULT  CONSUMERS  AS  A GROUP MAY PAY HUNDREDS OF
MILLIONS OF DOLLARS ANNUALLY FOR OVERPRICED POLICIES AND THAT INDIVIDUAL
CONSUMERS MAY ENCOUNTER UNNECESSARY DIFFICULTY IN HAVING  THEIR  AUTOMO-
BILE  INSURANCE CLAIMS AND COMPLAINTS HANDLED EXPEDITIOUSLY.  THE LEGIS-
LATURE FURTHER FINDS AND DECLARES THAT IT INTENDS FOR THE SUPERINTENDENT
AND THE DEPARTMENT TO  HAVE BROAD AUTHORITY UNDER THIS ARTICLE TO ESTAB-
LISH MECHANISMS TO FULLY INFORM  CONSUMERS  AS  TO  WHICH  POLICIES  ARE
AVAILABLE TO THEM AT THE LOWEST POSSIBLE COST AND WHICH INSURERS PROVIDE
THE  HIGHEST QUALITY OF SERVICE. THE LEGISLATURE INTENDS WITH THIS ARTI-
CLE TO CREATE CERTAIN DISCLOSURE REQUIREMENTS THAT WILL MAKE SUCH INFOR-
MATION MORE READILY AVAILABLE TO ALL CONSUMERS.  INCREASED  AVAILABILITY
OF  INFORMATION IS INTENDED TO MAKE THE AUTOMOBILE INSURANCE SYSTEM MORE
COMPETITIVE WITH RESPECT TO BOTH COST OF COVERAGE  AND  THE  QUALITY  OF
SERVICE.
  S  502.  AUTOMOBILE INSURANCE CONSUMER INFORMATION AND COMPLAINT RANK-
INGS. (A)  THE  SUPERINTENDENT  SHALL  MAINTAIN  A  DATABASE  CONTAINING
NONBUSINESS AUTOMOBILE INSURANCE RATE INFORMATION AND COMPLAINT RANKINGS
FOR ALL COMPANIES LICENSED TO DO BUSINESS IN THE STATE.
  (B) EVERY PERSON, UPON MAKING AN INQUIRY TO THE DEPARTMENT AND PROVID-
ING  THE  INFORMATION  SPECIFIED  IN  SECTION FIVE HUNDRED THREE OF THIS
ARTICLE, SHALL BE MAILED WITHIN FIVE BUSINESS DAYS, OR, AT THE OPTION OF
THE PERSON, RECEIVE AT THE TIME OF SUCH INQUIRY:
  (1) THE NAMES, ADDRESSES, TELEPHONE NUMBERS AND, IF  APPROPRIATE,  WEB
SITE  ADDRESSES OF THE FIVE COMPANIES HAVING THE LOWEST PREMIUMS FOR THE
REQUESTED PACKAGE OF  COVERAGE  THAT  WOULD  WRITE  INSURANCE  FOR  SUCH
PERSON; THE TOTAL COST FOR THE PACKAGE OF COVERAGE FROM EACH SUCH INSUR-
ER; AND THE MOST RECENT COMPLAINT RANKING OF EACH SUCH INSURER;
  (2)  THE  NAMES, ADDRESSES, TELEPHONE NUMBERS AND, IF APPROPRIATE, WEB
SITE ADDRESSES OF THE FIVE COMPANIES HAVING THE BEST COMPLAINT  RANKINGS
THAT  WOULD  WRITE INSURANCE FOR SUCH PERSON, AND THE TOTAL COST FOR THE
PACKAGE OF COVERAGE FROM EACH INSURER LISTED;
  (3) AN EXPLANATION OF HOW TO OBTAIN FROM  SUCH  COMPANIES  THE  NAMES,
ADDRESSES, TELEPHONE NUMBERS, AND, IF APPROPRIATE, WEB SITE ADDRESSES OF
THOSE  AGENTS,  BROKERS  OR SALES REPRESENTATIVES OF SUCH COMPANIES THAT
ARE SITUATED IN A LOCATION REASONABLY CONVENIENT TO THE PERSON; AND
  (4) UNTIL SUCH DATABASE IS ESTABLISHED, THE DEPARTMENT  SHALL  PROVIDE
PERSONS  MAKING AN INQUIRY THE DEPARTMENT'S ANNUAL RANKING OF AUTOMOBILE
INSURANCE COMPLAINTS AND CONSUMERS GUIDE TO AUTO INSURANCE.   AFTER  THE
DATABASE  IS  ESTABLISHED,  IF THE PERSON MAKING AN INQUIRY PREFERS, THE
DEPARTMENT MAY PROVIDE, IN LIEU OF THE INFORMATION  SPECIFIED  IN  PARA-
GRAPHS  ONE,  TWO  AND THREE OF THIS SUBSECTION, THE DEPARTMENT'S ANNUAL
RANKING OF AUTOMOBILE INSURANCE COMPLAINTS, AND CONSUMER GUIDE  TO  AUTO
INSURANCE.
  S 503. CONSUMER RATING FACTORS. IN ORDER TO RECEIVE THE LIST OF LOWEST
COST INSURERS DESCRIBED IN SECTION FIVE HUNDRED TWO OF THIS ARTICLE, THE
PERSON SHALL PROVIDE THE FOLLOWING INFORMATION:
  (A)  THE  PLACE  IN  WHICH  THE VEHICLE IS GARAGED OR STORED, OR OTHER
INFORMATION NEEDED TO DETERMINE GEOGRAPHICAL TERRITORY;
  (B) THE AGE, SEX, MARITAL  STATUS  AND  OTHER  INFORMATION  NEEDED  TO
DETERMINE THE DRIVER CLASS OF THE PRINCIPAL AND OCCASIONAL OPERATORS;
  (C) THE MAKE, MODEL AND YEAR OF THE AUTOMOBILE;
  (D) INFORMATION RELATING TO QUALIFICATION FOR DISCOUNTS;

A. 1746                             3

  (E)  INFORMATION  RELATING  TO  SURCHARGES OR CREDITS BASED ON DRIVING
RECORD OR DRIVING COURSES TAKEN;
  (F) DESIRED EFFECTIVE DATE OF THE POLICY;
  (G) DESIRED COVERAGES; AND
  (H)  SUCH  OTHER  INFORMATION  AS THE SUPERINTENDENT MAY BY REGULATION
REQUIRE.
  S 504. DISCLOSURE PROCEDURES. EVERY POLICY OF  NONBUSINESS  AUTOMOBILE
INSURANCE  DELIVERED, ISSUED FOR DELIVERY, RENEWED OR ISSUED FOR RENEWAL
IN THIS STATE SHALL INCLUDE A NOTICE PRESCRIBED BY THE SUPERINTENDENT IN
REGULATION OF THE AVAILABILITY OF  THE  INFORMATION  AND  PROCEDURE  FOR
OBTAINING  SUCH  INFORMATION  DESCRIBED IN SECTIONS FIVE HUNDRED TWO AND
FIVE HUNDRED THREE OF  THIS  ARTICLE.  SUCH  NOTICE  SHALL  INCLUDE  THE
DEPARTMENT'S ADDRESS, TELEPHONE NUMBER AND WEB SITE ADDRESS.
  S 505. NONINTERFERENCE WITH OBTAINING COVERAGE. NO APPLICANT FOR AUTO-
MOBILE  INSURANCE SHALL BE PREVENTED OR DELAYED IN EFFECTING OR APPLYING
FOR COVERAGE BY THE REQUIREMENTS OF SECTION FIVE HUNDRED  FOUR  OF  THIS
ARTICLE. IN THOSE CASES WHERE, PRIOR TO OR AT THE TIME AN APPLICATION IS
TAKEN,  IT IS IMPRACTICAL TO PROVIDE ANY DISCLOSURE DOCUMENTS PRESCRIBED
BY SECTION FIVE HUNDRED FOUR OF THIS ARTICLE, SUCH  DOCUMENTS  SHALL  BE
FURNISHED  AS  SOON  THEREAFTER AS PRACTICAL AND, IN ANY EVENT, NO LATER
THAN AT THE TIME THE POLICY IS DELIVERED.   WHERE ANY SUCH  DOCUMENT  IS
NOT  PROVIDED  AS REQUIRED BY SECTION FIVE HUNDRED FOUR OF THIS ARTICLE,
THE APPLICANT MAY, NO LATER THAN THIRTY DAYS FOLLOWING  RECEIPT  OF  THE
POLICY,  AND  NOTWITHSTANDING  THE  PROVISIONS OF SECTION THREE THOUSAND
FOUR HUNDRED TWENTY-EIGHT OF THIS CHAPTER, RETURN THE POLICY FOR  A  PRO
RATA  REFUND  OF  PREMIUMS  PAID. A CLEAR AND CONSPICUOUS WRITTEN NOTICE
EXPLAINING THIS REFUND PROVISION, IN LANGUAGE PROMULGATED BY THE  SUPER-
INTENDENT, SHALL BE DELIVERED WITH THE POLICY.
  S  506. PUBLIC OUTREACH. THE DEPARTMENT SHALL CONDUCT PUBLIC EDUCATION
AND OUTREACH TO INFORM CONSUMERS AS TO THE AVAILABILITY OF  AND  HOW  TO
ACCESS  THE  CONSUMER  INFORMATION PRESCRIBED BY THIS ARTICLE.  NOTWITH-
STANDING ANY INCONSISTENT LAW TO THE CONTRARY, NO ADVERTISEMENT  UTILIZ-
ING  ELECTRONIC  MEANS,  (INCLUDING BUT NOT LIMITED TO RADIO, TELEVISION
AND  THE  INTERNET)  PUBLIC  SERVICE  ANNOUNCEMENT  OR  OTHER  BROADCAST
PRODUCED OR DISTRIBUTED PURSUANT TO THIS SECTION SHALL FEATURE THE LIKE-
NESS,  PICTURE  OR  VOICE  OF  A  STATEWIDE ELECTED OFFICIAL OR A FAMILY
MEMBER OF SUCH OFFICIAL.
  S 2. If any provision of section one of this act  or  the  application
thereof  to any person or circumstances be adjudged invalid by any court
of competent jurisdiction, such judgment shall be confined in its opera-
tion to the provision or application or persons or circumstances direct-
ly involved in the controversy in which such judgment  shall  have  been
rendered and shall not affect or impair the validity of the remainder of
this act or the application thereof to other persons or circumstances.
  S 3. The executive law is amended by adding a new article 44-A to read
as follows:
                               ARTICLE 44-A
              OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE
SECTION 945. OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE.
        946. PUBLIC INSURANCE CONSUMER ADVOCATE.
        947. POWERS AND DUTIES.
  S  945. OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE.  THERE IS HEREBY
CREATED IN THE EXECUTIVE DEPARTMENT  AN  INDEPENDENT  OFFICE  OF  PUBLIC
INSURANCE  CONSUMER ADVOCATE (HEREINAFTER REFERRED TO IN THIS ARTICLE AS
"OFFICE") TO REPRESENT  THE  INTERESTS  OF  NONBUSINESS  AUTOMOBILE  AND
HEALTH INSURANCE CONSUMERS IN THE STATE.

A. 1746                             4

  S  946.  PUBLIC INSURANCE CONSUMER ADVOCATE. 1. THE GOVERNOR, WITH THE
ADVICE AND CONSENT OF THE  SENATE,  SHALL  APPOINT  A  PUBLIC  INSURANCE
CONSUMER  ADVOCATE  (HEREINAFTER  REFERRED  TO IN THIS ARTICLE AS "ADVO-
CATE") WHO SHALL SERVE AS THE EXECUTIVE DIRECTOR OF THE OFFICE OF PUBLIC
INSURANCE  CONSUMER  ADVOCATE  AND  SHALL RECEIVE AN ANNUAL SALARY TO BE
FIXED BY THE GOVERNOR WITHIN THE AMOUNT AVAILABLE THEREFOR BY  APPROPRI-
ATION.
  2.  (A)  TO BE ELIGIBLE TO SERVE AS ADVOCATE, A PERSON MUST BE A RESI-
DENT OF THE STATE. THE ADVOCATE SHALL BE A PERSON WHO HAS DEMONSTRATED A
STRONG COMMITMENT TO AND INVOLVEMENT IN EFFORTS TO SAFEGUARD THE  RIGHTS
OF  THE PUBLIC, AND WHO POSSESSES THE KNOWLEDGE AND EXPERIENCE NECESSARY
TO PRACTICE EFFECTIVELY IN INSURANCE PROCEEDINGS.
  (B) A PERSON SHALL NOT BE ELIGIBLE FOR APPOINTMENT AS ADVOCATE IF SUCH
PERSON OR THE PERSON'S SPOUSE:
  (I) IS EMPLOYED BY OR PARTICIPATES IN THE  MANAGEMENT  OF  A  BUSINESS
ENTITY  OR  OTHER  ORGANIZATION REGULATED BY THE INSURANCE DEPARTMENT OR
RECEIVING FUNDS FROM SUCH DEPARTMENT;
  (II) OWNS OR CONTROLS, DIRECTLY OR INDIRECTLY, MORE THAN  TEN  PERCENT
INTEREST  IN  A  BUSINESS  ENTITY OR OTHER ORGANIZATION REGULATED BY THE
INSURANCE DEPARTMENT OR RECEIVING FUNDS FROM THE INSURANCE DEPARTMENT OR
THE OFFICE;
  (III) USES  OR  RECEIVES  A  SUBSTANTIAL  AMOUNT  OF  TANGIBLE  GOODS,
SERVICES  OR  FUNDS  FROM  THE INSURANCE DEPARTMENT OR THE OFFICE, OTHER
THAN COMPENSATION OR REIMBURSEMENT AUTHORIZED BY LAW FOR  THE  INSURANCE
DEPARTMENT OR OFFICE MEMBERSHIP, ATTENDANCE OR EXPENSES.
  3. THE ADVOCATE SHALL SERVE FOR A TERM OF TWO YEARS.
  4. IT SHALL BE A GROUND FOR REMOVAL FROM OFFICE IF THE ADVOCATE:
  (A)  DOES  NOT  HAVE  AT  THE  TIME  OF APPOINTMENT THE QUALIFICATIONS
REQUIRED BY THIS SECTION;
  (B) DOES NOT MAINTAIN DURING SERVICE AS  ADVOCATE  THE  QUALIFICATIONS
REQUIRED BY THIS SECTION;
  (C) VIOLATES A PROHIBITION ESTABLISHED BY THIS SECTION; OR
  (D)  CANNOT  DISCHARGE THE ADVOCATE'S DUTIES FOR A SUBSTANTIAL PART OF
THE TERM FOR WHICH THE ADVOCATE IS APPOINTED BECAUSE OF ILLNESS OR DISA-
BILITY.
  5. THE VALIDITY OF AN ACTION OF THE OFFICE SHALL NOT  BE  AFFECTED  BY
THE  FACT  THAT  IT  IS  TAKEN WHEN A GROUND FOR REMOVAL OF THE ADVOCATE
EXISTS.
  6. (A) A PERSON SHALL NOT SERVE AS THE ADVOCATE OR ACT AS THE  GENERAL
COUNSEL FOR THE OFFICE OF ADVOCATE IF THE PERSON IS REQUIRED TO REGISTER
AS A LOBBYIST PURSUANT TO ARTICLE ONE-A OF THE LEGISLATIVE LAW.
  (B)  A  PERSON  SERVING AS THE ADVOCATE SHALL NOT, FOR A PERIOD OF TWO
YEARS AFTER THE DATE THE PERSON CEASES TO BE AN ADVOCATE, REPRESENT  ANY
PERSON  IN  A  PROCEEDING  BEFORE THE SUPERINTENDENT OF INSURANCE OR THE
INSURANCE DEPARTMENT OR RECEIVE COMPENSATION FOR  SERVICES  RENDERED  ON
BEHALF  OF  ANY  PERSON  REGARDING  A  CASE BEFORE THE SUPERINTENDENT OF
INSURANCE OR THE INSURANCE DEPARTMENT.
  (C) A PERSON SHALL NOT SERVE AS THE ADVOCATE OR BE AN EMPLOYEE OF  THE
OFFICE  IF  THE  PERSON  IS AN OFFICER, EMPLOYEE OR PAID CONSULTANT OF A
TRADE ASSOCIATION IN THE FIELD OF INSURANCE.
  (D) A PERSON WHO IS THE SPOUSE OF AN OFFICER, MANAGER OR PAID CONSULT-
ANT OF A TRADE ASSOCIATION IN THE FIELD OF INSURANCE SHALL NOT SERVE  AS
THE ADVOCATE AND MAY NOT BE AN OFFICE EMPLOYEE.
  (E) FOR THE PURPOSES OF THIS SECTION, A TRADE ASSOCIATION IS A NONPRO-
FIT,  COOPERATIVE  AND  VOLUNTARILY  JOINED  ASSOCIATION  OF BUSINESS OR
PROFESSIONAL COMPETITORS DESIGNED TO ASSIST ITS MEMBERS AND ITS INDUSTRY

A. 1746                             5

OR PROFESSION IN DEALING WITH MUTUAL BUSINESS OR  PROFESSIONAL  PROBLEMS
AND IN PROMOTING THEIR COMMON INTEREST.
  S  947.  POWERS  AND DUTIES. 1. THE ADVOCATE, AS EXECUTIVE DIRECTOR OF
THE OFFICE, SHALL BE CHARGED WITH THE RESPONSIBILITY  OF  ADMINISTERING,
ENFORCING  AND  CARRYING  OUT  THE PROVISIONS OF THIS ARTICLE, INCLUDING
PREPARATION OF A BUDGET FOR THE OFFICE, EMPLOYING ALL NECESSARY  PROFES-
SIONAL,  TECHNICAL  AND  OTHER EMPLOYEES TO CARRY OUT PROVISIONS OF THIS
ARTICLE, APPROVAL OF EXPENDITURES FOR PROFESSIONAL SERVICES, TRAVEL, PER
DIEM AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED  IN  ADMINISTERING
THE  OFFICE.  THE COMPENSATION OF EMPLOYEES OF THE OFFICE SHALL BE FIXED
BY THE ADVOCATE WITHIN THE APPROPRIATION PROVIDED THEREFOR.
  2. THE OFFICE SHALL FILE ANNUALLY WITH THE GOVERNOR, TEMPORARY  PRESI-
DENT  OF  THE SENATE AND SPEAKER OF THE ASSEMBLY A COMPLETE AND DETAILED
WRITTEN REPORT ACCOUNTING FOR ALL FUNDS RECEIVED AND  DISBURSED  BY  THE
OFFICE  DURING  THE PRECEDING FISCAL YEAR. THE ANNUAL REPORT SHALL BE IN
THE FORM AND REPORTED AS PART OF THE EXECUTIVE BUDGET.
  3. ALL MONEY PAID TO THE OFFICE UNDER THIS ARTICLE SHALL BE  DEPOSITED
IN THE STATE TREASURY.
  4.  THE OFFICE MAY ASSESS THE IMPACT OF INSURER PRACTICES AND PROPOSED
AND IN-FORCE INSURANCE RATES, RULES AND REGULATIONS ON NONBUSINESS AUTO-
MOBILE AND HEALTH INSURANCE CONSUMERS IN THE STATE;  IN  ITS  OWN  NAME,
ADVOCATE ON BEHALF OF POSITIONS THAT ARE MOST ADVANTAGEOUS TO A SUBSTAN-
TIAL NUMBER OF INSURANCE CONSUMERS AS DETERMINED BY THE ADVOCATE; AND DO
ALL  THINGS  NECESSARY AND PROPER FOR THESE PURPOSES, INCLUDING ENGAGING
ATTORNEYS, AND EXPERTS  IN  ACTUARIAL  SCIENCE,  ECONOMICS,  ACCOUNTING,
FINANCE OR ANY OTHER DISCIPLINE WHICH MAY BE APPROPRIATE.
  5. THE ADVOCATE:
  (A)  MAY  APPEAR  OR  INTERVENE AS A MATTER OF RIGHT BEFORE THE SUPER-
INTENDENT OF INSURANCE OR INSURANCE DEPARTMENT AS A PARTY  OR  OTHERWISE
ON BEHALF OF INSURANCE CONSUMERS AS A CLASS IN MATTERS INVOLVING INSURER
PRACTICES AND PROPOSED AND IN-FORCE RATES, RULES AND REGULATIONS AFFECT-
ING NONBUSINESS AUTOMOBILE AND HEALTH INSURANCE;
  (B) MAY INITIATE OR INTERVENE AS A MATTER OF RIGHT OR OTHERWISE APPEAR
IN  ANY JUDICIAL PROCEEDING INVOLVING OR ARISING OUT OF ANY ACTION TAKEN
BY AN ADMINISTRATIVE AGENCY IN A PROCEEDING IN WHICH THE ADVOCATE PREVI-
OUSLY APPEARED UNDER THE AUTHORITY GRANTED BY THIS ARTICLE;
  (C) IS ENTITLED TO ACCESS ANY RECORDS OF THE INSURANCE DEPARTMENT THAT
ARE AVAILABLE TO ANY PARTY IN A PROCEEDING BEFORE THE SUPERINTENDENT  OF
INSURANCE  OR  INSURANCE  DEPARTMENT UNDER THE AUTHORITY GRANTED BY THIS
ARTICLE;
  (D) IS ENTITLED TO OBTAIN DISCOVERY OF ANY NON-PRIVILEGED MATTER  THAT
IS RELEVANT TO THE SUBJECT MATTER INVOLVED IN A PROCEEDING OR SUBMISSION
BEFORE  THE  SUPERINTENDENT  OF  INSURANCE  OR  INSURANCE  DEPARTMENT AS
AUTHORIZED BY THIS ARTICLE;
  (E) MAY RECOMMEND LEGISLATION TO THE LEGISLATURE THAT, IN THE JUDGMENT
OF THE ADVOCATE, WOULD AFFECT POSITIVELY THE  INTERESTS  OF  NONBUSINESS
AUTOMOBILE AND HEALTH INSURANCE CONSUMERS;
  (F)  MAY APPEAR OR INTERVENE AS A MATTER OF RIGHT AS A PARTY OR OTHER-
WISE ON BEHALF OF NONBUSINESS AUTOMOBILE AND HEALTH INSURANCE  CONSUMERS
AS  A  CLASS IN ALL PROCEEDINGS AND ACTIONS IN WHICH THE ADVOCATE DETER-
MINES THAT SUCH CONSUMERS NEED REPRESENTATION, EXCEPT THAT THE  ADVOCATE
SHALL  NOT  INTERVENE  IN  ANY  ENFORCEMENT OR PARENS PATRIAE PROCEEDING
BROUGHT BY THE ATTORNEY GENERAL;
  (G) MAY CONDUCT ANY INQUIRY, HEARING, INVESTIGATION, SURVEY  OR  STUDY
WHICH  THE  ADVOCATE  DEEMS  NECESSARY  TO  EFFECTIVELY  CARRY  OUT  THE
PROVISIONS OF THIS ARTICLE AND, FOR  THAT  PURPOSE,  TO  TAKE  AND  HEAR

A. 1746                             6

PROOFS  AND  TESTIMONY,  SUBPOENA  WITNESSES,  COMPEL  THEIR ATTENDANCE,
ADMINISTER OATHS, EXAMINE ANY PERSON UNDER OATH AND TO COMPEL ANY PERSON
TO SUBSCRIBE TO HIS OR HER TESTIMONY AFTER IT HAS BEEN CORRECTLY REDUCED
TO WRITING, AND IN CONNECTION THEREWITH TO REQUIRE THE PRODUCTION OF ANY
BOOKS,  PAPERS,  RECORDS,  ACCOUNTS,  CORRESPONDENCE  OR OTHER DOCUMENTS
WHICH THE ADVOCATE DEEMS RELEVANT TO  THE  INQUIRY.  A  SUBPOENA  ISSUED
UNDER  THIS  SECTION  SHALL  BE  REGULATED BY THE CIVIL PRACTICE LAW AND
RULES.
  6. (A)  THE  OFFICE  SHALL  PREPARE  INFORMATION  OF  PUBLIC  INTEREST
DESCRIBING THE FUNCTIONS OF THE OFFICE. THE OFFICE SHALL MAKE THE INFOR-
MATION  AVAILABLE  TO  THE PUBLIC, LAWMAKERS AND APPROPRIATE STATE AGEN-
CIES.
  (B) THE  OFFICE  SHALL  PREPARE  AND  MAINTAIN  A  WRITTEN  PLAN  THAT
DESCRIBES  HOW  EACH  PERSON  WHO DOES NOT SPEAK ENGLISH CAN BE PROVIDED
REASONABLE ACCESS TO THE OFFICE'S PROGRAMS.
  (C) THE OFFICE SHALL PREPARE AND DISTRIBUTE PUBLIC EDUCATION MATERIALS
FOR CONSUMERS, LEGISLATORS AND REGULATORS.
  (D) THE OFFICE MAY PARTICIPATE IN TRADE ASSOCIATIONS.
  7. THE OFFICE SHALL BE SUBJECT TO ARTICLES SIX AND SIX-A OF THE PUBLIC
OFFICERS LAW; PROVIDED, HOWEVER, THAT DOCUMENTS, RECORDS, FILES, REPORTS
OR OTHER INFORMATION CONCERNING CONFIDENTIAL MATTERS OF  THE  BOARD,  AS
DEFINED  AND  DESCRIBED  IN  REGULATIONS  PROMULGATED  BY THE BOARD, ARE
SPECIFICALLY EXEMPTED FROM DISCLOSURE PURSUANT TO  SECTION  EIGHTY-SEVEN
OF THE PUBLIC OFFICERS LAW.
  S 4. Subsection (d) of section 2321 of the insurance law is amended to
read as follows:
  (d)  Proceedings  pursuant to subsections (b) and (c) [hereof] OF THIS
SECTION may be instituted upon the initiative of the  superintendent  or
upon  written  application to the superintendent by any aggrieved person
or organization, other than a rate service organization, for a  hearing,
if  the  superintendent finds that the application is made in good faith
and that the grounds otherwise justify  holding  such  a  hearing  WHICH
SHALL  BE  HELD  WITHIN  FIFTEEN DAYS OF THE REQUEST; PROVIDED, HOWEVER,
THAT THE SUPERINTENDENT SHALL HOLD SUCH A HEARING WITHIN FIFTEEN DAYS OF
AN APPLICATION THEREFOR FROM  THE  PUBLIC  INSURANCE  CONSUMER  ADVOCATE
ESTABLISHED UNDER ARTICLE FORTY-FOUR-A OF THE EXECUTIVE LAW. IN THE CASE
OF  A  DENIAL  OF  AN  APPLICATION  FOR A HEARING FILED BY ANY AGGRIEVED
PERSON OR ANY OTHER ORGANIZATION, THE SUPERINTENDENT SHALL  PROVIDE  THE
REASONS THEREFOR IN WRITING TO THE APPLICANT WITHIN FIFTEEN DAYS OF SUCH
DENIAL.
  S 5. Subsection (c) of section 2305 of the insurance law is amended to
read as follows:
  (c)  (1)  Rates  filed with the superintendent shall be accompanied by
the information upon which the insurer supports the rate as set forth in
subsection (b) of section two thousand three hundred four of this  arti-
cle.
  (2)  WITH  RESPECT TO RATES FILED FOR NONBUSINESS AUTOMOBILE POLICIES,
SUCH FILINGS SHALL INCLUDE ALL STATISTICAL DATA RELIED UPON  TO  SUPPORT
THE  FILING  AND  SUCH  OTHER  INFORMATION  AS  THE SUPERINTENDENT SHALL
REQUIRE. SUCH FILINGS AND  SUPPORTING  INFORMATION  SHALL  CONFORM  WITH
STANDARDS  OF  UNIFORMITY  WHICH  THE  SUPERINTENDENT SHALL PRESCRIBE BY
REGULATION WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF  THIS
PARAGRAPH.
  S 6. The insurance law is amended by adding a new section 2352 to read
as follows:

A. 1746                             7

  S  2352.  MUNICIPAL PETITIONS; MOTOR VEHICLE INSURANCE FOR NONBUSINESS
AUTOMOBILES. (A) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW,  ANY
MUNICIPALITY  OR  COMBINATION  OF CONTIGUOUS MUNICIPALITIES MAY PETITION
THE DEPARTMENT FOR A REDUCTION IN RATES OF POLICIES COVERING  LOSSES  OR
LIABILITIES ARISING OUT OF THE OWNERSHIP OF A MOTOR VEHICLE PREDOMINANT-
LY  USED  FOR  NONBUSINESS  PURPOSES, WHEN A NATURAL PERSON IS THE NAMED
INSURED UNDER A POLICY OF AUTO INSURANCE, WHEN SUCH RATES DO NOT REFLECT
ACCURATELY THE CURRENT DATA PERTINENT TO THE RISK OF LOSS IN THE MUNICI-
PALITY OR MUNICIPALITIES BASED ON REASONABLE AND SOUND UNDERWRITING  AND
ACTUARIAL CRITERIA.
  (B) WITHIN  FIFTEEN DAYS OF RECEIPT OF SUCH A PETITION, THE DEPARTMENT
SHALL HOLD A PUBLIC HEARING THEREON, AT WHICH MUNICIPAL REPRESENTATIVES,
INSURERS AND THE PUBLIC SHALL HAVE THE RIGHT TO BE HEARD. THE DEPARTMENT
SHALL EXPLAIN IN WRITING ITS REASONS FOR GRANTING OR DENYING,  IN  WHOLE
OR  IN PART, THE RELIEF SOUGHT IN THE PETITION. IF THE DEPARTMENT GRANTS
SUCH RELIEF, IT SHALL IMMEDIATELY ORDER AN APPROPRIATE REDUCTION,  WHICH
MAY INCLUDE RETROACTIVE RELIEF, IF JUSTIFIED, NOTWITHSTANDING ANY INCON-
SISTENT PROVISION OF LAW.
  (C) FOR  THE  PURPOSES  OF THIS SECTION, THE TERM "MUNICIPALITY" SHALL
MEAN ANY COUNTY NOT WHOLLY CONTAINED WITHIN A CITY AND ANY CITY COMPRIS-
ING MORE THAN ONE COUNTY.
  S 7.  The insurance law is amended by adding a new section 342 to read
as follows:
  S 342. COOPERATION WITH OFFICE OF PUBLIC INSURANCE CONSUMER  ADVOCATE.
(A)  THE SUPERINTENDENT, AND EVERY DEPUTY AND EMPLOYEE OF THE DEPARTMENT
SHALL COOPERATE FULLY AND COMPLETELY WITH THE OFFICE OF PUBLIC INSURANCE
CONSUMER ADVOCATE AND PROVIDE WITHOUT CHARGE TO SUCH OFFICE, ACCESS AND,
UPON REQUEST OF THE PUBLIC INSURANCE CONSUMER ADVOCATE,  COPIES  OF  ALL
BOOKS,  RECORDS  AND FILES OF THE DEPARTMENT AND OF EACH LICENSEE OF THE
DEPARTMENT TO THE EXTENT THAT THE DEPARTMENT HAS  ACCESS  OR  COPIES  OF
SUCH  BOOKS,  RECORDS AND FILES, WHICH SUCH ADVOCATE DEEMS NECESSARY AND
APPROPRIATE TO CARRY OUT THE PURPOSES OF  ARTICLE  FORTY-FOUR-A  OF  THE
EXECUTIVE  LAW,  INCLUDING,  BUT NOT LIMITED TO FILINGS AND APPLICATIONS
WHICH MAY BE SUBJECT TO A HEARING PURSUANT  TO  THIS  SECTION,  AND  ALL
INFORMATION  FURNISHED THE SUPERINTENDENT IN SUPPORT OF SUCH FILINGS AND
APPLICATIONS.
  (B) NOTWITHSTANDING ANY INCONSISTENT LAW, RULE OR  REGULATION  TO  THE
CONTRARY, THE SUPERINTENDENT SHALL NOTIFY THE OFFICE OF PUBLIC INSURANCE
CONSUMER  ADVOCATE  OF ALL RATE-RELATED FILINGS MADE UNDER ARTICLE TWEN-
TY-THREE OF THIS CHAPTER WITH RESPECT TO NONBUSINESS  AUTOMOBILE  INSUR-
ANCE, FILINGS FOR RATE INCREASES PURSUANT TO SECTIONS THREE THOUSAND TWO
HUNDRED THIRTY-ONE AND FOUR THOUSAND THREE HUNDRED EIGHT OF THIS CHAPTER
AND APPLICATIONS FOR MATERIAL CHANGE IN BENEFITS OR DELIVERY OF BENEFITS
UNDER  A  CONTRACT,  WITHIN  FIVE  BUSINESS DAYS OF HAVING RECEIVED SUCH
FILINGS AND APPLICATIONS.  SUCH NOTIFICATION SHALL INCLUDE A SUMMARY  OF
EACH  FILING  OR  APPLICATION,  TO  INCLUDE,  BUT NOT BE LIMITED TO: THE
NUMBER OF POLICYHOLDERS, SUBSCRIBERS OR ENROLLEES AFFECTED;  THE  AMOUNT
OF RATE INCREASE; THE REGIONS OR TERRITORIES AFFECTED; AND A DESCRIPTION
OF  THE  CHANGE IN BENEFITS OR DELIVERY OF BENEFITS.  THE SUPERINTENDENT
SHALL SIMULTANEOUSLY SUBMIT FOR PUBLICATION IN THE  STATE  REGISTER  ALL
SUCH  NOTIFICATIONS  TO  THE PUBLIC INSURANCE CONSUMER ADVOCATE.  WITHIN
FIVE BUSINESS DAYS OF THE REQUEST OF SUCH ADVOCATE,  THE  SUPERINTENDENT
SHALL FORWARD ANY FILINGS AND APPLICATIONS SO REQUESTED AND ALL INFORMA-
TION FURNISHED IN SUPPORT OF SUCH FILINGS AND APPLICATIONS.
  (C) THE PUBLIC INSURANCE CONSUMER ADVOCATE MAY REQUEST THE SUPERINTEN-
DENT  HOLD  A  HEARING ON ANY MATTER DEEMED NECESSARY AND APPROPRIATE TO

A. 1746                             8

CARRY OUT THE PURPOSES OF ARTICLE FORTY-FOUR-A  OF  THE  EXECUTIVE  LAW,
WHICH  SHALL  BE  HELD  WITHIN  FIFTEEN DAYS OF THE REQUEST. NO PROPOSED
CHANGE IN RULE OR REGULATION, FILING FOR A NONBUSINESS AUTOMOBILE  RATE-
RELATED  CHANGE OR RATE INCREASE, FILING FOR A RATE INCREASE PURSUANT TO
SECTIONS THREE THOUSAND TWO HUNDRED THIRTY-ONE AND FOUR  THOUSAND  THREE
HUNDRED  EIGHT  OF  THIS  CHAPTER, OR APPLICATION FOR MATERIAL CHANGE IN
BENEFITS OR DELIVERY OF BENEFITS SUBJECT TO A HEARING UNDER THIS SECTION
SHALL BECOME EFFECTIVE PENDING THE CLOSE OF SUCH HEARING, PROVIDED  THAT
SUCH REQUEST IS MADE WITHIN THIRTY DAYS OF SUCH ADVOCATE HAVING RECEIVED
NOTICE  OF  SUCH  PROPOSED CHANGE, FILING OR APPLICATION. WITHIN FIFTEEN
DAYS AFTER THE CLOSE OF THE HEARING, OR SUCH TIME AS THE  SUPERINTENDENT
APPROVES  THE  PROPOSED  RULE,  REGULATION,  FILING  OR APPLICATION, THE
SUPERINTENDENT SHALL ISSUE A WRITTEN  OPINION  BASED  UPON  THE  HEARING
RECORD,  EXPLAINING THE REASONS FOR APPROVING OR DENYING, IN WHOLE OR IN
PART, THE CHANGE SOUGHT.
  S 8. Subparagraph (A) of paragraph 2 of subsection (e) of section 3231
of the insurance law, as added by chapter 501 of the laws  of  1992,  is
amended to read as follows:
  (A)  Beginning  October  first,  nineteen  hundred  ninety-four, as an
alternate procedure  to  the  requirements  of  paragraph  one  of  this
subsection, an insurer desiring to increase or decrease premiums for any
policy  form subject to this section may instead submit a rate filing or
application to the superintendent and such application or  filing  shall
be deemed approved, provided that (i) the anticipated minimum loss ratio
for  a  policy  form  shall not be less than seventy-five percent of the
premium, and (ii) the insurer submits, as part of such filing, a certif-
ication by a member of the American Academy of Actuaries or other  indi-
vidual  acceptable  to the superintendent that the insurer is in compli-
ance with the provisions of this paragraph,  based  upon  that  person's
examination,  including  a  review of the appropriate records and of the
actuarial assumptions and methods used by the  insurer  in  establishing
premium  rates  for  policy  forms  subject  to this section, UNLESS THE
PUBLIC INSURANCE CONSUMER ADVOCATE HAS REQUESTED  A  PUBLIC  HEARING  ON
SUCH  RATE  FILING  OR  APPLICATION  PURSUANT  TO  SECTION THREE HUNDRED
FORTY-TWO OF THIS CHAPTER.
  S 9. Paragraph 1 of subsection (g) of section 4308  of  the  insurance
law,  as added by chapter 504 of the laws of 1995, is amended to read as
follows:
  (1) Beginning January first, nineteen hundred ninety-six, as an alter-
nate procedure to the requirements of subsection (c) of this section,  a
corporation  subject  to  the  provisions  of  this  article desiring to
increase or decrease premiums for any contract subject to  this  section
may  instead  submit  a rate filing or application to the superintendent
and such application or filing shall be deemed approved,  provided  that
(A) the anticipated incurred loss ratio for a contract form shall not be
less than eighty-five percent for individual direct payment contracts or
seventy-five   percent  for  small  group  and  small  group  remittance
contracts,  nor,  except  in  the  case  of  individual  direct  payment
contracts  with  a  loss  ratio of greater than one hundred five percent
during nineteen hundred ninety-four, shall the loss ratio for any direct
payment, group or group remittance contract be  more  than  one  hundred
five  percent of the anticipated earned premium, and (B) the corporation
submits, as part of such filing, a certification  by  a  member  of  the
American  Academy  of  Actuaries  or  other individual acceptable to the
superintendent  that  that  corporation  is  in  compliance   with   the
provisions  of  this  subsection,  based upon that person's examination,

A. 1746                             9

including a review of the  appropriate  records  and  of  the  actuarial
assumptions  and methods used by the corporation in establishing premium
rates for contracts subject to this section, UNLESS THE PUBLIC INSURANCE
CONSUMER  ADVOCATE HAS REQUESTED A PUBLIC HEARING ON SUCH RATE FILING OR
APPLICATION PURSUANT TO SECTION THREE HUNDRED FORTY-TWO OF THIS CHAPTER.
For purposes of this section, a small group is any group whose  contract
is  subject  to  the requirements of section [forty-three] FOUR THOUSAND
THREE hundred seventeen of this article.
  S 10. Section 149 of the executive law is  amended  by  adding  a  new
subdivision 4 to read as follows:
  4.  NOTICES  SUBMITTED  PURSUANT TO SECTION THREE HUNDRED FORTY-TWO OF
THE INSURANCE LAW SHALL BE IN SUCH FORMAT  AS  THE  SECRETARY  OF  STATE
SHALL  REQUIRE,  AND  SHALL  BE  PUBLISHED  IN A SEPARATE SECTION OF THE
REGISTER WHICH SHALL INCLUDE TELEPHONE  NUMBERS,  ADDRESSES  AND  E-MAIL
ADDRESSES  WHICH  THE  PUBLIC  MAY  USE  TO CONTACT THE OFFICE OF PUBLIC
INSURANCE CONSUMER ADVOCATE AND THE INSURANCE DEPARTMENT.
  S 11. Section 202 of the state administrative procedure act is amended
by adding a new subdivision 1-a to read as follows:
  1-A. IN ADDITION TO THE REQUIREMENTS OF THIS SECTION,  ANY  NOTICE  OF
PROPOSED RULEMAKING, NOTICE OF REVISED RULEMAKING OR NOTICE OF EMERGENCY
ADOPTION  SUBMITTED BY THE INSURANCE DEPARTMENT THAT IMPACTS NONBUSINESS
AUTOMOBILE OR HEALTH INSURANCE CONSUMERS SHALL ALSO  INCLUDE  THE  TELE-
PHONE  NUMBER,  ADDRESS  AND  E-MAIL ADDRESS WHICH THE PUBLIC MAY USE TO
CONTACT THE OFFICE OF PUBLIC INSURANCE CONSUMER ADVOCATE.
  S 12. This act shall take effect immediately; provided, however,  that
within  twelve  months  of  the effective date of this act, the database
required by section 502 of the insurance law, as added by section one of
this act, shall be completed; and, provided further, that within 90 days
of the effective date of this act, notice of  the  availability  of  the
insurance department's Annual Ranking of Automobile Insurance Complaints
and  Consumers  Guide  to Auto Insurance, and the insurance department's
address, telephone number and web site address shall  be  provided  with
all  nonbusiness  automobile  policies  delivered,  issued for delivery,
renewed or issued for renewal in this state.  The disclosure requirement
of section 504 of the insurance law, as added by section one of this act
shall take effect twelve months after the effective date  of  this  act.
The  public  insurance consumer advocate shall be appointed, pursuant to
article 44-A of the executive law, as added by section three of this act
for a two year term. Any regulations necessary for the implementation of
the provisions of this act shall be promulgated within  180  days  after
the effective date of this act.