NY State Senate Bill 2009-S1833

Senate Bill S1833

2009-2010 Legislative Session

Establishes a reduction in premium charges for non-commercial private passenger automobile insurance based upon the depreciating value of the insured automobile

download bill text pdf

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to insurance
Feb 09, 2009	referred to insurance

2009-S1833 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §2336, Ins L

2009-S1833 (ACTIVE) - Summary

Provides for a reduction in automobile insurance premium charges for non-commercial private passenger automobile comprehensive and collision insurance based upon the depreciating value of the insured automobile during the term of the policy.

2009-S1833 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1833

 TITLE OF BILL :

An act to amend the insurance law, in relation to providing for a
reduction in automobile insurance to reflect depreciation of insured
automobile


 PURPOSE :

The purpose of this legislation is to provide for a reduction in
automobile insurance premiums for comprehensive and collision coverage
to reflect the reduced value of an automobile due to its depreciation
during the term of a policy.

 SUMMARY OF PROVISIONS :

Section 1. Adds a new Insurance Law, section 2336 (h), to provide an
insurance premium discount to reimburse the insured for the reduced
value of an automobile as it depreciates in value over time.

Section 2. Provides for effective date.

 EXISTING LAW :

Under current law, motorists with disabled license plates are entitled
to full-service refueling at the self-service price at retail gas
stations that offer both.

 JUSTIFICATION :

This measure addresses the paradox that occurs for insurees and
insurers with regard to automobile insurance rates. The Paradox is
that even though an individual's coverage decreases over time because
the value of the automobile decreases due to age, the rate paid by the
insured generally remains constant as long as he or she owns the
vehicle. The bill sponsor maintains that as the liability exposure to
an insurer decreases as the value of the automobile decreases, that
the insurance premium should reflect the decreases exposure to the
insurer and decreased coverage that is received by the insured.

This legislation mandates that as the value of the automobile
depreciates over time, there should be a corresponding decrease in the
cost of the insurance to the consumer.

 LEGISLATIVE HISTORY :
A.6492A of 2000 - Referred to Consumer Affairs
A.2244 of 2002 - Referred to Consumer Affairs
A.4463 of 2004 - Referred to Consumer Affairs
S.2756 of 2006 - Referred to Insurance
S.2246 of 2008 - Referred to Insurance

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the first day of January next succeeding
the date which it shall have become a law and shall apply to all
policies issued, renewed, altered, or amended on or after such date.

2009-S1833 (ACTIVE) - Bill Text download pdf

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

                                  1833

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 9, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- 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  providing  for  a
  reduction  in  automobile insurance to reflect depreciation of insured
  automobile

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

  Section  1.  Section  2336 of the insurance law is amended by adding a
new subsection (i) to read as follows:
  (I) ANY SCHEDULE OR RATING PLAN FOR NON-COMMERCIAL  PRIVATE  PASSENGER
AUTOMOBILE  INSURANCE  SHALL ALSO PROVIDE FOR AN ACTUARIALLY APPROPRIATE
REDUCTION IN PREMIUM CHARGES FOR COMPREHENSIVE AND  COLLISION  COVERAGES
REFLECTING  THE  INSURED'S  REDUCED  EXPOSURE DUE TO THE INSURED AUTOMO-
BILE'S DEPRECIATING VALUE OVER THE TERM OF THE POLICY.
  S 2. This act shall take effect on the first of January next  succeed-
ing  the date on which it shall have become a law and shall apply to all
policies issued, renewed, altered or amended on or after such date.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02913-01-9

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.