NY State Senate Bill 2015-S1057

Senate Bill S1057

2015-2016 Legislative Session

Permits insurers to make available multiple rating programs for commercial insurance within the same company

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to insurance
Jan 08, 2015	referred to insurance

2015-S1057 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §2352, Ins L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6454
2013-2014: S2891

2015-S1057 (ACTIVE) - Summary

Permits insurers to make available multiple rating programs for commercial insurance within the same company.

2015-S1057 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1057

TITLE OF BILL:  An act to amend the insurance law, in relation to
permitting insurers to make available multiple rating programs for
commercial insurance within the same company

PURPOSE:

To permit property/casualty insurers to make available multiple rating
programs within the same company for commercial lines insurance in the
voluntary market.

SUMMARY OF PROVISIONS:

Section 1: Amends Insurance Law Section 2352 to permit insurers to
make available multiple rating programs within the same company for
commercial lines insurance in the voluntary market.

EXISTING LAW:

Section 2352 of the insurance law currently permits multiple rating
plans for personal lines insurance.

JUSTIFICATION:

In 2011, legislation was enacted to authorize insurers to make

available multiple rating programs within the same company for
personal lines insurance. Prior to the enactment of this law, if an
insurance company wished to have more than one rating plan for
personal lines insurance, they would be required to establish a
separate subsidiary or affiliate company for the primary purpose of
offering a new rating plan. Obviously, this was a cumbersome and
expensive process which added unnecessary costs to personal lines
insurance. Accordingly, legislation was enacted to authorize multiple
rating plans for personal lines insurance and remove these unnecessary
burdens and costs associated with offering multiple rating plans for
personal lines insurance.

The same rationale applies for commercial lines policies and this
legislation would similarly allow insurers to make available multiple
rating plans for commercial lines without having to form a subsidiary
or affiliate company. To remain competitive, insurance companies, both
commercial and personal lines companies, need to be able to
continually develop new rating plans that introduce different rating
elements that allow them to better segment and price business. This
bill allows insurers on the commercial lines side to adopt these
innovations in the most efficient and cost effective way possible by
authorizing the establishment of an additional rating plan within the
same insurance company.

It should be noted that, as is currently the case for personal lines
policies, each time a company develops a new rating plan, the plan
would be subject to the prior approval of the Superintendent of
Financial Services and would be provided only to new business
customers.

LEGISLATIVE HISTORY:


S.2891 of 2013-14;
S.6454 of 2012 FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:  This act shall take effect on the ninetieth day after
it shall have become a law.

2015-S1057 (ACTIVE) - Bill Text download pdf

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

                                  1057

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 8, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- 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 permitting insurers to
  make available multiple rating programs for commercial insurance with-
  in the same company

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

  Section  1. Section 2352 of the insurance law, as added by chapter 457
of the laws of 2011, is amended to read as follows:
  S 2352. Multiple rating programs. (a) Subject to the  superintendent's
prior  approval,  an  insurer may establish more than one rating program
within the same company for policies of insurance that  are  subject  to
section  three  thousand four hundred twenty-five OR SECTION THREE THOU-
SAND FOUR HUNDRED TWENTY-SIX of this chapter; provided that:
  (1) each rating program shall apply only to policies newly written  on
or  after  the  effective  date  of  the rating program but prior to the
effective date of any subsequently  approved  rating  program;  provided
however  if  an  insurer  terminates  a rating program, then the insurer
shall renew the policies that were  subject  to  the  terminated  rating
program in a subsequently approved rating program.
  (2)  the  provisions  of subsection (f) of section three thousand four
hundred twenty-five and subsection (b) of  section  two  thousand  three
hundred  forty-nine  of  this  chapter  shall  be applied to each rating
program TO WHICH THEY ARE APPLICABLE separately.
  (b) The superintendent may promulgate rules and regulations to  imple-
ment the provisions of this section.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06914-01-5

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