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

                                 1927--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 15, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance -- recommitted  to
  the  Committee  on Finance in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend  the  executive  law, the insurance law and the state
  finance law, in relation to enacting the "Comprehensive Motor  Vehicle
  Insurance Rate Reform Act"

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "Comprehensive Motor Vehicle Insurance Rate Reform Act".
  S  2.    The  executive law is amended by adding a new article 44-A to
read as follows:
                              ARTICLE 44-A
                   OFFICE OF PUBLIC INSURANCE ADVOCATE
SECTION 945. OFFICE OF PUBLIC INSURANCE ADVOCATE.
        946. INSURANCE CONSUMER ADVOCATE.
        947. POWERS AND DUTIES.
  S 945. OFFICE OF PUBLIC INSURANCE ADVOCATE. THERE IS HEREBY CREATED IN
THE EXECUTIVE DEPARTMENT AN INDEPENDENT  OFFICE  OF  INSURANCE  CONSUMER
ADVOCATE  (HEREINAFTER  REFERRED TO AS "OFFICE") TO REPRESENT THE INTER-
ESTS OF NONBUSINESS AUTOMOBILE INSURANCE CONSUMERS IN NEW YORK STATE.
  S 946. INSURANCE CONSUMER ADVOCATE. 1.  THE GOVERNOR, WITH THE  ADVICE
AND  CONSENT OF THE SENATE, SHALL APPOINT AN INSURANCE CONSUMER ADVOCATE
(HEREINAFTER REFERRED TO AS "ADVOCATE") WHO SHALL SERVE AS THE EXECUTIVE
DIRECTOR OF THE OFFICE OF INSURANCE CONSUMER ADVOCATE AND SHALL  RECEIVE
AN ANNUAL SALARY TO BE FIXED BY THE GOVERNOR WITHIN THE AMOUNT AVAILABLE
THEREFOR BY APPROPRIATION.
  2.  (A)  TO BE ELIGIBLE TO SERVE AS ADVOCATE, A PERSON MUST BE A RESI-
DENT OF NEW YORK STATE. THE ADVOCATE SHALL BE A PERSON  WHO  HAS  DEMON-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06643-02-6
              

S. 1927--A                          2

STRATED  A STRONG COMMITMENT 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 IS NOT ELIGIBLE FOR APPOINTMENT AS ADVOCATE IF THE 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  DEPARTMENT  OF  FINANCIAL
SERVICES OR RECEIVING FUNDS FROM THE DEPARTMENT;
  (II)  OWNS  OR CONTROLS, DIRECTLY OR INDIRECTLY, MORE THAN TEN PERCENT
INTEREST IN A BUSINESS ENTITY OR OTHER  ORGANIZATION  REGULATED  BY  THE
DEPARTMENT  OF FINANCIAL SERVICES OR RECEIVING FUNDS FROM THE DEPARTMENT
OF FINANCIAL SERVICES OR THE OFFICE;
  (III) USES  OR  RECEIVES  A  SUBSTANTIAL  AMOUNT  OF  TANGIBLE  GOODS,
SERVICES,  OR  FUNDS  FROM  THE  DEPARTMENT OF FINANCIAL SERVICES OR THE
OFFICE, OTHER THAN COMPENSATION OR REIMBURSEMENT AUTHORIZED BY  LAW  FOR
THE DEPARTMENT OF FINANCIAL SERVICES OR OFFICE MEMBERSHIP, ATTENDANCE OR
EXPENSES.
  3. THE ADVOCATE SHALL SERVE FOR A TERM OF TWO YEARS EXPIRING ON FEBRU-
ARY FIRST OF EACH ODD-NUMBERED YEAR.
  4. IT IS 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 IS NOT AFFECTED BY THE FACT
THAT IT IS TAKEN WHEN A GROUND FOR REMOVAL OF THE ADVOCATE EXISTS.
  6. (A) A PERSON MAY 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 MAY 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 FINANCIAL SERVICES
OR THE DEPARTMENT OF FINANCIAL  SERVICES  OR  RECEIVE  COMPENSATION  FOR
SERVICES  RENDERED  ON  BEHALF OF ANY PERSON REGARDING A CASE BEFORE THE
SUPERINTENDENT OF FINANCIAL SERVICES  OR  THE  DEPARTMENT  OF  FINANCIAL
SERVICES.
  (C)  AN OFFICER, EMPLOYEE OR PAID CONSULTANT OF A TRADE ASSOCIATION IN
THE FIELD OF INSURANCE MAY NOT SERVE AS THE ADVOCATE OR BE  AN  EMPLOYEE
OF THE OFFICE.
  (D)  A  PERSON  WHO  IS  THE  SPOUSE  OF  AN OFFICER, MANAGER, OR PAID
CONSULTANT OF A TRADE ASSOCIATION IN THE  FIELD  OF  INSURANCE  MAY  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
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

S. 1927--A                          3

ARTICLE, APPROVAL OF EXPENDITURES FOR PROFESSIONAL SERVICES, TRAVEL, PER
DIEM, AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED IN  ADMINISTERING
THE  OFFICE.  EXPENSES  FOR THE OFFICE SHALL BE PAID FROM THE ASSESSMENT
IMPOSED  IN  SECTION NINE THOUSAND ONE HUNDRED TEN OF THE INSURANCE LAW.
THE COMPENSATION OF EMPLOYEES OF THE OFFICE SHALL BE FIXED BY THE  ADVO-
CATE WITHIN THE APPROPRIATION PROVIDED THEREFOR.
  2.  THE OFFICE SHALL FILE ANNUALLY WITH THE GOVERNOR AND THE PRESIDING
OFFICER OF EACH HOUSE OF THE LEGISLATURE A COMPLETE AND DETAILED WRITTEN
REPORT ACCOUNTING FOR ALL FUNDS RECEIVED AND  DISBURSED  BY  THE  OFFICE
DURING  THE PRECEDING FISCAL YEAR. THE ANNUAL REPORT MUST 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 INSURANCE RATES, RULES, AND
REGULATIONS ON NONBUSINESS AUTOMOBILE INSURANCE CONSUMERS  IN  NEW  YORK
STATE AND, IN ITS OWN NAME, MAY ADVOCATE ON BEHALF OF POSITIONS THAT ARE
MOST  ADVANTAGEOUS  TO  A  SUBSTANTIAL  NUMBER OF INSURANCE CONSUMERS AS
DETERMINED BY THE ADVOCATE.
  5. THE ADVOCATE:
  (A) MAY APPEAR OR INTERVENE AS A MATTER OF  RIGHT  BEFORE  THE  SUPER-
INTENDENT OF FINANCIAL SERVICES OR DEPARTMENT OF FINANCIAL SERVICES AS A
PARTY  OR  OTHERWISE  ON  BEHALF  OF  INSURANCE  CONSUMERS AS A CLASS IN
MATTERS INVOLVING RATES, RULES, AND  REGULATIONS  AFFECTING  NONBUSINESS
AUTOMOBILE 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 EXECUTIVE DEPARTMENT THAT
ARE AVAILABLE TO ANY PARTY IN A PROCEEDING BEFORE THE SUPERINTENDENT  OF
FINANCIAL SERVICES OR DEPARTMENT OF FINANCIAL SERVICES UNDER THE AUTHOR-
ITY 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 FINANCIAL SERVICES OR DEPARTMENT OF  FINAN-
CIAL SERVICES 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 INSURANCE CONSUMERS;
  (F) MAY APPEAR OR INTERVENE AS A MATTER OF RIGHT AS A PARTY OR  OTHER-
WISE  ON BEHALF OF NONBUSINESS AUTOMOBILE INSURANCE CONSUMERS AS A CLASS
IN ALL PROCEEDINGS IN WHICH THE ADVOCATE DETERMINES THAT SUCH  CONSUMERS
NEED  REPRESENTATION,  EXCEPT THAT THE ADVOCATE MAY NOT INTERVENE IN ANY
ENFORCEMENT OR PARENS PATRIAE PROCEEDING BROUGHT BY THE ATTORNEY  GENER-
AL.
  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.

S. 1927--A                          4

  S 3. 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 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 THERE-
FOR IN WRITING TO THE APPLICANT WITHIN FIFTEEN DAYS OF SUCH DENIAL.
  S 4. Subsection (c) of section 2305 of the insurance law is amended to
read as follows:
  (c) 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.    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 ON OR BEFORE THE JANUARY IMMEDIATELY FOLLOWING THE  EFFECTIVE
DATE  OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND SIXTEEN THAT AMENDED
THIS SUBSECTION.
  S 5. Section 89-d of the state finance law, as amended by chapter  170
of  the laws of 1994 and subdivision 2 as amended by section 4 of part T
of chapter 56 of the laws of 2009, is amended to read as follows:
  S 89-d. Motor vehicle theft and insurance fraud  prevention  fund.  1.
There is hereby established in the custody of the comptroller, a special
fund  to  be  known  as  the  "motor  vehicle  theft and insurance fraud
prevention fund".
  2. Such fund shall consist of all moneys received by the state  pursu-
ant  to  subsection  (b) of section nine thousand one hundred ten of the
insurance law that are transferred to the fund pursuant to paragraph one
of subsection (e) of section nine thousand one hundred ten of the insur-
ance law and all other grants, bequests or  other  moneys  appropriated,
credited  or  transferred thereto from any other fund or source pursuant
to law.
  3. Moneys in the motor vehicle theft and  insurance  fraud  prevention
fund  shall  be kept separate and apart and shall not be commingled with
any other moneys in the custody of the comptroller  and  shall  only  be
expended  herein  and in such amounts as approved by the division of the
budget.
  4. [The] EXCEPT AS PROVIDED IN THIS SUBDIVISION, THE  moneys  received
by  such  fund  shall be expended pursuant to appropriation only to fund
provider agencies which have been awarded grants by  the  motor  vehicle
theft  and  insurance  fraud  prevention  board  established pursuant to
section eight hundred forty-six-l  of  the  executive  law.  All  moneys
expended  pursuant to this subdivision shall be for the reimbursement of
costs incurred by provider agencies; PROVIDED, HOWEVER THAT NO LESS THAN
ONE MILLION TWO HUNDRED THOUSAND DOLLARS SHALL BE USED FOR THE  PURPOSES
OF CREATING, ADMINISTERING AND OPERATING THE OFFICE OF INSURANCE CONSUM-

S. 1927--A                          5

ER  ADVOCATE  CREATED  PURSUANT TO ARTICLE FORTY-FOUR-A OF THE EXECUTIVE
LAW.
  S  6.  Section  2329  of the insurance law, as amended by section 1 of
part B of chapter 78 of the laws of 2014, is amended to read as follows:
  S 2329. Motor vehicle insurance rates; excess profits.  (A) In accord-
ance with regulations prescribed by  the  superintendent,  each  insurer
issuing  policies that are subject to article fifty-one of this chapter,
including policies of motor vehicle personal injury liability  insurance
or  policies  of  motor  vehicle  property damage liability insurance or
insurance for loss or damage to a motor vehicle, shall establish a fair,
practicable, and nondiscriminatory plan for refunding or otherwise cred-
iting to those purchasing such policies their  share  of  the  insurer's
excess  profit,  if  any,  on such policies. An excess profit shall be a
profit beyond a percentage rate of return on net worth  attributable  to
such  policies,  computed  in accordance with the regulation required by
section two thousand three hundred twenty-three  of  this  article,  and
determined by the superintendent to be so far above a reasonable average
profit  as  to amount to an excess profit, taking into consideration the
fact that losses or profits below a reasonable average profit  will  not
be  recouped  from  such  policyholders. Each plan shall apply to policy
periods for the periods January  first,  nineteen  hundred  seventy-four
through  August  second, two thousand one, and the effective date of the
property/casualty insurance availability act through June thirtieth, two
thousand seventeen. In prescribing such regulations  the  superintendent
may  limit  the duration of such plans, waive any requirement for refund
or credit that he or she determines to be de minimis  or  impracticable,
adopt  forms  of  returns  that  shall be made to him or her in order to
establish the amount of any refund or credit due, establish periods  and
times for the determination and distribution of refunds and credits, and
shall  provide  that  insurers  receive  appropriate  credit against any
refunds or credits required by any such plan for policyholder  dividends
and  for return premiums that may be due under rate credit or retrospec-
tive rating plans based on experience.
  (B)(1) ON OR BEFORE NOVEMBER FIRST, TWO THOUSAND EIGHTEEN, AND ANNUAL-
LY THEREAFTER, THE SUPERINTENDENT SHALL COMPLETE A RECALCULATION OF  THE
POINTS  FOR  REASONABLE  RATE  OF  RETURN AND EXCESS PROFITS ESTABLISHED
UNDER THE REGULATIONS PROMULGATED PURSUANT TO THIS  SECTION,  USING  THE
MOST  RECENT SIX YEAR PERIOD FOR WHICH DATA IS AVAILABLE. IF SUCH RECAL-
CULATION RESULTS IN A CHANGE IN SUCH POINTS,  THE  SUPERINTENDENT  SHALL
IMMEDIATELY  ADOPT SUCH POINTS IN REGULATION, AND, IF, UNDER SUCH RECAL-
CULATION, EXCESS PROFITS HAVE BEEN REALIZED, SHALL IMMEDIATELY  ACTIVATE
PLANS  FOR  REFUNDING  OR  OTHERWISE  CREDITING TO THOSE PURCHASING SUCH
POLICIES THEIR SHARE OF INSURERS' EXCESS PROFIT, IN ACCORDANCE WITH  THE
REGULATIONS PROMULGATED HEREUNDER.
  (2)  ON  OR BEFORE DECEMBER FIRST, TWO THOUSAND EIGHTEEN, AND ANNUALLY
THEREAFTER, THE SUPERINTENDENT  SHALL  HOLD  A  PUBLIC  HEARING  ON  THE
RESULTS  OF  SUCH  RECALCULATION  AND ANY ACTIONS INSTITUTED PURSUANT TO
THIS SECTION AS A RESULT OF SUCH RECALCULATION.  ON  OR  BEFORE  JANUARY
FIRST,  TWO  THOUSAND NINETEEN, AND ANNUALLY THEREAFTER, THE SUPERINTEN-
DENT SHALL SEND A TRANSCRIPT OF THE HEARING TO  THE  LEGISLATURE  AND  A
REPORT  ON  THE RESULTS OF SUCH RECALCULATION AND ANY ACTIONS INSTITUTED
AS REQUIRED BY THIS SECTION.
  (3) ON OR BEFORE OCTOBER FIRST, TWO THOUSAND EIGHTEEN, THE SUPERINTEN-
DENT SHALL ISSUE A REQUEST FOR PROPOSALS TO CONDUCT AN INDEPENDENT AUDIT
AND EVALUATION, WITH RESPECT TO  NONBUSINESS  AUTOMOBILE  INSURANCE,  OF
INSURER  COMPLIANCE  WITH  AND  THE  SUPERINTENDENT'S IMPLEMENTATION AND

S. 1927--A                          6

ENFORCEMENT OF THE PROVISIONS OF THIS SECTION.  THE SUPERINTENDENT SHALL
PROVIDE THE CHAIRS OF THE ASSEMBLY AND SENATE  COMMITTEES  ON  INSURANCE
WITH  THE RESPONSES TO THE REQUEST FOR PROPOSALS, AND SHALL CONSULT WITH
SUCH CHAIRS ON THE SELECTION OF THE FIRM TO CONDUCT THE AUDIT.
  SUCH  AUDIT  SHALL  BE  COMPLETED  AND  A REPORT SUBMITTED BY NOVEMBER
FIRST, TWO THOUSAND NINETEEN TO THE SUPERINTENDENT AND THE  LEGISLATURE.
THE SCOPE OF THE AUDIT SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I)  AN  IDENTIFICATION AND EVALUATION OF EVENTS AND CONDITIONS INFLU-
ENCING INSURER PROFITS, INCLUDING, BUT  NOT  LIMITED  TO:  THE  BUSINESS
CLIMATE AND CHANGES IN ECONOMIC CONDITIONS, INCLUDING INTEREST RATES;
  (II)  AN  ASSESSMENT  OF  THE  APPROPRIATENESS  OF THE METHODOLOGY FOR
SELECTING A REASONABLE RATE OF RETURN AND EXCESS PROFIT THRESHOLD  UNDER
SUCH REGULATION;
  (III)  AN  ASSESSMENT  OF  THE FEASIBILITY OF USING INDIVIDUAL INSURER
RESULTS RATHER THAN AGGREGATE INDUSTRY DATA FOR TESTING PROFITABILITY;
  (IV) AN ASSESSMENT OF THE FEASIBILITY OF AVERAGING DATA OVER LESS THAN
A SIX YEAR PERIOD FOR MEASURING EXCESS PROFITS;
  (V) AN ASSESSMENT OF  THE  DEPARTMENT'S  ACTIVITIES  WITH  RESPECT  TO
RECALCULATING  THE  POINTS  FOR  REASONABLE  RATE  OF  RETURN AND EXCESS
PROFITS;
  (VI) A RECALCULATION OF THE POINTS FOR REASONABLE RATE OF  RETURN  AND
EXCESS  PROFITS  USING THE MOST RECENT SIX YEAR PERIOD FOR WHICH DATA IS
AVAILABLE; AND
  (VII) AN IDENTIFICATION AND EVALUATION OF OTHER STATES' EXCESS PROFITS
LAWS, REGULATIONS, IMPLEMENTATION OF  SUCH  LAWS  AND  REGULATIONS,  AND
METHODOLOGIES FOR CALCULATING POINTS FOR REASONABLE RATE OF RETURN.
  THE  REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO:  RECOMMENDATIONS FOR
CHANGES TO THE LAW, REGULATIONS AND IMPLEMENTATION  AND  ENFORCEMENT  OF
SUCH  PROVISIONS  BASED  ON  THE  FINDINGS OF SUCH AUDIT AND EVALUATION.
WITHIN THREE MONTHS OF THE RECEIPT OF SUCH  REPORT,  THE  SUPERINTENDENT
SHALL  HOLD A PUBLIC HEARING WITH REGARD TO THE DEPARTMENT'S RESPONSE TO
THE FINDINGS AND RECOMMENDATIONS OF THE REPORT.
  S 7.  This act shall take effect immediately, provided, however,  that
this  act  shall  apply  to  insurance contracts issued or renewed on or
after such effective date, and shall apply at the next  required  policy
period,  commencing  on  or  after  such date, to any insurance contract
written prior to the effective date of this act.