S T A T E O F N E W Y O R K
________________________________________________________________________
5806
2017-2018 Regular Sessions
I N S E N A T E
May 1, 2017
___________
Introduced by Sen. SEWARD -- (at request of the Department of Financial
Services) -- 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
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 2342 of the insurance law, as amended by section 6
of part B of chapter 78 of the laws of 2014, is amended to read as
follows:
§ 2342. Expiration of certain provisions. The provisions of subsection
(c) of section two thousand three hundred seven, section two thousand
three hundred eight, subsection (a) of section two thousand three
hundred ten, sections two thousand three hundred sixteen, two thousand
three hundred twenty, two thousand three hundred twenty-three, two thou-
sand three hundred twenty-six, and two thousand three hundred thirty-
five, and subsection (b) of section two thousand three hundred thirty-
six of this article shall cease to be of any force or effect during the
period August third, two thousand one through the day before the effec-
tive date of the property/casualty insurance availability act, and after
June thirtieth, two thousand [seventeen] TWENTY.
§ 2. Subsection (f) of section 2305 of the insurance law, as amended
by section 4 of part B of chapter 78 of the laws of 2014, is amended to
read as follows:
(f) Subsection (a) of this section shall be of no force or effect
during the period August third, two thousand one through the day before
the effective date of the property/casualty insurance availability act,
and after June thirtieth, two thousand [seventeen] TWENTY. During the
period August third, two thousand one through the day before the effec-
tive date of the property/casualty insurance availability act, and again
commencing on July first, two thousand [seventeen] TWENTY, all rates
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10205-01-7
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previously subject to subsection (a) of this section, other than rates
that are not required to be filed pursuant to subsection (b) of section
two thousand three hundred ten of this article or that have been
suspended from the filing requirement pursuant to section two thousand
three hundred eleven of this article, shall become subject to
subsections (b), (c) and (d) of this section. All other provisions of
this article applicable to kinds of insurance or insurance activities
the rates for which are subject to prior approval under subsection (b)
of this section shall apply to kinds of insurance the rates for which
were previously subject to subsection (a) of this section or the rates
for which are not required to be filed pursuant to subsection (b) of
section two thousand three hundred ten of this article or the rates for
which have been suspended from the filing requirement pursuant to
section two thousand three hundred eleven of this article.
§ 3. Subsection (h) of section 2344 of the insurance law, as amended
by section 7 of part B of chapter 78 of the laws of 2014, is amended to
read as follows:
(h) This section shall cease to be of any force or effect during the
period August third, two thousand one through the day before the effec-
tive date of the property/casualty insurance availability act, and after
June thirtieth, two thousand [seventeen] TWENTY, except that rates shall
reflect the likely reductive cost effects reasonably attributable to the
statutory provisions specified in paragraph one of subsection (g) of
this section.
§ 4. Paragraphs 1 and 2 and the opening paragraph of paragraph 3 of
subsection (m) of section 3425 of the insurance law, as amended by
section 3 of part B of chapter 78 of the laws of 2014, are amended to
read as follows:
(1) Paragraphs eight and nine of subsection (a), subsection (f) and
subparagraphs (B) and (E) of paragraph one of subsection (j) of this
section shall not apply to any new covered policy of automobile insur-
ance voluntarily written on or after August first, nineteen hundred
eighty-five and prior to January first, nineteen hundred eighty-six, and
on or after August second, two thousand one and prior to the effective
date of the property/casualty insurance availability act, and on or
after June thirtieth, two thousand [seventeen] TWENTY, but the legal
rights granted to insurers or policyholders under such provisions shall
not be extinguished or impaired thereby.
(2) In lieu of such provisions, paragraph seven of subsection (a),
subparagraph (A) of paragraph one of subsection (j) OF THIS SECTION and
paragraph three of this subsection shall apply to such automobile insur-
ance policies that are newly and voluntarily written to have an effec-
tive date on or after August first, nineteen hundred eighty-five and
prior to January first, nineteen hundred eighty-six, and on or after
August second, two thousand one and prior to the effective date of the
property/casualty insurance availability act, and on or after June thir-
tieth, two thousand [seventeen] TWENTY.
On and after August first, nineteen hundred eighty-five and prior to
January first, nineteen hundred eighty-six, and on or after August
second, two thousand one and prior to the effective date of the
property/casualty insurance availability act, and on or after June thir-
tieth, two thousand [seventeen] TWENTY, no notice of nonrenewal or
conditional renewal of such covered automobile insurance policies
referred to in this subsection shall be issued to become effective
during the required policy period unless it is based upon a ground for
which the policy could have been cancelled or unless it is based upon
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one or more of the following grounds that occurred during the thirty-six
month period ending on the last day of the fourth month preceding the
month of the effective date of such notice of nonrenewal or conditional
renewal:
§ 5. Sections 2328 and 2329 of the insurance law, as amended by
section 1 of part B of chapter 78 of the laws of 2014, are amended to
read as follows:
§ 2328. Certain motor vehicle insurance rates; prior approval. For the
periods February 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] TWENTY, no changes in rates, rating plans, rating
rules and rate manuals applicable to motor vehicle insurance, including
no-fault coverages under article fifty-one of this chapter, shall be
made effective until approved by the superintendent, notwithstanding any
inconsistent provisions of this article; provided, however, that changes
in such rates, rating plans, rating rules and rate manuals may be made
effective without such approval if the rates that result from such
changes are no higher than the insurer's rates last approved by the
superintendent. This section shall apply only to policies covering loss-
es or liabilities arising out of ownership of a motor vehicle used prin-
cipally for the transportation of persons for hire, including a bus or a
school bus as defined in sections one hundred four and one hundred
forty-two of the vehicle and traffic law.
§ 2329. Motor vehicle insurance rates; excess profits. In accordance
with regulations prescribed by the superintendent, each insurer issuing
policies that are subject to article fifty-one of this chapter, includ-
ing policies of motor vehicle personal injury liability insurance or
policies of motor vehicle property damage liability insurance or insur-
ance 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] TWENTY. In prescribing such regulations the super-
intendent 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 policyhold-
er dividends and for return premiums that may be due under rate credit
or retrospective rating plans based on experience.
§ 6. Subsection (g) of section 5412 of the insurance law, as amended
by section 8 of part B of chapter 78 of the laws of 2014, is amended to
read as follows:
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(g) The provisions of this section shall cease to be of any force or
effect on or after June thirtieth, two thousand [seventeen] TWENTY,
except that policies issued or other obligations incurred by the associ-
ation shall not be impaired by the expiration of this section and the
association shall continue for the purpose of servicing such policies
and performing such obligations.
§ 7. This act shall take effect immediately.