NY State Senate Bill 2019-S8486

Archive: Last Bill Status - In Senate Committee Rules 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
Jun 05, 2020	referred to rules

co-Sponsors

2019-S8486 (ACTIVE) - Details

See Assembly Version of this Bill:: A9764
Current Committee:: Senate Rules
Law Section:: Insurance Law
Laws Affected:: Add §344, Ins L
Versions Introduced in 2021-2022 Legislative Session:: S4155, A4535

2019-S8486 (ACTIVE) - Summary

Requires the superintendent of financial services to conduct a review of the classification used by authorized insurers in this state issuing auto insurance coverage for commuter vans, including coverage in the assigned risk plan; makes related provisions.

2019-S8486 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8486

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to commuter van classi-
fication review

 
PURPOSE OR GENERAL IDEA OF BILL:

To require the Department of Financial services to review the classi-
fication used by insurers issuing auto insurance coverage to commuter
vans.

 
SUMMARY OF PROVISIONS:

Section one of this bill would add a new section 344 to the insurance
law. This section would require the Superintendent of the Department of
Financial Services to conduct a review of the classification used by
authorized insurers issuing auto insurance coverage to commuter vans.

This review shall include:

*Whether the assumed risks used in the calculation of premiums for
commuter vans by insurers are appropriate;

*Whether the current classification and risk assessment of commuter vans
by insurers is the most cost-effective classification based on the
assumed risks, if another classification could be more cost effective,
and a detailed analysis of the reason or reasons for such differences in
costs and the average amount of difference in costs; and

*The cost differential between the premium for being classified as
"other buses" by insurers, and the premium for being classified as a
commuter van where such premium is based solely on the risks specific to
commuter vans in such plan.

This section would also require the Superintendent to make a determi-
nation, after the review, of whether a new classification for commuter
vans should be created and if so, require insurers to use such new clas-
sification.

This section would also require the Superintendent to complete the
review within 90 days of the effective date of this act and submit a
report of the superintendent's findings and determinations to the gover-
nor, the legislature and the chairs of the Senate and Assembly insurance
committees within 60 days after completing such review.

Section two of the bill would provide the effective date.

 
JUSTIFICATION:

Auto insurers often place individuals or entities with similar risk
characteristics into groups or classes for the purpose of underwriting
policies and determining appropriate premium rates.Currently, commuter
vans are placed in the same classification as other types of passenger
buses such as urban buses, charter buses and sightseeing buses. Concerns
have been raised that this classification has resulted in steep annual
premium increases for commuter van coverage due to the fact that the
risks of commuter vans are combined with the risks of other types of
buses which often carry a larger number of passengers and travel greater
distances than commuter vans.

This bill seeks to address these concerns by requiring the superinten-
dent of the department of financial services to review the current clas-
sification of commuter vans used by authorized insurers and determine
whether a new classification should be created and if so, to require
insurers to use such new classification.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S8486 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8486
 
                             I N  S E N A T E
 
                               June 5, 2020
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the insurance law, in relation to commuter  van  classi-
   fication review
 
   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 section 344 to
 read as follows:
   § 344. COMMUTER VAN CLASSIFICATION REVIEW. (A)  FOR  THE  PURPOSES  OF
 THIS SECTION:
   (1) "COMMUTER VAN" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED
 IN SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
   (2)  "ASSIGNED  RISK  PLAN"  OR "PLAN" SHALL MEAN THE PLAN ESTABLISHED
 PURSUANT TO ARTICLE FIFTY-THREE OF THIS CHAPTER.
   (B) THE SUPERINTENDENT SHALL CONDUCT A REVIEW  OF  THE  CLASSIFICATION
 USED  BY AUTHORIZED INSURERS IN THIS STATE ISSUING AUTO INSURANCE COVER-
 AGE FOR COMMUTER VANS, INCLUDING COVERAGE IN  THE  ASSIGNED  RISK  PLAN.
 THIS  REVIEW  SHALL  INCLUDE DETERMINATIONS OF WHETHER COMMUTER VANS ARE
 PROPERLY CLASSIFIED, INCLUDING A REVIEW OF:
   (1) WHETHER THE ASSUMED RISKS USED IN THE CALCULATION OF PREMIUMS  FOR
 COMMUTER VANS BY AUTHORIZED INSURERS ARE APPROPRIATE;
   (2) WHETHER THE CURRENT CLASSIFICATION AND RISK ASSESSMENT OF COMMUTER
 VANS  BY  AUTHORIZED  INSURERS IS THE MOST COST EFFECTIVE CLASSIFICATION
 BASED ON THE ASSUMED RISKS, IF ANOTHER CLASSIFICATION COULD BE MORE COST
 EFFECTIVE, AND A DETAILED ANALYSIS OF THE REASON OR   REASONS  FOR  SUCH
 DIFFERENCES IN COSTS AND THE AVERAGE AMOUNT OF DIFFERENCE IN COSTS; AND
   (3)  THE COST DIFFERENTIAL BETWEEN THE PREMIUM FOR BEING CLASSIFIED AS
 "OTHER BUSES" BY AUTHORIZED INSURERS, AND THE PREMIUM FOR BEING  CLASSI-
 FIED  AS  A COMMUTER VAN WHERE SUCH PREMIUM IS BASED SOLELY ON THE RISKS
 SPECIFIC TO COMMUTER VANS IN SUCH PLAN.
   (C) IF, AFTER REVIEW, THE  PREMIUM  FOR  BEING  CLASSIFIED  AS  "OTHER
 BUSES"  IS  GREATER  THAN THE PREMIUM FOR BEING CLASSIFIED AS A COMMUTER
 VAN, THE SUPERINTENDENT SHALL MAKE A  DETERMINATION  OF  WHETHER  A  NEW
 CLASSIFICATION  FOR  COMMUTER  VANS  SHOULD BE CREATED AND, IF SO, SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15099-01-0

 S. 8486                             2
 
 REQUIRE AUTHORIZED INSURERS ISSUING  AUTO  INSURANCE  POLICIES  IN  THIS
 STATE,  INCLUDING POLICIES ISSUED THROUGH THE ASSIGNED RISK PLAN, TO USE
 SUCH CLASSIFICATION FOR COMMUTER VANS AT THE INCEPTION OF ALL NEW  POLI-
 CIES AND, WITH RESPECT TO ALL OTHER POLICIES, UPON RENEWAL.
   (D) THE SUPERINTENDENT SHALL CONDUCT AND COMPLETE THIS REVIEW AND MAKE
 ALL  REQUIRED DETERMINATIONS WITHIN NINETY DAYS AFTER THE EFFECTIVE DATE
 OF THIS SECTION. THE SUPERINTENDENT SHALL ALSO PROVIDE A REPORT  TO  THE
 GOVERNOR,  THE  TEMPORARY  PRESIDENT  OF  THE SENATE, THE SPEAKER OF THE
 ASSEMBLY, THE CHAIR OF THE ASSEMBLY INSURANCE COMMITTEE AND THE CHAIR OF
 THE SENATE INSURANCE COMMITTEE, OF THE DEPARTMENT'S FINDINGS AND  DETER-
 MINATIONS WITHIN SIXTY DAYS AFTER COMPLETING SUCH REVIEW.
   § 2. This act shall take effect immediately.

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.

Senate Bill S8486

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

2019-S8486 (ACTIVE) - Details

2019-S8486 (ACTIVE) - Summary

2019-S8486 (ACTIVE) - Sponsor Memo

2019-S8486 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8486

Share this bill

Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

Kevin S. Parker

2019-S8486 (ACTIVE) - Details

2019-S8486 (ACTIVE) - Summary

2019-S8486 (ACTIVE) - Sponsor Memo

2019-S8486 (ACTIVE) - Bill Text download pdf

Comments