NY State Senate Bill 2021-S4158

Senate Bill S4158

2021-2022 Legislative Session

Requires that an insurer participating in the assigned risk plan shall review the risk profiles of each policy holder

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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 05, 2022	referred to insurance
Feb 02, 2021	referred to insurance

co-Sponsors

2021-S4158 (ACTIVE) - Details

See Assembly Version of this Bill:: A3827
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §5305, amd §309, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8487, A9762
2023-2024: S1627, A2588

2021-S4158 (ACTIVE) - Summary

Requires that an insurer participating in the assigned risk plan shall review the risk profiles of each policy holder that has been assigned to such insurer through the plan to determine if such policy holders are eligible for motor vehicle insurance coverage written by such insurer in the voluntary market.

2021-S4158 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4158

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to certain policy review

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide auto insurance policy holders in the assigned risk plan with
increased access to auto coverage in the voluntary market.

 
SUMMARY OF PROVISIONS:

Section one of the bill would add a new section 5305 to the Insurance
Law. This section would require:

* Insurers in the assigned risk plan to review the risk profiles of each
of their policy holders to determine if such policy holders are eligible
for motor vehicle coverage in the voluntary market and to provide such
coverage to any policy holder determined to be eligible;

* Insurers to provide written notice of the review to policy holders at
least 30 days prior to the date such review is conducted and also
provide written notice of determinations of eligibility within 10 days
after such determinations are made; and The Superintendent of the
Department of Financial Services to review the determinations made by
insurers to ensure such determinations are issued in compliance with the
provisions of this bill, that- such determinations are based on sound
underwriting and actuarial principles and that policy holders eligible
for coverage in the voluntary market are being provided with such cover-
age.  This section would also permit policy holders to file complaints
with the superintendent regarding any violations of the provisions of
this bill.

Section two of the bill would provide the effective date.

 
JUSTIFICATION:

The New York Automobile Insurance Plan (NYAIP), otherwise known as the
"assigned risk plan," is a mechanism established pursuant to Article 53
of the insurance law which provides auto insurance coverage to persons
unable to obtain coverage on the voluntary market. As the market of last
resort, rates under the NYAIP are more expensive than those found on the
voluntary market. This bill seeks to provide policy holders in line
NYAIP greater access to more affordable coverage on the voluntary market
by requiring insurers in the NYAIP to review the risk profiles of each
of their policy holders to determine if such policy holders are eligible
for motor vehicle coverage in the voluntary market and to provide such
coverage to any policy holder determined to iv eligible. This bill would
also establish the necessary oversight by the department of financial
services to ensure any determinations made by insurers are based on
sound underwriting and actuarial principles.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

 
EFFECTIVE DATE:
Immediately.

2021-S4158 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4158
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 certain policy 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 5305
 to read as follows:
   § 5305. POLICY REVIEW. (A) WITHIN NINETY DAYS AFTER THE EFFECTIVE DATE
 OF THIS SECTION AND EVERY TWO YEARS THEREAFTER, AN INSURER PARTICIPATING
 IN THE ASSIGNED RISK PLAN PURSUANT TO THIS ARTICLE SHALL REVIEW THE RISK
 PROFILES OF EACH POLICY HOLDER THAT HAS BEEN ASSIGNED  TO  SUCH  INSURER
 THROUGH  THE  PLAN  TO DETERMINE IF SUCH POLICY HOLDERS ARE ELIGIBLE FOR
 MOTOR VEHICLE INSURANCE COVERAGE WRITTEN BY SUCH INSURER IN  THE  VOLUN-
 TARY  MARKET.  SUCH  INSURER  SHALL,  UPON  RENEWAL, WRITE MOTOR VEHICLE
 INSURANCE COVERAGE IN THE VOLUNTARY MARKET FOR ANY POLICY HOLDER  DETER-
 MINED TO BE ELIGIBLE FOR SUCH COVERAGE.
   (B)  AN  INSURER  SHALL  SEND WRITTEN NOTICE OF THE REVIEW REQUIRED BY
 SUBSECTION (A) OF THIS SECTION TO EACH POLICY  HOLDER  AT  LEAST  THIRTY
 DAYS  PRIOR TO THE DATE THAT SUCH REVIEW IS CONDUCTED. SUCH NOTICE SHALL
 ALSO INFORM EACH POLICY HOLDER OF A POLICY HOLDER'S RIGHT TO SEARCH  FOR
 AND OBTAIN COVERAGE ON THE VOLUNTARY MARKET AT ANY TIME.
   (C)  AN INSURER SHALL ALSO SEND WRITTEN NOTICE OF THE DETERMINATION OF
 ELIGIBILITY FOR COVERAGE  IN  THE  VOLUNTARY  MARKET  MADE  PURSUANT  TO
 SUBSECTION  (A) OF THIS SECTION TO A POLICY HOLDER WITHIN TEN DAYS AFTER
 SUCH DETERMINATION IS MADE.
   (D) ANY PERSON INSURED PURSUANT TO THIS ARTICLE MAY FILE  A  COMPLAINT
 WITH  THE  SUPERINTENDENT  REGARDING  ANY  VIOLATIONS OF THIS SECTION BY
 INSURERS PARTICIPATING IN THE ASSIGNED RISK PLAN.
   § 2. Section 309 of the insurance law  is  amended  by  adding  a  new
 subsection (d) to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03198-01-1

 S. 4158                             2
 
   (D)  AS PART OF AN EXAMINATION, THE SUPERINTENDENT SHALL REVIEW DETER-
 MINATIONS MADE PURSUANT TO SECTION FIVE THOUSAND THREE HUNDRED  FIVE  OF
 THIS CHAPTER REGARDING THE ELIGIBILITY OF POLICY HOLDERS FOR COVERAGE ON
 THE  VOLUNTARY  MARKET  TO  ENSURE  SUCH  DETERMINATIONS   ARE ISSUED IN
 COMPLIANCE  WITH  SUCH  SECTION,  THAT  SUCH DETERMINATIONS ARE BASED ON
 SOUND UNDERWRITING AND ACTUARIAL  PRINCIPLES  AND  THAT  POLICY  HOLDERS
 ELIGIBLE  FOR  COVERAGE  IN THE VOLUNTARY MARKET ARE BEING PROVIDED WITH
 SUCH COVERAGE IN COMPLIANCE WITH SUCH SECTION.
   § 3. This act shall take effect immediately.

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Senate Bill S4158

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Sponsored By

Leroy Comrie