NY State Senate Bill 2023-S2534

Senate Bill S2534

2023-2024 Legislative Session

Prohibits cancellation, non-renewal or conditioning renewal of automobile insurance when dispute as to pending claim exists

download bill text pdf

Current 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Jan 23, 2023	referred to insurance

2023-S2534 (ACTIVE) - Details

See Assembly Version of this Bill:: A6648
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3425, Ins L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3348
2011-2012: A2744
2013-2014: A3696
2015-2016: A4944
2017-2018: A635
2019-2020: A86
2021-2022: S5664, A189

2023-S2534 (ACTIVE) - Summary

Prohibits cancellation, non-renewal or conditioning renewal of automobile insurance of a policyholder solely as a result of a dispute or a complaint pending against the insurer.

2023-S2534 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2534

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to prohibiting an insurer
from cancelling or refusing to renew or condition its renewal of automo-
bile insurance policies in certain cases

 
PURPOSE:

To prohibit insurers from canceling or refusing to renew or condition
its renewal of automobile insurance policies solely on the bases that
there is a pending complaint filed by the insured, or that a claim filed
by the insured with the insurer is in dispute.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill adds subsection (t) to § 3425 of the insurance
law to require that automobile insurance policies, except for nonpayment
of premium, shall not be cancelled or refused renewal due to a pending
claim filed against the insured.

Section two of the bill provides the effective date.

 
JUSTIFICATION:

Currently, under subsection (f) of § 3425 of the insurance law, an
insurer may non-renew up to two percent of its non-commercial motor
vehicle policies during each calendar year. The purpose of the two
percent provision was to afford insurance companies some protection from
policyholders who may be high risks, and to allow for some flexibility
in these cases.Consequently, many insurance companies have abused this
two percent provision by using it in cases where policyholders have had
claim disputes and subsequently have filed complaints with the depart-
ment against the carrier. This legislation seeks to help protect consum-
ers from having their policies terminated due to claim disputes or their
tiling of complaints.Consumers should not have to suppress or lose their
right to openly and appropriately protest arbitrary and unfair claim
settlement practices by insurance companies due to fear of the loss of
coverage.

 
PRIOR LEGISLATIVE HISTORY:

2022: S5664

2019-2020: A.86 - Third Reading Calendar

2018: A.635/S.3757 - Third Reading Calendar / Insurance

2017: A.635/S.3757 - Passed assembly/insurance

2018: A.4944 - Mira Reading Calendar

2015: A.4944 - Referred to insurance

2014: A.3696-B - Passed Assembly

2013: A.3696-B - Passed Assembly
2012: A.2744-A - Third Reading Calendar

2011: A.2744-A - Third Reading Calendar

2010: A.3348 - Third Reading Calendar

2009: A.3348 - Referred to Insurance

2007-2008: A.5183 - Referred to Insurance

2006: A.4059 - Referred to Insurance

2005.: A.4059 - Third Reading Calendar

2004: A.5199 - Third Reading Calendar

 
EFFECTIVE DATE:
Immediately.

2023-S2534 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2534
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2023
                                ___________
 
 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 prohibiting an insurer
   from cancelling or refusing to renew or condition its renewal of auto-
   mobile insurance policies in certain cases

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  3425 of the insurance law is amended by adding a
 new subsection (t) to read as follows:
   (T) NO INSURER SHALL CANCEL OR REFUSE TO RENEW  A  POLICY  COVERING  A
 PRIVATE PASSENGER AUTOMOBILE, OR TO CONDITION ITS RENEWAL UPON CHANGE OF
 LIMITS  OR ELIMINATION OF ANY COVERAGES SOLELY ON THE BASIS THAT A CLAIM
 FILED BY THE INSURED WITH THE INSURER IS IN DISPUTE, OR THAT A COMPLAINT
 BY THE INSURED AGAINST THE INSURER RESULTING FROM THE DISPUTED CLAIM  IS
 PENDING WITH THE DEPARTMENT.
   § 2. This act shall take effect immediately.
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04329-01-3

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