S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6135
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 30, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 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".
   § 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.
   § 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.
   §  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-
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07604-01-3
              

 S. 6135                             2
 
   (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.
   §  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
 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
 S. 6135                             3
 
 IMPOSED IN SECTION NINE THOUSAND ONE HUNDRED TEN OF THE  INSURANCE  LAW,
 AS ADDED BY SECTION FOUR HUNDRED TWENTY-ONE OF CHAPTER FIFTY-FIVE OF THE
 LAWS  OF  NINETEEN HUNDRED NINETY-TWO.  THE COMPENSATION OF EMPLOYEES OF
 THE  OFFICE  SHALL  BE  FIXED  BY  THE ADVOCATE 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.
   § 3. Subsection (d) of section 2321 of the insurance law is amended to
 read as follows:
 S. 6135                             4
 
   (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.
   § 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 TWENTY-THREE THAT
 AMENDED THIS SUBSECTION.
   § 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:
   § 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, AS ADDED BY SECTION THREE HUNDRED EIGHTY-SIX  OF  CHAPTER
 FIFTY-FIVE  OF  THE LAWS OF NINETEEN HUNDRED NINETY-TWO, that are trans-
 ferred to the fund pursuant  to  paragraph  one  of  subsection  (e)  of
 section  nine thousand one hundred ten of the insurance law, AS ADDED BY
 SECTION THREE HUNDRED EIGHTY-SIX OF CHAPTER FIFTY-FIVE OF  THE  LAWS  OF
 NINETEEN  HUNDRED  NINETY-TWO,  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
 S. 6135                             5
 
 OF CREATING, ADMINISTERING AND OPERATING THE OFFICE OF INSURANCE CONSUM-
 ER  ADVOCATE  CREATED  PURSUANT TO ARTICLE FORTY-FOUR-A OF THE EXECUTIVE
 LAW.
   §  6.  Section  2329  of the insurance law, as amended by section 5 of
 item JJ of subpart B of part XXX of chapter 58 of the laws of  2020,  is
 amended to read as follows:
   §  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 twenty-three. In prescribing such regulations  the  superinten-
 dent  may  limit  the  duration of such plans, waive any requirement for
 refund or credit that he or she determines to be de minimis or impracti-
 cable, 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 TWENTY-FIVE, AND
 ANNUALLY THEREAFTER, THE SUPERINTENDENT SHALL COMPLETE  A  RECALCULATION
 OF  THE  POINTS  FOR REASONABLE RATE OF RETURN AND EXCESS PROFITS ESTAB-
 LISHED UNDER THE REGULATIONS PROMULGATED PURSUANT TO THIS SECTION, USING
 THE MOST RECENT SIX YEAR PERIOD FOR WHICH DATA  IS  AVAILABLE.  IF  SUCH
 RECALCULATION  RESULTS  IN  A  CHANGE IN SUCH POINTS, THE SUPERINTENDENT
 SHALL IMMEDIATELY ADOPT SUCH POINTS IN REGULATION, AND, IF,  UNDER  SUCH
 RECALCULATION,  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 TWENTY-FIVE, AND ANNUAL-
 LY  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 TWENTY-SIX, 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 TWENTY-FIVE,  THE  SUPER-
 INTENDENT  SHALL ISSUE A REQUEST FOR PROPOSALS TO CONDUCT AN INDEPENDENT
 S. 6135                             6
 
 AUDIT AND EVALUATION, WITH RESPECT TO NONBUSINESS AUTOMOBILE  INSURANCE,
 OF  INSURER  COMPLIANCE WITH AND THE SUPERINTENDENT'S IMPLEMENTATION AND
 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 TWENTY-SIX TO THE SUPERINTENDENT  AND  THE  LEGISLA-
 TURE.  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.
   § 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.