NY State Senate Bill 2023-S8772

Senate Bill S8772

2023-2024 Legislative Session

Requires insurance companies to provide detailed rationale for rate changes of certain state or municipal backed buildings

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 11, 2024	referred to insurance

2023-S8772 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §2354, Ins L

2023-S8772 (ACTIVE) - Summary

Requires insurance companies to provide detailed rationale and the formulation for rate changes of certain state or municipal backed buildings.

2023-S8772 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8772

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring insurance
companies to provide detailed rationale for rate changes of certain
state or municipal backed buildings

 
PURPOSE:

This bill will require insurers of state and municipally owned buildings
and developments to submit reasons for a carrying charge rate increase
in writing to the Department of Housing Preservation and Development, to
the Department of Housing and Community Renewal and to stakeholders
within a certain timeframe prior to enacting any rate changes.

 
SUMMARY OF PROVISIONS:

Section 1: The insurance law is amended by adding a new section § 2354.

Section 2: Act and effective date.

 
EXISTING LAW:

None.

 
JUSTIFICATION:

In late February 2024, the Department of Housing and Community Renewal
was forced to approve an 8.1% carrying charge increase for Co-op city
shareholders.

This rate increase was decided without:

(1) insight regarding the formula used by the insurance company to
calculate the rate increase,

(2) consideration of a percentage increase stakeholders could afford to
pay, and

(3) notification within a reasonable period to stakeholders with the
8.1% increase set to go into effect April 1, 2024.

The 8.1% rate increase will have an adverse impact on the post-pandemic
economic progress made by the Bronx by displacing 50,000 people in New
York City, most of who are either middle class workers, or belong to the
largest Naturally Occurring Retirement Community (NORC) in the nation.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
LOCAL FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become law.

2023-S8772 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8772
 
                             I N  S E N A T E
 
                              March 11, 2024
                                ___________
 
 Introduced  by  Sen.  BAILEY -- 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  requiring  insurance
   companies  to  provide  detailed rationale for rate changes of certain
   state or municipal backed buildings
 
   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 2354
 to read as follows:
   § 2354. NOTICE OF RATE INCREASE. 1. AS USED IN THIS SECTION, THE  TERM
 "STATE  OR MUNICIPAL BACKED BUILDING OR DEVELOPMENT" SHALL MEAN A BUILD-
 ING OR DEVELOPMENT OWNED BY THE STATE OR WHICH IS IN ANY WAY  SUBSIDIZED
 BY  THE  STATE  INCLUDING, BUT NOT LIMITED TO, A BUILDING OR DEVELOPMENT
 ORGANIZED PURSUANT TO ARTICLE TWO OF THE PRIVATE  HOUSING  FINANCE  LAW,
 SUPERVISED  BY  THE NEW YORK CITY DEPARTMENT OF HOUSING PRESERVATION AND
 DEVELOPMENT, OR SUPERVISED BY THE DEPARTMENT OF  HOUSING  AND  COMMUNITY
 RENEWAL.
   2.  NO  INSURER SHALL IMPOSE AN INCREASED PREMIUM OR RATE FOR A POLICY
 OR CONTRACT WHICH INCLUDES COVERAGE  OF  A  STATE  OR  MUNICIPAL  BACKED
 BUILDING  OR DEVELOPMENT WITHOUT PROVIDING WRITTEN NOTICE TO ALL POLICY-
 HOLDERS AND ANY GOVERNMENTAL ENTITY SUPERVISING SUCH BUILDING OR  DEVEL-
 OPMENT  INDICATING  THE CHANGE IN PREMIUMS OR RATES NOT LESS THAN SIXTY,
 BUT NOT MORE THAN ONE HUNDRED TWENTY, DAYS PRIOR TO THE  EFFECTIVE  DATE
 OF  SUCH  PREMIUMS  OR RATES. SUCH NOTICE SHALL INCLUDE, BUT NOT LIMITED
 TO, A DETAILED RATIONALE FOR THE CHANGE IN PREMIUMS  OR  RATES  AND  THE
 FORMULATION OF THE PREMIUM OR RATE CHANGE.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law and shall apply to  all
 policies and contracts issued, renewed, modified, altered, or amended on
 or  after  such  date.  Effective  immediately,  the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on  its  effective  date  are  authorized  to  be  made  and
 completed on or before such date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14826-02-4

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