STATE OF NEW YORK ________________________________________________________________________ 7189 2023-2024 Regular Sessions IN SENATE May 18, 2023 ___________ Introduced by Sen. BRESLIN -- 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 extending provisions of the property/casualty insurance availability act and the authority of the New York property insurance underwriting association The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 2342 of the insurance law, as amended by section 1 2 of item JJ of subpart B of part XXX of chapter 58 of the laws of 2020, 3 is amended to read as follows: 4 § 2342. Expiration of certain provisions. The provisions of subsection 5 (c) of section two thousand three hundred seven, section two thousand 6 three hundred eight, subsection (a) of section two thousand three 7 hundred ten, sections two thousand three hundred sixteen, two thousand 8 three hundred twenty, two thousand three hundred twenty-three, two thou- 9 sand three hundred twenty-six, and two thousand three hundred thirty- 10 five, and subsection (b) of section two thousand three hundred thirty- 11 six of this article shall cease to be of any force or effect during the 12 period August third, two thousand one through the day before the effec- 13 tive date of the property/casualty insurance availability act, and after 14 June thirtieth, two thousand [twenty-three] twenty-six. 15 § 2. Subsection (f) of section 2305 of the insurance law, as amended 16 by section 2 of item JJ of subpart B of part XXX of chapter 58 of the 17 laws of 2020, is amended to read as follows: 18 (f) Subsection (a) of this section shall be of no force or effect 19 during the period August third, two thousand one through the day before 20 the effective date of the property/casualty insurance availability act, 21 and after June thirtieth, two thousand [twenty-three] twenty-six. During 22 the period August third, two thousand one through the day before the 23 effective date of the property/casualty insurance availability act, and 24 again commencing on July first, two thousand [twenty-three] twenty-six, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11524-01-3
S. 7189 2 1 all rates previously subject to subsection (a) of this section, other 2 than rates that are not required to be filed pursuant to subsection (b) 3 of section two thousand three hundred ten of this article or that have 4 been suspended from the filing requirement pursuant to section two thou- 5 sand three hundred eleven of this article, shall become subject to 6 subsections (b), (c) and (d) of this section. All other provisions of 7 this article applicable to kinds of insurance or insurance activities 8 the rates for which are subject to prior approval under subsection (b) 9 of this section shall apply to kinds of insurance the rates for which 10 were previously subject to subsection (a) of this section or the rates 11 for which are not required to be filed pursuant to subsection (b) of 12 section two thousand three hundred ten of this article or the rates for 13 which have been suspended from the filing requirement pursuant to 14 section two thousand three hundred eleven of this article. 15 § 3. Subsection (h) of section 2344 of the insurance law, as amended 16 by section 3 of item JJ of subpart B of part XXX of chapter 58 of the 17 laws of 2020, is amended to read as follows: 18 (h) This section shall cease to be of any force or effect during the 19 period August third, two thousand one through the day before the effec- 20 tive date of the property/casualty insurance availability act, and after 21 June thirtieth, two thousand [twenty-three] twenty-six, except that 22 rates shall reflect the likely reductive cost effects reasonably attrib- 23 utable to the statutory provisions specified in paragraph one of 24 subsection (g) of this section. 25 § 4. Sections 2328 and 2329 of the insurance law, as amended by 26 section 5 of item JJ of subpart B of part XXX of chapter 58 of the laws 27 of 2020, are amended to read as follows: 28 § 2328. Certain motor vehicle insurance rates; prior approval. For the 29 periods February first, nineteen hundred seventy-four through August 30 second, two thousand one, and the effective date of the 31 property/casualty insurance availability act through June thirtieth, two 32 thousand [twenty-three] twenty-six, no changes in rates, rating plans, 33 rating rules and rate manuals applicable to motor vehicle insurance, 34 including no-fault coverages under article fifty-one of this chapter, 35 shall be made effective until approved by the superintendent, notwith- 36 standing any inconsistent provisions of this article; provided, however, 37 that changes in such rates, rating plans, rating rules and rate manuals 38 may be made effective without such approval if the rates that result 39 from such changes are no higher than the insurer's rates last approved 40 by the superintendent. This section shall apply only to policies cover- 41 ing losses or liabilities arising out of ownership of a motor vehicle 42 used principally for the transportation of persons for hire, including a 43 bus or a school bus as defined in sections one hundred four and one 44 hundred forty-two of the vehicle and traffic law. 45 § 2329. Motor vehicle insurance rates; excess profits. In accordance 46 with regulations prescribed by the superintendent, each insurer issuing 47 policies that are subject to article fifty-one of this chapter, includ- 48 ing policies of motor vehicle personal injury liability insurance or 49 policies of motor vehicle property damage liability insurance or insur- 50 ance for loss or damage to a motor vehicle, shall establish a fair, 51 practicable, and nondiscriminatory plan for refunding or otherwise cred- 52 iting to those purchasing such policies their share of the insurer's 53 excess profit, if any, on such policies. An excess profit shall be a 54 profit beyond a percentage rate of return on net worth attributable to 55 such policies, computed in accordance with the regulation required by 56 section two thousand three hundred twenty-three of this article, and
S. 7189 3 1 determined by the superintendent to be so far above a reasonable average 2 profit as to amount to an excess profit, taking into consideration the 3 fact that losses or profits below a reasonable average profit will not 4 be recouped from such policyholders. Each plan shall apply to policy 5 periods for the periods January first, nineteen hundred seventy-four 6 through August second, two thousand one, and the effective date of the 7 property/casualty insurance availability act through June thirtieth, two 8 thousand [twenty-three] twenty-six. In prescribing such regulations the 9 superintendent may limit the duration of such plans, waive any require- 10 ment for refund or credit that [he or she] the superintendent determines 11 to be de minimis or impracticable, adopt forms of returns that shall be 12 made to [him or her] the superintendent in order to establish the amount 13 of any refund or credit due, establish periods and times for the deter- 14 mination and distribution of refunds and credits, and shall provide that 15 insurers receive appropriate credit against any refunds or credits 16 required by any such plan for policyholder dividends and for return 17 premiums that may be due under rate credit or retrospective rating plans 18 based on experience. 19 § 5. Paragraphs 1 and 2 and the opening paragraph of paragraph 3 of 20 subsection (m) of section 3425 of the insurance law, as amended by 21 section 4 of item JJ of subpart B of part XXX of chapter 58 of the laws 22 of 2020, are amended to read as follows: 23 (1) Paragraphs eight and nine of subsection (a), subsection (f) and 24 subparagraphs (B) and (E) of paragraph one of subsection (j) of this 25 section shall not apply to any new covered policy of automobile insur- 26 ance voluntarily written on or after August first, nineteen hundred 27 eighty-five and prior to January first, nineteen hundred eighty-six, and 28 on or after August second, two thousand one and prior to the effective 29 date of the property/casualty insurance availability act, and on or 30 after June thirtieth, two thousand [twenty-three] twenty-six, but the 31 legal rights granted to insurers or policyholders under such provisions 32 shall not be extinguished or impaired thereby. 33 (2) In lieu of such provisions, paragraph seven of subsection (a), 34 subparagraph (A) of paragraph one of subsection (j) of this section and 35 paragraph three of this subsection shall apply to such automobile insur- 36 ance policies that are newly and voluntarily written to have an effec- 37 tive date on or after August first, nineteen hundred eighty-five and 38 prior to January first, nineteen hundred eighty-six, and on or after 39 August second, two thousand one and prior to the effective date of the 40 property/casualty insurance availability act, and on or after June thir- 41 tieth, two thousand [twenty-three] twenty-six. 42 On and after August first, nineteen hundred eighty-five and prior to 43 January first, nineteen hundred eighty-six, and on or after August 44 second, two thousand one and prior to the effective date of the 45 property/casualty insurance availability act, and on or after June thir- 46 tieth, two thousand [twenty-three] twenty-six, no notice of nonrenewal 47 or conditional renewal of such covered automobile insurance policies 48 referred to in this subsection shall be issued to become effective 49 during the required policy period unless it is based upon a ground for 50 which the policy could have been cancelled or unless it is based upon 51 one or more of the following grounds that occurred during the thirty-six 52 month period ending on the last day of the fourth month preceding the 53 month of the effective date of such notice of nonrenewal or conditional 54 renewal: 55 § 6. Subsection (g) of section 5402 of the insurance law, as amended 56 by chapter 70 of the laws of 2019, is amended to read as follows:
S. 7189 4 1 (g) In addition to fire insurance, extended coverage, coverage for 2 additional perils and homeowners insurance should the same be made 3 available through the association in accordance with a determination of 4 necessity pursuant to section five thousand four hundred twelve of this 5 article, the association may offer broad form coverage to applicants 6 seeking to insure real property at fixed locations of this state, or the 7 tangible personal property located thereon. The association may offer 8 broad form coverage [for a period of fifteen years beginning on] until 9 June thirtieth, two thousand [eight] twenty-eight. On or before October 10 first, two thousand [seventeen] twenty-seven the superintendent shall 11 require the association to report to [him or her] the superintendent as 12 to the number of policies written pursuant to this subsection and para- 13 graph three of subsection (f) of section five thousand four hundred five 14 of this article, and any other information the superintendent may 15 require. On or before January first, two thousand [eighteen] twenty- 16 eight, the superintendent shall report to the governor and the legisla- 17 ture regarding the number of policies issued pursuant to this section 18 and such paragraph and shall include recommendations as to the continua- 19 tion of such insurance offerings. 20 § 7. Subsection (g) of section 5412 of the insurance law, as amended 21 by section 6 of item JJ of subpart B of part XXX of chapter 58 of the 22 laws of 2020, is amended to read as follows: 23 (g) The provisions of this section shall cease to be of any force or 24 effect on or after June thirtieth, two thousand [twenty-three] twenty- 25 six, except that policies issued or other obligations incurred by the 26 association shall not be impaired by the expiration of this section and 27 the association shall continue for the purpose of servicing such poli- 28 cies and performing such obligations. 29 § 8. This act shall take effect immediately.