A727-2011 Actions

• Jan 4, 2012: referred to insurance
• Jan 5, 2011: referred to insurance

A727-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          727
 2011-2012 Regular Sessions
 I N  ASSEMBLY
 (PREFILED)
 January 5, 2011
 
 Introduced by M. of A. GANTT, ROBINSON, JACOBS, PHEFFER, MAISEL, COLTON,
 GALEF  --  Multi-Sponsored  by  --  M. of A. BOYLAND, DINOWITZ, FINCH,
 GLICK, HOOPER, V. LOPEZ,  McKEVITT,  MILLMAN,  NOLAN,  PEOPLES-STOKES,
 RAIA,  REILLY,  SWEENEY,  TITONE,  TOWNS,  WEISENBERG -- read once and
 referred to the Committee on Insurance
 

AN ACT to amend the insurance law, in relation to "the New York residen
 tial insurance providers disclosure act of 2011"
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1.  This act shall be known and may be cited as "the New York
 residential insurance providers disclosure act of 2011".
 

S 2. Subsection (a) of section 2315 of the insurance law,  as  amended
 by chapter 398 of the laws of 1990, is amended to read as follows:

 (a)  [Every]  WITH  RESPECT TO RESIDENTIAL INSURANCE, EVERY AUTHORIZED
 INSURER SHALL BY MARCH THIRTY-FIRST OF EACH YEAR FILE  WITH  THE  SUPER
 INTENDENT,  OR WITH SUCH OTHER AGENCY AS THE SUPERINTENDENT MAY APPROVE,
 A "RESIDENTIAL INSURANCE RATE, EXPERIENCE  AND  STATISTICAL  REPORT"  AS
 DESCRIBED IN SUBSECTION (D) OF THIS SECTION, AND SHALL MAKE AVAILABLE IN
 AN  ELECTRONIC  DATABASE FORMAT THE STATISTICAL INFORMATION ON ITS RESI
 DENTIAL ACTIVITIES ACCORDING TO THE PROVISIONS OF SUBSECTION (D) OF THIS
 SECTION. WITH RESPECT TO NON-RESIDENTIAL AND ALL OTHER LINES  OF  INSUR
 ANCE, EVERY authorized insurer shall annually file with the rate service
 organization  of  which it is a member or subscriber, or with such other
 agency as the superintendent may approve, a statistical report showing a
 classification schedule of its premiums and losses on all kinds or types
 of insurance business subject to this article, and such  other  informa
 tion  as  the  superintendent  may  deem  necessary or expedient for the
 administration of the provisions of  this  article.  The  superintendent
 from time to time may prescribe the form of the report including statis
 tical  data  conforming  to established classifications. The statistical
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03392-01-1
 
       A. 727                              2
 reports shall be consolidated in accordance with regulations  prescribed
 by  the  superintendent.  Such  consolidations  shall be made available,
 subject to reasonable rules promulgated by the superintendent, to insur
 ers  and  rate  service  organizations.  No insurer shall be required to
 record or report its loss experience on a classification basis  that  is
 inconsistent  with the rating system filed by it, except that the super
 intendent may require each insurer writing private passenger  automobile
 coverages  to  file  annually  with the superintendent (or a statistical
 agent designated by the superintendent for such purpose),  in  the  form
 prescribed  by the superintendent, a statistical report showing a sched
 ule of its premiums, losses, and exposures classified by  United  States
 postal  zip  code. [No] EXCEPT AS PROVIDED FOR IN SUBSECTION (D) OF THIS
 SECTION, NO statistical report shall be issued or otherwise made  avail
 able  to any rate service organization (except in the capacity of desig
 nated statistical agent), insurers, or persons  other  than  appropriate
 governmental  entities,  except  on  a  consolidated  manner, or in such
 aggregate form as to protect an individual insurer's schedule of  premi
 ums, losses and exposures for any specific zip code.
 

S 3.  Subsections (d) and (e) of section 2315 of the insurance law are
 relettered  (e)  and  (f)  and  a new subsection (d) is added to read as
 follows:

 (D) (1) BEGINNING JANUARY FIRST,  TWO  THOUSAND  TWELVE  AND  ANNUALLY
 THEREAFTER,  THE SUPERINTENDENT SHALL REQUIRE EACH INSURER AUTHORIZED TO
 WRITE AND WRITING THE KINDS OF INSURANCE SPECIFIED IN PARAGRAPH FOUR  OF
 SUBSECTION  (A)  OF  SECTION  ONE  THOUSAND ONE HUNDRED THIRTEEN OF THIS
 CHAPTER, SUBPARAGRAPH (A) OF PARAGRAPH  FIVE  OF  SUCH  SUBSECTION,  AND
 HOMEOWNERS INSURANCE, TO FILE A STATISTICAL REPORT OF ITS EXPERIENCE FOR
 THE PREVIOUS CALENDAR YEAR, FOR EACH FORM AND RATING CLASSIFICATION, AND
 TIER  IN  A  MULTI-TIER  PROGRAM, WHERE APPLICABLE, CLASSIFIED BY UNITED
 STATES CENSUS TRACT.
 FOR THE PURPOSES OF THIS  SECTION,  "HOMEOWNERS  INSURANCE,"  INCLUDES
 MULTI-TIER  INSURANCE PROGRAMS, AND MEANS A CONTRACT OF INSURANCE INSUR
 ING AGAINST THE CONTINGENCIES DESCRIBED IN SUBPARAGRAPHS  (A),  (B)  AND
 (C),  OR (B) AND (C) OF PARAGRAPH TWO OF SUBSECTION (A) OF SECTION THREE
 THOUSAND FOUR HUNDRED  TWENTY-FIVE  OF  THIS  CHAPTER  AND  WHICH  IS  A
 "COVERED  POLICY"  OF  PERSONAL LINES INSURANCE AS DEFINED IN SUCH PARA
 GRAPH; PROVIDED, HOWEVER, THAT THE COVERAGES PROVIDED UNDER SUCH SUBPAR
 AGRAPHS (B) AND (C) SHALL NOT APPLY WHERE A NATURAL PERSON DOES NOT HAVE
 AN INSURABLE INTEREST IN THE REAL PROPERTY, OR A PORTION THEREOF, OR THE
 RESIDENTIAL UNIT IN WHICH SUCH PERSON RESIDES.
 (2) SUCH STATISTICAL REPORT SHALL BE  IN  A  FORM  PRESCRIBED  BY  THE
 SUPERINTENDENT  AS  IN  EFFECT  AT THE COMMENCEMENT OF THE CALENDAR YEAR
 REPORTED UPON, AND SHALL INCLUDE, BUT NOT BE LIMITED TO,  THE  FOLLOWING
 INFORMATION:

 (A)  THE NUMBER OF POLICIES IN EFFECT, OR OTHER EXPOSURES INSURED. FOR
 THE PURPOSES OF THIS SUBSECTION, "POLICIES IN  EFFECT"  SHALL  MEAN  THE
 NUMBER OF POLICIES WRITTEN IN THE REPORTING YEAR, AND "OTHER EXPOSURES,"
 IF  ANY,  SHALL  MEAN ANY COVERAGE EXTENDED OTHER THAN POLICIES WRITTEN,
 AND SHALL BE DESCRIBED IN THE REPORT IN SUFFICIENT  DETAIL  TO  IDENTIFY
 THE COVERAGE PROVIDED;
 (B) THE NUMBER OF APPLICATIONS FOR COVERAGE;
 (C)  THE  NUMBER  OF APPLICATIONS FOR WHICH COVERAGE WAS NOT PROVIDED,
 CLASSIFIED ACCORDING TO APPLICATIONS WITHDRAWN, APPLICATIONS DENIED, AND
 APPLICATIONS STILL IN PROCESS;
 (D) THE NUMBER OF POLICIES NOT RENEWED;
 (E) THE NUMBER OF POLICIES CANCELLED OR TERMINATED;
 
       A. 727                              3
 (F) THE NUMBER OF CLAIMS FILED;
 (G) THE NUMBER OF CLAIMS APPROVED, IN WHOLE OR IN PART;
 (H) THE NUMBER OF CLAIMS DENIED, IN WHOLE OR IN PART;
 (I) THE AMOUNTS OF THE LOSSES INCURRED;
 (J) THE AMOUNTS OF THE LOSSES PAID;
 (K)  FOR INSURERS DISTRIBUTING THROUGH DIRECT SOLICITATION, THE NUMBER
 OF DIRECT MAIL OR TELEPHONE SOLICITATIONS;
 (L) THE NUMBER OF AGENTS APPOINTED BY THE INSURER;
 (M) THE STREET ADDRESSES OF ALL OFFICES ISSUING OR SERVICING POLICIES;
 (N) LANGUAGES SPOKEN, OTHER THAN ENGLISH, WITH SUFFICIENT  FLUENCY  TO
 CONDUCT BUSINESS IN THAT LANGUAGE BY PERSONNEL WITHIN EACH OFFICE;
 (O)  WHETHER  THE  INSURER  ISSUES  POLICIES  IN A LANGUAGE OTHER THAN
 ENGLISH, AND IF SO, IDENTIFYING THE  LANGUAGES  IN  WHICH  POLICIES  ARE
 ISSUED AND THE NUMBER OF POLICIES ISSUED IN EACH LANGUAGE;
 (P)  FOR  EACH  OF THE CATEGORIES OF INFORMATION DESCRIBED IN SUBPARA
 GRAPHS (A)  THROUGH  (J)  OF  THIS  PARAGRAPH,  FURTHER  CLASSIFICATIONS
 ACCORDING  TO  RACE,  NATIONAL  ORIGIN, ETHNICITY, HOUSEHOLD INCOME, AND
 GENDER OF THE INSUREDS OR APPLICANTS, PURSUANT TO CODES  ESTABLISHED  BY
 THE  SUPERINTENDENT,  IN  ADDITION,  WHERE  AN INSURER APPLIES ANY OTHER
 CLASSIFICATION WHICH AFFECTS THE PREMIUM RATE AT  WHICH  THE  POLICY  IS
 ISSUED,  THE  INSURER  SHALL  PROVIDE  TOTALS  BY RACE, NATIONAL ORIGIN,
 ETHNICITY, HOUSEHOLD INCOME AND GENDER FOR EACH SUCH CLASSIFICATION; AND
 (Q) APPLICABLE RATES, WITHIN TERRITORIES SERVED  BY  AN  INSURER,  FOR
 EACH  FORM  AND  RATING  CLASSIFICATION,  INCLUDING  RATES  BY  TIER  IN
 MULTI-TIER PROGRAMS, AND DIFFERENTIATING BETWEEN POLICIES  WITH  VARYING
 TYPES  OF  BENEFITS, INCLUDING BUT NOT LIMITED TO GUARANTEED REPLACEMENT
 COST, STANDARD OR LIMITED REPLACEMENT COST, MARKET VALUE OR ACTUAL  CASH
 VALUE,  AND  DIFFERENTIATING  AMONG  POLICIES  ISSUED  FOR SINGLE-FAMILY
 HOMES, MULTI-FAMILY HOMES, CONDOMINIUM OR COOPERATIVE UNITS AND RENTERS;
 AND
 (R) ALL OF THE INFORMATION UPON WHICH AN INSURER, RATE SERVICE  ORGAN
 IZATION,  GROUP  OF INSURERS FILED WITH THE SUPERINTENDENT IN SUPPORT OF
 THE RATES AS REQUIRED TO BE FILED WITH THE SUPERINTENDENT BY  SUBSECTION
 (B)  OF  SECTION  TWO  THOUSAND THREE HUNDRED FOUR AND SUBSECTION (C) OF
 SECTION TWO THOUSAND THREE HUNDRED FIVE OF THIS ARTICLE. AN  INSURER  OR
 GROUP  OF  INSURERS  WHICH  ARE MEMBERS OR SUBSCRIBERS OF A RATE SERVICE
 ORGANIZATION WHICH MAKES OR FILES RATES ON ITS BEHALF SHALL BE RESPONSI
 BLE FOR FILING OF THE INFORMATION AS PART OF THE REPORT REQUIRED BY THIS
 SUBSECTION. IN LIEU OF INCLUDING THE INFORMATION REQUIRED BY THIS  PARA
 GRAPH AS PART OF THE STATISTICAL REPORT, AN INSURER OR GROUP OF INSURERS
 MAY  POST  THE  INFORMATION  ON  A  WEBSITE MAINTAINED BY THE INSURER OR
 PROVIDE IT TO THE PUBLIC WITHOUT CHARGE WITHIN FIFTEEN DAYS  OF  RECEIPT
 OF A WRITTEN REQUEST FOR SUCH INFORMATION.
 (3)  THE  SUPERINTENDENT MAY APPOINT ONE OR MORE STATISTICAL AGENTS TO
 ASSIST IN THE COLLECTION  AND  ORGANIZATION  OF  SUCH  REPORT,  AND  MAY
 APPROVE ONE OR MORE STATISTICAL AGENTS UPON APPLICATION BY AN INSURER TO
 ASSIST IN OR MAKE THE FILING OF THE REPORT REQUIRED BY THIS SUBSECTION.
 (4)  NOTWITHSTANDING  THE PROVISIONS OF ANY OTHER LAW, THE SUPERINTEN
 DENT SHALL BY JULY FIRST OF EACH YEAR MAKE AVAILABLE TO  THE  PUBLIC  ON
 REQUEST, AS WELL AS MAKING AVAILABLE FOR INSPECTION AT THE OFFICE OF THE
 SUPERINTENDENT,   THE   FULL  TEXT  OF  THE  REPORTS  FILED  UNDER  THIS
 SUBSECTION. SUCH REPORTS SHALL BE MADE AVAILABLE  IN  BOTH  PRINTED  AND
 ELECTRONIC  FORMAT,  INCLUDING ACCESS THROUGH THE WEBSITE OF THE DEPART
 MENT, AT NO CHARGE TO THE REQUESTING PARTY, EXCEPT THAT WITH RESPECT  TO
 PRINTED  COPIES  OR  PHOTOCOPIES  SUCH  REPORTS SHALL BE AVAILABLE FOR A
 REASONABLE FEE, NOT TO EXCEED FIVE CENTS PER PAGE OR THE ACTUAL COST  OF
 
       A. 727                              4
 DUPLICATION,  WHICHEVER  IS  LESS.  DATA  PRESENTED IN ELECTRONIC FORMAT
 SHALL BE MADE AVAILABLE IN A DATABASE FILE FORMAT OF THE TYPE IN GENERAL
 USAGE BY THE PUBLIC.
 (5)  IN ADDITION TO CUMULATIVE DATA REQUIRED TO BE REPORTED UNDER THIS
 SUBSECTION, EACH INSURER SHALL FILE WITH THE  SUPERINTENDENT,  AND  MAKE
 AVAILABLE  TO  THE  PUBLIC,  THE  INDIVIDUAL  RECORD DATA FROM WHICH THE
 REPORT SUMMARIES WERE TABULATED.   SUCH DATA SHALL  BE  PROVIDED  IN  AN
 ELECTRONIC  DATABASE  FORMAT  PRESCRIBED  BY THE SUPERINTENDENT, AND THE
 SUPERINTENDENT SHALL MAKE SUCH DATABASE FILES AVAILABLE DIRECTLY TO  THE
 PUBLIC IN ACCORDANCE WITH THE PROCEDURES AND TIME REQUIREMENTS SET FORTH
 IN  PARAGRAPH FOUR OF THIS SUBSECTION.  THE SUPERINTENDENT SHALL REQUIRE
 THAT ALL INFORMATION WHICH  WOULD  PERSONALLY  IDENTIFY  ANY  INDIVIDUAL
 APPLICANT  OR POLICYHOLDER BE DELETED. THE CATEGORIES OF DATA TO BE MADE
 AVAILABLE FOR EACH INDIVIDUAL RECORD SHALL INCLUDE ALL OF THE SAME CATE
 GORIES OF INFORMATION CONTAINED IN THE CUMULATIVE REPORT  AND  SHALL  BE
 PRESENTED  IN  ACCORDANCE  WITH  STANDARDIZED CLASSIFICATION CODES TO BE
 ESTABLISHED BY THE SUPERINTENDENT.
 (6) AN INSURER WHO DOES NOT SUBMIT THE  STATISTICAL  REPORT  OR  OTHER
 INFORMATION  REQUIRED  BY THIS SUBSECTION AS OF THE DATE REQUIRED SHALL,
 UPON NOTICE AND OPPORTUNITY TO BE HEARD, BE SUBJECT TO A PENALTY NOT  TO
 EXCEED  ONE  THOUSAND  DOLLARS  PER DAY FOR EACH DAY BEYOND THE DATE THE
 REPORT OR INFORMATION IS REQUIRED, BUT IN NO EVENT  SHALL  SUCH  PENALTY
 EXCEED  FIFTEEN  THOUSAND  DOLLARS  IN THE AGGREGATE; PROVIDED, HOWEVER,
 THAT THE SUPERINTENDENT MAY WAIVE SUCH A PENALTY UPON A WRITTEN  FINDING
 THAT  THE  REPORT  OR OTHER INFORMATION SUBMITTED BY SUCH INSURER ON THE
 DATE REQUIRED WAS SUBSTANTIALLY COMPLETE, AND THE INSURER HAS  CORRECTED
 ANY  DEFICIENCIES  WITHIN  A  DATE SET BY THE SUPERINTENDENT. AN INSURER
 REQUIRED BY THIS SUBSECTION TO SUBMIT  A  STATISTICAL  REPORT  OR  OTHER
 INFORMATION WHO WILLFULLY FAILS TO FILE SUCH STATISTICAL REPORT OR OTHER
 INFORMATION  SHALL,  IN  ADDITION TO ANY OTHER PENALTIES PROVIDED FOR BY
 THIS CHAPTER, UPON NOTICE AND AN OPPORTUNITY TO BE HEARD, BE SUBJECT  TO
 A  PENALTY OF UP TO FIVE HUNDRED DOLLARS PER DAY OF DELAY, NOT TO EXCEED
 FIFTY THOUSAND DOLLARS IN THE AGGREGATE.  WHERE AN INSURER HAS FAILED TO
 COMPLY WITH THE REQUIREMENTS OF THIS SECTION, AN  AGGRIEVED  INDIVIDUAL,
 INCLUDING  ANY PERSON OR AGENCY ATTEMPTING TO ANALYZE THE PERFORMANCE OF
 ANY INSURER SUBJECT TO THIS SECTION, SHALL HAVE A CAUSE OF ACTION IN ANY
 COURT OF COMPETENT JURISDICTION FOR DECLARATORY AND  INJUNCTIVE  RELIEF.
 IN  ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO THIS SECTION, COSTS AND
 REASONABLE ATTORNEY FEES MAY BE AWARDED BY THE COURT, IN ITS DISCRETION,
 TO THE SUCCESSFUL PARTY.
 (7) UPON AN APPLICATION BY AN INSURER REQUIRED BY THIS  SUBSECTION  TO
 SUBMIT  A  STATISTICAL REPORT OR OTHER INFORMATION FOR THE CALENDAR YEAR
 TWO THOUSAND ELEVEN, THE SUPERINTENDENT MAY PERMIT SUCH INSURER TO CLAS
 SIFY THE DATA BY UNITED STATES POSTAL ZIP CODE, RATHER THAN CENSUS TRACT
 DESIGNATION, FOR THE REPORT DUE IN CALENDAR YEAR TWO THOUSAND TWELVE.
 

S 4. This act shall take effect immediately.

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