This bill has been amended

Bill S2683-2011

Relates to motor vehicle liability insurance rates

Relates to motor vehicle liability insurance rates.

Details

Actions

  • Feb 28, 2011: ADVANCED TO THIRD READING
  • Feb 15, 2011: 2ND REPORT CAL.
  • Feb 14, 2011: 1ST REPORT CAL.87
  • Jan 28, 2011: REFERRED TO INSURANCE

Votes

VOTE: COMMITTEE VOTE: - Insurance - Feb 14, 2011
Ayes (16): Seward, Flanagan, Gallivan, Golden, Grisanti, Lanza, Larkin, LaValle, Saland, Young, Breslin, Diaz, Espaillat, Kennedy, Parker, Smith
Ayes W/R (2): Kruger, Peralta

Memo

BILL NUMBER:S2683

TITLE OF BILL: An act to amend the insurance law and chapter 277 of the laws of 2010 amending the insurance law relating to prohibiting surcharges for certain automobiles accidents; in relation to motor vehicle liability insurance rates

PURPOSE: To address technical issues which have arisen with regard to the implementation of chapter 277 of the laws of 2010.

SUMMARY OF PROVISIONS: This bill would remedy certain technical issues which have arisen in the implementation of chapter 277 of the laws of 2010. Specifically, this bill would clarify that the $2,000 accident surcharge threshold is applicable to accidents occurring on or after March 1, 2011. This bill would also restore the superintendent of Insurance's authority to amend the surcharge threshold by regulation.

JUSTIFICATION: This bill is necessary to address certain unanticipated technical concerns which have arisen in connection with the implementation of chapter 277 of the laws of 2010. Specifically, this bill would ensure and codify the legislature's original intent that there is no retroactive application of the provisions of chapter 277 of the laws of 2010. This measure would also restore the Superintendent of Insurance's authority to amend the surcharge threshold by regulation.

LEGISLATIVE HISTORY: Similar to S.8519 of 2010

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately, provided that section one of this act shall not apply to policies entered into, modified, or renewed between November 27, 2010 and the date on which this act shall become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 2683 2011-2012 Regular Sessions IN SENATE January 28, 2011 ___________
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law and chapter 277 of the laws of 2010 amending the insurance law relating to prohibiting surcharges for certain automobiles accidents; in relation to motor vehicle liability insurance rates THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (a) of section 2335 of the insurance law, as amended by chapter 277 of the laws of 2010, is amended to read as follows: (a) has had an accident ON OR AFTER MARCH FIRST, TWO THOUSAND ELEVEN that does not result in aggregate damage to property in excess of two thousand dollars, provided that any policy surcharge shall be permissi- ble for any accident [which] THAT results in bodily injury or if the insured has more than one accident in the merit rating experience peri- od. THE SUPERINTENDENT MAY, PURSUANT TO REGULATION, INCREASE THE TWO THOUSAND DOLLAR THRESHOLD FOR INFLATION OR ANY OTHER REASON FOR WHICH THE SUPERINTENDENT DETERMINES THE INCREASE TO BE REASONABLE AND APPRO- PRIATE. WHENEVER THE SUPERINTENDENT INCREASES THE THRESHOLD, SUCH INCREASE SHALL APPLY TO ACCIDENTS OCCURRING ON OR AFTER THE EFFECTIVE DATE OF THE REGULATION. Nothing in this subsection shall change the dollar amount of the accident reporting threshold required under para- graph one of subdivision (a) of section six hundred five of the vehicle and traffic law. S 2. Section 2 of chapter 277 of the laws of 2010, amending the insur- ance law relating to prohibiting surcharges for certain automobile acci- dents, is amended to read as follows: S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law provided that the amendments to section 2335 of the insurance law made by section one of this act shall expire on the
same date as such section expires[; and provided, further, that this act shall only apply to policies entered into, modified, or renewed on or after such effective date]. S 3. This act shall take effect immediately; provided that section one of this act shall not apply to policies entered into, modified, or renewed between November 27, 2010 and the date on which this act shall become a law.

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