Relates to motor vehicle liability insurance rates.
TITLE OF BILL: An act to amend the insurance law, 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 201O.
SUMMARY OF PROVISIONS: This bill would remedy certain technical issues which have arisen in the implementation of chapter 277 of the laws of 2010, which took effect on November 27, 2010. Specifically, this bill clarifies that the $2,000 accident surcharge threshold is applicable to accidents occurring on or after June 1, 2011. The bill further clarifies that the higher threshold will also apply to policies issued, modified or renewed between November 27, 2010 and June 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, with provisions.
STATE OF NEW YORK ________________________________________________________________________ 2683--B Cal. No. 87 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 -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading -- again amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the insurance law, in relation to motor vehicle liabil- ity 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)(1) WITH RESPECT TO POLICIES ISSUED, MODIFIED OR RENEWED ON OR AFTER NOVEMBER TWENTY-SEVENTH, TWO THOUSAND TEN AND PRIOR TO JUNE FIRST, TWO THOUSAND ELEVEN AND ANY RENEWALS THEREOF WITH RESPECT TO ANY ACCI- DENT WHICH OCCURRED PRIOR TO JUNE FIRST, TWO THOUSAND ELEVEN has had an accident that does not result in aggregate damage to property in excess of two thousand dollars, provided that any policy surcharge shall be permissible for any accident which results in bodily injury or if the insured has more than one accident in the merit rating experience peri- od. Nothing in this subsection shall change the dollar amount of the accident reporting threshold required under paragraph one of subdivision (a) of section six hundred five of the vehicle and traffic law; AND (2) WITH RESPECT TO POLICIES ISSUED OR RENEWED ON OR AFTER JUNE FIRST, TWO THOUSAND ELEVEN HAS HAD AN ACCIDENT ON OR AFTER JUNE 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 PERMISSIBLE FOR ANY ACCIDENT WHICH RESULTS IN BODILY INJURY OR IF THE INSURED HAS MORE THAN ONE ACCIDENT IN THE MERIT RATING EXPERIENCE PERIOD.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08541-06-1 S. 2683--B 2
(3) 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. This act shall take effect immediately; provided, however, that the amendments to subsection (a) of section 2335 of the insurance law made by section one of this act shall not affect the expiration of such section and shall be deemed to expire therewith.