S2705A-2011 Actions

• Aug 17, 2011: SIGNED CHAP.457
• Aug 5, 2011: DELIVERED TO GOVERNOR
• Jun 22, 2011: returned to senate
• Jun 22, 2011: passed assembly
• Jun 22, 2011: ordered to third reading rules cal.574
• Jun 22, 2011: substituted for a6881a
• Jun 20, 2011: referred to insurance
• Jun 20, 2011: DELIVERED TO ASSEMBLY
• Jun 20, 2011: PASSED SENATE
• Jun 14, 2011: AMENDED ON THIRD READING (T) 2705A
• Feb 28, 2011: ADVANCED TO THIRD READING
• Feb 15, 2011: 2ND REPORT CAL.
• Feb 14, 2011: 1ST REPORT CAL.89
• Jan 28, 2011: REFERRED TO INSURANCE

S2705A-2011 Calendars

S2705A-2011 Votes

S2705A-2011 Memo

BILL NUMBER:S2705

TITLE OF BILL:
An act
to amend the insurance law, in relation to permitting insurers to make
available multiple rating plans for private passenger motor vehicle
insurance within the same company

PURPOSE:
To permit property/casualty insurers to make available
multiple rating plans within the same company
for personal lines insurance in the voluntary market.

SUMMARY OF PROVISIONS:
Section 1: Adds Insurance Law Section 2352 to
permit insurers to make available multiple rating plans within the
same company for personal lines insurance in the voluntary market.

EXISTING LAW:
Currently, insurance companies are prohibited from
having more than one rating plan within the same company.

JUSTIFICATION:
While insurance companies are prohibited from having
more than one rating plan within the same company, in practice, this
restriction only affects smaller, regional insurance companies that
do business primarily in New York. Larger insurers, like those that
operate on a national basis that want to offer multiple rating plans
to their customers, simply establish a separate subsidiary or
affiliate company that is set up for the primary purpose of offering
the new rating plan. Since smaller insurers lack the financial
resources to set up separate corporations each time they want to
offer a new rating plan, they are placed at a competitive
disadvantage by the prohibition.

To remain competitive, insurance companies need to be able to
continually develop new rating plans that introduce different rating
elements that allow them to better segment and price business.

Adding a new section to the insurance law that specifically authorizes
multiple rating plans within the same company will level the playing
field so that all insurers, not just large companies, can offer more
than one rating plan to their customers. Each time a company develops
a new plan, the plan would be provided only to new business
customers, as is the current practice used when larger insurers
establish a separate corporation to offer a new plan.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

S2705A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 2705--A
 Cal. No. 89
 2011-2012 Regular Sessions
 I N  SENATE
 January 28, 2011
 
 Introduced by Sens. SEWARD, KLEIN -- 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
 

AN ACT to amend the insurance law, in relation to permitting insurers to
 make  available  multiple  rating programs for private passenger motor
 vehicle insurance within the same company
 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 2352
 to read as follows:

 

S 2352. MULTIPLE RATING PROGRAMS. (A) SUBJECT TO THE  SUPERINTENDENT'S
 PRIOR  APPROVAL,  AN  INSURER MAY ESTABLISH MORE THAN ONE RATING PROGRAM
 WITHIN THE SAME COMPANY FOR POLICIES OF INSURANCE THAT  ARE  SUBJECT  TO
 SECTION  THREE  THOUSAND  FOUR  HUNDRED  TWENTY-FIVE  OF  THIS  CHAPTER;
 PROVIDED THAT:

 (1) EACH RATING PROGRAM SHALL APPLY ONLY TO POLICIES NEWLY WRITTEN  ON
 OR  AFTER  THE  EFFECTIVE  DATE  OF  THE RATING PROGRAM BUT PRIOR TO THE
 EFFECTIVE DATE OF ANY SUBSEQUENTLY  APPROVED  RATING  PROGRAM;  PROVIDED
 HOWEVER  IF  AN  INSURER  TERMINATES  A RATING PROGRAM, THEN THE INSURER
 SHALL RENEW THE POLICIES THAT WERE  SUBJECT  TO  THE  TERMINATED  RATING
 PROGRAM IN A SUBSEQUENTLY APPROVED RATING PROGRAM.
 (2)  THE  PROVISIONS  OF SUBSECTION (F) OF SECTION THREE THOUSAND FOUR
 HUNDRED TWENTY-FIVE AND SUBSECTION (B) OF  SECTION  TWO  THOUSAND  THREE
 HUNDRED  FORTY-NINE  OF  THIS  CHAPTER  SHALL  BE APPLIED TO EACH RATING
 PROGRAM SEPARATELY.
 (B) THE SUPERINTENDENT MAY PROMULGATE RULES AND REGULATIONS TO  IMPLE
 MENT THE PROVISIONS OF THIS SECTION.
 

S  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08794-02-1

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