Relates to prohibiting rate variations of over ten percent between counties within the city of New York for non-business private passenger automobiles.
TITLE OF BILL:
An act to amend the insurance law, in relation to prohibiting insurance rate variations of more than ten percent between counties within the city of New York for non-business private passenger automobiles
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to make private passenger automobile insurance more affordable for certain New York City residents.
SUMMARY OF SPECIFIC PROVISIONS:
This bill would, with respect to private passenger automobile insurance, prohibit any insurer or rate service organization from using, applying for or filing with the superintendent for approval any rates that apply to rating territories within the city of New York that provide for rate variations between any county within the city of more than ten percent.
Currently, New York City residents are paying the highest auto insurance premiums in the State. There are some policyholders residing in certain boroughs of the city of New York that are forced to pay much higher premiums than policyholders within the same risk classification that reside in a different section or borough of the city. This bill would help lower the cost of insurance for those residents in certain areas of the City who may be unable to afford coverage simply because of their geographical location.
PRIOR LEGISLATIVE HISTORY:
2011/12: S.1344 2009/10: S.1106/A.2367
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.
STATE OF NEW YORK ________________________________________________________________________ 409 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. DILAN -- 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 prohibiting insurance rate variations of more than ten percent between counties within the city of New York for non-business private passenger automobiles THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (a) of section 2307 of the insurance law is amended to read as follows: (a) (1) No insurer or rate service organization shall use a rating classification or territory unless it has been filed with the super- intendent and either he OR SHE has approved it, or ninety days have elapsed and he OR SHE has not disapproved it as unfairly discriminatory or violative of public policy. (2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WITH RESPECT TO NON-BUSINESS PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICIES, NO INSURER OR RATE SERVICE ORGANIZATION SHALL USE, APPLY FOR OR FILE WITH THE SUPERINTENDENT FOR APPROVAL ANY RATES THAT APPLY TO RATING TERRITORIES WITHIN THE CITY OF NEW YORK THAT PROVIDE FOR RATE VARIATIONS BETWEEN ANY COUNTY WITHIN THE CITY OF NEW YORK OF MORE THAN TEN PERCENT. S 2. This act shall take effect immediately and shall apply to all policies of insurance altered, amended, issued or renewed on or after such effective date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00566-01-3