Relates to extending authorization for certain exemptions from filing requirements.
TITLE OF BILL: An act to amend the insurance law, in relation to extending authorization for certain exemptions from filing requirements
To make permanent certain exemptions from regulatory requirements necessitating prior approval of rates and forms for large, commercial insureds and special risks and to make changes to certain notice requirements.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 6302 (c)(3) of the insurance law to extend the minimum surplus to policyholder ratio required of medical malpractice insurers, from June 30, 2014 to December 31, 2016. This extension has already been authorized pursuant to chapter 489 of the laws of 2012.
Section 2 of the bill amends section 6303 (a)(3) of the insurance law to make permanent the current provision which permits certain qualified insurers to write insurance without the Department of Financial Services' prior approval of rates and forms
This section further eliminates the requirement that the insurer must file a certificate of insurance evidencing the existence and terms of the policy within one business day of binding the insurance coverage and extends the required amount of time for an insurer to file a policy form for informational purposes with the superintendent from three business days to fifteen business days after first delivery of the policy.
The current law expires on June 30, 2013.
In 2011, legislation was enacted which modernized and streamlined the regulation of commercial insurance by expanding the types of insurance which may be written without the Department's prior approval of rates and forms when sold to large commercial policyholders. This law has proven successful in ensuring that commercial policyholders have maximum flexibility to create policies that are tailored to their needs, as they must respond rapidly to competitive forces. the economy and the needs of their customers. For this reason, this legislation seeks to make these provisions permanent This legislation also eliminates the requirement that an insurer file a certificate of insurance evidencing the existence and terms of the policy with the Department within one business day of binding- the insurance coverage. The legislation further extends the amount of time for an insurer to file a policy form for informational purposes with the Department from three to fifteen business days. These two filing requirements have proven to be a major impediment to insurers seeking to write insurance
under the current law and have been of limited value to the Department.
FISCAL IMPLICATIONS: None.
STATE OF NEW YORK ________________________________________________________________________ 4172 2013-2014 Regular Sessions IN SENATE March 12, 2013 ___________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, in relation to extending authori- zation for certain exemptions from filing requirements THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 3 of subsection (c) of section 6302 of the insur- ance law, as amended by chapter 490 of the laws of 2011, is amended to read as follows: (3) until
[June thirtieth, two thousand fourteen]DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN, a domestic property/casualty insur- ance company that maintains at all times a surplus to policyholders of at least twice the minimum surplus to policyholders required to be main- tained for the kinds of insurance that it is authorized to write in this state, or an insurer licensed pursuant to article sixty-one of this chapter as a reciprocal insurer that maintains at all times a surplus to policyholders of at least the minimum surplus to policyholders required to be maintained for the kinds of insurance that it is authorized to write in this state, provided that the domestic property/casualty insur- ance company or reciprocal insurer: (A) has total direct premiums comprised of at least ninety percent medical malpractice insurance; (B) assumes reinsurance premiums in an amount that is less than five percent of total direct premiums written; and (C) writes ninety percent of its total direct premiums in this state. S 2. Paragraph 3 of subsection (a) of section 6303 of the insurance law, as amended by chapter 490 of the laws of 2011, is amended to read as follows: (3) [until June thirtieth, two thousand thirteen,]the policy, other than a medical malpractice insurance policy, is issued to a large commercial insured that employs or retains a special risk manager toEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09724-01-3 S. 4172 2
assist in the negotiation and purchase of a policy exempted under this article, provided, however, that: (A)(i) the special risk manager is not employed by the insurer issuing the policy or any person in the insurer's holding company system; and (ii) the special risk manager is licensed as an insurance producer in this state pursuant to article twenty-one of this chapter, unless exempted from licensing therein; (B)
[the insurer shall file with the superintendent a certificate of insurance evidencing the existence and terms of the policy within one business day of binding the insurance coverage; and (C)]a policy form that has not been previously filed with the super- intendent shall be filed with the superintendent for informational purposes within [three]FIFTEEN business days after first delivery of a policy using such form, but no later than sixty calendar days after the inception date of such policy. S 3. This act shall take effect immediately.