S4172-2013 - NY Senate Open Legislation - Relates to extending authorization for certain exemptions from filing requirements

Relates to extending authorization for certain exemptions from filing requirements.

Sponsor: SEWARD
Law Section: Insurance Law / Law: Amd SS6302 & 6303, Ins L

S4172-2013 Actions

Mar 20, 2013: ADVANCED TO THIRD READING
Mar 19, 2013: 2ND REPORT CAL.
Mar 18, 2013: 1ST REPORT CAL.207
Mar 12, 2013: REFERRED TO INSURANCE

S4172-2013 Meetings

Insurance: Mar 18, 2013

S4172-2013 Calendars

S4172-2013 Votes

VOTE: COMMITTEE VOTE: - Insurance - Mar 18, 2013

Ayes (17): Seward, Carlucci, Flanagan, Golden, Grisanti, Lanza, Larkin, LaValle, Martins, O'Mara, Valesky, Young, Breslin, Espaillat, Parker, Stavisky, O'Brien
Ayes W/R (2): Kennedy, Peralta

S4172-2013 Memo

BILL NUMBER:S4172

TITLE OF BILL:  An act to amend the insurance law, in relation to
extending authorization for certain exemptions from filing
requirements

PURPOSE:

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.

EXISTING LAW:

The current law expires on June 30, 2013.

JUSTIFICATION:

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.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:  None.

EFFECTIVE DATE:

Immediately

S4172-2013 Text

 S T A T E   O F   N E W   Y O R K
 
                                          4172
 2013-2014 Regular Sessions
 I N  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  to
 EXPLANATION--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.

S4172-2013: Relates to extending authorization for certain exemptions from filing requirements