Reduces a retired or disabled owner's no fault insurance premium by providing appropriate automobile insurance rates to reflect a reduced exposure to loss due to situations where drivers either have no wages to lose or are covered for lost wages by another first payer insurance policy; defines "retired" and "disabled".
TITLE OF BILL: An act to amend the insurance law, in relation to automobile insurance rates for persons who are retired or disabled
PURPOSE: Reduces a retired or disabled owner's no fault insurance premium by providing appropriate automobile insurance rates to reflect a reduced exposure to loss.
SUMMARY OF PROVISIONS: Section 2330 of insurance law is amended.
JUSTIFICATION: No-fault provides first party coverage when someone is injured as a result of a car accident. No-fault consists of health coverage, loss of earnings from work, and certain incidental expenses. Certain operators of motor vehicles either have no earnings from work or are covered for lost earnings from work by other first payer insurance policies. Thus, there is less exposure from the motorist's insurance company on the loss earnings component of no-fault insurance. However, many insurance companies do not adjust the premiums to take into account this reduced exposure to loss.
This bill requires that an insurance company demonstrate to the Superintendent of Insurance that its premiums reflect reduced exposure.
LEGISLATIVE HISTORY: 2009-2010: S.1187
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: This act shall take effect on the 180th day after it shall have become a law and shall apply to all policies issued, modified, altered, or renewed on or after such date.
STATE OF NEW YORK ________________________________________________________________________ S. 803 A. 530 2011-2012 Regular Sessions S E N A T E - A S S E M B L Y (PREFILED) January 5, 2011 ___________IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Insurance IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to automobile insurance rates for persons who are retired or disabled THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2330 of the insurance law is amended to read as follows: S 2330. No fault motor vehicle insurance rates; reflection of reduced exposure to loss. (A) Where the principal operator of a motor vehicle or such operator's spouse is eligible for medicare benefits for items of basic economic loss specified in paragraph one of subsection (a) of section five thousand one hundred two of this chapter, or where the insurer's obligation to pay first party benefits for loss of earnings from work is reduced by virtue of the provisions of such subsection, OR BY VIRTUE OF THE PRINCIPAL OPERATOR OR SUCH OPERATOR'S SPOUSE BEING RETIRED OR DISABLED, the premium attributable to coverage under the automobile insurance policy for such items shall be appropriately modi- fied to reflect the insurer's reduced exposure to loss. (B) FOR PURPOSES OF THIS SECTION, THE TERM (1) "RETIRED" SHALL MEAN A PERSON WHO HAS ATTAINED AGE SIXTY-FIVE YEARS AND IS NOT ENGAGED IN ANY ACTIVITIES FOR INCOME; AND THE TERM (2) "DISABLED" SHALL MEAN A PERSON WHO IS NOT ENGAGED IN ANY ACTIVITIES FOR INCOME AND WHO (A) IS CERTIFIED AS DISABLED AND ELIGIBLE TO RECEIVE SOCIAL SECURITY DISABILITY INSURANCE (SSDI) OR SUPPLEMENTAL SECURITY INCOME (SSI) BENEFITS UNDER THE FEDERAL SOCIAL SECURITY ACT, OR (B) IS CERTIFIED AS DISABLED AND ELIGIBLE TO RECEIVE RAILROAD RETIREMENT DISABILITY BENEFITS UNDER THE FEDERAL RAIL-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03737-01-1 S. 803 2 A. 530
ROAD RETIREMENT ACT, OR (C) HAS RECEIVED A CERTIFICATE FROM THE STATE COMMISSION FOR THE BLIND AND VISUALLY HANDICAPPED STATING THAT SUCH PERSON IS LEGALLY BLIND. AN AWARD LETTER FROM THE SOCIAL SECURITY ADMINISTRATION OR THE RAIL- ROAD RETIREMENT BOARD OR A CERTIFICATE FROM THE STATE COMMISSION FOR THE BLIND AND VISUALLY HANDICAPPED MAY BE SUBMITTED AS PROOF OF DISABILITY. THE INSURER, AT THE TIME OF RENEWAL, MAY DETERMINE BY THE RENEWAL QUESTIONNAIRE IF THE PRINCIPAL OPERATOR OR SUCH OPERATOR'S SPOUSE QUALI- FIES FOR A CONTINUATION OF THE MODIFIED PREMIUM. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to all policies issued, modi- fied, amended, altered, or renewed on or after such date.