S T A T E   O F   N E W   Y O R K
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                                  7430

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               May 4, 2011
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the insurance law, in relation to extending  the  effec-
  tiveness   of   certain   provisions   relating   to   automobile  and
  property/casualty insurance rates

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsection  (g)  of section 5412 of the insurance law, as
amended by chapter 136 of the laws  of  2008,  is  amended  to  read  as
follows:
  (g)  The  provisions of this section shall cease to be of any force or
effect on or after  June  thirtieth,  two  thousand  [eleven]  FOURTEEN,
except that policies issued or other obligations incurred by the associ-
ation  shall  not  be impaired by the expiration of this section and the
association shall continue for the purpose of  servicing  such  policies
and performing such obligations.
  S  2. Sections 2328 and 2329 of the insurance law, as amended by chap-
ter 136 of the laws of 2008, are amended to read as follows:
  S 2328. Certain motor vehicle insurance rates; prior approval. For the
periods February first, nineteen  hundred  seventy-four  through  August
second,   two   thousand   one,   and   the   effective   date   of  the
property/casualty insurance availability act through June thirtieth, two
thousand [eleven] FOURTEEN, no changes in rates,  rating  plans,  rating
rules  and rate manuals applicable to motor vehicle insurance, including
no-fault coverages under article fifty-one of  this  chapter,  shall  be
made effective until approved by the superintendent, notwithstanding any
inconsistent provisions of this article; provided, however, that changes
in  such  rates, rating plans, rating rules and rate manuals may be made
effective without such approval if the  rates  which  result  from  such
changes  are  no  higher  than  the insurer's rates last approved by the
superintendent. This section shall apply only to policies covering loss-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10606-01-1
              

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es or liabilities arising out of ownership of a motor vehicle used prin-
cipally for the transportation of persons for hire, including a bus or a
school bus as defined in sections  one  hundred  four  and  one  hundred
forty-two of the vehicle and traffic law.
  S  2329.  Motor vehicle insurance rates; excess profits. In accordance
with regulations prescribed by the superintendent, each insurer  issuing
policies which are subject to article fifty-one of this chapter, includ-
ing  policies  of  motor  vehicle personal injury liability insurance or
policies of motor vehicle property damage liability insurance or  insur-
ance  for  loss  or  damage  to a motor vehicle, shall establish a fair,
practicable, and nondiscriminatory plan for refunding or otherwise cred-
iting to those purchasing such policies their  share  of  the  insurer's
excess  profit,  if  any,  on such policies. An excess profit shall be a
profit beyond a percentage rate of return on net worth  attributable  to
such  policies,  computed  in accordance with the regulation required by
section two thousand three hundred twenty-three  of  this  article,  and
determined by the superintendent to be so far above a reasonable average
profit  as  to amount to an excess profit, taking into consideration the
fact that losses or profits below a reasonable average profit  will  not
be  recouped  from  such  policyholders. Each plan shall apply to policy
periods for the periods January  first,  nineteen  hundred  seventy-four
through  August  second, two thousand one, and the effective date of the
property/casualty insurance availability act through June thirtieth, two
thousand [eleven] FOURTEEN.  In prescribing such regulations the  super-
intendent  may  limit  the duration of such plans, waive any requirement
for refund or credit which he or she determines  to  be  de  minimis  or
impracticable,  adopt forms of returns which shall be made to him or her
in order to establish the amount of any refund or credit due,  establish
periods  and times for the determination and distribution of refunds and
credits, and shall provide  that  insurers  receive  appropriate  credit
against any refunds or credits required by any such plan for policyhold-
er  dividends and for return premiums which may be due under rate credit
or retrospective rating plans based on experience.
  S 3. Paragraph 2 of subsection (l) of section 3425  of  the  insurance
law,  as  amended by chapter 136 of the laws of 2008, is amended to read
as follows:
  (2) The superintendent shall collect, analyze and compile such reports
with regard to the number of  new  insureds,  non-renewed  insureds  and
business  written  by each insurer in each rating territory of each such
insurer and, in each case, the class of insureds (including age and sex)
affected so that a statistical analysis of the results obtained pursuant
to subsections (f) and (m) of this section shall  be  provided  to  each
house  of  the  legislature  by  March  fifteenth, in the years nineteen
hundred ninety-two, nineteen hundred ninety-six, nineteen hundred  nine-
ty-eight,  two  thousand  one, two thousand six, two thousand seven, two
thousand eight [and], two thousand eleven AND TWO THOUSAND FOURTEEN.
  S 4. Paragraphs 1 and 2 and the opening paragraph of  paragraph  3  of
subsection (m) of section 3425 of the insurance law, as amended by chap-
ter 136 of the laws of 2008, are amended to read as follows:
  (1)  Paragraphs  eight  and nine of subsection (a), subsection (f) and
subparagraphs (B) and (E) of paragraph one of  subsection  (j)  of  this
section  shall  not apply to any new covered policy of automobile insur-
ance voluntarily written on or  after  August  first,  nineteen  hundred
eighty-five and prior to January first, nineteen hundred eighty-six, and
on  or  after August second, two thousand one and prior to the effective
date of the property/casualty insurance  availability  act,  and  on  or

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after  June  thirtieth,  two  thousand  [eleven] FOURTEEN, but the legal
rights granted to insurers or policyholders under such provisions  shall
not be extinguished or impaired thereby.
  (2)  In  lieu  of  such provisions, paragraph seven of subsection (a),
subparagraph (A) of paragraph one of subsection (j) and paragraph  three
of  this  subsection  shall  apply to such automobile insurance policies
which are newly and voluntarily written to have an effective date on  or
after  August  first,  nineteen hundred eighty-five and prior to January
first, nineteen hundred eighty-six, and on or after August  second,  two
thousand  one  and  prior to the effective date of the property/casualty
insurance availability act, and on or after June thirtieth, two thousand
[eleven] FOURTEEN.
  On and after August first, nineteen hundred eighty-five and  prior  to
January  first,  nineteen  hundred  eighty-six,  and  on or after August
second, two thousand  one  and  prior  to  the  effective  date  of  the
property/casualty insurance availability act, and on or after June thir-
tieth, two thousand [eleven] FOURTEEN, no notice of nonrenewal or condi-
tional renewal of such covered automobile insurance policies referred to
in  this  subsection  shall  be  issued  to  become effective during the
required policy period unless it is based upon a ground  for  which  the
policy  could have been cancelled or unless it is based upon one or more
of the following grounds which  occurred  during  the  thirty-six  month
period ending on the last day of the fourth month preceding the month of
the effective date of such notice of nonrenewal or conditional renewal:
  S  5.  Subsection (f) of section 2305 of the insurance law, as amended
by chapter 136 of the laws of 2008, is amended to read as follows:
  (f) Subsection (a) of this section shall be  of  no  force  or  effect
during  the period August third, two thousand one through the day before
the effective date of the property/casualty insurance availability  act,
and  after  June  thirtieth,  two thousand [eleven] FOURTEEN. During the
period August third, two thousand one through the day before the  effec-
tive date of the property/casualty insurance availability act, and again
commencing  on  July  first,  two  thousand [eleven] FOURTEEN, all rates
previously subject to subsection (a) of this section, other  than  rates
which are not required to be filed pursuant to subsection (b) of section
two  thousand  three  hundred  ten  of  this  article or which have been
suspended from the filing requirement pursuant to section  two  thousand
three   hundred   eleven  of  this  article,  shall  become  subject  to
subsections (b), (c) and (d) of this section. All  other  provisions  of
this  article  applicable  to kinds of insurance or insurance activities
the rates for which are subject to prior approval under  subsection  (b)
of  this  section  shall apply to kinds of insurance the rates for which
were previously subject to subsection (a) of this section or  the  rates
for  which  are  not  required to be filed pursuant to subsection (b) of
section two thousand three hundred ten of this article or the rates  for
which  have  been  suspended  from  the  filing  requirement pursuant to
section two thousand three hundred eleven of this article.
  S 6. Section 2342 of the insurance law, as amended by chapter  136  of
the laws of 2008, is amended to read as follows:
  S 2342. Expiration of certain provisions. The provisions of subsection
(c)  of  section  two thousand three hundred seven, section two thousand
three hundred eight,  subsection  (a)  of  section  two  thousand  three
hundred  ten,  sections two thousand three hundred sixteen, two thousand
three hundred twenty, two thousand three hundred twenty-three, two thou-
sand three hundred twenty-six, and two thousand  three  hundred  thirty-
five,  subsection  (b)  of section two thousand three hundred thirty-six

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and section two thousand three hundred forty-one of this  article  shall
cease  to  be of any force or effect during the period August third, two
thousand  one  through  the  day  before  the  effective  date  of   the
property/casualty  insurance availability act, and after June thirtieth,
two thousand [eleven] FOURTEEN.
  S 7. Subsection (h) of section 2344 of the insurance law,  as  amended
by chapter 136 of the laws of 2008, is amended to read as follows:
  (h)  This  section shall cease to be of any force or effect during the
period August third, two thousand one through the day before the  effec-
tive date of the property/casualty insurance availability act, and after
June  thirtieth, two thousand [eleven] FOURTEEN, except that rates shall
reflect the likely reductive cost effects reasonably attributable to the
statutory provisions specified in paragraph one  of  subsection  (g)  of
this section.
  S 8. This act shall take effect immediately.