S T A T E   O F   N E W   Y O R K
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                                  2760

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2009
                               ___________

Introduced  by M. of A. SWEENEY, PHEFFER, FIELDS, EDDINGTON, WEISENBERG,
  ENGLEBRIGHT,  CHRISTENSEN,  BRADLEY,  BRENNAN,   CARROZZA,   ROBINSON,
  P. RIVERA,  THIELE,  TITUS,  ALESSI  -- Multi-Sponsored by -- M. of A.
  BENEDETTO,  BOYLAND,  CAHILL,  COLTON,   COOK,   CUSICK,   CYMBROWITZ,
  DelMONTE,  ESPAILLAT,  GALEF,  GUNTHER,  HOOPER, JACOBS, JOHN, LAVINE,
  LENTOL, MAGNARELLI, MAISEL, MARKEY, McENENY, MILLMAN, MORELLE,  PERRY,
  REILLY, WEPRIN -- read once and referred to the Committee on Insurance

AN  ACT to amend the insurance law, in relation to limiting the scope of
  an insurer's reduction of insurance coverage by limiting the volume of
  notices of intention to not renew or condition renewal to four percent
  of the total number of  covered  policies  of  such  insurer's  rating
  territory;  and  in relation to establishing standards for definitions
  contained within such law; and repealing  certain  provisions  of  the
  insurance law relating thereto

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

  Section 1. Subparagraph (C)  of  paragraph  2  of  subsection  (o)  of
section 3425 of the insurance law, as added by chapter 42 of the laws of
1996, is amended to read as follows:
  (C)  The  superintendent  shall  promulgate  rules  and regulations to
establish standards for the definition of "materially reduce its  volume
of  policies"  as  used in this paragraph. Such definition shall require
that a plan be filed with the superintendent if  the  insurer  plans  to
reduce  the  net  number  of homeowners insurance policies as defined in
subsection (a) of section twenty-three hundred fifty-one of this chapter
WITHIN ANY SUCH INSURER'S RATING TERRITORY IN USE IN THIS STATE by twen-
ty percent or more, or plans to reduce the net number of  such  policies
it  writes  by  five  hundred,  whichever is greater, within a five year
period of time; provided, however, that if an insurer is  not  otherwise
required  to  file a plan pursuant to this subparagraph, a plan shall be
filed if the insurer plans to reduce the net number of such policies  it

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02724-01-9
              

A. 2760                             2

has  in  force in a twelve month period WITHIN ANY SUCH INSURER'S RATING
TERRITORY IN USE IN THIS STATE by four percent or more or the net number
of such policies it writes by one hundred, whichever is greater.
  The  provisions  of  this  subparagraph  shall  not  apply to policies
cancelled or nonrenewed by  the  insured  or  policies  not  renewed  or
cancelled  pursuant  to  subparagraph (A), (B), (C), (D) or (E) of para-
graph two of subsection (c) of this section.
  S 2. Subsection (g) of section 5412 of the insurance law is REPEALED.
  S 3. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.