Establishes no adverse action shall be taken against an insured who has made inquiries related to his or her insurance policy or had filed certain claims

4 Co-sponsors

• Ruben Diaz
• Andrew J. Lanza
• Thomas P. Morahan
• Michael H. Ranzenhofer

Title of bill

An act to amend the insurance law, in relation to prohibiting insurers from refusing to renew or condition its renewal of insurance policies in certain cases

Purpose

Establishes no adverse action shall be taken against an insured individual who has made inquiries related to his or her insurance policy or has filled certain claims,

Summary of provisions

Section 1 Amends section 3425 of the insurance law by adding a new subsection (s) that states that no insurer shall refuse to renew a covered policy or charge or impose an increase in premium or rate for such policy or contract in whole or in part, on the fact that the insured has made inquiries related to his or her policy or had filed a claim with the insurer for which no payment was made.

Section 2 Effective date

Justification

This bill aims to protect consumers from insurance increasing premiums for inquiries, claims or losses when no payment is made. Increases in premiums should only occur if money is paid to the consumer. These communications between insurer and insured should not be used adversely against the insured at a later date, Minor mishaps occurring in an individuals household where no claim is processed should not be used to determine rates and eligibility in the future.

Legislative history

S.1609 of 2007/2008; Referred to Senate Insurance Committee

Fiscal implications

None.

Effective date

This act shall take effect on the sixtieth day after it shall have become a law.