Requires insurers to report annually on the types of coverage written, premiums charged, losses incurred, and policy non-renewals and cancellations

Section 2: Amends Section 2315 of the Insurance law by adding the new Subsections (a-1), (f), (g), and (h) as follows: (a-1) Requires residential property insurers to file a residential insurance rate, experience and statistical report by March 31st of each year. Describes the types of coverage subject to the reporting and specifies the information for each form. Authorizes the Superintendent of Insurance to determine the form of the report which includes but is not limited to the following: (i) the number of policies in effect, (ii) the number of applications accepted and denied, (iii) the number of claims filed and approved or denied, (iv) the amount of losses incurred, and (v) information on the race, national origin, ethnicity, household income and gender of insureds or applicants (which will be kept confidential). (f): Specifies that the Superintendent must by July 1st of each year make the text of the reports available to the public in printed or electronic format at nominal cost, and that insurers must file with the Superintendent and make available to the public, in addition to the cumulative data required, individual record data from which the report summaries were tabulated.

(g) Provides penalties for insurers, who fail to comply with the new reporting requirements and 2) allows aggrieved individuals to have a cause of action to seek compliance. Superintendent must by July 1st of each year make the text of the reports available to the public in printed or electronic format at nominal cost, and that insurers must file with the

(h) Authorizes insurers to submit a statistical report for calendar year 2009 and provides the Superintendent to permit the insurer to classify the data by the United States postal zip code rather than census tract designation, for the report due in calendar year 2010.

Section 3 provides that this act shall take effect immediately.

Justification

The availability of affordable and quality residential insurance coverage is a cornerstone of vibrant communities. While it is known that it is easier to get good quality insurance coverage in some neighborhoods, but not in others, there is debate over the cause for this disparity and possible solutions. Critics of the insurance industry point to redlining and discrimination as a cause, while industry officials say greater risks from fire, theft and other factors account for the inequities. Confronted with a similar debate in the area of mortgage lending, Congress enacted the Home Mortgage Disclosure Act (HMDA) in 1975 to require banks to provide detailed disclosure of mortgage lending activity by census tract. To this end, the New York State legislature recognizes the importance of a holistic solution to the inequities in the residential insurance market; one which defines the problem, provides additional consumer protections and holds insurers accountable. Since there is no uniform method to providing disclosures in the insurance market, this legislation appropriately characterizes disclosure requirements for insurance companies. The Residential Insurance Market Relief Act of 2008 will require all insurance companies in New York State to provide detailed annual disclosure regarding the policies they write, what benefits they contain, the geographic location of the risks, the premiums they receive, the losses they paid out for the coverage, information on non-renewals and cancellations and the ethnic and income make-up of their insureds. Some of this information is already required by law, but is inaccessible to the public. This information will not only benefit insurance consumers but it will assist regulators and lawmakers in providing remedies for abrupt non-renewals and other inequities in the insurance market due to racial, ethnic and income disparities. Systematic collection of insurance data will allow us to determine whether there is a need for different statutory criteria for rate setting and underwriting rules.

Legislative history

2007/2008 - S.7937 Remained in the Senate Committee on Insurance

Fiscal implications

None.

Effective date

Immediately.