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Who cares
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Sponsors
1 Co-sponsor
History
- Signed chap.457
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.574
- Substituted for A6881A
- Referred to insurance
- Delivered to assembly
- Passed senateVote 62–0
- Amended on third reading (t) 2705a
- Advanced to third reading
- 2nd report cal.
Show 2 earlier actions
- 1st report cal.89
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Permits insurers to make available multiple rating programs for private passenger motor vehicle insurance within the same company
Assembly Floor Calendar · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2705A REVISED 06/20/11
Title of bill
An act to amend the insurance law, in relation to permitting insurers to make available multiple rating programs for private passenger motor vehicle insurance within the same company
Purpose
To permit property/casualty insurers to make available multiple rating programs within the same company for personal lines insurance in the voluntary market.
Summary of provisions
Section 1: Adds Insurance Law Section 2352 to permit insurers to make available multiple rating programs within the same company for personal lines insurance in the voluntary market. Such programs would be subject to prior approval by the superintendent. The superintendent is author- ized to promulgate rules and regulations which may include criteria that would merit the superintendent's approval.
Existing law
Currently, insurance companies are prohibited from having more than one rating plan within the same company.
Justification
While insurance companies are prohibited from having more than one rating plan within the same company, in practice, this restriction only affects smaller, regional insurance companies that do business primarily in New York. Larger insurers, like those that operate on a national basis that want to offer multiple rating plans to their customers, simply establish a separate subsidiary or affiliate company that is set up for the primary purpose of offering the new rating plan. Since small- er insurers lack the financial resources to set up separate corporations each time they want to offer a new rating plan, they are placed at a competitive disadvantage by the prohibition.
To remain competitive, insurance companies need to be able to contin- ually develop new rating plans that introduce different rating elements that allow them to better segment and price business.
Adding a new section to the insurance law that specifically authorizes multiple rating plans within the same company will level the playing field so that all insurers, not just large companies, can offer more than one rating plan to their customers. Each time a company develops a new plan, the plan would be provided only to new business customers, as is the current practice used when larger insurers establish a separate corporation to offer a new plan.
Legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect on the 90th day after it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.