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History
- 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.
Prohibits cancellation, non-renewal or conditioning renewal of automobile insurance when dispute as to pending claim exists
Assembly Floor Calendar · Sponsor N. Nick Perry
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7603
Title of bill
An act to amend the insurance law, in relation to prohibiting insurer from cancelling or refusing to renew or condition its renewal of automo- bile insurance policies in certain cases
Purpose
To prohibit insurance companies from canceling the automobile policies of policyholders solely as a result of a dispute or a complaint that may have been filed against the carrier by the policyholder.
Summary of specific provisions
This bill amends section 3425 of the insurance law by adding a new subsection (t) to require that no automobile insurance policy, except for nonpayment of premium, shall be cancelled or a refusal to renew issued while a claim filed by the insured against the insurer is pend- ing, or within one year following the date of which a dispute was settled or resolved. The superintendent however, after a hearing, may determine that the cancellation or refusal to renew is unrelated or independent of such complaint.
Justification
Currently the law allows insurance companies to terminate two percent of their policyholders each year. No questions asked, no explanation given, they can simply refuse to renew any policy they choose. As a result, many insurance companies are able to abuse this two percent provision by using it to retaliate against policyholders who have had disputes, or who have filed legitimate complaints against them. The purpose of the two percent provision was to afford insurance companies some protection from policyholders who may be considered as bad risks, and to allow for some flexibility, particularly in high risk areas. This legislation will help to protect consumers who have been policy holders for at least one year and who have maintained good driving records with the company. Consumers should not have to suppress or lose their right to openly and appropriately protest arbitrary and unfair practices by insurance compa- nies for fear of reprisal by losing their coverage.
Prior legislative history
2009-2010 A.3348 2006-2008 A.5183 2005-2006 A.4053 2003-2004 A.5199 2001-2002 A.3666 1999-2000 A.818A 1997-1998 A.2682
Fiscal implications
None. EFFECTIVE DATE: This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.