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Who cares
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Sponsors
Senator · Senate District 59
2 Co-sponsors
History
- Referred to insurance
- Reported and committed to rules
- Referred to insurance
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2091
Title of bill
An act to amend the insurance law, in relation to rate filings
Purpose
This bill will reduce the cost of title insurance in New York by no longer requiring the Superintendent of Financial Services to approve rates, rating plans and rules manuals before title insurance can be sold.
Summary of provisions
Section 1 removes title insurance from the list of insurances that require prior approval of rates, rating plans and rules manuals by the Superintendent of Financial Services.
Section 2 provides for an immediate effective date.
Justification
Title insurance is included among the types of insurance that require prior approval of rates, rating plans and rules manuals by the Superintendent of Financial Services. This requirement reduces competition among title insurance companies and yet there is no reason for title insurance to be so rigorously regulated. In New York, only a fraction of one percent of title insurance policies ever have to pay against a claim, and only about five percent of premiums are paid out to meet claims. This is far less than other insurance types that require prior approval, such as automobile insurance with a comparative sixty to seventy percent. Despite the low rates of claims and payouts, title insurance costs in New York are the highest in the county because state regulations restrict price competition. The average title insurance premium in New York State is nearly twice the national average and over three times the average in North Carolina. The high cost of title insurance is a major, if not primary contributor to New York having the highest closing costs in the nation. High closing costs reduce the amount of real estate investment taking place in New York, and make it more costly for residents to buy and sell properties, ultimately reducing both the value of properties and the monies available for residents to spend on other goods and services in the state.
Legislative history
New bill.
Fiscal implications
None.
Effective date
The 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.