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Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Returned to senate
- Died in assembly
- Referred to insurance
- Delivered to assembly
- Passed senateVote 60–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.354
- Referred to insurance
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2891
Title of bill
An act to amend the insurance law, in relation to permitting insurers to make available multiple rating programs for commercial insurance within the same company
Purpose
To permit property/casualty insurers to make available multiple rating programs within the same company for commercial lines insurance in the voluntary market.
Summary of provisions
Section 1: Amends Insurance Law Section 2352 to permit insurers to make available multiple rating programs within the same company for commercial lines insurance in the voluntary market.
Existing law
Section 2352 of the insurance law currently permits multi- ple rating. plans for personal lines insurance
Justification
In 2011, legislation was enacted to authorize insurers to make available multiple rating programs within the same company for personal lines insurance Prior to the enactment of this law, if an insurance company wished to have more than one rating plan for personal lines insurance, they would be required to establish a separate subsid- iary or affiliate company for the primary purpose of offering, a new rating plan. Obviously, this was a cumbersome and expensive process which added unnecessary costs to personal lines insurance. Accordingly, legislation was enacted to authorize multiple rating plans for personal lines insurance and remove these unnecessary burdens and costs associ- ated with offering multiple rating plans for personal lines insurance.
The same rationale applies for commercial lines policies and this legis- lation would similarly allow insurers to make available multiple rating plans for commercial lines without having to form a subsidiary or affil- iate company. To remain competitive, insurance companies, both commer- cial and personal lines companies, need to be able to continually devel- op new rating plans that introduce different rating elements that allow them to better segment and price business. This bill allows insurers on the commercial lines side to adopt these innovations in the most effi- cient and cost effective way possible by authorizing the establishment of an additional rating plan within the same insurance company
It should be noted that, as is currently the case for personal lines policies, each time a company develops a new rating plan, the plan would be subject to the prior approval of the Superintendent of Financial Services and would be provided only to new business customers
Legislative history
S 6454 of 2012
Fiscal implications
None
Effective date
This act shall take effect on the ninetieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.