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S4172Senate2013-2014 Session

Relates to extending authorization for certain exemptions from filing requirements

Sponsor James L. SewardSD-51Affects Finance
Status
In Senate Committee
Insurance
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Insurance

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Who cares

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Sponsors

Primary sponsor
James L. Seward

Senator · Senate District 51

Chair, Insurance

No co-sponsors yet.

History

  1. Referred to insurance
  2. Committed to rules
  3. Advanced to third reading
  4. 2nd report cal.
  5. 1st report cal.207
  6. Referred to insurance

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S4172

Title of bill

An act to amend the insurance law, in relation to extending authorization for certain exemptions from filing requirements

Purpose

To make permanent certain exemptions from regulatory requirements necessitating prior approval of rates and forms for large, commercial insureds and special risks and to make changes to certain notice requirements.

Summary of provisions

Section 1 of the bill amends section 6302 (c)(3) of the insurance law to extend the minimum surplus to policyholder ratio required of medical malpractice insurers, from June 30, 2014 to December 31, 2016. This extension has already been authorized pursuant to chapter 489 of the laws of 2012.

Section 2 of the bill amends section 6303 (a)(3) of the insurance law to make permanent the current provision which permits certain qualified insurers to write insurance without the Department of Financial Services' prior approval of rates and forms

This section further eliminates the requirement that the insurer must file a certificate of insurance evidencing the existence and terms of the policy within one business day of binding the insurance coverage and extends the required amount of time for an insurer to file a policy form for informational purposes with the superintendent from three business days to fifteen business days after first delivery of the policy.

Existing law

The current law expires on June 30, 2013.

Justification

In 2011, legislation was enacted which modernized and streamlined the regulation of commercial insurance by expanding the types of insurance which may be written without the Department's prior approval of rates and forms when sold to large commercial policyholders. This law has proven successful in ensuring that commercial policyholders have maximum flexibility to create policies that are tailored to their needs, as they must respond rapidly to competitive forces. the economy and the needs of their customers. For this reason, this legislation seeks to make these provisions permanent This legislation also eliminates the requirement that an insurer file a certificate of insurance evidencing the existence and terms of the policy with the Department within one business day of binding- the insurance coverage. The legislation further extends the amount of time for an insurer to file a policy form for informational purposes with the Department from three to fifteen business days. These two filing requirements have proven to be a major impediment to insurers seeking to write insurance

under the current law and have been of limited value to the Department.

Legislative history

New bill

Fiscal implications

None.

Effective date

Immediately

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.