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A1560Assembly2017-2018 Session

Advance Notice for Rate Hikes

Official title

“Provides that written notice of premium rate changes be given not less than sixty days prior to the effective date of such rate changes”

Sponsor Stephen HawleyAD-139+2 co-sponsorsAffects Finance
Status
In Assembly Committee
Insurance
Impact
3/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Insurance

What's happening

This bill requires insurers to give written notice of premium rate changes at least sixty days before they take effect.

Why it matters

  1. Gives policyholders more time to plan for increased costs. By requiring insurers to notify customers of premium changes at least sixty days in advance, individuals and businesses will have a better opportunity to adjust their budgets or shop for alternative coverage before higher rates take effect.

  2. Promotes greater transparency in insurance pricing. The bill ensures that policyholders are not caught off guard by sudden rate hikes, fostering a more transparent relationship between insurers and their customers.

  3. May improve consumer decision-making. With advanced notice, consumers can more effectively compare insurance options, negotiate terms, or switch providers if they find the proposed rate increases unacceptable, potentially leading to more competitive pricing in the market.

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Who cares

Headline styles

Advance Notice for Rate Hikes

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Stephen Hawley

Assembly Member · Assembly District 139

1 Multi-sponsor

History

  1. Referred to insurance
  2. Referred to insurance

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

1560

2017-2018 Regular Sessions

IN ASSEMBLY

January 12, 2017

Introduced by M. of A. HAWLEY, McKEVITT, RAIA, FINCH -- Multi-Sponsored by -- M. of A. BARCLAY -- read once and referred to the Committee on Insurance

AN ACT to amend the insurance law, in relation to providing written notice of premium rate changes not less than sixty days prior to the effective date of such rate changes

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph 4 of subsection (p) of section 3221 of the insurance law, as added by chapter 661 of the laws of 1997, is amended to read as follows:

(4) At the time of coverage renewal, an insurer may modify the health insurance coverage for a group or blanket policy offered to a large or small group policyholder so long as such modification is consistent with this chapter and effective on a uniform basis among all small group policyholders with that policy form; provided, however, the insurer shall provide written notice to all policyholders to which the modified policy shall be offered of any change in premium rates not less than sixty, but not more than one hundred twenty, days prior to the effective date of such rates.

§ 2. This act shall take effect the first of January next succeeding the date on which it shall have become a law.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01353-01-7

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

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