What's happening
This bill sets June 30, 2020, as the expiration date for flexible rating provisions in nonbusiness automobile insurance plans.
Why it matters
Limits insurer flexibility. By setting June 30, 2020, as the expiration date, the bill restricts how long insurance companies can use flexible rating systems for nonbusiness (personal) auto insurance. This could impact how insurers adjust rates based on market conditions or risk factors.
Potential impact on premiums. After the expiration date, insurers may face stricter regulatory oversight on setting rates, possibly leading to less price competition and more uniform premiums for consumers.
Consumer protection implications. The change may be intended to protect consumers from unpredictable or rapidly changing auto insurance rates, but it could also reduce innovation or customized pricing in the market.
Provides a clear transition deadline. The bill gives both insurers and policyholders a definitive date by which current flexible rating practices must end, allowing time for adjustment and planning before the rule changes take effect.
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Who cares
Headline styles
End Flexible Car Insurance Rating
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- 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.
End Flexible Auto Insurance Rates
Assembly Floor Calendar · Sponsor Steven Cymbrowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4128
2017-2018 Regular Sessions
IN SENATE
February 3, 2017
Introduced by Sen. LARKIN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to the effectiveness of flexible rating for nonbusiness automobile insurance plans
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2350 of the insurance law is amended by adding a new subsection (e) to read as follows:
(e) This section shall cease to be of any force and effect after June 30, 2020.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03989-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to the effectiveness of flexible rating for nonbusiness automobile insurance plans
Purpose
The purpose of this bill is to protect consumers from high premium increases by ensuring that the process used to establish rate increases is reviewed on a regular basis.
Summary of provisions
This legislation would sunset section 2350 of the Insurance Law on June 30, 2020.
Existing law
Amends § 2350 of the Insurance Law.
Justification
New York State's automobile insurance premiums are some of the highest in the nation. Since 2008, New York State has used flex rating, a process by which auto insurers are authorized to increase or decrease premiums by up to five percent without approval from the Department of Financial Services. This process was also used in the 1990's and the statutory provisions allowing for flex rating were reviewed and extended every three years until they were allowed to sunset subjecting all rates to prior approval. Currently, the provisions of New York State Law related to flex rating are permanent. This bill would reinstate the three year sunset to the provisions of law related to flex rating to ensure that the rate increases are fair, appropriate and are subject to the necessary Department of Financial Services oversight.
Legislative history
2014-S.7566-Referred to Insurance 2015-2016: Referred to Insurance
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.