What's happening
This bill limits auto insurance rate differences between New York City counties to no more than ten percent.
Why it matters
Aims to reduce significant disparities in auto insurance prices among New York City’s five counties. , which could make premiums more equitable for residents regardless of where they live in the city.
Could help address concerns about geographic discrimination in insurance pricing. , potentially benefiting drivers in higher-cost boroughs like Brooklyn or the Bronx who may have faced much higher rates than those in other parts of NYC.
May influence how insurers assess and manage risk within the city. , possibly leading to changes in how they underwrite policies, set premiums, or evaluate claims in order to comply with the new restriction.
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Who cares
New York City personal auto policyholders
The bill would cap county-to-county rate variations at 10 percent for nonbusiness private passenger automobile insurance.
Auto insurers
Insurers could not use, apply for or file rates exceeding the cap, which would apply to policies altered, amended, issued or renewed on or after the bill’s immediate effective date.
Rate service organizations
Organizations filing rates for New York City rating territories would face the same 10 percent limit on variations between counties.
State insurance superintendent
The bill would prohibit insurers and rate service organizations from submitting rates for approval that exceed the county-to-county cap.
Headline styles
Limit Car Insurance Rate Gaps
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4201
2017-2018 Regular Sessions
IN SENATE
February 6, 2017
Introduced by Sen. DILAN -- 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 prohibiting insurance rate variations of more than ten percent between counties within the city of New York for non-business private passenger automobiles
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (a) of section 2307 of the insurance law is amended to read as follows:
(a) (1) No insurer or rate service organization shall use a rating classification or territory unless it has been filed with the superintendent and either he or she has approved it, or ninety days have elapsed and he or she has not disapproved it as unfairly discriminatory or violative of public policy.
(2) Notwithstanding any other provision of law, with respect to nonbusiness private passenger automobile insurance policies, no insurer or rate service organization shall use, apply for or file with the superintendent for approval any rates that apply to rating territories within the city of New York that provide for rate variations between any county within the city of New York of more than ten percent.
§ 2. This act shall take effect immediately and shall apply to all policies of insurance altered, amended, issued or renewed on or after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09224-01-7
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 prohibiting insurance rate variations of more than ten percent between counties within the city of New York for non-business private passenger automobiles
Purpose or general idea of bill
The purpose of this bill is to make private passenger automobile insurance more affordable for certain New York City residents.
Summary of specific provisions
This bill would, with respect to private passenger automobile insurance, prohibit any insurer or rate service organization from using, applying for or filing with the superintendent for approval any rates that apply to rating territories within the city of New York that provide for rate variations between any county within the city of more than ten percent.
Justification
Currently, New York City residents are paying the highest auto insurance premiums in the State. There are some policyholders residing in certain boroughs of the city of New York that are forced to pay much higher premiums than policyholders within the same risk classification that reside in a different section or borough of the city. This bill would help lower the cost of insurance for those residents in certain areas of the City who may be unable to afford coverage simply because of their geographical location.
Prior legislative history
2013-2014 5.409: referred to insurance 2015-2016 S.2286 Referred to insurance
Fiscal implications for state and local governments
None to the State.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.