What's happening
This bill allows assessment insurance corporations in New York to offer standalone liability insurance, including umbrella policies, beyond fire insurance.
Why it matters
Expands Insurance Options in Rural/Underserved Areas. Assessment corporations often serve small towns, rural, or niche markets where larger insurers may not operate. Allowing them to offer standalone liability and umbrella policies could improve access for people and businesses in these regions.
Potential for More Competitive Pricing. By enabling these mutual-like insurers to offer broader coverage, the bill may increase competition in the liability insurance market, possibly leading to more affordable premiums or tailored products for consumers.
Stronger Financial Safeguards for New Coverage. The bill requires assessment corporations offering umbrella liability insurance to maintain an additional $50,000 surplus, unless fully reinsured, which helps protect policyholders against insolvency risks when new, broader coverages are written.
Excludes Automobile Liability Insurance. The bill specifically prevents these corporations from offering standalone automobile liability insurance, keeping that segment regulated separately and potentially reducing risk exposure for assessment corporations.
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Who cares
Headline styles
Let Assessment Corporations Insure More
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by S4081
- Rules report cal.235
- Reported
- Reported referred to rules
- 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.
Let Assessment Insurers Sell More
Signed by Governor · Sponsor James Skoufis
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7110
2019-2020 Regular Sessions
IN ASSEMBLY
April 8, 2019
Introduced by M. of A. GUNTHER -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to the organization of assessment corporations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of subsection (a) of section 6605 of the insurance law, as added by chapter 137 of the laws of 1986, is amended to read as follows:
An assessment corporation may be organized and licensed in the manner prescribed in section six thousand six hundred three of this article and may do, in addition to the kind of insurance specified in paragraph four of subsection (a) of section one thousand one hundred thirteen of this chapter, any one or more of the kinds of insurance specified in paragraphs five, six, seven and eight of such subsection [solely in conjunction with fire insurance written under the same policy and covering the same premises] and insurance against loss or damage to property caused by aircraft or vehicles in compliance with the following prerequisites:
§ 2. Subsection (b) of section 6605 of the insurance law, as amended by chapter 379 of the laws of 2001, is amended to read as follows:
(b) Any licensed assessment corporation may amend its charter and be licensed to do the kinds of insurance specified in paragraphs nine, thirteen, fourteen and fifteen (except workers' compensation insurance) of subsection (a) of section one thousand one hundred thirteen of this chapter [solely in conjunction with fire insurance written under the same policy and covering the same premises] and may be licensed to do the kinds of insurance specified in paragraphs twelve, nineteen (excluding aircraft physical damage insurance) and twenty (inland marine only) of such subsection. An assessment corporation licensed to write the kinds of insurance specified in paragraphs thirteen and fourteen of subsection (a) of section one thousand one hundred thirteen of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06612-01-9
A. 7110 2
chapter is authorized to write personal or commercial umbrella liability insurance or any other type of standalone liability insurance, excluding automobile insurance.
§ 3. Section 6605 of the insurance law is amended by adding a new subsection (d) to read as follows:
(d) An assessment corporation licensed to write the kinds of insurance specified in paragraphs thirteen and fourteen of subsection (a) of section one thousand one hundred thirteen of this chapter is authorized to write personal or commercial umbrella liability insurance or any other type of standalone liability insurance, excluding automobile insurance. Except as herein provided, the corporation must maintain an additional surplus or fifty thousand dollars if the corporation writes umbrella liability insurance. The additional surplus is not necessary if the whole risk for this peril is reinsured in an insurance company authorized to do business in this state, or in an accredited reinsurer, as defined in subsection (a) of section one hundred seven of this chapter.
§ 4. This act shall take effect immediately.
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.