What's happening
This bill requires the state to publish and regularly update online report cards showing how property and casualty insurers respond to disasters or emergencies.
Why it matters
Provides detailed, standardized data on insurer performance. By requiring granular metrics (like claims closed with/without payment, average claim processing times, and complaint counts), the bill allows the public, policymakers, and regulators to compare how different insurers handle disaster response, potentially revealing patterns of delay or poor service.
Empowers consumers and businesses. Making this information publicly and regularly available online means policyholders can make more informed choices about which insurers are most responsive and reliable after an emergency, which could drive competition and incentivize better service.
Improves accountability and oversight. Insurers must supply data to the state and know their actions will be scrutinized in near-real time, making it harder to conceal poor performance or systemic issues in claims handling after disasters.
Allows for flexible response based on event severity. The superintendent has discretion to waive the reporting requirement if a disaster generates few claims, ensuring that reporting focuses state resources on events with significant public impact.
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Who cares
Headline styles
Insurer Disaster Report Cards
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to insurance
- Referred to insurance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3527
2019-2020 Regular Sessions
IN SENATE
February 8, 2019
Introduced by Sens. BRESLIN, SEWARD -- 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 property/casualty insurer report cards
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The insurance law is amended by adding a new section 339 to read as follows:
§ 339. Property/casualty insurer report cards. (a) If at any time a local state of emergency is declared pursuant to section twenty-four of the executive law, the governor declares a disaster emergency pursuant to section twenty-eight of the executive law, or the President issues a major disaster or emergency declaration pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (P.L. 93-288), the superintendent shall prepare a report card containing information on how each insurer licensed to write personal lines insurance or commercial lines insurance policies that cover loss of or damage to real property, personal property, or other liabilities for loss or damage to property responded to the emergency or disaster.
(b) No later than twenty days following the declaration of the disaster or emergency, the superintendent shall post the report card on the department's website. The report card shall also be available in writing upon request.
(c) The superintendent shall update the report card every seven days for at least six months following the declaration of the disaster or emergency, or until the superintendent determines that such report card is no longer necessary. Such report card shall be in the aggregate. The updated version shall be posted on the department's website and shall be made available in writing upon request.
(d) Insurers specified in subsection (a) of this section shall provide the superintendent with all information necessary for the superintendent
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09759-01-9
S. 3527 2
to prepare the report card, in a manner and on a date prescribed by the superintendent.
(e) The report card shall indicate whether the information is for personal lines insurance policies or commercial lines insurance policies. If the insurer writes both personal lines insurance policies and commercial lines insurance policies, the report card shall differentiate between the two.
(f) The report card shall contain the following information on how each individual insurer specified in subsection (a) of this section responded to the disaster or emergency:
(i) The number of claims the insurer has received;
(ii) The number of claims closed with payment;
(iii) The number of claims closed without payment;
(iv) The total number of open claims and the average amount of time, in days, the claims have been open;
(v) The number of open claims for which a partial payment has been made;
(vi) The number of open claims for which a payment has been offered that are being disputed and/or negotiated by the policyholder;
(vii) The number of open claims that are still being investigated by the insurer, the status of the investigation and the reason the investigation is not complete, compiled into categories determined by the superintendent;
(viii) The number of independent adjusters that the insurer has working in the field;
(ix) The number of policyholders who have hired public adjusters;
(x) The average time, in days: (A) from the date a claim is filed until the date on which the inspection is initiated; (B) from the date on which the inspection is initiated until the date the insurer provides the insured with an estimate; (C) from the date the insurer provides the insured with an estimate until the date a payment is made; (D) from the date a payment is made until the claim is closed; and (E) from the date a claim is filed until the date the claim is closed;
(xi) The number of complaints that the insurer has received from insureds and the percentage of the insurer's claims for the disaster or emergency that these complaints represent;
(xii) The number of complaints that the department has received regarding the insurer and the percentage of the insurer's claims for the disaster or emergency that these complaints represent; and
(xiii) Any other information that the superintendent deems necessary.
(g) The superintendent may, at his or her discretion, waive the requirement to prepare a report card if the declared disaster, as defined in subsection (a) of this section, does not result in a significant amount of insurance related claims filed in New York state and the superintendent does not believe the best interest of the public will be served by issuing a report card.
§ 2. This act shall take effect immediately.
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 property/casualty insurer report cards
Purpose
This bill creates a property/casualty insurer report card.
Summary of provisions
This bill would require the Superintendent of Financial Services to prepare a report card containing information on how insurers licensed to write personal lines insurance or certain commercial lines insurance policies respond to an emergency or disaster. The Superintendent would be required to post the report card on the Department's website and make it available in writing no later than twenty days following the declara- tion of a disaster or emergency. The Superintendent would also have to update the report card every seven days for at least six months or until the Superintendent determines that the report card is no longer neces- sary.
The report card would contain information on how each insurer responded to the disaster or emergency, including the number of claims the insurer received and the status of those claims; the number of independent adjusters the insurer has working in the field; the number of policy- holders who have hired public adjusters; the average amount of time, in days, for the insurer to investigate a claim, make a payment, and close a claim; the number of complaints the insurer has received from its insureds; the number of complaints the Department has received on each insurer; and any other information the Superintendent deems necessary.
The Superintendent would also have the discretion to waive the require- ments of this bill if the disaster or emergency does not result in a significant amount of insurance related claims and if the Superintendent does not believe the best interests of the public will be served by issuing a report card.
Justification
After a disaster such as Superstorm Sandy, families and businesses often rely on the insurance industry in the recovery process. Prompt assess- ments of damages and processing of claims are key to providing individ- uals and families a safe place to live and to providing businesses with the resources they need to continue operating and serving the public. Following Sandy, many issues that homeowners and businesses had with their insurance companies came to light, including delays in the settle- ment of insurance claims and the adequacy of settlement offers. This bill would address these issues by requiring the Superintendent of Financial Services to prepare and update a publicly available report card or how well each insurance company responds to a specific disaster.
This transparency will allow members of the legislature, the public, and the insurance industry itself to evaluate how insurance companies respond to a disaster and to make improvements where necessary.
Legislative history
S.2803 of 2018-18; S.5211 of 2015-16.
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.