What's happening
This bill allows assessment insurance corporations to offer standalone liability and umbrella liability insurance, not just in conjunction with fire insurance.
Why it matters
Expands the flexibility of assessment insurance corporations. , allowing them to offer standalone liability and umbrella liability insurance products, rather than limiting these offerings to policies bundled with fire insurance. This could increase competition and choices for consumers and businesses seeking liability coverage.
Potentially increases access to specialized insurance products. in the market, especially for individuals or businesses that do not need fire insurance but want standalone liability protection, such as umbrella liability policies.
Sets new financial safeguards. by requiring assessment corporations that provide umbrella liability insurance to maintain an extra surplus of $50,000, unless the risk is fully reinsured with an authorized insurer or accredited reinsurer, which helps ensure these companies remain financially stable and able to pay claims.
Could lead to more innovative insurance offerings. from assessment corporations, potentially changing the landscape of liability insurance in New York and encouraging more tailored policies to meet the diverse needs of policyholders.
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Who cares
Headline styles
Let Assessment Insurers Sell More
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 39
2 Co-sponsors
History
- Approval memo.63
- Signed chap.366
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.235
- Substituted for A7110
- Referred to insurance
- Delivered to assembly
- Passed senateVote 59–0
- Advanced to third reading
- 2nd report cal.
Show 11 earlier actions
- 1st report cal.291
- Referred to insurance
- Returned to senate
- Died in assembly
- Referred to insurance
- Delivered to assembly
- Passed senateVote 61–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.251
- 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 Corporations Insure More
Assembly Floor Calendar · Sponsor Aileen Gunther
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4081
2019-2020 Regular Sessions
IN SENATE
February 27, 2019
Introduced by Sens. SKOUFIS, 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 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06612-01-9
S. 4081 2
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.
§ 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.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to the organization of assessment corporations
Purpose or general idea of bill
To clarify that assessment cooperative property and casualty insurance companies are authorized to write umbrella insurance policies and stand- alone liability coverage.
Summary of provisions
Sections 1, 2 and 3: Amend section 6605 of the Insurance Law to clarify that assessment cooperative property and casualty insurance companies can write both personal and commercial umbrella liability coverage and standalone liability insurance policies.
Section 4: Effective date.
Justification
Assessment cooperatives are property and casualty insurance companies that have been covering thousands of homeowners, renters, small busi- nesses and farms in Upstate New York for decades and, in many cases, for over a century. These companies have been writing liability policies for over 50 years.
Unfortunately, the current law restricts assessment cooperative insur- ance companies from writing umbrella insurance policies for their poli- cyholders who have an underlying policy with the assessment corporation. As a result, assessment cooperatives are at an unfair disadvantage in the insurance markets they serve, primarily rural and underserved areas of Upstate New York. This fact is also needlessly causing a tremendous disservice to the policyholders who rely on smaller insurance companies to fill this market need. Failing to correct this unnecessary restriction in current state law would result in the market options shrinking considerably with the policyholders very possibly facing price increases due to the labk of options.
For example, thousands of tenant and homeowner policies would be nega- tively impacted without any corresponding benefit. Similarly, small businesses who rely on the assessment cooperatives to write coverage in Manufacturers & Contractors policies would also be harmed, again without any corresponding benefit. In fact, assessment cooperatives and advance premium cooperatives in New York cove over 71,000 New York small busi- nesses.
As a result, this bill is needed to ensure a stable, competitive and vibrant property and casualty insurance market in New York, a market that will benefit New Yorkers and especially those individuals and busi- nesses residing in Upstate New York.
Legislative history
Senate 2017 (S4010A) Passed Senate 2018 Referred to Insurance; Committed to Rules Assembly 2017 (A8361) Referred to Insurance 2018 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.