What's happening
This bill requires insurers in New York's assigned risk plan to regularly review policyholders for eligibility and offer voluntary market coverage if qualified, with oversight by the superintendent.
Why it matters
Ensures fair access to better insurance. By requiring insurers to regularly review assigned risk policyholders for eligibility, the bill helps individuals and businesses who have improved their risk profile move out of the high-risk pool and access potentially lower-cost, broader voluntary market insurance.
Improves transparency and consumer awareness. The mandatory notifications before and after eligibility reviews empower consumers, making them aware of their rights to seek voluntary market coverage and any changes to their eligibility status.
Adds regulatory oversight and accountability. The superintendent’s authority to examine insurers’ eligibility determinations means that decisions must be justified with sound underwriting and actuarial principles, reducing arbitrary or unfair denials.
Creates a complaint mechanism. Policyholders are given explicit recourse to file complaints if insurers violate the new review process, increasing accountability and offering protections against non-compliance.
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Who cares
Headline styles
Insurers Must Review Risk Profiles
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to rules
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.
Insurers Must Review Risk Profiles
Assembly Floor Calendar · Sponsor Clyde Vanel
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8487
IN SENATE
June 5, 2020
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the insurance law, in relation to certain policy review
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 5305 to read as follows:
§ 5305. Policy review. (a) Within ninety days after the effective date of this section and every two years thereafter, an insurer participating in the assigned risk plan pursuant to this article shall review the risk profiles of each policy holder that has been assigned to such insurer through the plan to determine if such policy holders are eligible for motor vehicle insurance coverage written by such insurer in the voluntary market. Such insurer shall, upon renewal, write motor vehicle insurance coverage in the voluntary market for any policy holder determined to be eligible for such coverage.
(b) An insurer shall send written notice of the review required by subsection (a) of this section to each policy holder at least thirty days prior to the date that such review is conducted. Such notice shall also inform each policy holder of a policy holder's right to search for and obtain coverage on the voluntary market at any time.
(c) An insurer shall also send written notice of the determination of eligibility for coverage in the voluntary market made pursuant to subsection (a) of this section to a policy holder within ten days after such determination is made.
(d) Any person insured pursuant to this article may file a complaint with the superintendent regarding any violations of this section by insurers participating in the assigned risk plan.
§ 2. Section 309 of the insurance law is amended by adding a new subsection (d) to read as follows:
(d) As part of an examination, the superintendent shall review determinations made pursuant to section five thousand three hundred five of this chapter regarding the eligibility of policy holders for coverage on the voluntary market to ensure such determinations are issued in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15097-02-0
S. 8487 2
compliance with such section, that such determinations are based on sound underwriting and actuarial principles and that policy holders eligible for coverage in the voluntary market are being provided with such coverage in compliance with such section.
§ 3. 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 certain policy review
Purpose or general idea of bill
To provide auto insurance policy holders in the assigned risk plan with increased access to auto coverage in the voluntary market.
Summary of provisions
Section one of the bill would add a new section 5305 to the Insurance Law. This section would require:
*Insurers in the assigned risk plan to review the risk profiles of each of their policy holders to determine if such policy holders are eligible for motor vehicle coverage in the voluntary market and to provide such coverage to any policy holder determined to be eligible;
*Insurers to provide written notice of the review to policy holders at least 30 days prior to the date such review is conducted and also provide written notice of determinations of eligibility within 10 days after such determinations are made; and
*The Superintendent of the Department of Financial Services to review the determinations made by insurers to ensure such determinations are issued in compliance with the provisions of this bill, that- such deter- minations are based on sound underwriting and actuarial principles and that policy holders eligible for coverage in the voluntary market are being provided with such coverage.
This section would also permit policy holders to file complaints with the superintendent regarding any violations of the provisions of this bill.
Section two of the bill would provide the effective date.
Justification
The New York Automobile Insurance Plan (NYAIP), otherwise known as the "assigned risk plan," is a mechanism established pursuant to Article 53 of the insurance law which provides auto insurance coverage to persons unable to obtain coverage on the voluntary market. As the market of last resort, rates under the NYAIP are more expensive than those found on the voluntary market. This bill seeks to provide policy holders in the NYAIP with greater access to more affordable coverage on the voluntary market by requiring insurers in the NYAIP to review the risk profiles of each of their policy holders to determine if such policy holders are eligible for motor vehicle coverage in the voluntary market and to provide such coverage to any policy holder determined to be eligible. This bill would also establish the necessary oversight by the department of financial services to ensure any determinations made by insurers are based on sound underwriting and actuarial principles.
Prior legislative history
New bill.
Fiscal implications for state and local governments
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.