What's happening
This bill requires a review and potential revision of non-business automobile insurance rating territories in New York, focusing on demographic changes and certain city populations.
Why it matters
Potential for fairer auto insurance rates. The bill mandates a review of how insurance rating territories are defined, specifically considering changing demographics and geographic groupings, which could address outdated or unfair premium differences between similar neighborhoods.
Focus on mid-sized cities near large urban centers. By prioritizing cities within a specified population range that are next to much larger cities and have seen reduced traffic and accidents, the bill could lower insurance costs for residents in areas that may no longer reflect higher-risk profiles.
Regulatory authority to require changes. The superintendent of insurance would have the power to compel insurers to redraw territory boundaries, potentially leading to significant shifts in how risk (and therefore premiums) are allocated across communities.
Transparency and accountability. Required reporting to the governor and legislature ensures public oversight, giving policymakers and the public insight into both the review process and any reforms implemented as a result.
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Who cares
Non-business auto insurance policyholders
The review would examine how existing rating territories affect rates, with particular attention to changing demographics, borderline ZIP codes and territorial groupings.
Auto insurers
The insurance superintendent could require them to adjust existing rating territories or establish and use new ones for non-business policies.
Residents of qualifying smaller cities
The review would first focus on cities within specified population ranges that have declining traffic density and accidents and border a larger city within another specified population range.
New York insurance regulators
The superintendent would have to complete the review by July 1 of the year after the bill becomes law and report findings and actions to the governor and Legislature by December 31 of that year.
Headline styles
Review Car Insurance Territories
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
1347
2025-2026 Regular Sessions
IN ASSEMBLY
January 9, 2025
Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to providing for a review of certain existing rating territory definitions for non-business automobile insurance policies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2307 of the insurance law is amended by adding a new subsection (f) to read as follows:
(f) (1) Notwithstanding any other provision of law, with respect to non-business automobile insurance policies, the superintendent shall undertake a thorough review of rating territory definitions and rate implications of current territorial definitions in use in this state, with particular focus on changing demographics, borderline zip codes, territorial groupings, and alternative approaches to achieving homogeneity.
(2) Based on such review, the superintendent may require insurers to adjust existing or establish new territory definitions and to use such adjusted or new territories in relation to such policies.
(3) With respect to such review and any requirements made pursuant to this section, the superintendent shall first focus on cities with a population of more than nineteen thousand forty but less than twentyfive thousand having had a decrease in traffic density and accidents, which are geographically contiguous with a city with a population of more than two hundred ninety-two thousand six hundred forty-eight but less than three hundred fifty thousand.
(4) The superintendent shall report to the governor and the legislature on such review and actions taken pursuant to this subsection.
§ 2. The review required by section one of this act shall be completed by July first in the year next succeeding the year in which it shall have become law, and the report required by section one of this act shall be submitted no later than December thirty-first in the year next succeeding the year in which it shall have become law.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02982-01-5
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.