A08306 Summary:

BILL NOA08306
 
SAME ASSAME AS S03572
 
SPONSORCahill
 
COSPNSRTapia, Dickens, McDonald, Stirpe, Jacobson, Cook, Ramos, Fernandez
 
MLTSPNSR
 
Amd 2352, Ins L
 
Permits insurers to make available multiple rating programs for commercial insurance within the same company.
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A08306 Actions:

BILL NOA08306
 
10/20/2021referred to insurance
01/05/2022referred to insurance
02/16/2022reported
02/17/2022advanced to third reading cal.439
02/28/2022passed assembly
02/28/2022delivered to senate
02/28/2022REFERRED TO INSURANCE
03/02/2022SUBSTITUTED FOR S3572
03/02/20223RD READING CAL.488
03/02/2022PASSED SENATE
03/02/2022RETURNED TO ASSEMBLY
04/27/2022delivered to governor
05/09/2022signed chap.194
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A08306 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8306
 
SPONSOR: Cahill
  TITLE OF BILL: An act to amend the insurance law, in relation to permitting insurers to make available multiple rating programs for commercial insurance within the same company   PURPOSE: To permit property/casualty insurers to make available multiple rating programs within the same company for commercial lines insurance in the voluntary market.   SUMMARY OF PROVISIONS: Section 1: Amends Insurance Law Section 2352 to permit insurers to make available multiple rating programs within the same company for commer- cial lines insurance in the voluntary market.   EXISTING LAW: Section 2352 of the insurance law currently permits multiple rating plans for personal lines insurance.   JUSTIFICATION: In 2011, legislation was enacted to authorize insurers to make available multiple rating programs within the same company for personal lines insurance. Prior to the enactment of this law, if an insurance company wished to have more than one rating plan for personal lines insurance, they would be required to establish a separate subsidiary or affiliate company for the primary purpose of offering a new rating plan. Obvious- ly, this was a cumbersome and expensive process which added unnecessary costs to personal lines insurance. Accordingly, legislation was enacted to authorize multiple rating plans for personal lines insurance and remove these unnecessary burdens and costs associated with offering multiple rating plans for personal lines insurance. The same rationale applies for commercial lines policies and this legis- lation would similarly allow insurers to make available multiple rating plans for commercial lines without having to form a subsidiary or affil- iate company. To remain competitive, insurance companies, both commer- cial and personal lines companies, need to be able to continually devel- op new rating plans that introduce different rating elements that allow them to better segment and price business. This bill allows insurers on the commercial lines side to adopt these innovations in the most effi- cient and cost effective way possible by authorizing the establishment of an additional rating plan within the same insurance company. It should be noted that, as is currently the case for personal lines policies, each time a company develops a new rating plan, the plan would be subject to the prior approval of the Superintendent of Financial Services and would be provided only to new business customers.   LEGISLATIVE HISTORY: New Bill   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
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A08306 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8306
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    October 20, 2021
                                       ___________
 
        Introduced by M. of A. CAHILL -- read once and referred to the Committee
          on Insurance
 
        AN ACT to amend the insurance law, in relation to permitting insurers to
          make available multiple rating programs for commercial insurance with-
          in the same company
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 2352 of the insurance law, as added by chapter  457
     2  of the laws of 2011, is amended to read as follows:
     3    §  2352. Multiple rating programs. (a) Subject to the superintendent's
     4  prior approval, an insurer may establish more than  one  rating  program
     5  within  the  same  company for policies of insurance that are subject to
     6  section three thousand four hundred twenty-five or section  three  thou-
     7  sand four hundred twenty-six of this chapter; provided that:
     8    (1)  each rating program shall apply only to policies newly written on
     9  or after the effective date of the  rating  program  but  prior  to  the
    10  effective  date  of  any  subsequently approved rating program; provided
    11  however if an insurer terminates a  rating  program,  then  the  insurer
    12  shall  renew  the  policies  that  were subject to the terminated rating
    13  program in a subsequently approved rating program.
    14    (2) the provisions of subsection (f) of section  three  thousand  four
    15  hundred  twenty-five  and  subsection  (b) of section two thousand three
    16  hundred forty-nine of this chapter  shall  be  applied  to  each  rating
    17  program to which they are applicable separately.
    18    (b)  The superintendent may promulgate rules and regulations to imple-
    19  ment the provisions of this section.
    20    § 2. This act shall take effect on the ninetieth day  after  it  shall
    21  have become a law.
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07531-01-1
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A08306 LFIN:

 NO LFIN
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