S. 8624(Seward)/A. 11693(Morelle)

Property/Casualty; NYPIUA

Summary:  This bill extends or makes permanent provisions of the Insurance Law that are designed to promote stability in New York’s property/casualty insurance market.  The bill is also designed to ensure the availability of property insurance in New York’s coastal areas and throughout the state.  Highlights include the following:

• The bill creates a new Insurance Law provision pertaining to flexible rating for nonbusiness automobile insurance policies.  The new provision permits insurers with no more than 750 policies in-force to submit a plan of withdrawal to the Superintendent, for the Superintendent’s approval, subject to certain enumerated standards, such as the requirement that the proposed withdrawal plan contemplate minimizing any market disruption and not be detrimental to the public.
• The bill extends the sunset dates of certain provisions of Article 23 of the Insurance Law, which pertains to property/casualty insurance rates. The file-and-use and flexible rating provisions set forth in Article 23 will stay in effect for three additional years.
• The bill extends the “2% rule” set forth in Insurance Law § 3425.
• The bill makes NYPIUA (New York Property Insurance Underwriting Association)  permanent.

Effective Date:  The bill takes effect immediately, except that sections eleven and twelve take effect January 1, 2009. In addition, the amendments to subsection (g) of section 5412 (g) of the Insurance Law do not affect the expiration of such section.

Last Action: Approved and signed by the Governor on June 30, 2008 (Chapter 136 of the Laws of 2008).