S T A T E O F N E W Y O R K ________________________________________________________________________ 727 2011-2012 Regular Sessions I N A S S E M B L Y (PREFILED) January 5, 2011 ___________ Introduced by M. of A. GANTT, ROBINSON, JACOBS, PHEFFER, MAISEL, COLTON, GALEF -- Multi-Sponsored by -- M. of A. BOYLAND, DINOWITZ, FINCH, GLICK, HOOPER, V. LOPEZ, McKEVITT, MILLMAN, NOLAN, PEOPLES-STOKES, RAIA, REILLY, SWEENEY, TITONE, TOWNS, WEISENBERG -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to "the New York residen- tial insurance providers disclosure act of 2011" THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. This act shall be known and may be cited as "the New York 2 residential insurance providers disclosure act of 2011". 3 S 2. Subsection (a) of section 2315 of the insurance law, as amended 4 by chapter 398 of the laws of 1990, is amended to read as follows: 5 (a) [Every] WITH RESPECT TO RESIDENTIAL INSURANCE, EVERY AUTHORIZED 6 INSURER SHALL BY MARCH THIRTY-FIRST OF EACH YEAR FILE WITH THE SUPER- 7 INTENDENT, OR WITH SUCH OTHER AGENCY AS THE SUPERINTENDENT MAY APPROVE, 8 A "RESIDENTIAL INSURANCE RATE, EXPERIENCE AND STATISTICAL REPORT" AS 9 DESCRIBED IN SUBSECTION (D) OF THIS SECTION, AND SHALL MAKE AVAILABLE IN 10 AN ELECTRONIC DATABASE FORMAT THE STATISTICAL INFORMATION ON ITS RESI- 11 DENTIAL ACTIVITIES ACCORDING TO THE PROVISIONS OF SUBSECTION (D) OF THIS 12 SECTION. WITH RESPECT TO NON-RESIDENTIAL AND ALL OTHER LINES OF INSUR- 13 ANCE, EVERY authorized insurer shall annually file with the rate service 14 organization of which it is a member or subscriber, or with such other 15 agency as the superintendent may approve, a statistical report showing a 16 classification schedule of its premiums and losses on all kinds or types 17 of insurance business subject to this article, and such other informa- 18 tion as the superintendent may deem necessary or expedient for the 19 administration of the provisions of this article. The superintendent 20 from time to time may prescribe the form of the report including statis- 21 tical data conforming to established classifications. The statistical EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03392-01-1 A. 727 2 1 reports shall be consolidated in accordance with regulations prescribed 2 by the superintendent. Such consolidations shall be made available, 3 subject to reasonable rules promulgated by the superintendent, to insur- 4 ers and rate service organizations. No insurer shall be required to 5 record or report its loss experience on a classification basis that is 6 inconsistent with the rating system filed by it, except that the super- 7 intendent may require each insurer writing private passenger automobile 8 coverages to file annually with the superintendent (or a statistical 9 agent designated by the superintendent for such purpose), in the form 10 prescribed by the superintendent, a statistical report showing a sched- 11 ule of its premiums, losses, and exposures classified by United States 12 postal zip code. [No] EXCEPT AS PROVIDED FOR IN SUBSECTION (D) OF THIS 13 SECTION, NO statistical report shall be issued or otherwise made avail- 14 able to any rate service organization (except in the capacity of desig- 15 nated statistical agent), insurers, or persons other than appropriate 16 governmental entities, except on a consolidated manner, or in such 17 aggregate form as to protect an individual insurer's schedule of premi- 18 ums, losses and exposures for any specific zip code. 19 S 3. Subsections (d) and (e) of section 2315 of the insurance law are 20 relettered (e) and (f) and a new subsection (d) is added to read as 21 follows: 22 (D) (1) BEGINNING JANUARY FIRST, TWO THOUSAND TWELVE AND ANNUALLY 23 THEREAFTER, THE SUPERINTENDENT SHALL REQUIRE EACH INSURER AUTHORIZED TO 24 WRITE AND WRITING THE KINDS OF INSURANCE SPECIFIED IN PARAGRAPH FOUR OF 25 SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS 26 CHAPTER, SUBPARAGRAPH (A) OF PARAGRAPH FIVE OF SUCH SUBSECTION, AND 27 HOMEOWNERS INSURANCE, TO FILE A STATISTICAL REPORT OF ITS EXPERIENCE FOR 28 THE PREVIOUS CALENDAR YEAR, FOR EACH FORM AND RATING CLASSIFICATION, AND 29 TIER IN A MULTI-TIER PROGRAM, WHERE APPLICABLE, CLASSIFIED BY UNITED 30 STATES CENSUS TRACT. 31 FOR THE PURPOSES OF THIS SECTION, "HOMEOWNERS INSURANCE," INCLUDES 32 MULTI-TIER INSURANCE PROGRAMS, AND MEANS A CONTRACT OF INSURANCE INSUR- 33 ING AGAINST THE CONTINGENCIES DESCRIBED IN SUBPARAGRAPHS (A), (B) AND 34 (C), OR (B) AND (C) OF PARAGRAPH TWO OF SUBSECTION (A) OF SECTION THREE 35 THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER AND WHICH IS A 36 "COVERED POLICY" OF PERSONAL LINES INSURANCE AS DEFINED IN SUCH PARA- 37 GRAPH; PROVIDED, HOWEVER, THAT THE COVERAGES PROVIDED UNDER SUCH SUBPAR- 38 AGRAPHS (B) AND (C) SHALL NOT APPLY WHERE A NATURAL PERSON DOES NOT HAVE 39 AN INSURABLE INTEREST IN THE REAL PROPERTY, OR A PORTION THEREOF, OR THE 40 RESIDENTIAL UNIT IN WHICH SUCH PERSON RESIDES. 41 (2) SUCH STATISTICAL REPORT SHALL BE IN A FORM PRESCRIBED BY THE 42 SUPERINTENDENT AS IN EFFECT AT THE COMMENCEMENT OF THE CALENDAR YEAR 43 REPORTED UPON, AND SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING 44 INFORMATION: 45 (A) THE NUMBER OF POLICIES IN EFFECT, OR OTHER EXPOSURES INSURED. FOR 46 THE PURPOSES OF THIS SUBSECTION, "POLICIES IN EFFECT" SHALL MEAN THE 47 NUMBER OF POLICIES WRITTEN IN THE REPORTING YEAR, AND "OTHER EXPOSURES," 48 IF ANY, SHALL MEAN ANY COVERAGE EXTENDED OTHER THAN POLICIES WRITTEN, 49 AND SHALL BE DESCRIBED IN THE REPORT IN SUFFICIENT DETAIL TO IDENTIFY 50 THE COVERAGE PROVIDED; 51 (B) THE NUMBER OF APPLICATIONS FOR COVERAGE; 52 (C) THE NUMBER OF APPLICATIONS FOR WHICH COVERAGE WAS NOT PROVIDED, 53 CLASSIFIED ACCORDING TO APPLICATIONS WITHDRAWN, APPLICATIONS DENIED, AND 54 APPLICATIONS STILL IN PROCESS; 55 (D) THE NUMBER OF POLICIES NOT RENEWED; 56 (E) THE NUMBER OF POLICIES CANCELLED OR TERMINATED; A. 727 3 1 (F) THE NUMBER OF CLAIMS FILED; 2 (G) THE NUMBER OF CLAIMS APPROVED, IN WHOLE OR IN PART; 3 (H) THE NUMBER OF CLAIMS DENIED, IN WHOLE OR IN PART; 4 (I) THE AMOUNTS OF THE LOSSES INCURRED; 5 (J) THE AMOUNTS OF THE LOSSES PAID; 6 (K) FOR INSURERS DISTRIBUTING THROUGH DIRECT SOLICITATION, THE NUMBER 7 OF DIRECT MAIL OR TELEPHONE SOLICITATIONS; 8 (L) THE NUMBER OF AGENTS APPOINTED BY THE INSURER; 9 (M) THE STREET ADDRESSES OF ALL OFFICES ISSUING OR SERVICING POLICIES; 10 (N) LANGUAGES SPOKEN, OTHER THAN ENGLISH, WITH SUFFICIENT FLUENCY TO 11 CONDUCT BUSINESS IN THAT LANGUAGE BY PERSONNEL WITHIN EACH OFFICE; 12 (O) WHETHER THE INSURER ISSUES POLICIES IN A LANGUAGE OTHER THAN 13 ENGLISH, AND IF SO, IDENTIFYING THE LANGUAGES IN WHICH POLICIES ARE 14 ISSUED AND THE NUMBER OF POLICIES ISSUED IN EACH LANGUAGE; 15 (P) FOR EACH OF THE CATEGORIES OF INFORMATION DESCRIBED IN SUBPARA- 16 GRAPHS (A) THROUGH (J) OF THIS PARAGRAPH, FURTHER CLASSIFICATIONS 17 ACCORDING TO RACE, NATIONAL ORIGIN, ETHNICITY, HOUSEHOLD INCOME, AND 18 GENDER OF THE INSUREDS OR APPLICANTS, PURSUANT TO CODES ESTABLISHED BY 19 THE SUPERINTENDENT, IN ADDITION, WHERE AN INSURER APPLIES ANY OTHER 20 CLASSIFICATION WHICH AFFECTS THE PREMIUM RATE AT WHICH THE POLICY IS 21 ISSUED, THE INSURER SHALL PROVIDE TOTALS BY RACE, NATIONAL ORIGIN, 22 ETHNICITY, HOUSEHOLD INCOME AND GENDER FOR EACH SUCH CLASSIFICATION; AND 23 (Q) APPLICABLE RATES, WITHIN TERRITORIES SERVED BY AN INSURER, FOR 24 EACH FORM AND RATING CLASSIFICATION, INCLUDING RATES BY TIER IN 25 MULTI-TIER PROGRAMS, AND DIFFERENTIATING BETWEEN POLICIES WITH VARYING 26 TYPES OF BENEFITS, INCLUDING BUT NOT LIMITED TO GUARANTEED REPLACEMENT 27 COST, STANDARD OR LIMITED REPLACEMENT COST, MARKET VALUE OR ACTUAL CASH 28 VALUE, AND DIFFERENTIATING AMONG POLICIES ISSUED FOR SINGLE-FAMILY 29 HOMES, MULTI-FAMILY HOMES, CONDOMINIUM OR COOPERATIVE UNITS AND RENTERS; 30 AND 31 (R) ALL OF THE INFORMATION UPON WHICH AN INSURER, RATE SERVICE ORGAN- 32 IZATION, GROUP OF INSURERS FILED WITH THE SUPERINTENDENT IN SUPPORT OF 33 THE RATES AS REQUIRED TO BE FILED WITH THE SUPERINTENDENT BY SUBSECTION 34 (B) OF SECTION TWO THOUSAND THREE HUNDRED FOUR AND SUBSECTION (C) OF 35 SECTION TWO THOUSAND THREE HUNDRED FIVE OF THIS ARTICLE. AN INSURER OR 36 GROUP OF INSURERS WHICH ARE MEMBERS OR SUBSCRIBERS OF A RATE SERVICE 37 ORGANIZATION WHICH MAKES OR FILES RATES ON ITS BEHALF SHALL BE RESPONSI- 38 BLE FOR FILING OF THE INFORMATION AS PART OF THE REPORT REQUIRED BY THIS 39 SUBSECTION. IN LIEU OF INCLUDING THE INFORMATION REQUIRED BY THIS PARA- 40 GRAPH AS PART OF THE STATISTICAL REPORT, AN INSURER OR GROUP OF INSURERS 41 MAY POST THE INFORMATION ON A WEBSITE MAINTAINED BY THE INSURER OR 42 PROVIDE IT TO THE PUBLIC WITHOUT CHARGE WITHIN FIFTEEN DAYS OF RECEIPT 43 OF A WRITTEN REQUEST FOR SUCH INFORMATION. 44 (3) THE SUPERINTENDENT MAY APPOINT ONE OR MORE STATISTICAL AGENTS TO 45 ASSIST IN THE COLLECTION AND ORGANIZATION OF SUCH REPORT, AND MAY 46 APPROVE ONE OR MORE STATISTICAL AGENTS UPON APPLICATION BY AN INSURER TO 47 ASSIST IN OR MAKE THE FILING OF THE REPORT REQUIRED BY THIS SUBSECTION. 48 (4) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, THE SUPERINTEN- 49 DENT SHALL BY JULY FIRST OF EACH YEAR MAKE AVAILABLE TO THE PUBLIC ON 50 REQUEST, AS WELL AS MAKING AVAILABLE FOR INSPECTION AT THE OFFICE OF THE 51 SUPERINTENDENT, THE FULL TEXT OF THE REPORTS FILED UNDER THIS 52 SUBSECTION. SUCH REPORTS SHALL BE MADE AVAILABLE IN BOTH PRINTED AND 53 ELECTRONIC FORMAT, INCLUDING ACCESS THROUGH THE WEBSITE OF THE DEPART- 54 MENT, AT NO CHARGE TO THE REQUESTING PARTY, EXCEPT THAT WITH RESPECT TO 55 PRINTED COPIES OR PHOTOCOPIES SUCH REPORTS SHALL BE AVAILABLE FOR A 56 REASONABLE FEE, NOT TO EXCEED FIVE CENTS PER PAGE OR THE ACTUAL COST OF A. 727 4 1 DUPLICATION, WHICHEVER IS LESS. DATA PRESENTED IN ELECTRONIC FORMAT 2 SHALL BE MADE AVAILABLE IN A DATABASE FILE FORMAT OF THE TYPE IN GENERAL 3 USAGE BY THE PUBLIC. 4 (5) IN ADDITION TO CUMULATIVE DATA REQUIRED TO BE REPORTED UNDER THIS 5 SUBSECTION, EACH INSURER SHALL FILE WITH THE SUPERINTENDENT, AND MAKE 6 AVAILABLE TO THE PUBLIC, THE INDIVIDUAL RECORD DATA FROM WHICH THE 7 REPORT SUMMARIES WERE TABULATED. SUCH DATA SHALL BE PROVIDED IN AN 8 ELECTRONIC DATABASE FORMAT PRESCRIBED BY THE SUPERINTENDENT, AND THE 9 SUPERINTENDENT SHALL MAKE SUCH DATABASE FILES AVAILABLE DIRECTLY TO THE 10 PUBLIC IN ACCORDANCE WITH THE PROCEDURES AND TIME REQUIREMENTS SET FORTH 11 IN PARAGRAPH FOUR OF THIS SUBSECTION. THE SUPERINTENDENT SHALL REQUIRE 12 THAT ALL INFORMATION WHICH WOULD PERSONALLY IDENTIFY ANY INDIVIDUAL 13 APPLICANT OR POLICYHOLDER BE DELETED. THE CATEGORIES OF DATA TO BE MADE 14 AVAILABLE FOR EACH INDIVIDUAL RECORD SHALL INCLUDE ALL OF THE SAME CATE- 15 GORIES OF INFORMATION CONTAINED IN THE CUMULATIVE REPORT AND SHALL BE 16 PRESENTED IN ACCORDANCE WITH STANDARDIZED CLASSIFICATION CODES TO BE 17 ESTABLISHED BY THE SUPERINTENDENT. 18 (6) AN INSURER WHO DOES NOT SUBMIT THE STATISTICAL REPORT OR OTHER 19 INFORMATION REQUIRED BY THIS SUBSECTION AS OF THE DATE REQUIRED SHALL, 20 UPON NOTICE AND OPPORTUNITY TO BE HEARD, BE SUBJECT TO A PENALTY NOT TO 21 EXCEED ONE THOUSAND DOLLARS PER DAY FOR EACH DAY BEYOND THE DATE THE 22 REPORT OR INFORMATION IS REQUIRED, BUT IN NO EVENT SHALL SUCH PENALTY 23 EXCEED FIFTEEN THOUSAND DOLLARS IN THE AGGREGATE; PROVIDED, HOWEVER, 24 THAT THE SUPERINTENDENT MAY WAIVE SUCH A PENALTY UPON A WRITTEN FINDING 25 THAT THE REPORT OR OTHER INFORMATION SUBMITTED BY SUCH INSURER ON THE 26 DATE REQUIRED WAS SUBSTANTIALLY COMPLETE, AND THE INSURER HAS CORRECTED 27 ANY DEFICIENCIES WITHIN A DATE SET BY THE SUPERINTENDENT. AN INSURER 28 REQUIRED BY THIS SUBSECTION TO SUBMIT A STATISTICAL REPORT OR OTHER 29 INFORMATION WHO WILLFULLY FAILS TO FILE SUCH STATISTICAL REPORT OR OTHER 30 INFORMATION SHALL, IN ADDITION TO ANY OTHER PENALTIES PROVIDED FOR BY 31 THIS CHAPTER, UPON NOTICE AND AN OPPORTUNITY TO BE HEARD, BE SUBJECT TO 32 A PENALTY OF UP TO FIVE HUNDRED DOLLARS PER DAY OF DELAY, NOT TO EXCEED 33 FIFTY THOUSAND DOLLARS IN THE AGGREGATE. WHERE AN INSURER HAS FAILED TO 34 COMPLY WITH THE REQUIREMENTS OF THIS SECTION, AN AGGRIEVED INDIVIDUAL, 35 INCLUDING ANY PERSON OR AGENCY ATTEMPTING TO ANALYZE THE PERFORMANCE OF 36 ANY INSURER SUBJECT TO THIS SECTION, SHALL HAVE A CAUSE OF ACTION IN ANY 37 COURT OF COMPETENT JURISDICTION FOR DECLARATORY AND INJUNCTIVE RELIEF. 38 IN ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO THIS SECTION, COSTS AND 39 REASONABLE ATTORNEY FEES MAY BE AWARDED BY THE COURT, IN ITS DISCRETION, 40 TO THE SUCCESSFUL PARTY. 41 (7) UPON AN APPLICATION BY AN INSURER REQUIRED BY THIS SUBSECTION TO 42 SUBMIT A STATISTICAL REPORT OR OTHER INFORMATION FOR THE CALENDAR YEAR 43 TWO THOUSAND ELEVEN, THE SUPERINTENDENT MAY PERMIT SUCH INSURER TO CLAS- 44 SIFY THE DATA BY UNITED STATES POSTAL ZIP CODE, RATHER THAN CENSUS TRACT 45 DESIGNATION, FOR THE REPORT DUE IN CALENDAR YEAR TWO THOUSAND TWELVE. 46 S 4. This act shall take effect immediately.