Bill Text: NY S05029 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to the applicability of property and casualty insurance rates and exempts certain kinds or types of insurance from article 23.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-04 - REFERRED TO INSURANCE [S05029 Detail]
Download: New_York-2011-S05029-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5029
2011-2012 Regular Sessions
I N S E N A T E
May 2, 2011
___________
Introduced by Sen. SEWARD -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to the applicability of
property and casualty insurance rates
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 2307 of the insurance law is amended by adding two
2 new subsections (e) and (f) to read as follows:
3 (E) NOTWITHSTANDING SUBSECTIONS (A) AND (B) OF THIS SECTION, FOR THE
4 KINDS OF INSURANCE PROVIDED FOR IN SUBSECTION (C) OF SECTION TWO THOU-
5 SAND THREE HUNDRED ELEVEN OF THIS ARTICLE, FILING WITH AND PRIOR
6 APPROVAL BY THE SUPERINTENDENT IS NOT REQUIRED.
7 (F) FOR POLICY FORMS NOT SUBJECT TO PRIOR APPROVAL PURSUANT TO
8 SUBSECTION (C) OF SECTION TWO THOUSAND THREE HUNDRED ELEVEN OF THIS
9 ARTICLE, IF THE SUPERINTENDENT, AFTER NOTICE AND HEARING TO AN INSURER,
10 DETERMINES THAT A SPECIFIC POLICY FORM IS MISLEADING OR VIOLATIVE OF
11 PUBLIC POLICY, HE OR SHE MAY ORDER THE INSURER TO CEASE ISSUING OR
12 DELIVERING THE POLICY FORM IN THIS STATE. THE EFFECTIVE DATE OF THE
13 CESSATION OF ISSUING OR DELIVERING THE POLICY FORM SHALL BE PRESCRIBED
14 BY THE SUPERINTENDENT BUT NOT BE LESS THAN NINETY DAYS AFTER NOTICE TO
15 THE INSURER.
16 S 2. Section 2311 of the insurance law is amended by adding five new
17 subsections (c), (d), (e), (f) and (g) to read as follows:
18 (C) THE FOLLOWING KINDS OF INSURANCE WRITTEN ON RISKS OR OPERATIONS IN
19 THIS STATE ARE NOT SUBJECT TO POLICY FORM AND RATE FILINGS WITH, OR
20 APPROVAL BY, THE SUPERINTENDENT UNLESS THE SUPERINTENDENT REQUIRES SUCH
21 FILINGS PURSUANT TO SUBSECTION (G) OF THIS SECTION:
22 (1) EXCESS OR UMBRELLA LIABILITY;
23 (2) SURETY AND FIDELITY;
24 (3) BOILER AND MACHINERY;
25 (4) ERRORS AND OMISSIONS LIABILITY;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10263-02-1
S. 5029 2
1 (5) PROFESSIONAL LIABILITY OTHER THAN PHYSICIAN'S AND SURGEON'S
2 MEDICAL MALPRACTICE;
3 (6) DIRECTORS AND OFFICERS, EMPLOYMENT PRACTICES, FIDUCIARY LIABILITY
4 AND OTHER MANAGEMENT LIABILITY INSURANCE;
5 (7) INTELLECTUAL PROPERTY, ADVERTISING INJURY AND PATENT INFRINGEMENT
6 LIABILITY;
7 (8) INTERNET LIABILITY INSURANCE;
8 (9) PROPERTY RISKS RATED UNDER A HIGHLY PROTECTED RISKS RATING PLAN;
9 (10) COMMERCIAL INLAND MARINE;
10 (11) AIRCRAFT LIABILITY AND PHYSICAL DAMAGE;
11 (12) UNIQUE OR UNUSUAL RISKS OR PORTIONS OF RISKS WHICH ARE NOT RATED
12 ACCORDING TO MANUALS, RATING PLANS, OR RATE SCHEDULES, INCLUDING "A"
13 RATES;
14 (13) COMMERCIAL LINES INSURANCE RISKS, OTHER THAN WORKERS' COMPEN-
15 SATION INSURANCE, WHICH PRODUCE AN ANNUAL PREMIUM OF TWENTY-FIVE THOU-
16 SAND DOLLARS OR MORE, EMPLOYS OR RETAINS A RISK MANAGER TO ASSIST IN THE
17 NEGOTIATION AND PURCHASE OF INSURANCE, AND
18 (I) HAS A NET WORTH OF AT LEAST SEVEN MILLION FIVE HUNDRED THOUSAND
19 DOLLARS AS OF THE INSURED'S FISCAL YEAR END IMMEDIATELY PRECEDING THE
20 POLICY'S EFFECTIVE DATE;
21 (II) HAS GROSS ASSETS EXCEEDING TEN MILLION DOLLARS AND A NET WORTH OF
22 AT LEAST ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AS OF THE INSURED'S
23 FISCAL YEAR END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
24 (III) IS A FOR-PROFIT BUSINESS ENTITY THAT GENERATES ANNUAL GROSS
25 REVENUES EXCEEDING FIFTEEN MILLION DOLLARS, AND HAS A NET WORTH OF AT
26 LEAST ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AS OF THE INSURED'S
27 FISCAL YEAR END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
28 (IV) IS A FOR-PROFIT BUSINESS ENTITY THAT HAS GROSS ASSETS EXCEEDING
29 TEN MILLION DOLLARS AND GENERATES ANNUAL GROSS REVENUES EXCEEDING
30 FIFTEEN MILLION DOLLARS AS OF THE INSURED'S FISCAL YEAR END IMMEDIATELY
31 PRECEDING THE POLICY'S EFFECTIVE DATE;
32 (V) IS A NOT-FOR-PROFIT ORGANIZATION OR PUBLIC ENTITY WITH AN ANNUAL
33 BUDGET EXCEEDING TWENTY MILLION DOLLARS FOR EACH OF ITS THREE FISCAL
34 YEARS IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
35 (VI) HAS FIFTY EMPLOYEES OR, TOGETHER WITH ITS PARENT, SUBSIDIARIES
36 AND AFFILIATES, ONE HUNDRED EMPLOYEES, AS OF THE INSURED'S FISCAL YEAR
37 END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE; OR
38 (VII) IS A MUNICIPALITY WITH A POPULATION OF FIFTY THOUSAND OR MORE
39 PERSONS.
40 (14) ANY OTHER COMMERCIAL LINES, KINDS OR TYPES OF INSURANCE THAT THE
41 SUPERINTENDENT:
42 (A) DETERMINES TO BE SUBSTANTIALLY SIMILAR TO A KIND OR TYPE OF INSUR-
43 ANCE NOT SUBJECT TO FILING REQUIREMENTS PURSUANT TO THIS SECTION;
44 (B) DETERMINES, AFTER A PUBLIC HEARING AND ON THE BASIS OF FACT AND
45 CONCLUSIONS, SHOULD NOT BE SUBJECT TO POLICY FORM OR RATE FILING
46 REQUIREMENTS FOR REASONS OF THE EXISTENCE OF A COMPETITIVE MARKET FOR
47 SUCH INSURANCE OR TO IMPROVE THE GENERAL OPERATIONAL EFFICIENCY OF THE
48 INSURANCE DEPARTMENT.
49 (D) FOR PURPOSES OF THIS SECTION, "RISK MANAGER" SHALL MEAN AN INDI-
50 VIDUAL WHO HOLDS THE PROFESSIONAL DESIGNATION OF CPCU, ARM, OR CRM WITH
51 AT LEAST FIVE YEARS EXPERIENCE IN THE ANALYSIS AND TREATMENT OF RISK,
52 LOSS EXPOSURE, INSURANCE COVERAGES, AND ALTERNATIVE METHODS AND
53 PROGRAMS, WHO IS NOT EMPLOYED BY THE INSURER ISSUING THE POLICY OR ANY
54 PERSON IN THE INSURER'S HOLDING COMPANY SYSTEM, AND WHO IS LICENSED AS
55 AN INSURANCE PRODUCER PURSUANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER,
56 UNLESS EXEMPTED FROM LICENSING THEREIN.
S. 5029 3
1 (E) FOR PURPOSES OF THIS SECTION, "HIGHLY PROTECTED RISK" SHALL MEAN
2 PROPERTY THAT IS SUBJECT TO A SUBSTANTIALLY LOWER THAN NORMAL PROBABILI-
3 TY OF LOSS BY VIRTUE OF SUPERIOR CONSTRUCTION, SPECIAL FIRE PROTECTION
4 EQUIPMENT AND PROCEDURES, AND MANAGEMENT COMMITMENT TO LOSS PREVENTION.
5 (F) POLICY FORMS AND RATES EXEMPTED FROM FILING AND APPROVAL REQUIRE-
6 MENTS PURSUANT TO THIS SECTION MUST OTHERWISE COMPLY WITH THE STANDARDS
7 SET FORTH IN THIS CHAPTER.
8 (G) FOR ANY KIND OF INSURANCE EXEMPTED FROM FILING REQUIREMENTS PURSU-
9 ANT TO SUBSECTION (C) OF THIS SECTION, THE SUPERINTENDENT MAY REQUIRE
10 RATE OR POLICY FILINGS FOR THAT KIND OF INSURANCE, PURSUANT TO THE STAN-
11 DARDS SPECIFIED UNDER SECTION TWO THOUSAND THREE HUNDRED EIGHT OF THIS
12 ARTICLE, PROVIDED, HOWEVER, THAT IN LIEU OF IMPOSING PRIOR APPROVAL, THE
13 SUPERINTENDENT MAY PERMIT FILE AND USE OR FLEXIBLE RATING PURSUANT TO
14 SECTION TWO THOUSAND THREE HUNDRED FORTY-FOUR OF THIS ARTICLE.
15 S 3. This act shall take effect immediately.
