BILL NUMBER: S3062
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the insurance law, in relation to certain policy review
 
PURPOSE OR GENERAL IDEA OF BILL:
To provide auto insurance policy holders in the assigned risk plan with
increased access to auto coverage in the voluntary market.
 
SUMMARY OF PROVISIONS:
Section one of the bill would add a new section 5305 to the Insurance
Law. This section would require:
* Insurers in the assigned risk plan to review the risk profiles of each
of their policy holders to determine if such policy holders are eligible
for motor vehicle coverage in the voluntary market and to provide such
coverage to any policy holder determined to be eligible;
* Insurers to provide written notice of the review to policy holders at
least 30 days prior to the date, such review is conducted and also
provide written notice of determinations of eligibility within 10 days
after such determinations are made; and The Superintendent of the
Department of Financial Services to review the determinations made by
insurers to ensure such determinations are issued in compliance with the
provisions of this bill, that- such determinations are based on sound
underwriting and actuarial principles and that policy holders eligible
for coverage in the voluntary market are being provided with such cover-
age. This section would also permit policy holders to file complaints
with the superintendent regarding any violations of the provisions of
this bill.
Section two of the bill would provide the effective date.
 
JUSTIFICATION:
The New York Automobile Insurance Plan (NYAIP), otherwise known as the
"assigned risk plan," is a mechanism established pursuant to Article 53
of the insurance law which provides auto insurance coverage to persons
unable to obtain coverage on the voluntary market. As the market of last
resort, rates under the NYAIP are more expensive than those found on the
voluntary market. This bill seeks to provide policy holders in line
NYAIP greater access to more affordable coverage on the voluntary market
by requiring insurers in the NYAIP to review the risk profiles of each
of their policy holders to determine if such policy holders are eligible
for motor vehicle coverage in the voluntary market and to provide such
coverage to any policy holder determined to iv eligible. This bill
would also establish the necessary oversight by the department of finan-
cial services to ensure any determinations made by insurers are based on
sound underwriting and actuarial principles.
 
PRIOR LEGISLATIVE HISTORY:
2024: S1627 Comrie/ A2588 Vanel
2022: S4158 Comrie/ A3827 Vanel
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S3062: 309 insurance law