BILL NUMBER: S7344
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to the New York insurance
underwriting transparency act
 
PURPOSE OR GENERAL IDEA OF BILL:
To provide consumers of personal auto and homeowner insurance with clear
and useful information explaining the basis for when a material change
is made to a consumer's policy.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the insurance law by adding a new Article 6 to be known
as "New York Insurance Underwriting Transparency act." The section
further establishes the act's scope, transparency requirements, and
rules.
 
JUSTIFICATION:
This bill acts as a framework to provide consumers of personal auto and
homeowner insurance valuable information explaining the basis for a
material change made to their policies. Such material changes include a
nonrenewal or cancellation; an increase of more than 10 percent over the
expiring premium; a reduction in coverage; or another adverse or unfa-
vorable change in the terms of coverage or amount of insurance.
The legislation will allow consumers and agents to understand why
certain changes are made to policies and enable them to make better
informed coverage-related decisions. As insurance companies continue to
integrate more technology in their business models, providing transpar-
ency is increasingly important.
This bill was adopted as a model bill at the 2023 National Council of
Insurance Legislators (NCOIL) Spring National Meeting.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
One year after it shall have become a law and shall apply to a policy
issued, amened, or renewed on and after such effective date.