Extends provisions of the property/casualty insurance availability act and the authority of the New York property insurance underwriting association

◆ The sponsor's argument

Why Jamaal Bailey says this is needed

This bill extends the expiration dates of certain provisions of Insur- ance Law Article 23, which pertains to property/casualty insurance rates. Extending the expiration dates for these provisions assures the insurance industry that the file-and-use and flexible rating provisions set forth in Article 23 will stay in effect for the next three years. These file-and-use and flexible rating approaches enable insurers to respond more quickly to changing market conditions in a more expeditious manner than the prior approval approach, to which the law would revert if these key provisions of Article 23 are permitted to expire. In addition, the bill extends provisions set forth in Insurance Law 3425(f). Section 3425 contains the minimum nonrenewal and cancellation requirements for most voluntarily written personal lines insurance. Specifically, § 3425(f) establishes the "two percent rule" for personal motor vehicle insurance, which permits an insurer to nonrenew or condi- tionally renew up to a maximum of two percent of the total number of motor vehicle covered policies in force at last year-end in each of the insurer's rating territories, and the "two for-one credit", which provides that an insurer may nonrenew or conditionally renew one addi- tional motor vehicle policy in each territory beyond the two percent limitation, for every two newly issued automobile insurance policies voluntarily written by that insurer in such territory. Section 3425 provides an equitable balance among the often-competing forces of poli- cyholders' expectations, insurers' legitimate prerogatives in evaluating and assuming risk, and the realities of the non-commercial motor vehicle insurance marketplace. It provides the foundation for a reliable noncom- mercial motor vehicle insurance market that promotes stability and protects consumers against arbitrary cancellation or nonrenewal of coverage. Finally, the bill extends the sunset dates for Insurance Law §§ 5402(g) and 5412(g), promoting the availability and affordability of property/casualty insurance and the stability of the property/casualty insurance market in New York by extending the Superintendent's authority to authorize NYPIUA to write broad form coverage and coverage for an underserved market.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.