New York: Regulatory Modernization Bill Introduced in State Assembly

Comprehensive regulatory modernization legislation drafted by the New York Insurance Association, a NAMIC advocacy partner, has been introduced in the state Assembly.

The bill, A-10788, was introduced April 21 by Assemblyman Joseph Morelle. A companion bill was filed in the state Senate on Jan. 27 by Sen. James Seward, the chairman of the New York Senate Insurance Committee.

NYIA's proposal would authorize property and casualty insurers to file and use rates and forms in markets that are deemed to be competitive using an objective analytical yardstick. The bill proposes the use of an index utilized in antitrust matters to determine the level of competition in a particular market. When a market is highly competitive, insurers would be able to file and use rates and forms. If a market is found to be moderately competitive, the insurance department could impose flex rating, however, a finding that a market is non-competitive would necessitate prior approval of rates and forms. The bill as introduced in the Assembly was amended to exclude workers' compensation rates from its scope.

NYIA reported that the bill was introduced in the Assembly with nine initial cosponsors, and the association planned on seeking additional cosponsors soon after the bill's introduction.

Reform of state regulation, including most prominently the deregulation of insurance rates, is one of NAMIC's highest public policy priorities. NAMIC is a strong supporter of NYIA's proposal to bring market-based pricing to competitive markets in New York.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Monday, May 01, 2006 12:00:00 AM. Modified: Monday, May 01, 2006 10:24:34 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.