Bill Text: NY S02987 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires all motor vehicle insurers to file annual detailed financial and claim data statements with the superintendent of financial services; provides all such statements shall be made available to the public.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced - Dead) 2016-03-30 - PRINT NUMBER 2987A [S02987 Detail]

Download: New_York-2015-S02987-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2987
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   January 30, 2015
                                      ___________
       Introduced  by  Sen. MARTINS -- 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  requiring  all  motor
         vehicle  insurers  to  file  annual  financial statements and detailed
         claim data with the superintendent of financial services
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. This act shall be known and may be cited as the "automobile
    2  insurance sunshine act of 2015".
    3    S  2.  Legislative  intent.  The legislature hereby finds and declares
    4  that insurance companies issuing motor vehicle policies  in  this  state
    5  owe  a  duty  to  the  consumers they insure and to those who may in the
    6  future be insured by them, to fully disclose in a public and transparent
    7  manner all elements relating to their financial condition and  solvency.
    8  Automobile  use  and operation is a cornerstone of modern life; in fact,
    9  auto insurance is the only coverage most New Yorkers are required by law
   10  to purchase.  New York's consumers have a right to know the details  and
   11  specifics of the factors and circumstances behind the financial solvency
   12  of their insurer as well as the bases for the rates they are required to
   13  pay to retain their legally mandated coverage. The determination of auto
   14  insurance  premiums  in New York has, unfortunately, gone on too long in
   15  obscurity, with those who bear the premium rates unable to learn reasons
   16  why they are set where they are. As a matter of public trust, automobile
   17  liability insurers should make public the  pertinent  facts  related  to
   18  their  premium determinations and financial solvency. It is the sense of
   19  the legislature that this data should be disclosed in an open and public
   20  manner.
   21    S 3. The insurance law is amended by adding a new section 343 to  read
   22  as follows:
   23    S  343.  FINANCIAL  STATEMENT AND DETAILED CLAIM DATA TO BE FILED WITH
   24  THE DEPARTMENT.  (A) FOR PURPOSES OF THIS SECTION,  THE  TERM  "INSURER"
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00089-02-5
       S. 2987                             2
    1  SHALL MEAN ANY PERSON, CORPORATION, ASSOCIATION OR OTHER BUSINESS ENTITY
    2  AUTHORIZED TO ISSUE A MOTOR VEHICLE INSURANCE POLICY IN THIS STATE.
    3    (B) ON OR BEFORE APRIL FIRST OF EACH YEAR, EVERY INSURER SHALL PROVIDE
    4  THE SUPERINTENDENT WITH A DETAILED FINANCIAL STATEMENT TO SUPPLEMENT AND
    5  EXPAND  UPON THE INFORMATION CONTAINED IN THE STATUTORY ANNUAL STATEMENT
    6  FOR THE MOST RECENTLY CONCLUDED CALENDAR YEAR. THE  FINANCIAL  STATEMENT
    7  SHALL CONTAIN INFORMATION ON A COMBINED BASIS FOR ALL LINES OF INSURANCE
    8  AS  WELL  AS  INFORMATION  SEPARATELY FOR EACH OF THE FOLLOWING LINES OF
    9  INSURANCE: (1) PRIVATE PASSENGER AUTOMOBILE OTHER LIABILITY, (2) PRIVATE
   10  PASSENGER AUTOMOBILE PERSONAL INJURY PROTECTION, (3)  PRIVATE  PASSENGER
   11  AUTOMOBILE  PHYSICAL  DAMAGE, (4) COMMERCIAL AUTOMOBILE OTHER LIABILITY,
   12  (5) COMMERCIAL AUTOMOBILE PERSONAL INJURY PROTECTION, AND (6) COMMERCIAL
   13  AUTOMOBILE PHYSICAL DAMAGE.  SUCH FINANCIAL STATEMENT SHALL INCLUDE  THE
   14  ENTIRETY  OF  ITS  BUSINESS  ACTIVITIES  CONDUCTED  IN  THIS  STATE,  OR
   15  CONDUCTED OUTSIDE THIS STATE, BUT HAVING A NEXUS TO  INSURANCE  POLICIES
   16  OR  CONTRACTS  OF  INSURANCE  INSURING  PERSONS  OR RISKS IN THIS STATE,
   17  CONSISTENT WITH THE PROCEDURES FOR DETERMINING NEW YORK STATE  INSURANCE
   18  BUSINESS  FOR STATUTORY ANNUAL STATEMENT REPORTING PURPOSES. SUCH STATE-
   19  MENT SHALL BE IN A FORM DETERMINED BY THE SUPERINTENDENT. THE FORM SHALL
   20  BE SUFFICIENTLY ITEMIZED IN A MANNER  THAT  ALLOWS  FOR  AN  ACTUARIALLY
   21  SOUND  ANALYSIS  OF  THE INCOME REALIZED BY THE INSURER FROM ALL SOURCES
   22  DURING SUCH YEAR, INCLUDING BUT  NOT  LIMITED  TO  PREMIUMS,  INVESTMENT
   23  INCOME,  PROFIT FROM SALE OF ASSETS AND ANY OTHER CATEGORY OR CATEGORIES
   24  OF INCOME AS DETERMINED  BY  THE  SUPERINTENDENT  TO  REFLECT  THE  FULL
   25  DISCLOSURE  REQUIREMENTS OF THIS SECTION. AT A MINIMUM, SUCH INFORMATION
   26  SHALL CONSIST OF THE ITEMS SET FORTH IN THE STATEMENT OF INCOME, EXCLUD-
   27  ING THE CAPITAL AND SURPLUS ACCOUNT  SECTION  OF  THE  PROPERTY/CASUALTY
   28  STATUTORY  ANNUAL  STATEMENT,  AS  APPLICABLE  TO THE INSURER'S NEW YORK
   29  STATE BUSINESS, AS WELL AS THE  OTHER  INFORMATION  DELINEATED  IN  THIS
   30  SUBSECTION.  SUCH FINANCIAL STATEMENT SHALL ALSO CONTAIN A COMPREHENSIVE
   31  AND DETAILED DISCLOSURE OF THE INSURER'S EXPENSES ACTUALLY INCURRED  AND
   32  PAID  DURING  SUCH  CALENDAR  YEAR, TO INCLUDE NORMAL BUSINESS EXPENSES,
   33  SALARIES, COMMISSIONS,  CONSULTING  FEES,  LEGAL  EXPENSES,  ADVERTISING
   34  COSTS  AND  ANY  OTHER  CATEGORY  DEEMED PERTINENT TO THE INTENT OF THIS
   35  SECTION. AT A MINIMUM, THE EXPENSE INFORMATION REQUIRED SHALL CONSIST OF
   36  THE ITEMS SET FORTH IN THE UNDERWRITING AND INVESTMENT EXHIBIT - PART  3
   37  -  EXPENSES  OF  THE  PROPERTY / CASUALTY STATUTORY ANNUAL STATEMENT, AS
   38  APPLICABLE TO THE INSURER'S NEW YORK STATE  BUSINESS.  WITH  RESPECT  TO
   39  SALARIES (INCLUDING ALL OTHER FORMS OF COMPENSATION), EACH INSURER SHALL
   40  ITEMIZE  THE  SALARY  OF THE TWENTY MOST HIGHLY COMPENSATED EMPLOYEES OF
   41  SUCH INSURER DURING SUCH YEAR, PROVIDED THAT THE NAME OF SUCH  EMPLOYEES
   42  NEED  NOT  BE DISCLOSED. SUCH FINANCIAL STATEMENT SHALL ALSO PROVIDE THE
   43  PUBLIC WITH A SYNOPSIS OF CLAIMS OR SETTLEMENTS PAID  PURSUANT  TO  SUCH
   44  POLICIES  OR CONTRACTS, LISTING THE TOTAL OF SUCH CLAIMS AND SETTLEMENTS
   45  BY TYPE OF INSURANCE OR THE RISK INSURED. AT A MINIMUM, THE CLAIM INFOR-
   46  MATION REQUIRED SHALL CONSIST OF THE ITEMS SET FORTH IN THE  EXHIBIT  OF
   47  PREMIUMS  AND  LOSSES OF THE PROPERTY / CASUALTY STATUTORY ANNUAL STATE-
   48  MENT, AS APPLICABLE TO THE INSURER'S NEW YORK STATE BUSINESS AND IDENTI-
   49  FIED AND CATEGORIZED SEPARATELY FOR EACH ZIP CODE IN THIS STATE.    SUCH
   50  FINANCIAL  STATEMENT  SHALL BE SIGNED AND ATTESTED AS FULL, COMPLETE AND
   51  ACCURATE BY THE CHIEF EXECUTIVE OFFICER OF THE INSURER, AND  HE  OR  SHE
   52  SHALL BE HELD PERSONALLY RESPONSIBLE WITH RESPECT TO THE ACCURACY OF THE
   53  CONTENT  OF  SUCH  STATEMENT.  THE SUPERINTENDENT SHALL PROVIDE INSURERS
   54  WITH A METHOD TO SUBMIT THEIR FINANCIAL  STATEMENTS  ELECTRONICALLY  VIA
   55  THE  INTERNET,  WHICH  METHOD SHALL INCLUDE INSTRUCTIONS RELATING TO THE
   56  USE OF AN ELECTRONIC SIGNATURE WHICH SHALL BE SUBJECT TO, AND  SUBMITTED
       S. 2987                             3
    1  IN  ACCORDANCE  WITH  SECTION  THREE  HUNDRED  SIXTEEN  OF THIS ARTICLE;
    2  PROVIDED, HOWEVER, THAT NO EXCEPTION AUTHORIZED IN SUCH SECTION  MAY  BE
    3  REQUESTED OR GRANTED.
    4    (C) ON OR BEFORE APRIL FIRST OF EACH YEAR, EVERY INSURER SHALL PROVIDE
    5  THE  SUPERINTENDENT  WITH DETAILED CLOSED CLAIM INFORMATION FOR THE SAME
    6  LINES OF INSURANCE PROVIDED FOR IN SUBSECTION (B) OF  THIS  SECTION  FOR
    7  THE  MOST  RECENTLY  CONCLUDED  CALENDAR  YEAR. UNTIL THE SUPERINTENDENT
    8  PROMULGATES DATA COLLECTION FORMS AND PROCEDURES FOR  PRIVATE  PASSENGER
    9  AUTOMOBILE  INSURANCE,  DATA SHALL BE COLLECTED USING, AT A MINIMUM, THE
   10  MOST RECENT PUBLICLY AVAILABLE FORMS  USED  BY  THE  INSURANCE  RESEARCH
   11  COUNCIL FOR ITS AUTO INJURY SURVEY. THE SUPERINTENDENT MAY REQUIRE ADDI-
   12  TIONAL  INFORMATION  BEYOND THAT WHICH IS CONTAINED IN SUCH SURVEY IF HE
   13  OR SHE DEEMS IT NECESSARY AND WARRANTED.  INSTEAD OF COLLECTING INFORMA-
   14  TION FOR ALL PRIVATE PASSENGER AUTOMOBILE CLAIMS THE SUPERINTENDENT  MAY
   15  COLLECT  DATA  FOR  A  STATISTICALLY VALID SAMPLE OF CLAIMS. THE MINIMUM
   16  SAMPLE SIZE SHALL REPRESENT FIVE PER CENTUM OF THE NUMBER OF CLAIMS  FOR
   17  EACH  YEAR.  UNTIL  THE SUPERINTENDENT PROMULGATES DATA COLLECTION FORMS
   18  AND PROCEDURES  FOR  COMMERCIAL  AUTOMOBILE  INSURANCE,  DATA  SHALL  BE
   19  COLLECTED  USING  INFORMATION  WHICH  MAY  BE  AVAILABLE  FROM ANY OTHER
   20  SOURCE. FOR COMMERCIAL AUTOMOBILE CLAIMS, INSTEAD OF COLLECTING INFORMA-
   21  TION FOR ALL CLAIMS THE SUPERINTENDENT MAY COLLECT DATA  FOR  A  STATIS-
   22  TICALLY  VALID SAMPLE OF CLAIMS. THE MINIMUM SAMPLE SIZE SHALL REPRESENT
   23  TEN PER CENTUM OF THE NUMBER OF CLAIMS FOR EACH YEAR FOR  SUCH  LINE  OF
   24  INSURANCE.  SUCH  DETAILED  CLAIM  DATA  SHALL BE SIGNED AND ATTESTED AS
   25  FULL, COMPLETE AND ACCURATE BY THE CHIEF EXECUTIVE OFFICER OF THE INSUR-
   26  ER, AND HE OR SHE SHALL BE HELD PERSONALLY RESPONSIBLE WITH  RESPECT  TO
   27  THE  ACCURACY OF THE DATA. THE DETAILED CLAIM DATA SHALL BE SUBMITTED IN
   28  THE SAME MANNER AS PROVIDED FOR IN SUBSECTION (B) OF THIS SECTION.
   29    (D) THE SUPERINTENDENT SHALL, IN BOTH WRITTEN FORM AND AS PART OF  THE
   30  DEPARTMENT  WEB  SITE, MAKE SUCH FINANCIAL STATEMENTS AND DETAILED CLAIM
   31  INFORMATION AVAILABLE TO THE  PUBLIC.  THE  DETAILED  CLAIM  INFORMATION
   32  SHALL  BE  PROVIDED  IN AGGREGATE FORM FOR ALL INSURERS COMBINED WITHOUT
   33  ANY IDENTIFICATION OF A SPECIFIC CLAIM TO A SPECIFIC  INSURER.  NONE  OF
   34  THE  PUBLICLY  AVAILABLE  DETAILED  CLAIM INFORMATION SHALL IDENTIFY THE
   35  INDIVIDUAL INSURER, DEFENDANT OR PLAINTIFF ASSOCIATED  WITH  THE  CLAIM.
   36  SUCH FINANCIAL STATEMENTS AND DETAILED CLAIM INFORMATION SHALL BE DEEMED
   37  A  PUBLIC DOCUMENT AND NO PERSON SHALL BE REQUIRED TO FILE A REQUEST FOR
   38  SUCH FINANCIAL STATEMENTS PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS
   39  LAW IN ORDER TO RECEIVE A COPY THEREOF, BUT UPON REQUEST AND PAYMENT  OF
   40  THE FEE FOR COPYING SUCH DOCUMENT, IT SHALL BE PROVIDED. WITH RESPECT TO
   41  THE  ELECTRONIC  COPY  OF  SUCH  FINANCIAL STATEMENTS AND DETAILED CLAIM
   42  INFORMATION, WHICH SHALL BE ACCESSIBLE ON THE DEPARTMENT'S WEB SITE, THE
   43  DEPARTMENT SHALL HIGHLIGHT THE AVAILABILITY OF SUCH INFORMATION  TO  THE
   44  PUBLIC ON SUCH WEB SITE, AND THE LINK TO EACH INSURER'S FINANCIAL STATE-
   45  MENT  AND  THE AGGREGATED DETAILED CLAIM INFORMATION SHALL BE ACCESSIBLE
   46  IN A SIMPLE AND EASY MANNER. BOTH THE FINANCIAL STATEMENT AND AGGREGATED
   47  DETAILED CLAIM INFORMATION ON THE DEPARTMENT WEB SITE SHALL BE AVAILABLE
   48  IN SPREADSHEET FORMAT, IN ADDITION TO ANY OTHER FORMAT  THE  SUPERINTEN-
   49  DENT DETERMINES IS APPROPRIATE.
   50    (E)  ON  OR  BEFORE  JULY FIRST OF EACH YEAR, THE SUPERINTENDENT SHALL
   51  ISSUE REPORTS SUMMARIZING AND EXPLAINING THE INFORMATION COLLECTED  FROM
   52  THE  FINANCIAL  STATEMENTS AND THE DETAILED CLAIM INFORMATION. COPIES OF
   53  SUCH REPORTS SHALL BE  FORWARDED  TO  THE  TEMPORARY  PRESIDENT  OF  THE
   54  SENATE,  THE  SPEAKER  OF THE ASSEMBLY AND THE CHAIRS OF BOTH THE SENATE
   55  AND ASSEMBLY INSURANCE COMMITTEES. SUCH REPORTS SHALL  BE  PUBLIC  DOCU-
       S. 2987                             4
    1  MENTS AND SHALL BE ACCESSIBLE BOTH IN PAPER COPY AND ON THE DEPARTMENT'S
    2  WEB SITE.
    3    (F)  WHERE  AN  INSURER FAILS OR REFUSES TO PROVIDE THE SUPERINTENDENT
    4  WITH A FULL AND COMPLETE DISCLOSURE AS REQUIRED  BY  THIS  SECTION,  THE
    5  SUPERINTENDENT SHALL TAKE SUCH ACTION HE OR SHE DEEMS NECESSARY TO BRING
    6  THE INSURER INTO FULL COMPLIANCE.  SUCH ACTION MAY INCLUDE IMPOSITION OF
    7  A  CIVIL  PENALTY  OF  UP TO FIFTY THOUSAND DOLLARS ASSESSED AGAINST THE
    8  INSURER FOR EACH VIOLATION, TEMPORARY SUSPENSION OF ANY RIGHT  TO  ISSUE
    9  ADDITIONAL  POLICIES  OR  CONTRACTS UNTIL THE INSURER BRINGS ITSELF INTO
   10  FULL COMPLIANCE, AN AUDIT OF THE INSURER'S RECORDS BY THE DEPARTMENT  OR
   11  ITS  DESIGNATED REPRESENTATIVE TO OBTAIN THE INFORMATION AND WHICH AUDIT
   12  SHALL BE PAID FOR BY THE INSURER, OR ANY OTHER CIVIL REMEDY  THE  SUPER-
   13  INTENDENT   DEEMS  WARRANTED  OR  NECESSARY  UNTIL  SUCH  INSURER  FULLY
   14  COMPLIES. IN ADDITION THE OFFICER WHOSE SIGNATURE  IS  AFFIXED  TO  SUCH
   15  STATEMENT MAY BE PERSONALLY PENALIZED TO THE SAME EXTENT.
   16    (G) THE SUPERINTENDENT MAY PROMULGATE SUCH RULES AND REGULATIONS HE OR
   17  SHE  DEEMS  NECESSARY FOR THE PROPER ADMINISTRATION OF THE PROVISIONS OF
   18  THIS SECTION, AND SUCH RULES AND REGULATIONS MAY BE  PROMULGATED  ON  AN
   19  EMERGENCY  BASIS IF THE SUPERINTENDENT WARRANTS SUCH ACTION TO BE NECES-
   20  SARY.
   21    S 4. Severability. If any item, clause, sentence, subparagraph, subdi-
   22  vision or other part of this act, or  the  application  thereof  to  any
   23  person  or circumstances shall be held to be invalid, such holding shall
   24  not affect, impair or invalidate the remainder of this act but it  shall
   25  be  confined  in  its  operation to the item, clause, sentence, subpara-
   26  graph, subdivision or other part of this act directly involved  in  such
   27  holding, or to the person and circumstances therein involved.
   28    S 5. This act shall take effect immediately.