New York S 7344: Establishes the New York insurance underwriting transparency act

Bill Text

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S07344 Summary:

BILL NOS07344 

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SAME ASNo Same As

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SPONSORBAILEY

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COSPNSR

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MLTSPNSR

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Add Art 6 §§601 - 606, Ins L

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Establishes the New York insurance underwriting transparency act; requires material changes to an insured's automobile or homeowners insurance to be explained in clear and useful language.

Go to top S07344 Actions:

BILL NOS07344 

&nbsp

04/10/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS07344 Committee&nbspVotes:

Go to topS07344 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS07344 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7344

 2025-2026 Regular Sessions

 IN SENATE

 April 10, 2025
 ___________

 Introduced by Sen. BAILEY -- 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 the New York insurance
 underwriting transparency act

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The insurance law is amended by adding a new article 6 to
 2 read as follows:

 3 ARTICLE 6
 4 NEW YORK INSURANCE UNDERWRITING TRANSPARENCY ACT
 5 Section 601. Short title.
 6 602. Purpose.
 7 603. Scope.
 8 604. Definitions.
 9 605. Transparency requirements.
 10 606. Rules and regulations.
 11 § 601. Short title. This article shall be known and may be cited as
 12 the "New York Insurance Underwriting Transparency Act".
 13 § 602. Purpose. The purpose of this legislation is to provide personal
 14 auto and homeowners insurance consumers with clear and useful informa-
 15 tion explaining the basis for when a material change is made to a
 16 consumer's policy.
 17 § 603. Scope. (a) This article applies to personal automobile and
 18 homeowner's policies that are underwritten on an individual basis for an
 19 individual, family, or household.
 20 (b) This article shall not apply to notices required by the federal
 21 Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
 22 § 604. Definitions. For the purposes of this article, the following
 23 terms shall have the following meanings:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD11623-01-5

 S. 7344 2

 1 (a) "Insured" means an individual entitled to coverage under a
 2 personal automobile or homeowner's insurance policy.
 3 (b) (1) "Material change" means, in relation to insurance in
 4 connection with a personal automobile or homeowner's policy:
 5 (A) a nonrenewal or cancellation;
 6 (B) an increase of more than ten percent over the expiring premium;
 7 (C) a reduction in coverage; or
 8 (D) another adverse or unfavorable change in the terms of coverage or
 9 amount.
 10 (2) The term "material change" shall not include:
 11 (A) An increase in the insurer's filed rate plan and automatic infla-
 12 tionary increases;
 13 (B) An additional premium due to a change initiated by the insured,
 14 such as:
 15 (i) adding or removing vehicles or drivers;
 16 (ii) adding an endorsement;
 17 (iii) adding additional coverages;
 18 (iv) adding covered premises; or
 19 (v) increasing coverage limits or deductibles; and
 20 (C) An additional premium due to a change in risk exposure as a result
 21 of the insured's participation in a usage based or telematics insurance
 22 program.
 23 § 605. Transparency requirements. (a) An insurer that makes a material
 24 change to an insured's personal automobile or homeowner's policy shall
 25 provide a written notice to the insured that:
 26 (1) explains the principal factors for the material change; or
 27 (2) states that the insured has the right to request and obtain an
 28 explanation of the principal factors for the material change.
 29 (b) An insured who receives a notice of a material change described in
 30 paragraph two of subsection (a) of this section may submit to the insur-
 31 er a written request for an explanation of the principal factors for the
 32 material change.
 33 (c) Upon receiving a request for an explanation under subsection (b)
 34 of this section, the insurer shall provide a written notice to the
 35 insured explaining the principal factors for the material change.
 36