N.Y. ISC Law § 2329 — New York Code / Act ISC / Article 23 / Section 2329
Motor vehicle insurance rates; excess profits
Status: in_force

§ 2329. Motor vehicle insurance rates; excess profits. (a) Each\ninsurer issuing policies that are subject to article fifty-one of this\nchapter, including policies of motor vehicle personal injury liability\ninsurance or policies of motor vehicle property damage liability\ninsurance or insurance for loss or damage to a motor vehicle, shall\nestablish a fair, practicable, and nondiscriminatory plan for crediting\nto those purchasing such policies their share of the insurer's excess\nprofit, if any, on such policies. An excess profit shall be an\nunderwriting gain for the three most recent calendar years combined\nwhich is greater than the anticipated underwriting profit plus five\npercent of earned premiums for those calendar years. Each plan shall\napply to policy periods for the periods January first, nineteen hundred\nseventy-four through August second, two thousand one, and the effective\ndate of the property/casualty insurance availability act through June\nthirtieth, two thousand twenty-nine. The superintendent may, through\nduly promulgated regulations, waive any requirement for credit that the\nsuperintendent determines to be de minimis or impracticable, adopt forms\nof returns that shall be made to the superintendent in order to\nestablish the amount of any credit due, establish periods and times for\nthe determination and distribution of credits, and shall provide that\ninsurers receive appropriate credit against any credits required by any\nsuch plan for policyholder dividends and for return premiums that may be\ndue under rate credit or retrospective rating plans based on experience.\n  (b) If an insurer subject to this section distributes a credit\npursuant to this section due to the reforms enacted in the state fiscal\nyear two thousand twenty-six--two thousand twenty-seven budget, the\ninsurer shall provide notice to policyholders of this credit and\nindicate that the credit was due to the reforms enacted in the state\nfiscal year two thousand twenty-six--two thousand twenty-seven budget.\nThis notification shall be made at the time the credit is distributed.\n  (c) As used herein with respect to any three-year period, "anticipated\nunderwriting profit" means the sum of the dollar amounts obtained by\nmultiplying, for each rate filing of the insurer in effect during such\nperiod, the earned premiums applicable to such rate filing during such\nperiod by the percentage factor included in such rate filing for profit\nand contingencies. Separate calculations need not be made for\nconsecutive rate filings containing the same percentage factor for\nprofits and contingencies. Underwriting gain or loss for each calendar\nyear shall be computed as follows: the sum of the incurred losses and\nloss adjustment expenses as of March thirty-first of the following year,\ndeveloped to an ultimate basis, plus the administrative and selling\nexpenses incurred in the calendar year, plus policyholder dividends\napplicable to the calendar year, will be subtracted from the calendar\nyear earned premium to determine the underwriting gain or loss.\n  (d) On or before March thirty-first of each year, an insurer subject\nto this section shall submit a report to the superintendent, in a format\nspecified by the superintendent, demonstrating whether the insurer\nrealized an excess profit for the three most recent calendar years\ncombined. Such report shall include all relevant information required to\ncalculate underwriting gain and loss and determine whether an excess\nprofit threshold has been realized. If an insurer realized an excess\nprofit, then the insurer shall notify the superintendent when the\ninsurer has completed making any credits required by this section. If an\ninsurer has realized an excess profit, the superintendent shall provide\nnotice to the speaker of the assembly, the temporary president of the\nsenate, the chair of the assembly insurance committee, the chair of the\nsenate insurance committee, and the governor.\n  (e)(1) Each insurer subject to this section shall, by July first, two\nthousand twenty-seven, and annually thereafter, submit a report to the\nsuperintendent that:\n  (A) identifies and quantifies, in a manner prescribed by the\nsuperintendent, the estimated impact on losses, expenses, and premiums\nresulting from statutory or regulatory reforms enacted in or the result\nof the state fiscal year two thousand twenty-six--two thousand\ntwenty-seven budget; and\n  (B) reflects such estimated impact in the insurer's proposed rates,\nrating plans, and rating rules.\n  (2) In reviewing any rate filing submitted after enactment of the\nstate fiscal year two thousand twenty-six--two thousand twenty-seven\nbudget, the superintendent shall consider the estimated impact of the\nreforms described in paragraph one of this subsection and shall not\napprove any rate that, after such consideration, fails to meet the\nstandards set forth in section twenty-three hundred three of this\narticle.\n  (3) On or before December thirty-first, two thousand twenty-nine, the\nsuperintendent shall submit a report to the governor, the temporary\npresident of the senate, the speaker of the assembly, the chair of the\nassembly insurance committee, and the chair of the senate insurance\ncommittee that:\n  (A) summarizes the estimated aggregate impact of the reforms described\nin paragraph one of this subsection on insurer losses, expenses, and\npremiums; and\n  (B) evaluates the extent to which such savings have been reflected in\napproved rates and realized by policyholders.\n  (4) The superintendent may promulgate regulations or guidance\nnecessary to implement the provisions of this subsection.\n