2023 New York Laws › ISC - Insurance › Article 23 - Property/casualty Insurance Rates › 2350 - Flexible Rating for Nonbusiness Automobile Insurance Policies.

§ 2350. Flexible rating for nonbusiness automobile insurance policies.
(a)  Except  as  provided  in  subsection  (b)  of this section, overall
average (for all coverages combined) rate level increases  or  decreases
of  five  percent  above or below the insurer's rates in effect may take
effect without  prior  approval  with  respect  to  rates  for  policies
covering  losses  or liabilities arising out of the ownership of a motor
vehicle  predominantly  used   for   nonbusiness   purposes,   including
classification  plans  predominantly  consisting  of  vehicles  used for
nonbusiness purposes, when a natural person is the named insured under a
policy of automobile insurance.
(b) Notwithstanding any other provisions  of  this  article,  for  any
policies  governed  by  this  section,  filings  that produce rate level
changes within the  limitation  specified  in  subsection  (a)  of  this
section  shall  become  effective  without  prior  approval  pursuant to
subsection (a) of section  two  thousand  three  hundred  five  of  this
article,  provided  however (1) that no more than two rate increases the
total of which shall not exceed the limitation specified  in  subsection
(a)  of  this section may be implemented during any twelve month period;
and (2) no rate increase within the limitation specified  in  subsection
(a) of this section may be implemented until the onset of the new policy
period  and  unless the insurer, at least thirty but not more than sixty
days in advance of the end of the policy period, mails  or  delivers  to
the  named insured, at the address shown in the policy, a written notice
of its intention to change the rate. The specific reason or reasons  for
the rate change shall be stated in or shall accompany the notice.
(c)   The   superintendent  shall  promulgate  rules  and  regulations
implementing the provisions of this section.
(d)  The  superintendent  shall  monitor  the  degree  and   continued
existence  of  competition  and  the effectiveness of flexible rating in
this state on an on-going basis. In doing so, the  superintendent  shall
utilize the following standards or factors:
(1)  the  standards  contained  in  section two thousand three hundred
eight of this article;
(2)  existing  relevant  information,  analytical  systems  and  other
sources, or rely on some combination thereof;
(3)  the  number  of insurers or group of affiliated insurers actively
engaged in providing coverage, taking into  account  the  specialization
traditionally required for insurance in the particular rating territory;
(4)   measures   of   market   concentration  and  changes  of  market
concentration   over   time,   which   may   include    the    use    of
Herfindahl-Hirschman  Index  (HHI)  and  the United States Department of
Justice merge guidelines for an unconcentrated market ease of entry, and
the existence of financial or economical barriers that could prevent new
firms from entering the market;
(5) the extent to which any insurer or group  of  affiliated  insurers
controls  all or a dominant portion of the market has actively sought to
prevent competition;
(6) whether  the  total  number  of  companies  writing  the  line  of
insurance in this state is sufficient to provide multiple options;
(7) the availability of insurance coverage to consumers;
(8)  the opportunities available to consumers in the market to acquire
pricing and other consumer information; and
(9) any other factions relevant to inquiry.
Such activities may be conducted internally within the department,  in
cooperation  with  other  state  insurance  departments, through outside
contractors and/or in any other appropriate manner.