Requires notice of reinstatement of a previously canceled casualty insurance policy. (1/1/21)
Impact
The enactment of SB 195 will have a significant impact on state insurance laws by enhancing the transparency and communication requirements for insurance providers. Effective January 1, 2021, this law will require insurers to take additional steps to ensure that all relevant parties are kept informed about changes to their policy status. This could potentially reduce misunderstandings and disputes related to coverage, as stakeholders will be notified promptly of reinstatements following cancellations.
Summary
Senate Bill 195, proposed by Senator Bernard, addresses the procedural requirements surrounding the cancellation and reinstatement of casualty insurance policies. Specifically, it mandates that insurers who issue a notice of cancellation to a policyholder must also provide a notice of reinstatement should they choose to reinstate the canceled policy. This provision is aimed at ensuring that all interested parties, including policyholders and any other individuals with an interest in potential losses under the policy, are adequately informed about the status of their insurance coverage.
Sentiment
General sentiment around SB 195 appears to be supportive, particularly among consumer advocacy groups and policyholders who would benefit from improved notification processes. The bill seeks to protect the rights of policyholders and ensure they are not left unaware of changes that could affect their coverage, thus garnering support from those championing consumer protections in the insurance market. However, there may also be some concern from insurance providers regarding the administrative burden that may accompany the need to provide additional notifications.
Contention
While there has not been significant contention reported in the discussions surrounding SB 195, potential opposition could stem from insurance companies concerned about the operational ramifications of the new notification requirements. The requirement to inform all interested parties may impose additional operational costs or complicate the cancellation and reinstatement processes. Nonetheless, the overarching goal of the bill is to enhance consumer protection in the face of insurance policy cancellations.
Requires property/casualty insurance companies to submit certain zip code-level data to the department of financial services on nonrenewal rates, nonpayment cancellation rates, other cancellation rates, claim frequency rates, average claim amounts, paid loss ratios, and average premiums; requires property/casualty insurance companies that use a natural disaster risk model or scoring method to assign risk, information about such model or scoring method; authorizes a premium discount to policyholders of homeowners insurance or property/casualty insurance applicable to residential real property who demonstrate certain mitigation actions; requires insurers to post about such discounts on their public websites; relates to the timing of cancellation and nonrenewal notices for certain insurance policies; relates to increasing membership of the board governing the New York property insurance underwriting association; requires a quadrennial report on the activities of such association; increases such board membership to 23 including 6 directors appointed by the legislature and 4 directors appointed by the governor.
Requires property/casualty insurance companies to submit certain zip code-level data to the department of financial services on nonrenewal rates, nonpayment cancellation rates, other cancellation rates, claim frequency rates, average claim amounts, paid loss ratios, and average premiums; requires property/casualty insurance companies that use a natural disaster risk model or scoring method to assign risk, information about such model or scoring method; authorizes a premium discount to policyholders of homeowners insurance or property/casualty insurance applicable to residential real property who demonstrate certain mitigation actions; requires insurers to post about such discounts on their public websites; relates to the timing of cancellation and nonrenewal notices for certain insurance policies; relates to increasing membership of the board governing the New York property insurance underwriting association; requires a quadrennial report on the activities of such association; increases such board membership to 23 including 6 directors appointed by the legislature and 4 directors appointed by the governor.