New York Assembly Bill A10732

New York 2025-2026 Regular Session

• Introduced: 3/27/26
• Refer: 3/27/26

Caption

Prohibits insurers from using violations committed by child care providers as the basis for rate adjustments

Summary

A10732 would amend the New York Insurance Law to limit how insurers may use regulatory violations involving child care providers when setting premiums. Specifically, it creates a new section prohibiting an insurer that writes commercial liability insurance or any other policy covering a child care provider from basing a premium rate adjustment solely on a violation issued by the New York State Office of Children and Family Services under the Social Services Law or related regulations. The bill is narrowly focused on child care providers as defined in the Social Services Law and applies to insurers authorized to issue policies covering those providers. It does not bar insurers from considering other underwriting factors or other types of violations; it only prevents a rate increase or other premium adjustment from being based solely on the specified child care licensing or regulatory violation. The act would take effect immediately upon enactment.

Impact

If enacted, the bill would add a new Insurance Law section 2335-b and constrain insurer underwriting and rating practices for policies covering child care providers. It would protect child care businesses and facilities from premium increases tied exclusively to a single Office of Children and Family Services violation, while leaving insurers free to consider other risk factors and compliance history. The measure would affect commercial liability and related insurance products for child care providers and could reduce the financial consequences of isolated regulatory infractions.

Sentiment

There is no recorded committee transcript or vote history in the provided materials, so no direct public debate is available. Based on the bill text and caption, the measure appears consumer- and provider-protective, aiming to prevent insurers from penalizing child care providers too heavily for a single regulatory violation. The absence of opposition or recorded votes suggests the bill had not yet generated a documented controversy at the time of referral to committee.

Contention

The main potential point of contention is whether limiting premium adjustments in this way interferes with insurers’ ability to price risk accurately. Insurers may argue that even a single violation can be relevant to underwriting, while child care providers and supporters would likely contend that a sole regulatory violation should not automatically drive higher premiums. Another possible issue is the bill’s narrow scope: it applies only when the premium adjustment is based solely on the specified violation, leaving open questions about how insurers may weigh that violation alongside other factors.