New York Senate Bill S10298

New York 2025-2026 Regular Session

Caption

Enacts the "Terminate Excessive Cross-state Actuarial Subsidization (TEXAS) Act" which requires life insurance companies to take state specific population health information into account as a factor; requires the superintendent of financial services to develop a standard weight to be given to state specific population health information in rate-setting.

Summary

S10298 would amend the New York insurance law to require life insurance companies doing business in the state to incorporate New York-specific health, morbidity, and mortality information when setting premium rates for policies issued in New York. The bill also directs the Superintendent of Financial Services to establish a standard weight for that state-specific information, and insurers would be required to use that weight in their pricing formulas. The measure is framed as the "Terminate Excessive Cross-state Actuarial Subsidization (TEXAS) Act," reflecting its purpose of tying premiums more closely to New York population experience rather than broader multi-state or national actuarial assumptions. It would apply to policies and contracts issued, renewed, amended, modified, or altered on or after the effective date, with implementing regulations authorized to be adopted in advance of that date.

Impact

If enacted, the bill would create a new Insurance Law section 4242 and change how life insurers calculate rates for New York policies by mandating the use of state-specific population health data. It would give the Superintendent of Financial Services regulatory authority to define the required weighting methodology, affecting insurers' underwriting and pricing practices and potentially altering premium levels for New York consumers.

Sentiment

No committee transcript or vote record is provided, so there is no documented legislative debate or recorded vote sentiment in the materials supplied. Based on the bill text and caption, the proposal appears intended to address perceived inequities in cross-state premium subsidization and to support New York-specific rate setting, but the available record does not show support or opposition from legislators or stakeholders.

Contention

The main point of contention likely concerns whether insurers should be required to use New York-specific health and mortality data, and how the Superintendent should determine the "standard weight" for that data. Supporters would likely argue the bill promotes actuarially fairer premiums for New York residents, while opponents may argue it could reduce pricing flexibility, complicate compliance, or lead to higher premiums for some policyholders. No specific individuals, committees, or outside groups are identified in the provided record.