N.Y. Insurance Law § 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.

* NB Effective until November 27, 2026

* § 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 decreases of

five percent 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.

(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.

* NB Effective November 27, 2026

* NB Repealed May 27, 2030