S 5264: Requires insurance companies to provide detailed rationale and the formulation for rate changes of certain state or municipal backed buildings.

  
  STATE OF NEW YORK ________________________________________________________________________ 5264 2025-2026 Regular Sessions  IN SENATE February 20, 2025 ___________ Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to requiring insurance companies to provide detailed rationale for rate changes of certain state or municipal backed buildings The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new section 2354 2 to read as follows: 3 § 2354. Notice of rate increase. 1. As used in this section, the term 4 "state or municipal backed building or development" shall mean a build- 5 ing or development owned by the state or which is in any way subsidized 6 by the state including, but not limited to, a building or development 7 organized pursuant to article two of the private housing finance law, 8 supervised by the New York city department of housing preservation and 9 development, or supervised by the department of housing and community 10 renewal. 11 2. No insurer shall impose an increased premium or rate for a policy 12 or contract which includes coverage of a state or municipal backed 13 building or development without providing written notice to all policy- 14 holders and any governmental entity supervising such building or devel- 15 opment indicating the change in premiums or rates not less than sixty, 16 but not more than one hundred twenty, days prior to the effective date 17 of such premiums or rates. Such notice shall include, but not limited 18 to, a detailed rationale for the change in premiums or rates and the 19 formulation of the premium or rate change. 20 § 2. This act shall take effect on the first of January next succeed- 21 ing the date on which it shall have become a law and shall apply to all 22 policies and contracts issued, renewed, modified, altered, or amended on 23 or after such date. Effective immediately, the addition, amendment 24 and/or repeal of any rule or regulation necessary for the implementation 25 of this act on its effective date are authorized to be made and 26 completed on or before such date. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10025-01-5