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A00189 Summary:

COSPNSRDickens, Taylor, Barron, Colton, Cook, Williams, Seawright, Jacobson
Amd 3425, Ins L
Prohibits cancellation, non-renewal or conditioning renewal of automobile insurance of a policyholder solely as a result of a dispute or a complaint pending against the insurer.
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A00189 Actions:

01/06/2021referred to insurance
03/17/2021reported referred to codes
03/25/2021advanced to third reading cal.191
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A00189 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the insurance law, in relation to prohibiting an insurer from cancelling or refusing to renew or condition its renewal of automo- bile insurance policies in certain cases   PURPOSE: To prohibit insurers from canceling or refusing to renew or condition its renewal of automobile insurance policies solely on the bases that there is a pending complaint filed by the insured, or that a claim filed by the insured with the insurer is in dispute.   SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill adds subsection (t) to § 3425 of the insurance law to require that automobile insurance policies, except for nonpayment of premium, shall not be cancelled or refused renewal due to a pending claim filed against the insured. Section two of the bill provides the effective date.   JUSTIFICATION: Currently, under subsection (f) of § 3425 of the insurance law, an insurer may non-renew up to two percent of its non-commercial motor vehicle policies during each calendar year. The purpose of the two percent provision was to afford insurance companies some protection from policyholders who may be high risks, and to allow for some flexibility in these cases.Consequently, many insurance companies have abused this two percent provision by using it in cases where policyholders have had claim disputes and subsequently have filed complaints with the depart- ment against the carrier. This legislation seeks to help protect consum- ers from having their policies terminated due to claim disputes or their filing of complaints.Consumers should not have to suppress or lose their right to openly and appropriately protest arbitrary and unfair claim settlement practices by insurance companies due to fear of the loss of coverage.   PRIOR LEGISLATIVE HISTORY: 2019-2020: A.86 - Third 'Reading Calendar 2018: A.635/S.3757 - Third Reading Calendar / Insurance 2017: A.635/S.3757 - Passed Assembly / Insurance 2016: A.4944 - Third Reading Calendar 2015: A.4944 - Referred to Insurance 2014: A.3696-B - Passed Assembly 2013: A.3696-B - Passed Assembly 2012: A.2744-A - Third Reading Calendar 2011: A.2744-A - Third Reading Calendar 2010: A.3348 - Third Reading Calendar 2009: A.3348 - Referred to Insurance 2007-2008: A.5183 - Referred to Insurance 2006: A.4059 - Referred to Insurance 2005.: A.4059 - Third Reading Calendar 2004: A.5199 - Third Reading Calendar   EFFECTIVE DATE: Immediately.
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A00189 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                     January 6, 2021
        Introduced  by  M.  of  A. PERRY, DICKENS, TAYLOR, BARRON, COLTON, COOK,
          WILLIAMS, SEAWRIGHT -- Multi-Sponsored by -- M. of A. HYNDMAN --  read
          once and referred to the Committee on Insurance
        AN ACT to amend the insurance law, in relation to prohibiting an insurer
          from cancelling or refusing to renew or condition its renewal of auto-
          mobile insurance policies in certain cases
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 3425 of the insurance law is amended  by  adding  a
     2  new subsection (t) to read as follows:
     3    (t)  No  insurer  shall  cancel or refuse to renew a policy covering a
     4  private passenger automobile, or to condition its renewal upon change of
     5  limits or elimination of any coverages solely on the basis that a  claim
     6  filed by the insured with the insurer is in dispute, or that a complaint
     7  by  the insured against the insurer resulting from the disputed claim is
     8  pending with the department.
     9    § 2. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
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