§ 2329 — Motor vehicle insurance rates; excess profits

New York § 2329

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 23: Property/casualty Insurance Rates

Text

§ 2329. Motor vehicle insurance rates; excess profits. In accordance\nwith regulations prescribed by the superintendent, each insurer issuing\npolicies that are subject to article fifty-one of this chapter,\nincluding policies of motor vehicle personal injury liability insurance\nor policies of motor vehicle property damage liability insurance or\ninsurance for loss or damage to a motor vehicle, shall establish a fair,\npracticable, and nondiscriminatory plan for refunding or otherwise\ncrediting to those purchasing such policies their share of the insurer's\nexcess profit, if any, on such policies. An excess profit shall be a\nprofit beyond a percentage rate of return on net worth attributable to\nsuch policies, computed in accordance with the regulation required by\nsection two thousand three hundred twenty-three of this article, and\ndetermined by the superintendent to be so far above a reasonable average\nprofit as to amount to an excess profit, taking into consideration the\nfact that losses or profits below a reasonable average profit will not\nbe recouped from such policyholders. Each plan shall apply to policy\nperiods for the periods January first, nineteen hundred seventy-four\nthrough August second, two thousand one, and the effective date of the\nproperty/casualty insurance availability act through June thirtieth, two\nthousand twenty-six. In prescribing such regulations the superintendent\nmay limit the duration of such plans, waive any requirement for refund\nor credit that the superintendent determines to be de minimis or\nimpracticable, adopt forms of returns that shall be made to the\nsuperintendent in order to establish the amount of any refund or credit\ndue, establish periods and times for the determination and distribution\nof refunds and credits, and shall provide that insurers receive\nappropriate credit against any refunds or credits required by any such\nplan for policyholder dividends and for return premiums that may be due\nunder rate credit or retrospective rating plans based on experience.\n