New York Governor David Paterson has signed A.11693/S.8624, a comprehensive bill designed to address the state’s coastal homeowners’ insurance market and reinstate flex rating for private passenger automobile insurance throughout the state. The bill was passed by both houses of the New York State Legislature last week.
Under the bill, the New York Property Insurance Underwriting Association will be made permanent. NYPIUA will also be allowed to offer a more expansive type of coverage to homeowners throughout the state.
A special advisory panel on homeowners’ insurance and catastrophe coverage will also be reinstated. The second part of the bill reinstates flex rating for automobile insurance. Under the bill, carriers will be allowed unlimited flexes downward and two flexes upward annually, within a 5 percent rating band.
The flex provisions take effect on January 1, 2009. The rest of the bill takes effect immediately.