New York legislators have passed a new insurance regulation that will allow most insurance companies in the state to issue policies without filing rate proposals. The regulation pertains to the commercial market and is meant to give insurers more flexibility in serving commercial clients. Lawmakers hope that the regulation will bring some speed to the commercial insurance process as they fear that the market may be growing somewhat stagnant. The New York State Department of Financial Services believes that the law will be a boon to the economic development of the state.
Businesses that generate approximately $15 million in annual revenue and boast a net worth no less than $1.5 million will be able to receive commercial policies from insurers under the new regulation. Non-profit organizations whose budgets surpass $20 million will also be able to obtain coverage from the new regulation. Insurers will still need to submit policies for approval from the companies looking for coverage, but the rates, as well as any changes to those rates will not be subject to regulatory inspection.
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The new regulation does not make insurers exempt from other insurance laws in New York. Insurers will still need to adhere to the regulations concerning workers compensation and medical malpractice policies as well as property/casualty coverage lines. These sectors will still be subject to regulatory authority and insurers will be required to submit rates for new policies and any changes they may want to make in the future.