Bill > S07344

This bill establishes the New York Insurance Underwriting Transparency Act, which requires insurance companies to provide clear and detailed explanations when making significant changes to personal automobile or homeowner's insurance policies. The bill defines a "material change" as a policy non-renewal, cancellation, premium increase over 10%, coverage reduction, or other unfavorable policy modifications. When such a change occurs, insurers must provide a written notice to the insured that explains the primary reasons behind the change, or at minimum, informs the insured of their right to request an explanation. If an insured requests more information, the insurer must provide a detailed written explanation that uses clear, specific language identifying the key factors driving the change. The notice must include a description of the most important considerations in the decision, list these factors in no particular order, and provide a contact point for further discussion. The bill explicitly prohibits vague explanations like citing "internal standards" or "poor credit history" as sufficient justification. These requirements apply to individual and household policies and do not replace existing disclosure requirements. The act will take effect one year after becoming law and will apply to policies issued, amended, or renewed after that date.

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https://www.nysenate.gov/legislation/bills/2025/S7344