The New York State Insurance Department has posted a notice of proposed regulations for flexible-rating on personal auto insurance.
Flex-rating, which allows insurers to set pricing within a certain premium range, was last used in New York for personal auto insurance in 2001. It was re-enacted in summer 2008. Flex-rating took effect on January 1.
Industry groups applauded the return of flex-rating — which in New York, allows for a 5 percent variation in pricing — claiming that it allows for increased competition in the personal auto market.
Premium changes greater than 5 percent would require approval from state regulators.
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