* § 2356. Premium change explanations. (a) An insurer shall include a\nnotice accompanying the premium bill that includes the amount of the\npremium increase from the prior policy period and a written explanation\nfor the premium increase, including the primary rating factors causing\nthe increase, for a covered policy as defined in paragraph one and in\nsubparagraph (A) of paragraph two of subsection (a) of section three\nthousand four hundred twenty-five of this chapter, where the total\npolicy premium increase is in excess of ten percent, exclusive of any\npremium increase due to insured value added.\n (b) (1) Except when an insurer provides an explanation pursuant to\nsubsection (a) of this section, an insurer shall include a prominent\nnotice accompanying the premium bill, for a policy covering a motor\nvehicle or a policy covering loss of or damage to real property used\npredominantly for residential purposes, that states the following:\n"Policyholders receiving an increase to their premiums at renewal may\nrequest a written explanation, including the primary rating factors\ncausing the increase, by contacting their insurers in writing." An\ninsurer shall include its contact information with the prominent notice.\n (2) Upon a policyholder's written request at policy renewal, an\ninsurer shall provide a written explanation for the increased premiums,\nincluding the primary rating factors causing the increase, for a policy\ncovering a motor vehicle or a policy covering loss of or damage to real\nproperty used predominantly for residential purposes. An insurer shall\nprovide the written explanation to the policyholder, including the\nprimary rating factors causing the increase, within twenty days from\nreceipt of the policyholder's written request.\n (c) For the purpose of this section, primary rating factors shall\ninclude factors that resulted in a premium rate increase, such as:\n (1) individual claims history;\n (2) changes made to the policy, including the policyholder adding or\nreplacing a vehicle, family members being added to the policy, or a\nchange in address;\n (3) anticipated losses in the rating territory that would require a\nneed for an increased premium; and\n (4) increased costs associated with claims, including the increased\ncost of vehicle repairs, claims processing, or medical costs.\n (d) If an insurer offering a private passenger automobile insurance\npolicy reduces premium rates due to the reforms of the state fiscal year\ntwo thousand twenty-six -- two thousand twenty-seven budget, such\ninsurer shall provide notice to the policyholder of this rate reduction\nand indicate that the reduction was due to the reforms of the state\nfiscal year two thousand twenty-six -- two thousand twenty-seven budget.\n * NB Effective August 24, 2026\n
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