S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3967--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 31, 2011
                               ___________

Introduced  by  M. of A. MORELLE, P. RIVERA -- read once and referred to
  the Committee on Insurance  --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  insurance  law,  in relation to exempting large
  commercial insureds from certain rate and policy form requirements

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsections  (a) and (b) of section 6301 of the insurance
law are amended to read as follows:
  (a) Notwithstanding any provision of this chapter, the  superintendent
shall,  pursuant  to  regulations promulgated by him THE SUPERINTENDENT,
permit exemption from filing requirements only with respect to rates and
policy forms, where applicable,  for  any  of  the  kinds  of  insurance
[authorized  to be written in this state] SPECIFIED IN SUBSECTION (B) OF
THIS SECTION.
  (b) [No] AN exemption pursuant  to  subsection  (a)  hereof  shall  be
permitted  in relation to the kinds of insurance set forth in [paragraph
one, two, three, fifteen,  eighteen  or  twenty-three]  PARAGRAPHS  FOUR
THROUGH FOURTEEN, SIXTEEN, SEVENTEEN, NINETEEN THROUGH TWENTY-TWO, TWEN-
TY-SEVEN  AND TWENTY-NINE, of subsection (a) of section one thousand one
hundred thirteen of this chapter[, or to]  AND  SUCH  INSURANCE  AS  THE
SUPERINTENDENT DEEMS TO BE SUBSTANTIALLY SIMILAR TO ONE OF THE FOREGOING
KINDS,  EXCEPT  NO  EXEMPTION  MAY  BE  PERMITTED  FOR: (1) coverage for
personal lines to natural persons for non-business purposes; (2)  INSUR-
ANCE  SPECIFIED  IN SUBSECTION (B) OF SECTION TWO THOUSAND THREE HUNDRED
FIVE OR SECTION TWO THOUSAND THREE HUNDRED TWENTY-EIGHT OF THIS CHAPTER;
(3) INSURANCE REQUIRED TO SATISFY ANY FINANCIAL RESPONSIBILITY  REQUIRE-
MENT  OF THIS STATE; OR (4) A POLICY WRITTEN ON A GROUP BASIS.  However,
any risk pursuant to paragraph one, two or three of such  subsection  of
such  section of this chapter, MEDICAL MALPRACTICE INSURANCE (EXCEPT FOR
PHYSICIANS AND SURGEONS), or personal lines risk (except private passen-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05245-03-1
              

A. 3967--A                          2

ger,  non-fleet  automobile  insurance)  shall  be  exempt  pursuant  to
subsection  (a)  hereof  if  it is included by the superintendent on the
list maintained by [him] THE SUPERINTENDENT pursuant to  subsection  (a)
of section six thousand three hundred three of this article.
  S  2. Section 6302 of the insurance law, paragraph 3 of subsection (c)
as amended by chapter 534 of the laws of 1985, is  amended  to  read  as
follows:
  S  6302.  Special  license.  (a) An authorized insurer, as a condition
precedent to the obtaining of such exemption,  shall  obtain  a  special
license from the superintendent.
  (b)  Before  such  special  license  shall  be  issued  or renewed the
prospective licensee shall file in the office of the  superintendent  an
application  in  such form and supplements thereto as the superintendent
prescribes.  Such license shall be subject to  annual  renewal  with  an
annual fee of [one] TWO thousand dollars.
  (c) Such license may only be issued to:
  (1)  an  authorized  insurer  [which]  THAT  maintains  at all times a
surplus to policyholders of at least [twice the minimum surplus to poli-
cyholders required to be maintained for the kinds of insurance which  it
is  authorized  to  write in this state] THE AUTHORIZED CONTROL LEVEL AS
SET FORTH IN ARTICLE THIRTEEN OF THIS CHAPTER;
  (2) a United States branch which maintains at  all  times  a  trusteed
surplus  of  at least [twice the minimum trusteed surplus required to be
maintained for the kinds of insurance which it is authorized to write in
this state] THE AUTHORIZED CONTROL LEVEL AS SET FORTH IN  ARTICLE  THIR-
TEEN OF THIS CHAPTER; or
  (3)  an  insurer  initially  licensed on or after July first, nineteen
hundred eighty-two pursuant to article forty-one  of  this  chapter,  or
pursuant  to article forty-two of this chapter as an accident and health
insurer, or pursuant to article sixty-one of this chapter as a  recipro-
cal  insurer, if such insurer is at least meeting the minimum surplus to
policyholders requirement or the minimum  trusteed  surplus  requirement
imposed  upon  such insurer by the provisions of the article pursuant to
which it was initially licensed.
  (d) The superintendent may revoke, suspend, or refuse  to  renew  such
license  if,  after  notice and a hearing, [he] THE SUPERINTENDENT finds
that such action will protect the best interests of the people  of  this
state.
  S 3. Section 6303 of the insurance law is amended to read as follows:
  S  6303.  Limitations.  (a)  The exemption [which] THAT may be granted
pursuant to this article shall apply only if the business is  underwrit-
ten and transacted from an office within this state; and [(i)]:
  (1) the risk, as defined in regulations of the superintendent, produc-
es a minimum annual premium in excess of one hundred thousand dollars or
such  higher  amount  as the superintendent may prescribe by regulation;
[or (ii)]
  (2) the coverage is for a risk or class of risks which is of an unusu-
al nature, a high loss hazard, or difficult to place, pursuant to a list
promulgated or amended by the superintendent; OR
  (3) THE POLICY IS ISSUED TO A LARGE COMMERCIAL INSURED THAT EMPLOYS OR
RETAINS A RISK MANAGER TO ASSIST IN THE NEGOTIATION AND  PURCHASE  OF  A
POLICY EXEMPTED UNDER THIS ARTICLE.
  (b) [All policies] FOR THE PURPOSES OF THIS SECTION:
  (1)  "LARGE  COMMERCIAL INSURED" MEANS AN ENTITY THAT GENERATES ANNUAL
COMMERCIAL RISK INSURANCE PREMIUM  IN  EXCESS  OF  TWENTY-FIVE  THOUSAND
DOLLARS  WITH  RESPECT TO THE KINDS OF INSURANCE SPECIFIED IN PARAGRAPHS

A. 3967--A                          3

FOUR THROUGH FOURTEEN, SIXTEEN, SEVENTEEN, NINETEEN  THROUGH  TWENTY-TWO
AND  TWENTY-SEVEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED
THIRTEEN OF THIS CHAPTER AND:
  (I)  HAS  A  NET WORTH OF AT LEAST SEVEN MILLION FIVE HUNDRED THOUSAND
DOLLARS AS OF THE INSURED'S FISCAL YEAR END  IMMEDIATELY  PRECEDING  THE
POLICY'S EFFECTIVE DATE;
  (II) HAS GROSS ASSETS EXCEEDING TEN MILLION DOLLARS AND A NET WORTH OF
AT  LEAST  ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AS OF THE INSURED'S
FISCAL YEAR END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
  (III) IS A FOR-PROFIT BUSINESS  ENTITY  THAT  GENERATES  ANNUAL  GROSS
REVENUES  EXCEEDING  FIFTEEN  MILLION DOLLARS, AND HAS A NET WORTH OF AT
LEAST ONE MILLION FIVE HUNDRED THOUSAND  DOLLARS  AS  OF  THE  INSURED'S
FISCAL YEAR END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
  (IV)  IS  A FOR-PROFIT BUSINESS ENTITY THAT HAS GROSS ASSETS EXCEEDING
TEN MILLION  DOLLARS  AND  GENERATES  ANNUAL  GROSS  REVENUES  EXCEEDING
FIFTEEN  MILLION DOLLARS AS OF THE INSURED'S FISCAL YEAR END IMMEDIATELY
PRECEDING THE POLICY'S EFFECTIVE DATE;
  (V) IS A NOT-FOR-PROFIT ORGANIZATION OR PUBLIC ENTITY WITH  AN  ANNUAL
BUDGET  EXCEEDING  TWENTY  MILLION  DOLLARS FOR EACH OF ITS THREE FISCAL
YEARS IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
  (VI) HAS FIFTY EMPLOYEES OR, TOGETHER WITH  ITS  PARENT,  SUBSIDIARIES
AND  AFFILIATES,  ONE HUNDRED EMPLOYEES, AS OF THE INSURED'S FISCAL YEAR
END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE; OR
  (VII) IS A MUNICIPALITY WITH A POPULATION OF FIFTY  THOUSAND  OR  MORE
PERSONS.
  (2)  "RISK  MANAGER"  MEANS  AN  INDIVIDUAL WHO HOLDS THE PROFESSIONAL
DESIGNATION OF CPCU, ARM, OR CRM WITH AT LEAST FIVE YEARS EXPERIENCE  IN
THE  ANALYSIS AND TREATMENT OF RISK, LOSS EXPOSURE, INSURANCE COVERAGES,
AND ALTERNATIVE METHODS AND PROGRAMS, WHO IS NOT EMPLOYED BY THE INSURER
ISSUING THE POLICY OR  ANY  PERSON  IN  THE  INSURER'S  HOLDING  COMPANY
SYSTEM, AND WHO IS LICENSED AS AN INSURANCE PRODUCER PURSUANT TO ARTICLE
TWENTY-ONE OF THIS CHAPTER, UNLESS EXEMPTED FROM LICENSING THEREIN.
  (3) "MUNICIPALITY" SHALL MEAN ANY COUNTY, CITY, TOWN OR VILLAGE.
  (C)  EFFECTIVE  ON THE FIFTH JANUARY FIRST OCCURRING AFTER THE DATE OF
THE ENACTMENT OF THIS SUBSECTION AND EACH FIFTH JANUARY FIRST  OCCURRING
THEREAFTER,  THE AMOUNTS SPECIFIED IN PARAGRAPH ONE OF SUBSECTION (B) OF
THIS SECTION MAY BE ADJUSTED TO REFLECT THE PERCENTAGE CHANGE  FOR  SUCH
FIVE-YEAR  PERIOD  IN  THE  CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
PUBLISHED BY THE BUREAU OF LABOR STATISTICS OF THE DEPARTMENT OF  LABOR.
THE  SUPERINTENDENT  MAY  CONDUCT  A PUBLIC HEARING TO DETERMINE WHETHER
SUCH INCREASE IS NECESSARY.
  (D) EVERY POLICY issued pursuant to the  provisions  of  this  article
shall contain a notice to the policyholder that the rate and policy form
are  not subject to the filing requirements of this state and such other
notices required by the superintendent pursuant to regulation.
  [(c)] (E) The superintendent may by regulation  prescribe  limitations
on  the  total  amount  of business [which] THAT an insurer may transact
pursuant to this article OR REIMPOSE FILING REQUIREMENTS  WHERE  AND  TO
THE EXTENT THAT THE SUPERINTENDENT DEEMS IT IN THE INTEREST OF THE POLI-
CYHOLDERS.
  S  4.  Subsection (b) of section 2307 of the insurance law, as amended
by chapter 508 of the laws of 1998, is amended to read as follows:
  (b) (1) Except as otherwise provided herein, no policy form  shall  be
delivered  or  issued  for  delivery  unless  it has been filed with the
superintendent and either [he] THE SUPERINTENDENT has  approved  it,  or

A. 3967--A                          4

thirty days have elapsed and [he] THE SUPERINTENDENT has not disapproved
it as misleading or violative of public policy.
  (2)  After notice and hearing to the insurer or rate service organiza-
tion which submitted a policy form for approval, the superintendent  may
withdraw  approval  of such form on finding that the use of such form is
contrary to the legal requirements applicable at the time of withdrawal.
The effective date of the withdrawal of approval shall be prescribed  by
the  superintendent  but shall be not less than ninety days after notice
of withdrawal.
  (3) With regard to residual value  insurance,  policy  forms  and  any
amendments  thereto shall be filed with the superintendent within thirty
days of their use by the  insurer.  For  purposes  of  this  subsection,
"residual  value  insurance" shall have the same meaning as set forth in
paragraph twenty-two of subsection  (a)  of  section  one  thousand  one
hundred  thirteen of this chapter, provided however, for the purposes of
this subsection such insurance shall only  be  utilized  for  commercial
purposes,  and  shall not include personal lines of insurance as defined
in paragraph two of  subsection  (a)  of  section  three  thousand  four
hundred  twenty-five  of  this chapter or any commercial auto insurance,
and, provided further that applicants for such insurance  shall  sign  a
statement  that  the applicant has an appropriate level of knowledge and
understanding of the use of residual value insurance.
  (4) POLICY FORMS FOR INLAND MARINE RISKS  WHERE  THE  RATES  FOR  SUCH
RISKS  BY  GENERAL  CUSTOM  OF THE BUSINESS ARE NOT WRITTEN ACCORDING TO
MANUAL RATES OR RATING PLANS SHALL NOT BE FILED  PURSUANT  TO  PARAGRAPH
ONE  OF  THIS SUBSECTION, UNLESS THE SUPERINTENDENT DIRECTS THAT THEY BE
FILED.
  S 5. This act shall take effect immediately.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3967--B

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 31, 2011
                               ___________

Introduced  by  M. of A. MORELLE, P. RIVERA -- read once and referred to
  the Committee on Insurance  --  committee  discharged,  bill  amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  again reported from said committee with amendments, ordered  reprinted
  as amended and recommitted to said committee

AN  ACT  to  amend  the  insurance  law,  in relation to exempting large
  commercial insureds from certain rate and policy form requirements

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsections  (a) and (b) of section 6301 of the insurance
law are amended to read as follows:
  (a) Notwithstanding any provision of this chapter, the  superintendent
shall,  pursuant to regulations promulgated by [him] THE SUPERINTENDENT,
permit exemption from filing requirements only with respect to rates and
policy forms, where applicable,  for  any  of  the  kinds  of  insurance
[authorized  to be written in this state] SPECIFIED IN SUBSECTION (B) OF
THIS SECTION.
  (b) [No] AN exemption pursuant to  subsection  (a)  [hereof]  OF  THIS
SECTION  shall  be  permitted  in relation to the kinds of insurance set
forth in [paragraph one, two, three, fifteen, eighteen or  twenty-three]
PARAGRAPHS  FOUR  THROUGH FOURTEEN, SIXTEEN, SEVENTEEN, NINETEEN THROUGH
TWENTY-TWO, TWENTY-SEVEN AND TWENTY-NINE of subsection  (a)  of  section
one  thousand  one  hundred  thirteen  of this chapter[, or to] AND SUCH
INSURANCE AS THE SUPERINTENDENT DEEMS TO BE SUBSTANTIALLY SIMILAR TO ONE
OF THE FOREGOING KINDS, EXCEPT NO EXEMPTION MAY BE  PERMITTED  FOR:  (1)
coverage   for  personal  lines  to  natural  persons  for  non-business
purposes; (2) INSURANCE SPECIFIED IN SUBSECTION (B) OF SECTION TWO THOU-
SAND  THREE  HUNDRED  FIVE  OR  SECTION  TWO  THOUSAND   THREE   HUNDRED
TWENTY-EIGHT  OF  THIS  CHAPTER;  (3)  INSURANCE REQUIRED TO SATISFY ANY
FINANCIAL RESPONSIBILITY REQUIREMENT OF THIS  STATE;  OR  (4)  A  POLICY
WRITTEN  ON A GROUP BASIS.  However, any risk pursuant to paragraph one,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05245-04-1
              

A. 3967--B                          2

two or three of [such] subsection (A) of [such] section ONE THOUSAND ONE
HUNDRED THIRTEEN of this chapter, MEDICAL MALPRACTICE INSURANCE  (EXCEPT
FOR  PHYSICIANS  AND  SURGEONS),  or personal lines risk (except private
passenger,  non-fleet  automobile insurance) shall be exempt pursuant to
subsection (a) [hereof] OF THIS SECTION if it is included by the  super-
intendent on the list maintained by [him] THE SUPERINTENDENT pursuant to
subsection (a) of section six thousand three hundred three of this arti-
cle.
  S  2. Section 6302 of the insurance law, paragraph 3 of subsection (c)
as amended by chapter 534 of the laws of 1985, is  amended  to  read  as
follows:
  S  6302.  Special  license.  (a) An authorized insurer, as a condition
precedent to the obtaining of such exemption,  shall  obtain  a  special
license from the superintendent.
  (b)  Before  such  special  license  shall  be  issued  or renewed the
prospective licensee shall file in the office of the  superintendent  an
application  in  such form and supplements thereto as the superintendent
prescribes.  Such license shall be subject to  annual  renewal  with  an
annual fee of [one] TWO thousand dollars.
  (c) Such license may only be issued to:
  (1)  an  authorized  insurer  [which]  THAT  maintains  at all times a
surplus to policyholders of at least [twice the minimum surplus to poli-
cyholders required to be maintained for the kinds of insurance which  it
is  authorized  to  write in this state] THE AUTHORIZED CONTROL LEVEL AS
SET FORTH IN ARTICLE THIRTEEN OF THIS CHAPTER;
  (2) a United States branch which maintains at  all  times  a  trusteed
surplus  of  at least [twice the minimum trusteed surplus required to be
maintained for the kinds of insurance which it is authorized to write in
this state] THE AUTHORIZED CONTROL LEVEL AS SET FORTH IN  ARTICLE  THIR-
TEEN OF THIS CHAPTER; or
  (3)  an  insurer  initially  licensed on or after July first, nineteen
hundred eighty-two pursuant to article forty-one  of  this  chapter,  or
pursuant  to article forty-two of this chapter as an accident and health
insurer, or pursuant to article sixty-one of this chapter as a  recipro-
cal  insurer, if such insurer is at least meeting the minimum surplus to
policyholders requirement or the minimum  trusteed  surplus  requirement
imposed  upon  such insurer by the provisions of the article pursuant to
which it was initially licensed.
  (d) The superintendent may revoke, suspend, or refuse  to  renew  such
license  if,  after  notice and a hearing, [he] THE SUPERINTENDENT finds
that such action will protect the best interests of the people  of  this
state.
  S 3. Section 6303 of the insurance law is amended to read as follows:
  S  6303.  Limitations.  (a)  The exemption [which] THAT may be granted
pursuant to this article shall apply only if the business is  underwrit-
ten and transacted from an office within this state; and [(i)]:
  (1) the risk, as defined in regulations of the superintendent, produc-
es a minimum annual premium in excess of one hundred thousand dollars or
such  higher  amount  as the superintendent may prescribe by regulation;
[or (ii)]
  (2) the coverage is for a risk or class of risks which is of an unusu-
al nature, a high loss hazard, or difficult to place, pursuant to a list
promulgated or amended by the superintendent; OR
  (3) THE POLICY IS ISSUED TO A LARGE COMMERCIAL INSURED THAT EMPLOYS OR
RETAINS A RISK MANAGER TO ASSIST IN THE NEGOTIATION AND  PURCHASE  OF  A
POLICY EXEMPTED UNDER THIS ARTICLE.

A. 3967--B                          3

  (b) [All policies] FOR THE PURPOSES OF THIS SECTION:
  (1)  "LARGE  COMMERCIAL INSURED" MEANS AN ENTITY THAT GENERATES ANNUAL
COMMERCIAL RISK INSURANCE PREMIUM  IN  EXCESS  OF  TWENTY-FIVE  THOUSAND
DOLLARS  WITH  RESPECT TO THE KINDS OF INSURANCE SPECIFIED IN PARAGRAPHS
FOUR THROUGH FOURTEEN, SIXTEEN, SEVENTEEN, NINETEEN  THROUGH  TWENTY-TWO
AND  TWENTY-SEVEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED
THIRTEEN OF THIS CHAPTER AND:
  (I) HAS A NET WORTH OF AT LEAST SEVEN MILLION  FIVE  HUNDRED  THOUSAND
DOLLARS  AS  OF  THE INSURED'S FISCAL YEAR END IMMEDIATELY PRECEDING THE
POLICY'S EFFECTIVE DATE;
  (II) HAS GROSS ASSETS EXCEEDING TEN MILLION DOLLARS AND A NET WORTH OF
AT LEAST ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AS OF  THE  INSURED'S
FISCAL YEAR END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
  (III)  IS  A  FOR-PROFIT  BUSINESS  ENTITY THAT GENERATES ANNUAL GROSS
REVENUES EXCEEDING FIFTEEN MILLION DOLLARS, AND HAS A NET  WORTH  OF  AT
LEAST  ONE  MILLION  FIVE  HUNDRED  THOUSAND DOLLARS AS OF THE INSURED'S
FISCAL YEAR END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
  (IV) IS A FOR-PROFIT BUSINESS ENTITY THAT HAS GROSS  ASSETS  EXCEEDING
TEN  MILLION  DOLLARS  AND  GENERATES  ANNUAL  GROSS  REVENUES EXCEEDING
FIFTEEN MILLION DOLLARS AS OF THE INSURED'S FISCAL YEAR END  IMMEDIATELY
PRECEDING THE POLICY'S EFFECTIVE DATE;
  (V)  IS  A NOT-FOR-PROFIT ORGANIZATION OR PUBLIC ENTITY WITH AN ANNUAL
BUDGET EXCEEDING TWENTY MILLION DOLLARS FOR EACH  OF  ITS  THREE  FISCAL
YEARS IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE;
  (VI)  HAS  FIFTY  EMPLOYEES OR, TOGETHER WITH ITS PARENT, SUBSIDIARIES
AND AFFILIATES, ONE HUNDRED EMPLOYEES, AS OF THE INSURED'S  FISCAL  YEAR
END IMMEDIATELY PRECEDING THE POLICY'S EFFECTIVE DATE; OR
  (VII)  IS  A  MUNICIPALITY WITH A POPULATION OF FIFTY THOUSAND OR MORE
PERSONS.
  (2) "RISK MANAGER" MEANS AN  INDIVIDUAL  WHO  HOLDS  THE  PROFESSIONAL
DESIGNATION  OF CPCU, ARM, OR CRM WITH AT LEAST FIVE YEARS EXPERIENCE IN
THE ANALYSIS AND TREATMENT OF RISK, LOSS EXPOSURE, INSURANCE  COVERAGES,
AND ALTERNATIVE METHODS AND PROGRAMS, WHO IS NOT EMPLOYED BY THE INSURER
ISSUING  THE  POLICY  OR  ANY  PERSON  IN  THE INSURER'S HOLDING COMPANY
SYSTEM, AND WHO IS LICENSED AS AN INSURANCE PRODUCER PURSUANT TO ARTICLE
TWENTY-ONE OF THIS CHAPTER, UNLESS EXEMPTED FROM LICENSING THEREIN.
  (3) "MUNICIPALITY" SHALL MEAN ANY COUNTY, CITY, TOWN OR VILLAGE.
  (C) EFFECTIVE ON THE FIFTH JANUARY FIRST OCCURRING AFTER THE  DATE  OF
THE  ENACTMENT OF THIS SUBSECTION AND EACH FIFTH JANUARY FIRST OCCURRING
THEREAFTER, THE AMOUNTS SPECIFIED IN PARAGRAPH ONE OF SUBSECTION (B)  OF
THIS  SECTION  MAY BE ADJUSTED TO REFLECT THE PERCENTAGE CHANGE FOR SUCH
FIVE-YEAR PERIOD IN THE CONSUMER PRICE INDEX  FOR  ALL  URBAN  CONSUMERS
PUBLISHED  BY THE BUREAU OF LABOR STATISTICS OF THE DEPARTMENT OF LABOR.
THE SUPERINTENDENT MAY CONDUCT A PUBLIC  HEARING  TO  DETERMINE  WHETHER
SUCH INCREASE IS NECESSARY.
  (D)  EVERY  POLICY  issued  pursuant to the provisions of this article
shall contain a notice to the policyholder that the rate and policy form
are not subject to the filing requirements of this state and such  other
notices required by the superintendent pursuant to regulation.
  [(c)]  (E)  The superintendent may by regulation prescribe limitations
on the total amount of business [which] THAT  an  insurer  may  transact
pursuant  to  this  article OR REIMPOSE FILING REQUIREMENTS WHERE AND TO
THE EXTENT THAT THE SUPERINTENDENT DEEMS IT IN THE INTEREST OF THE POLI-
CYHOLDERS.
  S 4. Subsection (b) of section 2307 of the insurance law,  as  amended
by chapter 508 of the laws of 1998, is amended to read as follows:

A. 3967--B                          4

  (b)  (1)  Except as otherwise provided herein, no policy form shall be
delivered or issued for delivery unless  it  has  been  filed  with  the
superintendent  and  either  [he] THE SUPERINTENDENT has approved it, or
thirty days have elapsed and [he] THE SUPERINTENDENT has not disapproved
it as misleading or violative of public policy.
  (2)  After notice and hearing to the insurer or rate service organiza-
tion which submitted a policy form for approval, the superintendent  may
withdraw  approval  of such form on finding that the use of such form is
contrary to the legal requirements applicable at the time of withdrawal.
The effective date of the withdrawal of approval shall be prescribed  by
the  superintendent  but shall be not less than ninety days after notice
of withdrawal.
  (3) With regard to residual value  insurance,  policy  forms  and  any
amendments  thereto shall be filed with the superintendent within thirty
days of their use by the  insurer.  For  purposes  of  this  subsection,
"residual  value  insurance" shall have the same meaning as set forth in
paragraph twenty-two of subsection  (a)  of  section  one  thousand  one
hundred  thirteen of this chapter, provided however, for the purposes of
this subsection such insurance shall only  be  utilized  for  commercial
purposes,  and  shall not include personal lines of insurance as defined
in paragraph two of  subsection  (a)  of  section  three  thousand  four
hundred  twenty-five  of  this chapter or any commercial auto insurance,
and, provided further that applicants for such insurance  shall  sign  a
statement  that  the applicant has an appropriate level of knowledge and
understanding of the use of residual value insurance.
  (4) POLICY FORMS FOR INLAND MARINE RISKS  WHERE  THE  RATES  FOR  SUCH
RISKS  BY  GENERAL  CUSTOM  OF THE BUSINESS ARE NOT WRITTEN ACCORDING TO
MANUAL RATES OR RATING PLANS SHALL NOT BE FILED  PURSUANT  TO  PARAGRAPH
ONE  OF  THIS SUBSECTION, UNLESS THE SUPERINTENDENT DIRECTS THAT THEY BE
FILED.
  S 5. This act shall take effect immediately.