Senate Bill S5029

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

                                  5029

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to the  applicability  of
  property and casualty insurance rates

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

  Section 1.  Section 2307 of the insurance law is amended by adding two
new subsections (e) and (f) to read as follows:
  (E) NOTWITHSTANDING SUBSECTIONS (A) AND (B) OF THIS SECTION,  FOR  THE
KINDS  OF  INSURANCE PROVIDED FOR IN SUBSECTION (C) OF SECTION TWO THOU-
SAND THREE HUNDRED  ELEVEN  OF  THIS  ARTICLE,  FILING  WITH  AND  PRIOR
APPROVAL BY THE SUPERINTENDENT IS NOT REQUIRED.
  (F)  FOR  POLICY  FORMS  NOT  SUBJECT  TO  PRIOR  APPROVAL PURSUANT TO
SUBSECTION (C) OF SECTION TWO THOUSAND  THREE  HUNDRED  ELEVEN  OF  THIS
ARTICLE,  IF THE SUPERINTENDENT, AFTER NOTICE AND HEARING TO AN INSURER,
DETERMINES THAT A SPECIFIC POLICY FORM IS  MISLEADING  OR  VIOLATIVE  OF
PUBLIC  POLICY,  HE  OR  SHE  MAY  ORDER THE INSURER TO CEASE ISSUING OR
DELIVERING THE POLICY FORM IN THIS STATE.  THE  EFFECTIVE  DATE  OF  THE
CESSATION  OF  ISSUING OR DELIVERING THE POLICY FORM SHALL BE PRESCRIBED
BY THE SUPERINTENDENT BUT NOT BE LESS THAN NINETY DAYS AFTER  NOTICE  TO
THE INSURER.
  S  2.  Section 2311 of the insurance law is amended by adding five new
subsections (c), (d), (e), (f) and (g) to read as follows:
  (C) THE FOLLOWING KINDS OF INSURANCE WRITTEN ON RISKS OR OPERATIONS IN
THIS STATE ARE NOT SUBJECT TO POLICY FORM  AND  RATE  FILINGS  WITH,  OR
APPROVAL  BY, THE SUPERINTENDENT UNLESS THE SUPERINTENDENT REQUIRES SUCH
FILINGS PURSUANT TO SUBSECTION (G) OF THIS SECTION:
  (1) EXCESS OR UMBRELLA LIABILITY;
  (2) SURETY AND FIDELITY;
  (3) BOILER AND MACHINERY;
  (4) ERRORS AND OMISSIONS LIABILITY;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10263-02-1
              

S. 5029                             2

  (5)  PROFESSIONAL  LIABILITY  OTHER  THAN  PHYSICIAN'S  AND  SURGEON'S
MEDICAL MALPRACTICE;
  (6)  DIRECTORS AND OFFICERS, EMPLOYMENT PRACTICES, FIDUCIARY LIABILITY
AND OTHER MANAGEMENT LIABILITY INSURANCE;
  (7) INTELLECTUAL PROPERTY, ADVERTISING INJURY AND PATENT  INFRINGEMENT
LIABILITY;
  (8) INTERNET LIABILITY INSURANCE;
  (9) PROPERTY RISKS RATED UNDER A HIGHLY PROTECTED RISKS RATING PLAN;
  (10) COMMERCIAL INLAND MARINE;
  (11) AIRCRAFT LIABILITY AND PHYSICAL DAMAGE;
  (12)  UNIQUE OR UNUSUAL RISKS OR PORTIONS OF RISKS WHICH ARE NOT RATED
ACCORDING TO MANUALS, RATING PLANS, OR  RATE  SCHEDULES,  INCLUDING  "A"
RATES;
  (13)  COMMERCIAL  LINES  INSURANCE  RISKS, OTHER THAN WORKERS' COMPEN-
SATION INSURANCE, WHICH PRODUCE AN ANNUAL PREMIUM OF  TWENTY-FIVE  THOU-
SAND DOLLARS OR MORE, EMPLOYS OR RETAINS A RISK MANAGER TO ASSIST IN THE
NEGOTIATION AND PURCHASE OF INSURANCE, 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.
  (14)  ANY OTHER COMMERCIAL LINES, KINDS OR TYPES OF INSURANCE THAT THE
SUPERINTENDENT:
  (A) DETERMINES TO BE SUBSTANTIALLY SIMILAR TO A KIND OR TYPE OF INSUR-
ANCE NOT SUBJECT TO FILING REQUIREMENTS PURSUANT TO THIS SECTION;
  (B) DETERMINES, AFTER A PUBLIC HEARING AND ON THE BASIS  OF  FACT  AND
CONCLUSIONS,  SHOULD  NOT  BE  SUBJECT  TO  POLICY  FORM  OR RATE FILING
REQUIREMENTS FOR REASONS OF THE EXISTENCE OF A  COMPETITIVE  MARKET  FOR
SUCH  INSURANCE  OR TO IMPROVE THE GENERAL OPERATIONAL EFFICIENCY OF THE
INSURANCE DEPARTMENT.
  (D) FOR PURPOSES OF THIS SECTION, "RISK MANAGER" SHALL MEAN  AN  INDI-
VIDUAL  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.

S. 5029                             3

  (E)  FOR  PURPOSES OF THIS SECTION, "HIGHLY PROTECTED RISK" SHALL MEAN
PROPERTY THAT IS SUBJECT TO A SUBSTANTIALLY LOWER THAN NORMAL PROBABILI-
TY OF LOSS BY VIRTUE OF SUPERIOR CONSTRUCTION, SPECIAL  FIRE  PROTECTION
EQUIPMENT AND PROCEDURES, AND MANAGEMENT COMMITMENT TO LOSS PREVENTION.
  (F)  POLICY FORMS AND RATES EXEMPTED FROM FILING AND APPROVAL REQUIRE-
MENTS PURSUANT TO THIS SECTION MUST OTHERWISE COMPLY WITH THE  STANDARDS
SET FORTH IN THIS CHAPTER.
  (G) FOR ANY KIND OF INSURANCE EXEMPTED FROM FILING REQUIREMENTS PURSU-
ANT  TO  SUBSECTION  (C) OF THIS SECTION, THE SUPERINTENDENT MAY REQUIRE
RATE OR POLICY FILINGS FOR THAT KIND OF INSURANCE, PURSUANT TO THE STAN-
DARDS SPECIFIED UNDER SECTION TWO THOUSAND THREE HUNDRED EIGHT  OF  THIS
ARTICLE, PROVIDED, HOWEVER, THAT IN LIEU OF IMPOSING PRIOR APPROVAL, THE
SUPERINTENDENT  MAY  PERMIT  FILE AND USE OR FLEXIBLE RATING PURSUANT TO
SECTION TWO THOUSAND THREE HUNDRED FORTY-FOUR OF THIS ARTICLE.
  S 3. This act shall take effect immediately.