Current through Register Vol. 46, No. 39, September 25, 2024
(a) Class
1, class 2 or class 3 coverages may be provided only to:
(1) a single entity; or
(2) two or more related entities, in each of
which the same person, group of persons, or corporation holds a controlling
interest.
(b) Class 1,
class 2 or class 3 coverages may not be provided in a manner that would
constitute a group policy within the meaning of Part 153 of this
Title.
(c)
(1) Except as provided in paragraph (2) of
this subdivision, a policy may be written pursuant to Insurance Law article 63
and this Part if the policy provides only one or more of the kinds of insurance
specified in Insurance Law section 1113(a)(4) through (14), (16), (17), (19)
through (22), (27) and (29).
(2) A
covered policy, as defined in section
3425
(a)(2) of the Insurance Law or a policy
providing coverage pursuant to Insurance Law section 1113(a)(1), (2), or (3)
may be written as a class 2 risk if the coverage is included in the list of
eligible class 2 risks contained in section
16.12(e) of this
Part.
(3) A medical malpractice
insurance policy may not be written as a class 3 risk.
(d) Notwithstanding any other provision of
this Part, a policy may not be written pursuant to Insurance Law article 63 and
this Part with respect to:
(1) insurance
specified in Insurance Law section 2328;
(2) insurance specified in Insurance Law
section 2305(b) except medical malpractice insurance may be written as a class
1 or 2 risk; or
(3) insurance
required to satisfy any financial responsibility requirement of this
State.
(e) Where a
policy includes coverage for both New York and non-New York exposures, the
total premium for all exposures may be used for purposes of determining class 1
or class 3 eligibility pursuant to section
16.1(j) of this
Part. However, a report filed with the superintendent showing special risk
premiums and losses shall only include risks related to New York exposures
unless the statement filing instructions specify otherwise.
(f)
(1)
Application may be made to the superintendent for adding a class to the list of
eligible class 2 risks enumerated in section
16.12(e) of this
Part.
(2) In reviewing such an
application, the superintendent shall consider the following factors:
(i) whether the insurance coverage provided
protects from perils or risks that are neither contained in, nor conducive to
the use of, generic policy forms or filed rate schedules;
(ii) whether the type of insurance risk
contains a substantial degree of peril or hazard that makes use of generic
policy forms or filed rate schedules impractical; and
(iii) the extent to which the type of
coverage is unavailable from authorized insurance markets.
(3) Class 2 additions shall be published in
the State Register.
(4)
Applications to the superintendent to add classes to the class 2 risk list
shall include:
(i) a detailed description of
the class for which filing exemptions are requested;
(ii) a statement indicating the reasons why
the class should be considered unusual, having a high loss hazard, or difficult
to place; and
(iii) a statement
explaining why the filing requirements of the Insurance Law with regard to
rates and forms would impose an undue impediment to the effective writing of
the particular class of business in this State.
(g) Coverages qualifying as class 2 risks may
be provided by separate individual policies or incorporated by endorsement into
other policies. When coverages for class 2 risks are provided by endorsement,
only the policy forms and rates applicable to such endorsement qualify for
filing exemptions pursuant to this Part.
(h) No policy may be issued or renewed
pursuant to class 3 on or after the date specified in Insurance Law section
6303(a)(3).
