New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter B - Property and Casualty Insurance
Part 71 - Legal Defense Costs In Liability Policies
Section 71.2 - General prohibition
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 71.2
Current through Register Vol. 46, No. 12, March 20, 2024
(a) No liability insurance policy, except as specified in this Part, shall be issued or renewed in this State containing a provision that:
(1) reduces the limits of liability stated in
the policy by legal defense costs;
(2) permits legal defense costs to be applied
against the deductible, if any; or
(3) otherwise limits the availability of
coverage for legal defense costs.
(b) Notwithstanding any other provisions of this Part, no liability insurance policy shall be issued or renewed in this State if it contains the limitations specified in subdivision (a) of this section for:
(1) motor vehicle
liability;
(2) medical malpractice
liability, except hospital medical malpractice liability as otherwise permitted
by this Part; or
(3) any liability
risk or coverage subject to section
3425 of the Insurance Law.
(c) No liability insurance policy shall be issued or renewed in this State unless legal defense costs are incident to a claim of legal liability covered under the policy.
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