Current through Register Vol. 46, No. 39, September 25, 2024
Claims-made coverage any not be provided in any policy
issued or renewed in this State, except that:
(a) The following coverages or risks may be
written on a claims-made basis:
(1) completed
operations liability;
(2) directors
and officers liability;
(3)
employee benefits liability;
(4)
errors and omissions liability;
(5)
excess liability;
(6) fiduciary
liability;
(7) pollution and
environmental impairment liability;
(8) public entity liability;
(9) products liability;
(10) professional liability (including
medical malpractice liability);
(11) ski resort liability, subject to
subdivision (f) of this section;
(12) employment practices liability;
and
(13) risks specified in
paragraph (d)(1) of this section.
(b) A commercial umbrella policy may be
issued or renewed on a claims-made basis over underlying coverages which are
written on a claims-made basis pursuant to this section. The umbrella policy
must provide coverage on an occurrence basis over underlying coverages written
on an occurrence basis, as well as for any coverages not subject to an
underlying coverage requirement.
(c)
(1) Any
commercial liability policy may be issued or renewed on a claims-made basis if
at least 90 percent of the liability insurance premium for the policy is
attributable to product liability, completed operations liability or medical
malpractice liability exposure.
(2)
Legal services insurance may be provided on a claims-made basis when written as
part of a policy of liability insurance covering related risks of a type
specified in subdivision (a) of this section.
(d)
(1) A
liability policy may be issued or renewed in this State on a claims-made basis
if the policy:
(i) insures a large commercial
insured;
(ii) provides primary
coverage of at least $5,000,000 per occurrence;
(iii) provides umbrella or excess coverage of
at least $1,000,000 per occurrence, where the underlying limits are at least
$2,000,000 per occurrence; or
(iv)
is written with a deductible, or over a self-insured retention, of at least
$100,000 per occurrence.
(2) Any policy issued or renewed pursuant to
this subdivision must comply with all the provisions of this Part, except:
(i) subdivisions (e)(1), (e)(3)(ii), (f),
(h)(1), (2) and (4), and (n) of section
73.3 of this Part;
(ii) subdivisions (a)(5), (b) and (c) of
section 73.7 of this Part; and
(iii) section
73.8 of this Part.
(e) Notwithstanding any
other provision of this Part, claims-made coverage shall not be permitted for:
(1) motor vehicle liability; or
(2) any liability risk or coverage subject to
section
3425 of the
Insurance Law.
(f) In
light of substantial liability insurance availability problems experienced by
ski resorts, ski resort liability insurance may be written on a claims-made
basis, provided that any such policy also:
(1) is written with notice of circumstance,
circumstance reporting, notice of incident or incident reporting;
(2) offers general liability limits of at
least $5,000,000 per occurrence;
(3) has no annual aggregate limits on general
liability losses;
(4) in the event
of sale, retirement or dissolution on the part of the insured, offers unlimited
extended reporting period coverage for an additional premium of not more than
100 percent of the expiring policy's earned premium; and
(5) otherwise complies with the requirements
of this Part.
Because it is based upon current availability problems,
this permission in regard to claims- made policies for ski resort liability
will be reviewed by the department on a periodic basis.
