New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter B - Property and Casualty Insurance
Part 73 - Claims-made Policies; Scope Of Application; Minimum Standards
Section 73.7 - Disclosure and notice requirements

(1) that the policy is, or identifying those portions of the policy that are, written on a claims-made basis;

(2) that the policy provides no coverage for claims arising out of incidents, occurrences or alleged wrongful acts which took place prior to the retroactive date stated in the policy;

(3) that the policy covers only claims actually made against the insured while the policy remains in effect (or incidents reported if the insurer utilizes written notice of incident as the trigger of coverage under the policy) and all coverage under the policy ceases upon the termination of the policy, except for the automatic extended reporting period coverage (required by section 73.3[d] of this Part), unless the insured purchases additional extended reporting period coverage;

(4) the length of any automatic or additional extended reporting period coverage and, unless such coverage is for an unlimited time period, there shall also be a statement advising the insured specifically of potential coverage gaps that may arise upon expiration of such extended reporting period coverage; and

(5) that, during the first several years of the claims-made relationship, claims-made rates are comparatively lower than occurrence rates, and that the insured can expect substantial annual premium increases, independent of overall rate level increases, until the claims-made relationship reaches maturity.

(1) The declarations page, or an addendum thereto, shall state the premium that will be charged for each extended reporting period coverage option if the policy is terminated on the next anniversary date.

(2) For a policy subject to audit, retrospective rating or experience rating, the premium stated on the declarations page, or an addendum thereto, for the extended reporting period coverage may be the estimated premium.

(3) If there is a change in the policy premium as a result of any change in the nature or extent of the risk during the policy period, the insurer at the time of such change shall specify a revised premium for the extended reporting period coverage.

(4) Alternatively, the insurer may specify the percentage of the current policy's premium, using rates in effect on the effective date of the policy, that will be charged for the extended reporting period coverage in the event that the policy is terminated on the next anniversary date.

(5) In the event that extended reporting period coverage is issued pursuant to section 73.3(f) or (g) of this Part, and the extended reporting period premium cannot be determined at the time of issuance or renewal of the policy due to potential reduction of the aggregate limit of liability by the time the policy terminates under section 73.3(h)(2) or (3) of this Part, an insurer may provide the insured with a reasonable estimate of the actual extended reporting period coverage premium to be charged. The actual premium charged for the extended reporting period coverage shall not exceed 115 percent of the estimated amount.

(1) the rates for extended reporting period coverage will be based on the rates in effect at the time of termination of coverage;

(2) such rates may be subject to substantial increase over the rates currently in effect;

(3) the average statewide percentage changes, and the effective dates, of each rate revision for the particular type of insurance which the insurer has implemented in this State during the five-year period immediately preceding the effective date of the policy shall be provided upon the written request of the insured; and

(4) such changes may or may not be indicative of future rate changes.