New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IX - Unfair Trade Practices
Part 221 - Limitations Upon And Requirements For The Use Of Credit Information For Personal Lines Insurance
Section 221.7 - Dispute resolution and error correction

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 221.7

Current through Register Vol. 46, No. 39, September 25, 2024

If a current insured obtains a determination, pursuant to the process for dispute resolution and error correction referred to in section 2803 of the Insurance Law, that the credit information used by an insurer was incorrect or incomplete, and the insurer receives notice of the determination from either the credit reporting agency or from the insured, the insurer shall, within 30 days after receiving the notice:

(a) re-underwrite and re-rate the insured;

(b) refund to the insured the amount of any overpayment, applicable to the last 36 months of coverage provided by the insurer, calculated back from the date of determination of the overpayment. The overpayment shall be the difference between the rate that was actually charged and the rate that would have been charged by the insurer or its affiliate for which the insured was previously ineligible due to the incorrect or incomplete credit information; and

(c)

(1) make any adjustments necessary, consistent with its underwriting guidelines and rating rules, for the current period; including moving the insured to the appropriate tier, starting as of the date of determination of the overpayment. The reunderwriting and re-rating shall not result in a premium increase for the insured;

(2) if upon consideration of the corrected or complete credit information, the insured is eligible for placement in an affiliate of the insurer at a lower rate in accordance with the affiliate's current underwriting rules, and the insured was previously ineligible for placement with that affiliate due to the incorrect or incomplete credit information, then the affiliate shall offer the insured a new policy with substantially equivalent coverage. If the offer is accepted by the insured and a new policy is issued, the affiliate may not exercise any right that it otherwise may have under section 3425(b) to cancel the policy within the first 60 days other than for a reason specified in section 3425(c).

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