New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IX - Unfair Trade Practices
Part 227 - Regulation of Force-placed Insurance
Section 227.7 - Minimum Loss Ratio and Rate Filings

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 227.7

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

(a) An insurer writing force-placed insurance in this state shall file force-placed insurance premium rates with a permissible loss ratio of at least 62 percent.

(b) An insurer shall have separate rate classifications for:

(1) force-placed insurance; and

(2) hazard insurance obtained by a servicer on real estate owned property.

(c) No later than April 1 of each year, an insurer issuing force-placed insurance in this state shall report to the superintendent, for each of such insurer's force-placed insurance policy forms for the preceding calendar year:

(1) actual loss ratio;

(2) earned premium;

(3) itemized expenses, including:
(i) expenses incurred in connection with insurance tracking;

(ii) expenses incurred in connection with issuing force-placed insurance or monitoring the continuing need for force-placed insurance after (a) voluntary hazard insurance covering residential real property has lapsed or been cancelled; or (b) the insurer, insurance producer or affiliate has not received evidence of existing insurance coverage that complies section 227.4 of this Part; and

(iii) expenses incurred in connection with cancelling force-placed insurance on properties for which force-placed insurance is not required.

(4) paid losses;

(5) loss reserves;

(6) case reserves; and

(7) incurred but not reported losses.

(d) An insurer writing force-placed insurance in this state shall, within 30 days after filing its annual statement, re-file with the superintendent its force-placed insurance premium rates for any force-placed hazard insurance policy form that has had an actual loss ratio of less than 40 percent for the immediately preceding calendar year.

(e) At least once every three years, an insurer writing force-placed insurance in this state shall re-file with the superintendent its force-placed insurance premium rates, supported by required data and actuarial analysis that is acceptable both professionally and to the superintendent, taking into account the loss experience over the preceding period and an appropriate rating factor for catastrophe exposure and other factors.

(f) An insurer shall not include as an expense in a force-placed insurance rate filing any expense incurred in connection with insurance tracking.

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