N.Y. Comp. Codes R. & Regs. tit. 11 § 16.8
Current through Register Vol. 46, No. 22, May 29, 2024
Section 16.8 - Operational requirements(a) Class 1, class 2 or class 3 coverages may be provided only to: (2) two or more related entities, in each of which the same person, group of persons, or corporation holds a controlling interest.(b) Class 1, class 2 or class 3 coverages may not be provided in a manner that would constitute a group policy within the meaning of Part 153 of this Title.(c)(1) Except as provided in paragraph (2) of this subdivision, a policy may be written pursuant to Insurance Law article 63 and this Part if the policy provides only one or more of the kinds of insurance specified in Insurance Law section 1113(a)(4) through (14), (16), (17), (19) through (22), (27) and (29).(2) A covered policy, as defined in section 3425(a)(2) of the Insurance Law or a policy providing coverage pursuant to Insurance Law section 1113(a)(1), (2), or (3) may be written as a class 2 risk if the coverage is included in the list of eligible class 2 risks contained in section 16.12(e) of this Part.(3) A medical malpractice insurance policy may not be written as a class 3 risk.(d) Notwithstanding any other provision of this Part, a policy may not be written pursuant to Insurance Law article 63 and this Part with respect to: (1) insurance specified in Insurance Law section 2328;(2) insurance specified in Insurance Law section 2305(b) except medical malpractice insurance may be written as a class 1 or 2 risk; or(3) insurance required to satisfy any financial responsibility requirement of this State.(e) Where a policy includes coverage for both New York and non-New York exposures, the total premium for all exposures may be used for purposes of determining class 1 or class 3 eligibility pursuant to section 16.1(j) of this Part. However, a report filed with the superintendent showing special risk premiums and losses shall only include risks related to New York exposures unless the statement filing instructions specify otherwise.(f)(1) Application may be made to the superintendent for adding a class to the list of eligible class 2 risks enumerated in section 16.12(e) of this Part.(2) In reviewing such an application, the superintendent shall consider the following factors: (i) whether the insurance coverage provided protects from perils or risks that are neither contained in, nor conducive to the use of, generic policy forms or filed rate schedules;(ii) whether the type of insurance risk contains a substantial degree of peril or hazard that makes use of generic policy forms or filed rate schedules impractical; and(iii) the extent to which the type of coverage is unavailable from authorized insurance markets.(3) Class 2 additions shall be published in the State Register.(4) Applications to the superintendent to add classes to the class 2 risk list shall include: (i) a detailed description of the class for which filing exemptions are requested;(ii) a statement indicating the reasons why the class should be considered unusual, having a high loss hazard, or difficult to place; and(iii) a statement explaining why the filing requirements of the Insurance Law with regard to rates and forms would impose an undue impediment to the effective writing of the particular class of business in this State.(g) Coverages qualifying as class 2 risks may be provided by separate individual policies or incorporated by endorsement into other policies. When coverages for class 2 risks are provided by endorsement, only the policy forms and rates applicable to such endorsement qualify for filing exemptions pursuant to this Part.(h) No policy may be issued or renewed pursuant to class 3 on or after the date specified in Insurance Law section 6303(a)(3).N.Y. Comp. Codes R. & Regs. Tit. 11 § 16.8
Amended, New York State Register April 2, 2014/Volume XXXVI, Issue 13, eff.4/2/2014