New regulations have been issued to implement a law that deregulates most insurance business with large, sophisticated companies or public entities, according to Benjamin Lawsky, Superintendent of Financial Services.
According to the new law, insurers are exempted from rate filing and form approval requirements when issuing a qualifying policy to businesses or entities, like municipalities.
Lawsky said the new law and regulation enhance the ability of insurers to underwrite large commercial insureds in New York, increase speed to market for certain insurance products not currently exempted and eliminate barriers to economic development in New York.
With the special exemption, insurers will be able to issue policies to these insureds without submitting rate filings to the Department of Financial Services or obtaining the Superintendent’s prior approval for the sale of policies.
An insurer using the exemption must file with the Superintendent a certificate of insurance documenting the terms of the policy within one business day of binding the insurance coverage, and a supplemental checklist and certification form developed by the department to facilitate compliance.
In addition, the insurer will have to submit a copy of the certificate previously filed, within 30 days from the inception date of the policy.
An insurer also must file with the Superintendent, for informational purposes, within three business days after first delivery of the policy but no later than 60 calendar days after the inception date of the policy, any policy forms that the insurer has not previously filed with the Superintendent.
The exemption does not apply to workers’ compensation, medical malpractice and certain other kinds of property/casualty insurance by insurers, who are not exempt from the requirements of the New York Insurance Law or insurance regulations.
To be eligible to use the exemption, an insurer must issue the policy to an entity that meets the definition of a "large commercial insured."