N.Y. Comp. Codes R. & Regs. tit. 11 § 88.3

Current through Register Vol. 46, No. 36, September 4, 2024

Section 88.3 - Contents of plan

The plan submitted shall include in substance at least the following provisions, or others, determined by the superintendent to be not less favorable to the people of this State.

(a) A provision that policies in force will continue in accordance with policy provisions and the provisions of the New York Insurance Law applicable to such lines of insurance. For policies subject to section 3425 of the Insurance Law, a procedure or method for the orderly termination of business in force on the date of approval of the plan.

(b) A provision that the insurer will comply with all fair claims practices requirements contained in the Insurance Law and applicable department regulations.

(c) A provision that the superintendent may, in his discretion, require the insurer to maintain a staffed service office in New York and/or that an 800 telephone number directly to the insurer's home office be established for the use of the insurer's policyholders and claimants. Such telephone number may be listed in telephone directories in this State and such listing will not constitute the solicitation of business in this State. Policyholders, producers ad claimants shall be furnished with said telephone number with each communication from the insurer.

(d) A provision that the superintendent, in his discretion, may require that any or all New York business be reinsured under a transfer and assumption agreement to an insurer licensed to do business in this State.

(e) A provision that the insurer will not write excess line business in New York after it ceases to maintain its licensing status in this State.

(f) A provision that the insurer will not reapply for a license to do business in New York or seek a certificate or recognition as an accredited reinsurer for a period of no less than five years.

(g) A provision that insureds, claimants and producers be advised of the insurer's intention to cease to be licensed in New York State. Such notice must be given at least 30 days before the insurer ceases to operate in the State.

(h) A provision that a security deposit will be made and maintained in an amount sufficient to provide for all outstanding liabilities for New York policyholders, claimants and creditors including but not limited to unearned premiums, policy reserves, policy liabilities and unpaid losses including incurred but not reported.

(i) A provision that the insurer will comply with all of the rulings and directives pertaining to insurers ceasing to do business in this State issued by the governing bodies of the New York Automobile Insurance Plan, (popularly known as the "Assigned Risk Plan"), the New York Property Insurance Underwriting Association (popularly known as the "FAIR PLAN"), the Medical Malpractice Insurance Association, and of any other residual market facility.

(j) A provision that New York policyholders will not be unfairly discriminated against with regard to dividends, or otherwise.

(k) A provision that the insurer will have responsible representatives available in New York for conferences or discussions when required by the superintendent.

(l) A provision that the superintendent may require the insurer to submit reports which the superintendent determines are necessary for the implementation of the approved plan, or for the protection of policyholders and claimants.

(m) A provision that the insurer will remain subject to appropriate assessments, examination by the New York State Insurance Department and shall be liable for the costs of examination under applicable statutes until notice is given that reports are no longer required.

(n) A provision that, to the extent necessary to secure the execution of the insurer's responsibilities, the payments of any claims and the satisfaction of its liabilities, the insurer will remain subject to the provisions of New York statutes and regulations affecting its operations and to the jurisdiction of the New York State Insurance Department.

(o) The foregoing provisions shall, to the extent determined appropriate by the superintendent, also apply to insurers which propose to change licensing status by eliminating one or more lines of insurance.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 88.3