N.Y. Comp. Codes R. & Regs. tit. 11 § 153.0
Current through Register Vol. 46, No. 45, November 2, 2024
(a) Omnibus legislation embodied in Chapters 220 and 221 of the Laws of 1986, enacted in response to affordability and availability problems experienced in connection with commercial risk, professional liability and public entity insurance markets, added section 3435 to the Insurance Law, enabling property/casualty insurance group policies to be underwritten in connection with public entities and non-profit organizations.(b) Prior to section 3435, group policies for property/casualty risks had not been permitted in this State, requiring all such risks to be underwritten on an individual basis. In appropriate areas, however, quasi-group approaches such as mass merchandising and safety group programs have been allowed in this State for certain property/casualty risks. While utilizing distribution efficiencies or emphasizing risk management in a group context, these quasi-group approaches actually underwrite and issue policies to participants on an individual, rather than a collective group, basis.(c) In addition, the Federal Liability Risk Retention Act of 1986 (LRRA), 15 U.S.C. § 3901 et seq., authorizes the purchase of commercial liability insurance by purchasing groups, notwithstanding State laws that would otherwise preclude such group purchase. As set forth in Part 301 (Regulation No. 134) of this Title, authorized insurers dealing with Federal purchasing groups remain subject to rate and policy form requirements under the Insurance Law and regulations, such as this Part, enforcing such requirements.(d) If properly structured, operated and regulated, group and quasi-group approaches can enhance availability and affordability of these types of coverages by recognizing legitimate advantages, based on loss and expense experience of the group and its members, not afforded to other persons with respect to rates, policy forms, coverages and other matters. The purpose of this Part is to encourage properly structured, operated and regulated group and quasi-group approaches where permitted in the property/casualty area.N.Y. Comp. Codes R. & Regs. Tit. 11 § 153.0