N.Y. Comp. Codes R. & Regs. tit. 11 § 154.2

Current through Register Vol. 46, No. 50, December 11, 2024

Section 154.2 - Multi-tier program underwriting rules

(a)

(1) The underwriting rules governing initial tier placement for qualifying applicants (i.e., applicants the insurer has decided to write) shall be, to the extent feasible, mutually exclusive per tier and shall be objective and shall not be applied so as to result in a rate that would violate article 23.

(2) Insurers shall maintain the underwriting rules governing initial tier placement, and a record of all changes thereto, in writing at company offices, and the rules shall be made available to the superintendent upon request. Each insurer shall submit an affirmation under penalty of perjury, signed by an officer of the company, that the underwriting rules exist, are mutually exclusive to the extent feasible, are objective and are not applied so as to result in a rate that would violate article 23. Such affirmation shall be submitted every three years and any time the rules are changed.

(b)

(1) The underwriting rules governing potential movement among the tiers shall be, to the extent feasible, mutually exclusive, shall be objective and shall not be applied so as to result in a rate that would violate article 23.

(2) An insured shall not be moved to a different tier based upon subjective judgment.

(3) The underwriting rules governing tier movement, and any changes thereto, shall be filed with the superintendent as part of an insurer's multi-tier program.

(c) The underwriting rules governing potential tier movement shall permit an insured to be moved to a higher rated tier only upon the end of the required policy period, as defined in section 3425, notwithstanding changes in underlying exposure during the required policy period. Changes in underlying exposure during the required policy period may be reflected in the premium in accordance with the rating rules of the specific tier. Should a policy become eligible for midterm cancellation for the reasons stated in section 3425(c)(1)(B), in lieu of cancellation an insurer may uptier that policy midterm.

(d) An insurer shall not move an insured from a lower rated tier to a higher rated tier and simultaneously impose a surcharge on the insured's premium based solely on the same accidents and violations of the insured's driving record.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 154.2