N.Y. Comp. Codes R. & Regs. tit. 11 § 310.5

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

Section 310.5 - Cancellation, nonrenewal, and conditional renewal

(a) A product or system group policy or certificate shall not be subject to Insurance Law, section 3425 or 3426. T he following requirements shall apply in regard to cancellation, nonrenewal, or conditional renewal (as defined in subdivision [d] of this section) of coverage.

(b) Product or system group policy.

(1) Unless a product or system group policy provides for a longer policy period, the policy shall be issued or renewed for a one-year policy period.

(2) A product or system group policy may be canceled by an insurer only if cancellation is based on one or more of the reasons set forth in Insurance Law, section 3426(c)(1); provided, however, that an act or omission by a group member shall not constitute the basis for cancellation of the policy.

(3) An insurer's cancellation, nonrenewal, or conditional renewal of a product or system group policy shall not become effective until at least 30 days after the insurer mails or delivers written notice of such cancellation, nonrenewal, or conditional renewal to the group policyholder at the mailing address shown in the policy.

(4) Every notice of cancellation, nonrenewal, or conditional renewal shall contain the specific reason or reasons for cancellation, nonrenewal, or conditional renewal.

(c) Certificate.

(1) An individual certificate may not be canceled, renewed, or conditionally renewed. Coverage under the certificate shall continue for the period specified in the certificate, even though the product or system group policy may have been canceled, nonrenewed or conditionally renewed.

(2) After the expiration of the period specified in the certificate, nothing in this Part shall preclude an insurer from offering to continue the coverage under the certificate as an individual policy, subject to any requirements that may apply to such a policy.

(d) Conditional renewal means a renewal which is conditioned upon change of limits, change in type of coverage, reduction or elimination of coverage, increased deductible or addition of exclusion, or increased premiums in excess of 10 percent (exclusive of any premium increase generated as a result of increased exposure units or as a result of experience rating, loss rating, retrospective rating, or audit).

N.Y. Comp. Codes R. & Regs. Tit. 11 § 310.5