State Codes and Statutes

Statutes > New-york > Isc > Article-54 > 5412

* §  5412.  Additional  powers of the association. (a) As used in this  article:    (1) "Commercial  risk  insurance",  "public  entity   insurance"   and  "professional liability insurance" have the meanings ascribed to them by  section  one  hundred  seven  of this chapter, except that motor vehicle  insurance and medical malpractice liability insurance are excluded  from  such meanings for purposes of this article;    (2) "Market"  means  a  line,  subline or classification (other than a  classification delineated by geographic location)  of  property/casualty  insurance  not  subject  to subsection (b) of section two thousand three  hundred five, section two thousand three hundred twenty-eight or section  three thousand four  hundred  twenty-five  of  this  chapter.  Provided,  however,  a  "market" shall also include homeowners insurance as defined  in subsection (h) of section five thousand  four  hundred  one  of  this  article.  A  "market"  shall also include mandatory minimum surety bonds  required  pursuant  to  section  two  hundred   fifty-eight-b   of   the  agriculture and markets law.    (b)  The  association shall begin, or resume after any suspension, its  insurance  underwriting  operations  for  any  market  only  after   the  superintendent  has  determined  after  a hearing on a record that it is  necessary, due to unavailability of meaningful coverage in a  particular  voluntary market, to activate the association to write coverage for such  market.  In  making  a  determination  of  necessity  pursuant  to  this  subsection, the superintendent may consider such factors as: the  extent  and  nature  of  competition;  size  and  significance  of the coverage;  availability of adequate limits of  coverage;  efficacy  of  any  market  assistance  program administered by the superintendent including but not  limited to actual placement  of  coverage  through  a  voluntary  market  assistance  program  at  the  time  such  determination  is  to be made;  reinsurance availability; extent of consumer complaints to the insurance  department; extent of denials and restrictions of  coverage;  volume  of  cancellations  and  nonrenewals; or changing conditions in the economic,  judicial and social environment. If, after activating the association in  regard to a particular market, the superintendent determines that  ready  availability  of  meaningful  coverage in such voluntary market has been  restored, the association shall thereupon suspend  its  underwriting  in  regard  to  such market. The superintendent shall, no later than October  first, nineteen hundred eighty-six, activate the  association  to  write  particular   markets   in   regard   to   public  entities,  unless  the  superintendent determines that activation is unnecessary because  public  entities  are  able  to secure meaningful coverage in voluntary markets,  including through any market  assistance  program  administered  by  the  superintendent.    (c)  The  directors  of  the  association, after consultation with the  superintendent, shall forthwith prepare a plan of operation, subject  to  approval  by the superintendent who shall act expeditiously thereon, and  the directors shall take all other necessary  steps  on  and  after  the  effective  date  of this section to prepare for prompt implementation of  the association's powers in the event that any market  is  activated  by  the  superintendent  pursuant  to  subsection  (b)  of this section. The  directors of the association may, on their  own  initiative  or  at  the  request of the superintendent, amend the plan subject to approval by the  superintendent.   The   superintendent  may  direct  that  the  plan  of  operation, or amendments to such plan, shall include specified limits of  coverage for particular markets activated.    (d) Upon activation by the superintendent of any  market  pursuant  to  subsection  (b)  of  this  section,  all  insurers (excluding assessment  cooperative fire insurers) authorized to write and engaged in writing ona direct basis within this  state  commercial  risk,  public  entity  or  professional  liability  insurance,  including commercial multiple peril  policies, shall participate as members in the  association.  Every  such  insurer  shall  be and remain a member of the association as a condition  of its authority to continue to transact such insurance in  this  state.  In addition to the credit provided pursuant to subsection (f) of section  five  thousand four hundred five of this article, the superintendent may  by regulation provide for  additional  credits  to  such  insurers  that  voluntarily  provide  a  market  for those risks that the superintendent  determines to be extremely difficult to place in the voluntary market.    (e) The association shall with respect to any market activated by  the  superintendent pursuant to subsection (b) of this section issue policies  in  accordance  with  the  association's  plan  of  operation, and shall  maintain separate accounts and records for  premiums,  losses,  expenses  and  investment  income  attributable  to such insurance. Assessments of  insurers for expenses and any losses of the  association  in  connection  with  such  insurance shall be based on an insurer's net direct premiums  attributable to the types of insurance specified in  subsection  (a)  of  this  section.  Rates shall be based upon loss and expense experience of  the risks insured by the association pursuant to this section and  shall  be  on  an  actuarially sound basis, calculated to be self-supporting at  the lowest possible rates consistent with the maintenance of solvency of  the association  and  of  reasonable  reserves,  surplus  and  expenses,  including  commissions. The provisions of subsection (d) of section five  thousand four hundred five of this article shall not apply to  insurance  written pursuant to this section.    (f)  The superintendent may also activate the association for purposes  of providing excess or umbrella coverages in connection with  a  market.  Hazards  that  the  superintendent  determines  are uninsurable shall be  excluded from coverages which the association is required to furnish.    (g) The provisions of this section shall cease to be of any  force  or  effect  on  or  after  June  thirtieth, two thousand eleven, except that  policies issued or other obligations incurred by the  association  shall  not  be  impaired  by the expiration of this section and the association  shall continue for the purpose of servicing such policies and performing  such obligations.    * NB Expires June 30, 2011

State Codes and Statutes

Statutes > New-york > Isc > Article-54 > 5412

* §  5412.  Additional  powers of the association. (a) As used in this  article:    (1) "Commercial  risk  insurance",  "public  entity   insurance"   and  "professional liability insurance" have the meanings ascribed to them by  section  one  hundred  seven  of this chapter, except that motor vehicle  insurance and medical malpractice liability insurance are excluded  from  such meanings for purposes of this article;    (2) "Market"  means  a  line,  subline or classification (other than a  classification delineated by geographic location)  of  property/casualty  insurance  not  subject  to subsection (b) of section two thousand three  hundred five, section two thousand three hundred twenty-eight or section  three thousand four  hundred  twenty-five  of  this  chapter.  Provided,  however,  a  "market" shall also include homeowners insurance as defined  in subsection (h) of section five thousand  four  hundred  one  of  this  article.  A  "market"  shall also include mandatory minimum surety bonds  required  pursuant  to  section  two  hundred   fifty-eight-b   of   the  agriculture and markets law.    (b)  The  association shall begin, or resume after any suspension, its  insurance  underwriting  operations  for  any  market  only  after   the  superintendent  has  determined  after  a hearing on a record that it is  necessary, due to unavailability of meaningful coverage in a  particular  voluntary market, to activate the association to write coverage for such  market.  In  making  a  determination  of  necessity  pursuant  to  this  subsection, the superintendent may consider such factors as: the  extent  and  nature  of  competition;  size  and  significance  of the coverage;  availability of adequate limits of  coverage;  efficacy  of  any  market  assistance  program administered by the superintendent including but not  limited to actual placement  of  coverage  through  a  voluntary  market  assistance  program  at  the  time  such  determination  is  to be made;  reinsurance availability; extent of consumer complaints to the insurance  department; extent of denials and restrictions of  coverage;  volume  of  cancellations  and  nonrenewals; or changing conditions in the economic,  judicial and social environment. If, after activating the association in  regard to a particular market, the superintendent determines that  ready  availability  of  meaningful  coverage in such voluntary market has been  restored, the association shall thereupon suspend  its  underwriting  in  regard  to  such market. The superintendent shall, no later than October  first, nineteen hundred eighty-six, activate the  association  to  write  particular   markets   in   regard   to   public  entities,  unless  the  superintendent determines that activation is unnecessary because  public  entities  are  able  to secure meaningful coverage in voluntary markets,  including through any market  assistance  program  administered  by  the  superintendent.    (c)  The  directors  of  the  association, after consultation with the  superintendent, shall forthwith prepare a plan of operation, subject  to  approval  by the superintendent who shall act expeditiously thereon, and  the directors shall take all other necessary  steps  on  and  after  the  effective  date  of this section to prepare for prompt implementation of  the association's powers in the event that any market  is  activated  by  the  superintendent  pursuant  to  subsection  (b)  of this section. The  directors of the association may, on their  own  initiative  or  at  the  request of the superintendent, amend the plan subject to approval by the  superintendent.   The   superintendent  may  direct  that  the  plan  of  operation, or amendments to such plan, shall include specified limits of  coverage for particular markets activated.    (d) Upon activation by the superintendent of any  market  pursuant  to  subsection  (b)  of  this  section,  all  insurers (excluding assessment  cooperative fire insurers) authorized to write and engaged in writing ona direct basis within this  state  commercial  risk,  public  entity  or  professional  liability  insurance,  including commercial multiple peril  policies, shall participate as members in the  association.  Every  such  insurer  shall  be and remain a member of the association as a condition  of its authority to continue to transact such insurance in  this  state.  In addition to the credit provided pursuant to subsection (f) of section  five  thousand four hundred five of this article, the superintendent may  by regulation provide for  additional  credits  to  such  insurers  that  voluntarily  provide  a  market  for those risks that the superintendent  determines to be extremely difficult to place in the voluntary market.    (e) The association shall with respect to any market activated by  the  superintendent pursuant to subsection (b) of this section issue policies  in  accordance  with  the  association's  plan  of  operation, and shall  maintain separate accounts and records for  premiums,  losses,  expenses  and  investment  income  attributable  to such insurance. Assessments of  insurers for expenses and any losses of the  association  in  connection  with  such  insurance shall be based on an insurer's net direct premiums  attributable to the types of insurance specified in  subsection  (a)  of  this  section.  Rates shall be based upon loss and expense experience of  the risks insured by the association pursuant to this section and  shall  be  on  an  actuarially sound basis, calculated to be self-supporting at  the lowest possible rates consistent with the maintenance of solvency of  the association  and  of  reasonable  reserves,  surplus  and  expenses,  including  commissions. The provisions of subsection (d) of section five  thousand four hundred five of this article shall not apply to  insurance  written pursuant to this section.    (f)  The superintendent may also activate the association for purposes  of providing excess or umbrella coverages in connection with  a  market.  Hazards  that  the  superintendent  determines  are uninsurable shall be  excluded from coverages which the association is required to furnish.    (g) The provisions of this section shall cease to be of any  force  or  effect  on  or  after  June  thirtieth, two thousand eleven, except that  policies issued or other obligations incurred by the  association  shall  not  be  impaired  by the expiration of this section and the association  shall continue for the purpose of servicing such policies and performing  such obligations.    * NB Expires June 30, 2011

State Codes and Statutes

State Codes and Statutes

Statutes > New-york > Isc > Article-54 > 5412

* §  5412.  Additional  powers of the association. (a) As used in this  article:    (1) "Commercial  risk  insurance",  "public  entity   insurance"   and  "professional liability insurance" have the meanings ascribed to them by  section  one  hundred  seven  of this chapter, except that motor vehicle  insurance and medical malpractice liability insurance are excluded  from  such meanings for purposes of this article;    (2) "Market"  means  a  line,  subline or classification (other than a  classification delineated by geographic location)  of  property/casualty  insurance  not  subject  to subsection (b) of section two thousand three  hundred five, section two thousand three hundred twenty-eight or section  three thousand four  hundred  twenty-five  of  this  chapter.  Provided,  however,  a  "market" shall also include homeowners insurance as defined  in subsection (h) of section five thousand  four  hundred  one  of  this  article.  A  "market"  shall also include mandatory minimum surety bonds  required  pursuant  to  section  two  hundred   fifty-eight-b   of   the  agriculture and markets law.    (b)  The  association shall begin, or resume after any suspension, its  insurance  underwriting  operations  for  any  market  only  after   the  superintendent  has  determined  after  a hearing on a record that it is  necessary, due to unavailability of meaningful coverage in a  particular  voluntary market, to activate the association to write coverage for such  market.  In  making  a  determination  of  necessity  pursuant  to  this  subsection, the superintendent may consider such factors as: the  extent  and  nature  of  competition;  size  and  significance  of the coverage;  availability of adequate limits of  coverage;  efficacy  of  any  market  assistance  program administered by the superintendent including but not  limited to actual placement  of  coverage  through  a  voluntary  market  assistance  program  at  the  time  such  determination  is  to be made;  reinsurance availability; extent of consumer complaints to the insurance  department; extent of denials and restrictions of  coverage;  volume  of  cancellations  and  nonrenewals; or changing conditions in the economic,  judicial and social environment. If, after activating the association in  regard to a particular market, the superintendent determines that  ready  availability  of  meaningful  coverage in such voluntary market has been  restored, the association shall thereupon suspend  its  underwriting  in  regard  to  such market. The superintendent shall, no later than October  first, nineteen hundred eighty-six, activate the  association  to  write  particular   markets   in   regard   to   public  entities,  unless  the  superintendent determines that activation is unnecessary because  public  entities  are  able  to secure meaningful coverage in voluntary markets,  including through any market  assistance  program  administered  by  the  superintendent.    (c)  The  directors  of  the  association, after consultation with the  superintendent, shall forthwith prepare a plan of operation, subject  to  approval  by the superintendent who shall act expeditiously thereon, and  the directors shall take all other necessary  steps  on  and  after  the  effective  date  of this section to prepare for prompt implementation of  the association's powers in the event that any market  is  activated  by  the  superintendent  pursuant  to  subsection  (b)  of this section. The  directors of the association may, on their  own  initiative  or  at  the  request of the superintendent, amend the plan subject to approval by the  superintendent.   The   superintendent  may  direct  that  the  plan  of  operation, or amendments to such plan, shall include specified limits of  coverage for particular markets activated.    (d) Upon activation by the superintendent of any  market  pursuant  to  subsection  (b)  of  this  section,  all  insurers (excluding assessment  cooperative fire insurers) authorized to write and engaged in writing ona direct basis within this  state  commercial  risk,  public  entity  or  professional  liability  insurance,  including commercial multiple peril  policies, shall participate as members in the  association.  Every  such  insurer  shall  be and remain a member of the association as a condition  of its authority to continue to transact such insurance in  this  state.  In addition to the credit provided pursuant to subsection (f) of section  five  thousand four hundred five of this article, the superintendent may  by regulation provide for  additional  credits  to  such  insurers  that  voluntarily  provide  a  market  for those risks that the superintendent  determines to be extremely difficult to place in the voluntary market.    (e) The association shall with respect to any market activated by  the  superintendent pursuant to subsection (b) of this section issue policies  in  accordance  with  the  association's  plan  of  operation, and shall  maintain separate accounts and records for  premiums,  losses,  expenses  and  investment  income  attributable  to such insurance. Assessments of  insurers for expenses and any losses of the  association  in  connection  with  such  insurance shall be based on an insurer's net direct premiums  attributable to the types of insurance specified in  subsection  (a)  of  this  section.  Rates shall be based upon loss and expense experience of  the risks insured by the association pursuant to this section and  shall  be  on  an  actuarially sound basis, calculated to be self-supporting at  the lowest possible rates consistent with the maintenance of solvency of  the association  and  of  reasonable  reserves,  surplus  and  expenses,  including  commissions. The provisions of subsection (d) of section five  thousand four hundred five of this article shall not apply to  insurance  written pursuant to this section.    (f)  The superintendent may also activate the association for purposes  of providing excess or umbrella coverages in connection with  a  market.  Hazards  that  the  superintendent  determines  are uninsurable shall be  excluded from coverages which the association is required to furnish.    (g) The provisions of this section shall cease to be of any  force  or  effect  on  or  after  June  thirtieth, two thousand eleven, except that  policies issued or other obligations incurred by the  association  shall  not  be  impaired  by the expiration of this section and the association  shall continue for the purpose of servicing such policies and performing  such obligations.    * NB Expires June 30, 2011