N.Y. ISC Law § 6303 — New York Code / Act ISC / Article 63 / Section 6303
Limitations
Status: in_force

§ 6303. Limitations. (a) The exemption that may be granted pursuant to\nthis article shall apply only if:\n  (1) the risk, as defined in regulations of the superintendent,\nproduces a minimum annual premium in excess of one hundred thousand\ndollars or such higher amount as the superintendent may prescribe by\nregulation;\n  (2) the coverage is for a risk or class of risks which is of an\nunusual nature, a high loss hazard, or difficult to place, pursuant to a\nlist promulgated or amended by the superintendent; or\n  (3) until June thirtieth, two thousand twenty-seven, the policy, other\nthan a medical malpractice insurance policy, is issued to a large\ncommercial insured that employs or retains a special risk manager to\nassist in the negotiation and purchase of a policy exempted under this\narticle, provided, however, that:\n  (A)(i) the special risk manager is not employed by the insurer issuing\nthe policy or any person in the insurer's holding company system; and\n  (ii) the special risk manager is licensed as an insurance producer in\nthis state pursuant to article twenty-one of this chapter, unless\nexempted from licensing therein; and\n  (B) a policy form that has not been previously filed with the\nsuperintendent shall be filed with the superintendent for informational\npurposes within three business days after first delivery of a policy\nusing such form, but no later than sixty calendar days after the\ninception date of such policy.\n  (b) For the purposes of this section:\n  (1) "Large commercial insured" means an entity that generates annual\ncommercial risk insurance premium, other than for medical malpractice\ninsurance, in excess of twenty-five thousand dollars with respect to the\nkinds of insurance specified in paragraphs four through fourteen,\nsixteen, seventeen, nineteen through twenty-two, twenty-seven and\ntwenty-nine of subsection (a) of section one thousand one hundred\nthirteen of this chapter and such insurance as the superintendent deems\nto be substantially similar to one of the foregoing kinds and:\n  (A) has a net worth of at least seven million five hundred thousand\ndollars as of the insured's fiscal year end immediately preceding the\npolicy's effective date;\n  (B) has gross assets exceeding ten million dollars and a net worth of\nat least one million five hundred thousand dollars as of the insured's\nfiscal year end immediately preceding the policy's effective date;\n  (C) is a for-profit business entity that generates annual gross\nrevenues exceeding fifteen million dollars, and has a net worth of at\nleast one million five hundred thousand dollars as of the insured's\nfiscal year end immediately preceding the policy's effective date;\n  (D) is a for-profit business entity that has gross assets exceeding\nten million dollars and generates annual gross revenues exceeding\nfifteen million dollars as of the insured's fiscal year end immediately\npreceding the policy's effective date;\n  (E) is a not-for-profit organization or public entity with an annual\nbudget exceeding twenty million dollars for each of its three fiscal\nyears immediately preceding the policy's effective date;\n  (F) has fifty employees or, together with its parent, subsidiaries and\naffiliates, one hundred employees, as of the insured's fiscal year end\nimmediately preceding the policy's effective date; or\n  (G) is a municipality with a population of fifty thousand or more\npersons.\n  (2) "Special risk manager" means a person who meets all of the\nfollowing requirements:\n  (A) the person is an employee of, or third-party consultant retained\nby, the large commercial insured;\n  (B) the person provides skilled services in loss prevention, loss\nreduction, or risk and insurance coverage analysis and assessment, and\npurchase of insurance; and\n  (C) the person:\n  (i)(I) has a bachelor's degree or higher from an accredited college or\nuniversity in risk management, business administration, finance,\neconomics, or any other field determined by the superintendent to\ndemonstrate minimum competence in risk management; and\n  (II)(aa) has five years of experience in risk financing, loss\nprevention, risk and insurance coverage analysis and assessment, or\npurchasing commercial risk insurance; and\n  (bb) has:\n  (aaa) a designation as a chartered property and casualty underwriter\n(in this clause referred to as a "CPCU") issued by the American\nInstitute for CPCU/Insurance Institute of America;\n  (bbb) a designation as an associate in risk management (ARM) issued by\nthe American Institute for CPCU/Insurance Institute of America;\n  (ccc) a designation as certified risk manager (CRM) issued by the\nNational Alliance for Insurance Education & Research;\n  (ddd) a designation as a Risk and Insurance Management Society (RIMS)\nfellow (RF) issued by the Global Risk Management Institute; or\n  (eee) any other designation, certification, or license determined by\nthe superintendent to demonstrate minimum competency in risk management;\n  (ii)(I) has at least seven years of experience in risk financing, loss\nprevention, risk and insurance coverage analysis and assessment, or\npurchasing commercial risk insurance; and\n  (II) has any one of the designations specified in subclauses (aaa)\nthrough (eee) of subitem (bb) of clause (II) of item (i) of this\nsubparagraph;\n  (iii) has at least ten years of experience in risk financing, loss\nprevention, risk and insurance coverage analysis and assessment, or\npurchasing commercial risk insurance; or\n  (iv) (I) has a graduate degree from an accredited college or\nuniversity in risk management, business administration, finance,\neconomics, or any other field determined by the superintendent to\ndemonstrate minimum competence in risk management; and\n  (II)(aa) has at least three years of experience in risk financing,\nloss prevention, risk and insurance coverage analysis and assessment, or\npurchasing commercial risk insurance; or\n  (bb) has any one of the designations specified in subclauses (aaa)\nthrough (eee) of subitem (bb) of clause (II) of item (i) of this\nsubparagraph.\n  (3) "Municipality" shall mean any county, city, town or village.\n  (c) Effective on the fifth January first occurring after the date of\nthe enactment of this subsection and each fifth January first occurring\nthereafter, the amounts specified in paragraph one of subsection (b) of\nthis section may be adjusted to reflect the percentage change for such\nfive-year period in the consumer price index for all urban consumers\npublished by the Bureau of Labor Statistics of the United States\nDepartment of Labor. The superintendent may conduct a public hearing to\ndetermine whether such increase is necessary.\n  (d) (1) Except as provided in paragraph two of this subsection, every\npolicy issued pursuant to the provisions of this article shall contain a\nnotice to the policyholder that the rate and policy form are not subject\nto the filing requirements of this state and such other notices required\nby the superintendent pursuant to regulation.\n  (2) Every policy issued pursuant to paragraph three of subsection (a)\nof section six thousand three hundred three of this article shall\ncontain a notice to the policyholder that the rates are not subject to\nthe filing requirements of this state and the policy forms are not\nsubject to the approval requirements of this state, and such other\nnotices required by the superintendent pursuant to regulation.\n  (e) The superintendent may by regulation prescribe limitations on the\ntotal amount of business that an insurer may transact pursuant to this\narticle or reimpose filing or approval requirements where and to the\nextent that the superintendent deems it in the interest of the\npolicyholders.\n