NY Ins L § 6303 (2021)
2021 New York Laws ISC - Insurance Article 63 - Special Risks; Filing Exemption 6303 - Limitations.

§ 6303. Limitations. (a) The exemption that may be granted pursuant to this  article  shall  apply  only  if  the  business is underwritten and transacted from an office within this state; and:  (1) the  risk,  as  defined  in  regulations  of  the  superintendent, produces  a  minimum  annual  premium  in excess of one hundred thousand dollars or such higher amount as the  superintendent  may  prescribe  by regulation;  (2)  the  coverage  is  for  a  risk  or class of risks which is of an unusual nature, a high loss hazard, or difficult to place, pursuant to a list promulgated or amended by the superintendent; or  (3) until June thirtieth, two thousand twenty-three, the policy, other than a medical malpractice  insurance  policy,  is  issued  to  a  large commercial  insured  that  employs  or retains a special risk manager to assist in the negotiation and purchase of a policy exempted  under  this article, provided, however, that:  (A)(i) the special risk manager is not employed by the insurer issuing the policy or any person in the insurer's holding company system; and  (ii)  the special risk manager is licensed as an insurance producer in this state pursuant  to  article  twenty-one  of  this  chapter,  unless exempted from licensing therein; and  (B)  a  policy  form  that  has  not  been  previously  filed with the superintendent shall be filed with the superintendent for  informational purposes  within  three  business  days after first delivery of a policy using such form, but  no  later  than  sixty  calendar  days  after  the inception date of such policy.  (b) For the purposes of this section:  (1)  "Large  commercial insured" means an entity that generates annual commercial risk insurance premium, other than  for  medical  malpractice insurance, in excess of twenty-five thousand dollars with respect to the kinds  of  insurance  specified  in  paragraphs  four  through fourteen, sixteen,  seventeen,  nineteen  through  twenty-two,  twenty-seven   and twenty-nine  of  subsection  (a)  of  section  one  thousand one hundred thirteen of this chapter and such insurance as the superintendent  deems to be substantially similar to one of the foregoing kinds and:  (A)  has  a  net worth of at least seven million five hundred thousand dollars as of the insured's fiscal year end  immediately  preceding  the policy's effective date;  (B)  has gross assets exceeding ten million dollars and a net worth of at least one million five hundred thousand dollars as of  the  insured's fiscal year end immediately preceding the policy's effective date;  (C)  is  a  for-profit  business  entity  that  generates annual gross revenues exceeding fifteen million dollars, and has a net  worth  of  at least  one  million  five  hundred  thousand dollars as of the insured's fiscal year end immediately preceding the policy's effective date;  (D) is a for-profit business entity that has  gross  assets  exceeding ten  million  dollars  and  generates  annual  gross  revenues exceeding fifteen million dollars as of the insured's fiscal year end  immediately preceding the policy's effective date;  (E)  is  a not-for-profit organization or public entity with an annual budget exceeding twenty million dollars for each  of  its  three  fiscal years immediately preceding the policy's effective date;  (F) has fifty employees or, together with its parent, subsidiaries and affiliates,  one  hundred employees, as of the insured's fiscal year end immediately preceding the policy's effective date; or  (G) is a municipality with a population  of  fifty  thousand  or  more persons.  (2)  "Special  risk  manager"  means  a  person  who  meets all of the following requirements:  (A) the person is an employee of, or third-party  consultant  retained by, the large commercial insured;  (B)  the  person  provides  skilled  services in loss prevention, loss reduction, or risk and insurance coverage analysis and  assessment,  and purchase of insurance; and  (C) the person:  (i)(I) has a bachelor's degree or higher from an accredited college or university   in   risk  management,  business  administration,  finance, economics, or any  other  field  determined  by  the  superintendent  to demonstrate minimum competence in risk management; and  (II)(aa)  has  five  years  of  experience  in  risk  financing,  loss prevention, risk and insurance  coverage  analysis  and  assessment,  or purchasing commercial risk insurance; and  (bb) has:  (aaa)  a  designation as a chartered property and casualty underwriter (in this clause  referred  to  as  a  "CPCU")  issued  by  the  American Institute for CPCU/Insurance Institute of America;  (bbb) a designation as an associate in risk management (ARM) issued by the American Institute for CPCU/Insurance Institute of America;  (ccc)  a  designation  as  certified  risk manager (CRM) issued by the National Alliance for Insurance Education & Research;  (ddd) a designation as a Risk and Insurance Management Society  (RIMS) fellow (RF) issued by the Global Risk Management Institute; or  (eee)  any  other designation, certification, or license determined by the superintendent to demonstrate minimum competency in risk management;  (ii)(I) has at least seven years of experience in risk financing, loss prevention, risk and insurance  coverage  analysis  and  assessment,  or purchasing commercial risk insurance; and  (II)  has  any  one  of the designations specified in subclauses (aaa) through (eee) of subitem (bb)  of  clause  (II)  of  item  (i)  of  this subparagraph;  (iii)  has  at  least  ten years of experience in risk financing, loss prevention, risk and insurance  coverage  analysis  and  assessment,  or purchasing commercial risk insurance; or  (iv)  (I)  has  a  graduate  degree  from  an  accredited  college  or university  in  risk  management,  business   administration,   finance, economics,  or  any  other  field  determined  by  the superintendent to demonstrate minimum competence in risk management; and  (II)(aa) has at least three years of  experience  in  risk  financing, loss prevention, risk and insurance coverage analysis and assessment, or purchasing commercial risk insurance; or  (bb)  has  any  one  of the designations specified in subclauses (aaa) through (eee) of subitem (bb)  of  clause  (II)  of  item  (i)  of  this subparagraph.  (3) "Municipality" shall mean any county, city, town or village.  (c)  Effective  on the fifth January first occurring after the date of the enactment of this subsection and each fifth January first  occurring thereafter,  the amounts specified in paragraph one of subsection (b) of this section may be adjusted to reflect the percentage change  for  such five-year  period  in  the  consumer price index for all urban consumers published by the  Bureau  of  Labor  Statistics  of  the  United  States Department  of Labor. The superintendent may conduct a public hearing to determine whether such increase is necessary.  (d) (1) Except as provided in paragraph two of this subsection,  every policy issued pursuant to the provisions of this article shall contain a notice to the policyholder that the rate and policy form are not subject to the filing requirements of this state and such other notices required by the superintendent pursuant to regulation.  (2)  Every policy issued pursuant to paragraph three of subsection (a) of section six thousand  three  hundred  three  of  this  article  shall contain  a  notice to the policyholder that the rates are not subject to the filing requirements of this state  and  the  policy  forms  are  not subject  to  the  approval  requirements  of  this state, and such other notices required by the superintendent pursuant to regulation.  (e) The superintendent may by regulation prescribe limitations on  the total  amount  of business that an insurer may transact pursuant to this article or reimpose filing or approval requirements  where  and  to  the extent  that  the  superintendent  deems  it  in  the  interest  of  the policyholders.