2023 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-seven, 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.