2023 New York Laws › ISC - Insurance › Article 23 - Property/casualty Insurance Rates › 2320 - Enforcement and Penalties; Where Prior Approval Is Not Required.

* §  2320.  Enforcement  and  penalties;  where  prior approval is not
required. (a) The superintendent may as often as he deems  it  expedient
examine  any  insurer  or rate service organization to ascertain whether
its rating and underwriting practices are in accordance with  law.  Rate
service organizations which make or file rates, whether or not advisory,
shall  be  examined  at  least  once in every five years pursuant to the
provisions of this chapter applicable to the  examination  of  insurers.
Filed  reports  on examinations shall be available for public inspection
at the department.
(b) (1) If the superintendent determines after a hearing that any rate
used by an insurer does not comply with  the  applicable  provisions  of
this article, he shall order that the rate be disapproved, and the order
may include provision for premium adjustment. The order may also require
that,  for  such  period  of  time  as the superintendent may determine,
subsequent rate filings of the insurer  subject  to  subsection  (a)  of
section two thousand three hundred five of this article shall not become
effective  unless the filings are made in accordance with the provisions
of subsection (b) of such section.
(2) The superintendent may, upon fifteen days prior written notice:
(A) order the suspension, prospectively, of a rate used by an  insurer
and reimpose the last previous rate in effect; or
(B)  order the suspension, prospectively, of a rate used by an insurer
and determine an adjusted rate that  complies  with  the  standards  set
forth in this article.
In  any  such event, the insurer may within that same fifteen day period
make a written request for a hearing, in which event the  superintendent
may  establish  an  interim rate by reimposing the last previous rate in
effect or determining an adjusted rate pursuant to subparagraphs (A) and
(B), respectively, of this paragraph. This  interim  rate  shall  remain
effective  pending  the close of the hearing, which shall be held within
fifteen days of the insurer's request. Within  fifteen  days  after  the
close  of  the hearing, the superintendent shall determine the rate that
complies with the standards set forth in this  article  based  upon  the
hearing record, and the rate so determined shall apply prospectively for
a period not to exceed one year.
(3)  At  any  such  hearing,  the  insurer  shall  have  the burden of
justifying  the  rate  in  question.  All  such  determinations  of  the
superintendent   shall   be  on  the  basis  of  findings  of  fact  and
conclusions.   Nothing   in   this   subsection   shall   preclude   the
superintendent from determining that the last previous rate in effect or
the rate filed by the insurer or rate service organization complies with
the  standards  set  forth  in  this article. Nothing in this subsection
shall preclude the insurer or a rate service organization from making or
modifying any rate filing at any time.
(c) If the superintendent, after notice and hearing,  finds  that  any
insurer,  rate  service  organization  or  other person has violated the
applicable provisions of this article, he shall order the payment  of  a
penalty.  The issuance, procurement or negotiation of a single policy of
insurance shall be deemed a separate offense. A penalty  not  to  exceed
one  thousand  dollars  may  be imposed for each such offense. A further
penalty not to exceed two thousand five hundred dollars may  be  imposed
for  each  offense  in  which  the superintendent finds that there was a
knowing  violation,  provided  that  a  minumum  penalty  of  at   least
twenty-five  thousand  dollars shall be imposed regardless of the number
of such knowing offenses.
(d) This  section  shall  be  applicable  to  kinds  of  insurance  or
insurance  activities  the  rates  for  which  are  not subject to prior
approval and which are subject to this article.
* NB Expires July 1, 2026