2023 New York Laws › ISC - Insurance › Article 34 - Insurance Contracts-Property/casualty › 3425 - Certain Property/casualty Insurance Policies; Cancellation and Renewal Provisions; Agents' Contracts and Brokers' Accounts.

§ 3425. Certain property/casualty insurance policies; cancellation and
renewal  provisions;  agents'  contracts and brokers' accounts. (a) This
section shall apply to covered  policies  of  insurance  as  defined  in
paragraphs one, two and three hereof.
(1) "Covered  policy"  means  a  contract of insurance, referred to in
this section as "automobile insurance", issued or issued for delivery in
this state, on a risk  located  or  resident  in  this  state,  insuring
against  losses  or liabilities arising out of the ownership, operation,
or use of a motor vehicle, predominantly used for non-business purposes,
when a  natural  person  is  the  named  insured  under  the  policy  of
automobile  insurance;  provided,  however, that the use or operation of
the motor vehicle by a transportation network company driver  as  a  TNC
vehicle  in  accordance  with  article  forty-four-B  of the vehicle and
traffic law or the use or operation  of  the  motor  vehicle  through  a
peer-to-peer car sharing program in accordance with article forty of the
general  business  law, shall not be included in determining whether the
motor vehicle is being used predominantly for non-business purposes.
(2) "Covered policy" also means a contract of insurance,  referred  to
in  this section as "personal lines insurance", other than a contract of
insurance defined in paragraph one hereof, issued or issued for delivery
in this state, on a risk located or resident in this state, insuring any
of the following contingencies:
(A) loss  of  or  damage  to  real  property  used  predominantly  for
residential  purposes  and which consists of not more than four dwelling
units, other than hotels and motels;
(B) loss of or damage to personal property in  which  natural  persons
have an insurable interest, except personal property used in the conduct
of a business; and
(C)  other liabilities for loss of, damage to, or injury to persons or
property, not arising from the conduct of a  business,  when  a  natural
person is the named insured under the policy.
(3)  A  personal  umbrella  liability  policy  shall  be  considered a
"covered policy" under paragraph two, and not  paragraph  one,  of  this
subsection.
(4)  A  contract  which  insures  any  of  the foregoing contingencies
described in paragraph one or two hereof as well as other  contingencies
shall  be  a  covered  policy  if  that  portion  of  the annual premium
attributable  to  such  foregoing  contingencies  exceeds  that  portion
attributable to other contingencies.
(5) A covered policy shall not include a policy issued pursuant to any
plan established under article fifty-three or fifty-four of this chapter
or legal services insurance.
(6)  "Renewal"  or  "to  renew"  means the issuance and delivery by an
insurer, at the end of the policy period,  of  a  policy  superseding  a
policy  previously  issued  and  delivered  by  the same insurer, or the
issuance and delivery of a certificate or notice extending the term of a
policy beyond its policy period or term;  provided,  however,  that  any
policy with a policy period or term of less than one year shall, for the
purpose of this section, be considered as if written for a policy period
or term of one year, or any policy with no fixed expiration date, shall,
for  the  purpose  of  this  section,  be  considered  as if written for
successive policy periods or terms of one year.
(7) With respect to personal lines insurance, "required policy period"
means a period of three years from the date as of which a covered policy
is first issued or is voluntarily renewed.
(8) With respect to automobile  insurance,  "required  policy  period"
means  a  period  of one year from the date as of which a covered policy
becomes effective after first issuance or voluntary renewal.
(9) With respect to automobile insurance,  "voluntary  renewal"  means
the  renewal of a covered policy which has completed the required policy
period pursuant to this section.
(10) "Nonpayment of premium" means the failure of the named insured to
discharge any obligation in connection with the payment of premiums on a
policy  of  insurance  or  any  installment of such premium, whether the
premium is payable directly to the insurer or its agent,  or  indirectly
under  any  premium  finance plan or extension of credit. Payment to the
insurer, or to an agent or broker authorized to  receive  such  payment,
shall  be  timely,  if made within fifteen days after the mailing to the
insured of a notice of cancellation for nonpayment of premium.
(11) "Administrative suspension" means a  temporary  suspension  of  a
driver's  license  pending a hearing, prosecution or investigation or an
indefinite suspension of a driver's license because of  the  failure  of
the  person  suspended  to  perform  an  act,  which  suspension will be
terminated by the performance of the act by the person suspended.
(b) During the first sixty days a covered  policy  is  in  effect,  no
notice  of cancellation shall be issued or be effective unless it states
or is accompanied by a statement of the specific reason or  reasons  for
such cancellation.
(c)  After a covered policy has been in effect for sixty days, or upon
the effective date if the policy is a renewal, no notice of cancellation
shall be issued to  become  effective  unless  required  pursuant  to  a
program   approved   by   the  superintendent  as  necessary  because  a
continuation of the present premium volume would  be  hazardous  to  the
interests  of policyholders of the insurer, its creditors or the public,
or unless it is based on one or more of the following:
(1) With respect to automobile insurance policies:
(A) nonpayment  of  premium,  provided,  however,  that  a  notice  of
cancellation on this ground shall inform the insured of the amount due;
(B)  suspension or revocation during the required policy period of the
driver's  license  of  the  named  insured  or  any  other  person   who
customarily  operates an automobile insured under the policy, other than
a suspension issued pursuant to subdivision one of section five  hundred
ten-b  of  the  vehicle  and  traffic  law or one or more administrative
suspensions arising from the  same  incident  which  has  or  have  been
terminated prior to the effective date of cancellation; or
(C) discovery of fraud or material mis-representation in obtaining the
policy or in the presentation of a claim thereunder.
(2) With respect to personal lines insurance policies:
(A)  nonpayment  of  premium,  provided,  however,  that  a  notice of
cancellation on this ground shall inform the insured of the amount due;
(B) conviction of a crime arising out of acts  increasing  the  hazard
insured against;
(C)  discovery of fraud or material misrepresentation in obtaining the
policy or in the presentation of a claim thereunder;
(D) discovery of willful or reckless acts or omissions increasing  the
hazard insured against;
(E)  physical changes in the property insured occurring after issuance
or last annual anniversary date  of  the  policy  which  result  in  the
property   becoming   uninsurable   in  accordance  with  the  insurer's
objective, uniformly applied underwriting standards  in  effect  at  the
time the policy was issued or last voluntarily renewed; or
(F) a determination by the superintendent that the continuation of the
policy  would  violate  or  would place the insurer in violation of this
chapter.
(3) The provisions of this subsection shall apply to  each  and  every
coverage or limit afforded under the policy.
(d)  (1)  Unless  the  insurer,  at least forty-five but not more than
sixty days in advance of the end of the policy period, mails or delivers
to the named insured, at the address shown  in  the  policy,  a  written
notice  of  its intention not to renew a covered policy, or to condition
its  renewal  upon change of limits or elimination of any coverages, the
named insured shall be entitled to renew the policy upon timely  payment
of  the  premium  billed  to  the  insured for the renewal. The specific
reason or reasons for nonrenewal or conditioned renewal shall be  stated
in  or  shall  accompany the notice. This paragraph shall not apply when
the named insured, an agent or broker authorized by the  named  insured,
or  an  insurer  of  the  named insured, has mailed or delivered written
notice to the insurer that the policy has been replaced or is no  longer
desired.
(2)  If an insurer has the right to cancel a policy it may, in lieu of
cancellation, condition continuation  of  such  policy  upon  change  of
limits  or  elimination  of any coverage not required by law, if written
notice of such intention is mailed or delivered to the  insured  at  the
address  shown in the policy at least twenty days prior to the effective
date of such action.
(3) At its discretion, the insurer may, in lieu of renewing the policy
in the form as last  issued,  substitute  at  the  annual  renewal  date
another  approved  policy  form  which  contains  at least substantially
equivalent value in the aggregate of  benefits,  as  determined  by  the
superintendent.  Notice  of  intention  to substitute a different policy
form on a renewal shall be made in the same manner as is  prescribed  in
paragraph  one  of  this  subsection  for a conditioned renewal but with
respect to automobile insurance policies shall not  be  subject  to  the
percentage  limitations  contained  in  subsection  (f)  of this section
applicable to a conditioned renewal. Notice of intention to substitute a
different  policy  form  shall  be  accompanied  by  a  full  and  clear
comparison of the differences between the policy form as last issued and
the substitute policy form.
(e)  With  respect  to personal lines insurance policies, no notice of
nonrenewal or conditional renewal of a covered policy shall be issued to
become effective during the required policy period unless  it  is  based
upon  a  ground  for  which  the  policy could have been cancelled. With
respect to homeowners' policies as defined in section two thousand three
hundred fifty-one of this chapter, on properties located in areas served
by a market assistance program established by the superintendent for the
purpose of facilitating placement of homeowners' insurance,  notices  of
cancellation,  nonrenewal  or  conditional  renewal  shall  conform with
standards  established  by  the  superintendent  in   regulation.   Such
standards   shall  require  that  the  notice  include,  at  a  minimum:
notification of the possibility of eligibility for  coverage  through  a
market   assistance   program   or   the  New  York  property  insurance
underwriting association; information on how to apply;  and  such  other
information as required by the superintendent.
(f)  (1)  With  respect  to  automobile  insurance policies, the total
number (rounded to the nearest whole number) of notices of intention not
to renew a covered policy, and of  notices  of  intention  to  condition
renewal  upon reduction of limits or elimination of any coverages, which
an insurer may issue shall be limited for  each  calendar  year  to  two
percent  of the total number of covered policies of the insurer in force
at last year-end in each such insurer's rating territory in use in  this
state  which  have  completed  their  required  policy period under this
section, except as set forth in subsection (r) of this section. However,
the insurer may non-renew or conditionally renew one policy in any  such
insurer's  rating  territory  in  use  in  this state, if the applicable

percentage limitation results in less  than  one  policy.  Cancellations
made  pursuant  to  subsection  (b)  or  (c)  of  this  section shall be
independent of and in addition to the number of notices of intention not
to renew or to condition renewal upon reduction of limits or elimination
of any coverages not required by law, permitted under this subsection.
(2)   For   every  two  new  automobile  policies  which  the  insurer
voluntarily writes  in  each  such  territory,  such  insurer  shall  be
permitted  to non-renew or conditionally renew one additional automobile
policy in that territory in excess of the two percent limit  established
in   paragraph   one   of   this  subsection,  subject  to  a  fair  and
nondiscriminatory formula developed by the superintendent,  which  shall
consider  the  number  of automobile policies written less cancellations
initiated by the insurer within the  first  sixty  days  of  the  policy
period.
(3) The superintendent shall revoke the rights of any insurer or group
of   insurers   under   paragraph   two   of  this  subsection,  upon  a
determination, after a public hearing, that such an insurer or group  of
insurers has utilized such rights to the detriment of any class or group
of classes within a rating territory.
(g)  Notwithstanding  any  of  the  provisions and limitations of this
section, any property/casualty insurance company organized for the  sole
and  exclusive  purpose of providing insurance policies to members of an
organization, and providing such insurance  policies  on  risks  in  New
York,  may  refuse to renew automobile liability policies of persons who
fail to meet the requirements contained in the by-laws of  such  company
prohibiting  the  sale  of  policies to non-members of the organization,
provided that such company shall continue to participate in any assigned
risk plans established pursuant to article fifty-three of this chapter.
(h) (1) Proof of mailing of a notice  of  cancellation,  reduction  of
limits,   substitution   of   policy  form,  elimination  of  coverages,
conditioned renewal or of intention  not  to  renew,  or  proof  of  the
mailing  of  the  reasons  therefor, to the named insured at the address
shown in the policy, shall be sufficient proof of the giving  of  notice
and the giving of reasons required by this section.
(2)  No  notice  of cancellation, reduction of limits, substitution of
policy  form,  elimination  of  coverages,  conditioned  renewal  or  of
intention not to renew, or notice of the reasons therefor, that fails to
include  a  provision  required  by  this  section shall be an effective
notice for purposes of this section.
(3) A copy of every  notice  of  cancellation,  reduction  of  limits,
substitution  of  policy  form,  elimination  of  coverages, conditioned
renewal or of intention not to renew, including the reasons therefor, or
a summary of such notice, shall be mailed, delivered or  transmitted  to
the  insured's  authorized agent or broker within seven days of the time
such notice is mailed to the named insured. Electronic  transmission  or
any other means of delivery or transmission of information commonly used
by  the  insurer  to  communicate with agents or brokers shall be deemed
sufficient for compliance with this paragraph. Failure to mail,  deliver
or  transmit  a copy of such notice to the insured's authorized agent or
broker pursuant to this paragraph  shall  not  render  any  such  notice
ineffective, provided that all of the other requirements of this section
are  met  and  shall  not  be  considered failure to include a provision
required  by  this  section  for  purposes  of  paragraph  two  of  this
subsection.
(i)  No insurer shall refuse to issue or renew a covered policy solely
on the ground of the advanced age of the applicant or insured.
(j) (1) Where an insurer or an agent who is authorized by such insurer
to accept lines of insurance from licensed agents or brokers notifies  a

licensed  agent  or  broker  that  its  contract  or  account  shall  be
terminated:
(A)  with  respect to a personal lines insurance policy required to be
continued by this section, the  insurer  shall  offer  to  continue  the
policy  for  any  remaining  part  of the required policy period and any
statutory extension and the insurer shall offer to continue  the  policy
through  the  terminated  agent or broker for at least its next one year
policy period which commences within one  year  following  the  date  of
mailing  or delivery to the terminated agent or broker of written notice
of termination of such contract  or  account,  and  thereafter,  at  the
specific  request  of  the  insured,  shall offer to continue the policy
through such terminated agent or broker for any remaining  part  of  the
required policy period including statutory extension;
(B)  with  respect  to  an automobile insurance policy subject to this
section, the  insurer  shall  offer  to  continue  the  policy  for  any
remaining  part  of the required policy period and, unless the policy is
cancelled or non-renewed in accordance with  the  provisions  of  either
subsection  (b),  (c)  or (f) of this section, it shall, at the specific
request of the  insured,  offer  to  continue  the  policy  through  the
terminated  agent or broker for three successive one year policy periods
which commence within the year following the date of mailing or delivery
to the terminated agent or broker of written notice  of  termination  of
such contract or account;
(C)  with  respect  to all new personal lines and automobile insurance
business offered by such terminated agent or broker which is subject  to
the  provisions  of  this  section,  the  insurer  shall accept all such
business meeting  the  insurer's  then  current  underwriting  standards
during  the period of one hundred twenty days next following the date of
mailing or delivery to the agent or broker of  written  notification  of
such termination;
(D)  the  terminated  agent  or  broker  shall  be entitled to receive
commissions on account of all business continued or written pursuant  to
this  paragraph  at  the  insurer's  prevailing commission rate for such
lines of insurance; and
(E)  the  provisions  of  subparagraph  (B)  hereof  in  relation   to
continuation  of  coverage  for three successive one year policy periods
are subject to the rights of the insurer pursuant to subsection (b), (c)
or (f) of this  section  to  cancel  or  non-renew.  The  provisions  of
subparagraph  (D)  hereof  in  relation  to  commissions  shall  not  be
mandatory after completion of the three one year policy periods provided
for in subparagraph (B) hereof.
(2) This subsection  shall  not  apply  to  an  agent  who  agrees  to
represent  exclusively  one  insurer or a group of insurers under common
management or an agent or broker whose license has been revoked  by  the
superintendent  or  whose  contract  or  account has been terminated for
insolvency, abandonment, gross and willful misconduct, or failure to pay
over to the insurer moneys due to the insurer after receipt of a written
demand therefor.
(k) The superintendent may, after public hearing, promulgate rules and
regulations implementing and coordinating the provisions of this section
and article fifty-three of this chapter.
(l) (1)  The  superintendent  shall  monitor  the  operation  of  this
section.   Every insurer subject to the provisions of this section shall
file in the office of the superintendent periodic reports in  such  form
as the superintendent may prescribe.
(2) The superintendent shall collect, analyze and compile such reports
with  regard  to  the  number  of new insureds, non-renewed insureds and
business written by each insurer in each rating territory of  each  such

insurer and, in each case, the class of insureds (including age and sex)
affected so that a statistical analysis of the results obtained pursuant
to  subsections  (f)  and  (m)  of  this section, and the reasons in the
aggregate  for  the  non-renewal  of  policies  shall be provided to the
speaker of the assembly, the temporary  president  of  the  senate,  the
chair  of  the assembly insurance committee, and the chair of the senate
insurance committee on or before June thirtieth, two thousand twenty and
every two years thereafter.
(m) (1) Paragraphs eight and nine of subsection  (a),  subsection  (f)
and subparagraphs (B) and (E) of paragraph one of subsection (j) of this
section  shall  not  apply  to  any  new  covered  policy  of automobile
insurance voluntarily written on or after August first, nineteen hundred
eighty-five and prior to January first, nineteen hundred eighty-six, and
on or after August second, two thousand one and prior to  the  effective
date  of  the  property/casualty  insurance  availability act, and on or
after June thirtieth, two thousand  twenty-six,  but  the  legal  rights
granted  to insurers or policyholders under such provisions shall not be
extinguished or impaired thereby.
(2) In lieu of such provisions, paragraph  seven  of  subsection  (a),
subparagraph  (A) of paragraph one of subsection (j) of this section and
paragraph three of  this  subsection  shall  apply  to  such  automobile
insurance  policies  that  are  newly and voluntarily written to have an
effective date on or after August first,  nineteen  hundred  eighty-five
and prior to January first, nineteen hundred eighty-six, and on or after
August  second,  two thousand one and prior to the effective date of the
property/casualty insurance availability  act,  and  on  or  after  June
thirtieth, two thousand twenty-six.
(3)  On and after August first, nineteen hundred eighty-five and prior
to January first, nineteen hundred eighty-six, and on  or  after  August
second,  two  thousand  one  and  prior  to  the  effective  date of the
property/casualty insurance availability  act,  and  on  or  after  June
thirtieth,   two   thousand  twenty-six,  no  notice  of  nonrenewal  or
conditional  renewal  of  such  covered  automobile  insurance  policies
referred  to  in  this  subsection  shall  be issued to become effective
during the required policy period unless it is based upon a  ground  for
which  the  policy  could have been cancelled or unless it is based upon
one or more of the following grounds that occurred during the thirty-six
month period ending on the last day of the fourth  month  preceding  the
month  of the effective date of such notice of nonrenewal or conditional
renewal:
(A) Where a named insured and/or  any  other  person  who  customarily
operates  an  automobile insured under the policy is convicted of any of
the following:
(i) operating a motor vehicle while intoxicated  or  impaired  by  the
consumption of alcohol; or
(ii)  operating  a  motor  vehicle while impaired by the use of a drug
(within the meaning of section eleven hundred ninety-two of the  vehicle
and traffic law); or
(iii)  homicide  or  assault  arising out of the use or operation of a
motor vehicle, or criminal negligence in the use or operation of a motor
vehicle resulting in the injury or death of another person,  or  use  or
operation of a motor vehicle directly or indirectly in the commission of
a felony; or
(iv)  operating  a motor vehicle in excess of the speed limit, or in a
reckless manner, where injury or death results therefrom; or
(v) operating a motor  vehicle  in  excess  of  the  speed  limit,  or
reckless   driving,  or  any  combination  thereof,  on  three  or  more
occasions; or
(vi) operating a motor vehicle insured  under  the  policy  without  a
valid  license  or  registration  in  effect  (except  when  the  person
convicted had possessed  a  valid  license  or  registration  which  had
expired  and was subsequently renewed), or during a period of revocation
or  suspension thereof, or in violation of the limitations applicable to
a license issued pursuant to article twenty-one or article  twenty-one-A
of the vehicle and traffic law; or
(vii) operating a motor vehicle while seeking to avoid apprehension or
arrest by a law enforcement officer; or
(viii)  filing  or attempting to file a false or fraudulent automobile
insurance claim, or knowingly  aiding  or  abetting  in  the  filing  or
attempted filing of any such claim; or
(ix) leaving the scene of an incident without reporting; or
(x)  filing a false document with the department of motor vehicles, or
using a license or registration obtained by filing a false document with
the department of motor vehicles; or
(xi) operating a motor vehicle in a race or speed test; or
(xii) knowingly permitting or  authorizing  an  unlicensed  driver  to
operate a motor vehicle insured under the policy.
(B)  Where  a  named  insured or any other person who operates a motor
vehicle insured under the policy  is  individually  or  are  aggregately
involved  in  three  or  more  vehicle accidents while operating a motor
vehicle insured under the policy, resulting in either  personal  injury,
or  in property damage in excess of two hundred dollars. For the purpose
of this paragraph any of the following  occurrences  involving  a  motor
vehicle  operated  by  a named insured or such other person shall not be
considered an accident:
(i) such motor vehicle was struck in rear; or
(ii) such motor vehicle was struck while legally parked; or
(iii) only the operator of  another  motor  vehicle  involved  in  the
accident  was convicted of a crime, offense or violation contributing to
the accident; or
(iv) the named insured or other operator of the motor vehicle  insured
under the policy, or the insurer thereof, was reimbursed by or on behalf
of  a person responsible for the accident or has a judgment against such
person.
Where more than one motor vehicle in a household  is  insured  by  the
same  insurer,  the  number  of accidents which would permit conditional
renewal or non-renewal shall, as for the aggregate, be increased by  two
for  each  additional  motor  vehicle  insured. For the purposes of this
paragraph accidents occurring as a result of the use or operation  of  a
motor  vehicle  in  response  to  an  emergency,  where the operator was
responding to a call of duty as a paid or volunteer member of any police
or fire department, first aid squad, or of any law  enforcement  agency;
or was performing any other governmental function in a public emergency,
shall not be accidents which afford an insurer the right to cancel or to
refuse to renew.
(C)  Where  there  is  a  material change in the type of motor vehicle
insured which so substantially increases the hazard insured  against  as
to render the motor vehicle uninsurable in accordance with the insurer's
objective,  uniformly  applied  underwriting  standards in effect at the
time the policy was issued or last voluntarily  renewed  and  which  are
currently  in  effect;  provided,  however,  that  if  the insured motor
vehicle is uninsurable for physical damage coverages only,  the  insurer
must offer to renew the policy without the physical damage coverages.
(D)  Where  such  other  objective,  uniformly  applied  standards for
cancellation or non-renewal exists, as may be prescribed  by  regulation
promulgated by the superintendent.
* (n)  Notice  of  cancellation/real  property  escrow  accounts. With
respect to all covered policies for which the insurer submits bills  for
real  property  insurance  premiums  directly  to  a  mortgage investing
institution, or such other institution or agent as designated in writing
by  the  mortgage investing institution, under a real property insurance
escrow account, the insurer must send copies of a notice of cancellation
for nonpayment of premiums to both (i) the insured mortgagor of the real
property and (ii) the mortgage  investing  institution,  or  such  other
designated  institution  or  agent.  Failure to send this notice to both
parties in paragraph (i) and paragraph (ii) shall render the  notice  of
no force and effect.
* NB There are 2 sb§(n)'s
* (n) Withdrawal from writing automobile and homeowners' insurance. In
the  event  of  a  determination by the superintendent that an insurer's
elimination of premium installment plans, reduction  in  commission,  or
any other marketing action was implemented to effectuate a withdrawal or
substantial withdrawal from writing automobile insurance:
(1)  an  agent  shall  be permitted to terminate its contract with the
insurer, or that portion of the contract authorizing the agent to accept
automobile insurance, and the insurer shall be required  to  accept  new
business  and  issue  renewals  in  accordance  with  paragraph  one  of
subsection (j) of this section;
(2) notwithstanding the provisions of subparagraph  (D)  of  paragraph
one  of  subsection  (j)  of  this section, where an agent's contract is
terminated  or  a  portion  thereof  is  terminated  pursuant  to   this
subsection,  commissions  for  automobile insurance shall be paid at the
rate in effect applicable to the agent for the longest  duration  during
the  twelve-month  period  immediately  preceding  the  action  which is
determined by the superintendent to have been implemented to  effectuate
a   withdrawal   or   substantial  withdrawal  from  writing  automobile
insurance;
(3) premium payment installment  options  shall  be  maintained  in  a
manner  substantially  similar  to  options  offered  by  the automobile
insurance plan established  pursuant  to  article  fifty-three  of  this
chapter;
(4)  paragraphs  one  and two of this subsection shall not apply to an
agent who agrees to  represent  exclusively  one  insurer  or  group  of
insurers; and
(5)  with  respect  to  homeowners'  insurance,  in  the event that an
insurer intends to materially reduce  the  volume  of  policies  written
pursuant  to  paragraph  two  of  subsection  (o)  of  this section, any
commissions payable pursuant to an agent contract shall be mandatory for
an additional one year period beyond  the  completion  of  the  required
policy  period  specified  in  paragraph seven of subsection (a) of this
section. The provisions of this paragraph shall not  apply  to  policies
cancelled  or  nonrenewed  by  the  insured  or  policies not renewed or
cancelled pursuant  to  subparagraph  (A),  (B),  (C),  (D)  or  (E)  of
paragraph two of subsection (c) of this section.
* NB There are 2 sb§(n)'s
(o)  (1)  An  insurer  that intends to materially reduce its volume of
policies  written,  covered  by  this  section,  shall  submit  to   the
superintendent,  at  least  thirty  days in advance of implementing such
actions,  a  plan  for  orderly  reduction  that:  (i)   describes   the
contemplated  actions;  (ii)  sets  forth  the reasons for such actions;
(iii) describes the measures such insurer intends to take  in  order  to
minimize  market disruption; and (iv) provides such other information as
the superintendent may require.
(2) (A) An  insurer  that  writes  homeowners  insurance  policies  as
defined  in  subsection  (a)  of  section  two  thousand  three  hundred
fifty-one of this chapter, who intends to materially reduce  its  volume
of  such  policies written, shall submit to the superintendent, at least
sixty  days  in  advance  of  implementing  such actions, a plan for the
orderly reduction of the number of policies written.  Such  plan  shall:
(i)  describe  the  contemplated actions; (ii) set forth the reasons for
such actions; (iii) describe the measures such insurer intends  to  take
in  order  to  minimize  market  disruption; and (iv) provide such other
information as the superintendent may require.
(B) The superintendent after receiving such  plan  shall  have  thirty
days  in  which to approve it or disapprove it. The superintendent shall
approve such plan if  the  applicant  demonstrates  that  such  material
reduction  is  accomplished in a manner that minimizes market disruption
in areas of material reduction. In the review  of  each  plan  submitted
prior  to  the  submission of the report required by subparagraph (E) of
this paragraph, the  superintendent  shall  assess  the  impact  of  the
planned  withdrawal  in the counties of Nassau and Suffolk; areas within
one mile of a saltwater shoreline, canal  or  bay  in  the  counties  of
Queens,  Kings, Richmond, Bronx or Westchester; and areas where policies
issued by the New York property insurance underwriting association  have
increased  by  an  amount deemed significant by the superintendent since
January first, nineteen hundred ninety-two. For plans  filed  subsequent
to  the  submission  of  the report required by subparagraph (E) of this
paragraph, the superintendent shall assess the  impact  of  the  planned
withdrawal  on such areas as the superintendent may identify pursuant to
subparagraph (E) of this paragraph.   In the  event  that  the  plan  is
disapproved, the superintendent shall state the points of objection with
such  plan  and  any amendments to such plan that the superintendent may
require consistent with the provisions of this section,  including,  but
not   limited  to,  amendments  designed  to  accomplish  such  material
reduction in a manner that  minimizes  market  disruption.  The  insurer
shall  file an amended plan within fifteen days from the date of return.
Any intended withdrawal pursuant to the plan is  prohibited  until  such
time   as   the  original  or  any  amended  plan  is  approved  by  the
superintendent.
(C) The superintendent  shall  promulgate  rules  and  regulations  to
establish  standards for the definition of "materially reduce its volume
of policies" as used in this paragraph. Such  definition  shall  require
that  a  plan  be  filed with the superintendent if the insurer plans to
reduce the net number of homeowners insurance  policies  as  defined  in
subsection (a) of section twenty-three hundred fifty-one of this chapter
by  twenty  percent  or  more, or plans to reduce the net number of such
policies it writes by five hundred, whichever is greater, within a  five
year  period  of  time;  provided,  however,  that  if an insurer is not
otherwise required to file a plan pursuant to this subparagraph, a  plan
shall  be  filed  if  the insurer plans to reduce the net number of such
policies it has in force in a twelve month period  by  four  percent  or
more  or  the  net  number  of  such  policies it writes by one hundred,
whichever is greater.
The provisions of  this  subparagraph  shall  not  apply  to  policies
cancelled  or  nonrenewed  by  the  insured  or  policies not renewed or
cancelled pursuant  to  subparagraph  (A),  (B),  (C),  (D)  or  (E)  of
paragraph two of subsection (c) of this section.
(D)  The  superintendent  shall  promulgate  rules  and regulations to
establish standards  to  approve  such  an  application  and  to  define
"minimizes market disruption."
(E)  The  superintendent  shall conduct a study of market dynamics and
homeowners insurance policies written as defined in  subsection  (a)  of
section  twenty-three  hundred  fifty-one  of this chapter, cancelled or
nonrenewed in geographic regions as he  designates,  including  but  not
limited  to  coastal  regions,  urban  regions and rural areas and shall
report such findings to  the  governor  and  legislature  on  or  before
February fifteenth, nineteen hundred ninety-eight.
(p)  Notwithstanding the provisions and limitations of this section or
any other provision of law, the superintendent may, for a stated  period
not  to  exceed  three  months  (which the superintendent may thereafter
extend another three months), declare  a  moratorium  precluding  policy
termination,   or   suspend  or  otherwise  adjust  the  provisions  and
limitations of this section, for any area of the  state  that  has  been
declared  by the president of the United States or by the governor to be
in a state of emergency due to disaster or catastrophe.
(q)(1) Notwithstanding any other provision of this section, a  covered
policy  shall  not  be subject to a required policy period if the policy
is:
(A) a policy issued to an insured for a seasonal purpose;
(B) a policy issued to cover a specific event  or  particular  project
that will be performed in less than one year;
(C)  a new policy where the specific term is made to coincide with the
term of an insured's already  existing  covered  policy  with  the  same
insurer;  with any insurer, at the insured's written request; or, in the
case of a personal umbrella policy, with  different  insurers.  The  new
policy  shall  have  the  same  required  policy  period  as that of the
existing policy, except where one  policy  is  an  automobile  insurance
policy and the other policy is a personal lines insurance policy; or
(D) a new policy issued pursuant to a mass merchandising program where
the  specific  term  is  made  to  coincide  with  the term of all other
policies in the program.
(2) In regard to a policy subject to  subparagraphs  (A)  and  (B)  of
paragraph  one  of this subsection, the insurer shall not be required to
give the  notice  of  nonrenewal  or  conditional  renewal  required  by
subsection (d) of this section if:
(A) the policy provides coverage for sixty days or less;
(B) the policy contains a prominent and explicit notice of expiration,
specifying the date the policy will expire and stating that no notice of
nonrenewal will be issued; and
(C)  the  policy  is accompanied by a conspicuous notice in bold type,
explaining that the policy provides short-term coverage for  the  policy
period as specified on the declarations page.
(3)  Subsection  (f)  of this section shall not apply to an automobile
insurance policy subject to subparagraphs (A) and (B) of  paragraph  one
of this subsection.
(r)  An  insurer  that has no more than seven hundred fifty automobile
insurance policies in-force at last year-end and  intends  to  non-renew
all  of  the  policies shall submit to the superintendent a plan for the
orderly nonrenewal of the policies. The proposed plan shall  not  become
effective without the approval of the superintendent. The plan shall:
(1) describe the contemplated action;
(2) set forth the reasons for the action;
(3)  describe  the  measures  the  insurer  will  take or has taken to
minimize market disruption as  set  forth  in  subsection  (o)  of  this
section;
(4)  explain  why the action would not be detrimental to the interests
of the people of this state; and
(5) provide any other information as the superintendent may require.
(s) With respect to automobile insurance, no insurer shall  refuse  to
issue  or  renew  a  covered individually-owned private passenger policy
solely on the ground that the motor vehicle to  be  insured  under  such
policy shall be used for volunteer firefighting.