reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter V - Rates And Rating Organizations › Subchapter G - Noncommercial Automobile Insurance Rates For Inexperienced Operators › Part 168 - Noncommercial Private Passenger Automobile Insurance Rates For Inexperienced Principal Operators › Section 168.2 - Procedures

Current through Register Vol. 46, No. 28, July 10, 2024
The following procedures shall be applicable to all rates
					 subject to the provisions of section 2332  of the Insurance Law:
(a) Insurers shall establish separate
				  classifications for those principal operators licensed less than three years
				  (inexperienced operators) and those licensed three or more years (experienced
				  operators). Insurers shall maintain statistics by principal operator, for each
				  of the first three years of licensing, and for those licensed three or more
				  years. These statistics shall be coded separately for youthful and adult driver
				  classifications.
(b) Until insurers
				  develop reliable statistics, the rate differential for inexperienced operators
				  who have no chargeable accidents under any merit rating plan shall be at least
				  20 percent greater than for experienced operators, for each of the first three
				  years of experience. There shall be an actuarially equivalent decrease in the
				  rates charged experienced operators. Insurers shall demonstrate that their
				  overall premium income will not be increased solely as a result of these
				  changes in differentials. When an insurer develops reliable statistics, it may
				  file for a differential which is more appropriate for its book of
				  business.
(c) Since primary
				  differentials for youthful male or female operators in large part reflect the
				  same hazard potential as the inexperienced operator differential, an insurer
				  must show that it has made appropriate reductions, if necessary, in these
				  primary differentials. For example, where an insurer uses a classification for
				  drivers under 20 or 21 years of age, differentials for such drivers shall be
				  reduced by an amount actuarially equivalent to the inexperienced operator
				  surcharge which would normally apply, unless the insurer can demonstrate that
				  such a procedure is inappropriate for its insureds. Youthful accident-free
				  experienced operators (i.e., those licensed three or more years) should
				  normally receive a rate reduction.
(d) An insurer may utilize an inexperienced
				  operator surcharge for a longer period than three years.
(e) Filings containing variations in
				  inexperienced/experienced operator differentials by territory or class will be
				  considered only if they are accompanied by appropriate statistical
				  support.
(f) The foregoing
				  procedures do not apply to the New York Automobile Insurance Plan, which has
				  for some years maintained, and is required to continue to maintain, a
				  differential for inexperienced/experienced drivers based upon the loss
				  experience in the plan.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter V - Rates And Rating Organizations › Subchapter H - Noncommercial Insurance Merit Rating Plans › Part 169 - Noncommercial Motor Vehicle Insurance Merit Rating Plans › Section 169.0 - Preamble

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In order to
				  achieve greater rating equity among noncommercial motor vehicle insureds, merit
				  rating plans were introduced in New York. These plans are systems of rules,
				  varying by company, for imposing insurance rate surcharges and credits, based
				  upon an individual's past accident or violation record. Such plans, under
				  various names, are now in use by virtually all noncommercial motor vehicle
				  insurers in New York, although there is no statutory or regulatory requirement
				  for insurers to utilize such plans.
(b) Chapter 70 of the Laws of 1980, among
				  other things, required the Superintendent of Insurance to report to the
				  Legislature and Governor by February 1, 1981 on the advisability of a uniform
				  merit rating plan. The superintendent's report recommended that a variety of
				  merit rating plans be permitted, subject to legislative and regulatory
				  guidelines. The Legislature then enacted chapter 551 of the Laws of 1981, which
				  added a new subdivision 4 to section 183-a, now section 2334  of the Insurance Law, requiring the
				  superintendent to promulgate a regulation, after a public hearing, applicable
				  to all noncommercial motor vehicle merit rating plans.
(c) The large diversity among merit rating
				  plans, encouraged by the competitive rating statute, appears to be due to
				  independent assessments by insurers of the circumstances which indicate that a
				  driver may be more likely to be involved in future accidents. The differences
				  among these plans illustrate that there is no known "best" plan or even a list
				  of "best" features from the various plans. Insurance Law, section
				  2334 recognizes the value of competition as
				  a source for innovation and experimentation in the search for "better" merit
				  rating plans. The statute provides that the regulation:
(1) "shall continue to encourage competition
				  among insurers, but shall discourage merit rating plan provisions which may
				  tend to create confusion or misunderstanding among insureds"; and
(2) "shall establish standards and
				  limitations intended to assure that merit rating plans are reasonable,
				  understandable and objective and are not unfairly discriminatory, inequitable,
				  violative of public policy or otherwise contrary to the best interests of the
				  people of this State."
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 171 - Investment In Stock Of Federal National Mortgage Association By Title Insurance Corporations › Section 171.1 - Authorization of investment

Current through Register Vol. 46, No. 28, July 10, 2024
Any title insurance corporation as defined in section 6403 (b)(5)  of the
				  Insurance Law, may invest in and hold the stock of The Federal National
				  Mortgage Association which it has acquired pursuant to the Federal National
				  Mortgage Association Charter Act, in connection with the sale of mortgages by
				  the insurance corporation to the association. No such title insurance
				  corporation shall have more than five percent of its total admitted assets,
				  computed as of the 31st day of December next preceding, invested in the stock
				  of the Federal National Mortgage Association.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 172 - Fraternal Benefit Societies: Investment In Real Estate › Section 172.1 - Interpretation of insurance law

Current through Register Vol. 46, No. 28, July 10, 2024
Pursuant to subsection (b) of section 4525 and to sections 1403 and
				  1404  of the Insurance Law, any fraternal
				  benefit society may invest its admitted assets in real or personal property to
				  be deemed a part of its admitted assets, to the extent permitted and within the
				  limitations imposed by section 1404(a)(5) and may continue to hold as an
				  admitted asset only such real or personal property, heretofore acquired by it,
				  as conforms to the requirements and limitations of said paragraph (5). All
				  other real or personal property lawfully acquired, held or maintained by any
				  such society shall be acquired and maintained only out of the general or
				  expense fund of such society, any voluntary contributions which it may receive
				  therefor, and such reasonable charges as may be made for the facilities or
				  services furnished thereby. Section 1404(a)(5)(A)(ii) is hereby so construed as
				  to include only real property requisite for its convenient accommodation in the
				  transaction of its insurance business. To the extent that section 4514(g)
				  conflicts with subsection (b) of section 4525  of the Insurance Law, it is hereby
				  declared that the foregoing is the correct interpretation of the Insurance
				  Law.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 176 - Investments In "medium Grade" And "lower Grade" Obligations By Domestic Life Insurers › Section 176.1 - Purposes

Current through Register Vol. 46, No. 28, July 10, 2024
The purposes of this Part are:
(a) to protect the interests of the life
				insurance-buying public by establishing limitations on the concentration of
				medium grade and lower grade obligations in which a domestic life insurer can
				invest; and
(b) to implement the
				Insurance Law of New York by regulating the acts and practices of domestic life
				insurers with respect to the concentration of investments in medium grade and
				lower grade obligations.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 176 - Investments In "medium Grade" And "lower Grade" Obligations By Domestic Life Insurers › Section 176.3 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part:
(a) Medium grade obligations means
				obligations rated three by the Securities Valuation Office of the National
				Association of Insurance Commissioners;
(b) Lower grade obligations means obligations
				rated four, five or six by the Securities Valuation Office of the National
				Association of Insurance Commissioners;
(c) Admitted assets means the amount thereof
				as of the last day of the most recently concluded annual statement year,
				computed in the same manner as "admitted assets" in section 1405  of the Insurance Law.
(d) Aggregate amount of medium grade and
				lower grade obligations means the aggregate statutory statement value
				thereof.
(e) Institution means a
				corporation, a joint-stock company, an association, a trust, a business
				partnership, a business joint venture or similar entity.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.0 - Purposes

Current through Register Vol. 46, No. 28, July 10, 2024
The purposes of this Part, with respect to derivative
				  instruments used to engage in hedging, replication and certain limited income
				  generation transactions, authorized pursuant to section 1410  of the Insurance Law, are to:
(a) define certain terms;
(b) establish the content of the derivative
				use plan to be submitted by an insurer to the superintendent;
(c) establish effective management oversight
				standards, including quarterly reporting to the board of directors or a
				committee thereof charged with the responsibility for supervising
				investments;
(d) require that the
				insurer establish adequate systems of internal control and reporting to ensure
				that derivative transactions are properly supervised and that transactions are
				in accordance with the insurer' s authorized policies and procedures;
(e) establish documentation and reporting
				requirements; and
(f) establish
				appropriate accounting standards.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.1 - Applicability

Current through Register Vol. 46, No. 28, July 10, 2024
(a) This Part
				applies to all domestic and foreign life, property/casualty, reciprocal,
				mortgage guaranty, co-operative property/casualty and financial guaranty
				insurers. In addition, this Part applies to foreign fraternal benefit societies
				and accredited reinsurers. The applicability of this Part to foreign insurers,
				to foreign fraternal benefit societies and to accredited reinsurers is based
				upon the provisions of section 1410 (k)  of the Insurance
				Law.
(b) No insurer subject to this
				Part shall enter into derivative transactions, except in accordance with the
				provisions of this Part.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Admitted assets
				means the assets, as shown on the insurer's last annual statement filed with
				the superintendent, which conform to the requirements of section 1301 
				of the Insurance Law, except that a life insurer shall include assets held in
				separate accounts established under section 4240  of the Insurance Law to the extent of
				amounts allocated to such separate accounts pursuant to section 4240 (a)(3)  of the
				Insurance Law, and shall exclude investments in subsidiaries referred to in
				section 1704 (c)  of the Insurance
				Law.
(b) Aggregate statement value
				means the sum of the statement values of individual derivative instruments. In
				calculating this sum an insurer shall assign absolute values to negative
				values.
(c) Basis risk means the
				exposure to loss from imperfectly matched offsetting positions in related but
				not identical markets.
(d) Credit
				risk means the exposure to loss as a result of default or a decline in market
				value stemming from a credit downgrade of a counterparty.
(e) Counterparty exposure amount means the
				net amount of credit risk attributable to a derivative instrument entered into
				with a business entity other than a national securities exchange or board of
				trade regulated under the laws of the United States:
(1) For an over-the-counter derivative
				instrument not entered into under or subject to a written master agreement
				which provides for netting of payments owed by the respective parties:
(i) the market value of the over-the-counter
				derivative instrument if the liquidation of the derivative instrument would
				result in a final cash payment to the insurer; or
(ii) zero if the liquidation of the
				derivative instrument would not result in a final cash payment to the
				insurer.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.3 - Derivative use plan

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
(1) The insurer shall submit a derivative use
				plan, or amendment thereto, to the superintendent for prior approval. The
				derivative use plan or the amendment thereto will be referred to as "the plan"
				hereinafter. The filing shall include a certified copy of the authorization by
				the insurer's board of directors, or a committee thereof charged with the
				responsibility for supervising investments, pursuant to section 1410 (b)(3)(A)  of the
				Insurance Law. When submitting its plan, the insurer shall also provide to the
				superintendent:
(i) in the event the plan is
				adopted by a committee of the insurer's board of directors, information with
				respect to the composition, in terms of title and position, of such committee;
				and
(ii) the name and title of the
				senior most investment person responsible for derivative transactions; a
				description of his or her duties and responsibilities, as well as a curriculum
				vitae or equivalent document.
Such information shall be updated and provided to the
				  superintendent as changes occur. The superintendent shall, in writing, either
				  approve the plan, request any additional information needed to approve the plan
				  or deny the plan within ninety days of receipt of the plan; otherwise the plan
				  shall be deemed approved.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.4 - Management oversight standards

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In order to address the need for
				appropriate oversight by senior management and by the board of directors, or a
				committee thereof charged with the responsibility for supervising investments,
				and to provide for a comprehensive risk management process for derivative
				instruments, an insurer shall establish the following with respect to
				derivative transactions:
(1) appropriate
				limits for various identified risks relevant to the derivative transactions
				used by the insurer;
(2) procedures
				and practices that control the nature and amount of such risks;
(3) adequate systems or processes for
				identifying and measuring such risks;
(4) systems or processes for documenting,
				monitoring and reporting risk exposures on a timely basis; and
(5) systems or processes of internal review
				and audit to ensure the integrity of the overall risk management
				process.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.5 - Internal controls and reporting

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Before engaging in derivative
				transactions, an insurer shall establish adequate internal control procedures
				to deal with derivatives, which shall include but not be limited to:
(1) systems or processes for periodic
				valuation of derivative transactions including mechanisms for compensating for
				any lack of independence in valuing trading positions;
(2) systems or processes for determining
				whether a derivative instrument used for hedging has been effective;
(3) credit risk management systems or
				processes for over-the-counter derivative transactions that measure credit risk
				exposure using the counterparty exposure amount and clearly articulated
				policies for the establishment of collateral arrangements with
				counterparties;
(4) a determination
				of whether the insurer has adequate professional personnel, technical expertise
				and systems to implement and control investment practices involving
				derivatives;
(5) systems or
				processes for regular reports to management, segregation of duties and internal
				review procedures; and
(6) systems
				or procedures for conducting initial and ongoing legal review of derivative
				transactions including assessments of contract enforceability.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.6 - Documentation and reporting requirements

Current through Register Vol. 46, No. 28, July 10, 2024
In accordance with Part 243 of this Title (Regulation 152),
				  the insurer shall maintain documentation and records relating to each
				  derivative transaction including:
(a)
				the purpose or purposes of the transaction;
(b) the assets or liabilities (or portfolios
				thereof) to which the transaction relates;
(c) the specific derivative instruments used
				in the transaction;
(d) for
				over-the-counter derivative transactions, the name of the counterparty, and
				counterparty exposure amount; and
(e) for exchange-traded derivative
				instruments, the name of the exchange and the name of the firm handling the
				trade.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.7 - Accounting standards

Current through Register Vol. 46, No. 28, July 10, 2024
An insurer shall account for and report derivative
				  transactions in statements filed pursuant to sections 307 (a) and
				  308 (b)  of the Insurance
				  Law.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 178 - DERIVATIVE TRANSACTIONS › Section 178.8 - Exception from disclosure

Current through Register Vol. 46, No. 28, July 10, 2024
If an insurer submitting information under this Part deems
				  such information to be a trade or business secret or which if disclosed would
				  cause substantial injury to the competitive position of the insurer, it may, at
				  the time the information is submitted to the superintendent request that the
				  superintendent except such information from disclosure. Such request shall be
				  determined in accordance with the procedures set forth in section 89 (5)  of the Public Officers
				  Law and Part 241 of this Title (Regulation 71).
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For the purpose of this Part:
(a) Credit accident and health insurance
				means insurance on a debtor in connection with a specific loan or other credit
				transaction in this State to provide indemnity to the creditor for installment
				payments on the indebtedness becoming due while the debtor is
				disabled.
(b) Credit insurance, as
				referred to in sections 3201 (b)(4), 4216 (b)(3) and
				4235 (c)(1)(E)  of the
				Insurance Law means credit life insurance and/or credit accident and health
				insurance.
(c) Credit life
				insurance means insurance on the life of a debtor in connection with a specific
				loan or other credit transaction in this State to provide payment to a creditor
				in the event of the death of the debtor.
(d) Credit transactions secured by real
				estate mortgages shall include first mortgage loans, second or junior mortgage
				loans and home equity loans as defined in this subdivision:
(1) First mortgage loan means a loan made to
				a natural person or persons and secured by a first lien on real estate, or by a
				first lien on a proprietary lease to a dwelling unit in a housing cooperative
				and on the share(s) of stock or other interest in such housing cooperative
				allocable to such dwelling unit.
(2) Second or junior mortgage loan means a
				loan to a natural person or persons and subject to the lien of one or more
				prior mortgages on real estate, or on a proprietary lease to a dwelling unit in
				a housing cooperative and on the share(s) of stock or other interest in such
				housing cooperative allocable to such dwelling unit.
(3) Home equity loan means any loan to a
				natural person or persons, secured by either a first mortgage or a second or
				junior mortgage, and where the proceeds are not used to acquire title to the
				real estate or ownership interest in the proprietary lease to a dwelling unit
				in a housing cooperative and on the share(s) of stock or other interest in a
				housing cooperative allocable to such dwelling unit.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.2 - Existing insurance, choice of insurer

Current through Register Vol. 46, No. 28, July 10, 2024
When life insurance or accident and health insurance is
				  required by a creditor, the debtor shall have the option, upon notice to the
				  creditor, of furnishing existing policies of insurance, or procuring and
				  furnishing new policies of insurance, owned or controlled by the debtor and
				  issued by any insurer authorized to transact an insurance business in this
				  State for an amount not less than the indebtedness and for a term not less than
				  the term of the loan. Any such policy furnished by the debtor shall not be
				  subject to this Part, unless procured through or administered by the creditor
				  or an agent or broker designated by or associated with the creditor. Insurers
				  writing credit life insurance and credit accident and health insurance shall be
				  responsible for establishment of procedures by which debtors are furnished a
				  prominent written notice informing them of said option.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.3 - Filing and approval of forms and premium rates

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Policies of credit life insurance or
				credit accident and health insurance, and certificates of group insurance,
				applications for the policy, applications for the certificate, notices of
				proposed group insurance, or other forms pertaining to credit life insurance or
				credit accident and health insurance and those portions of loan applications or
				credit card applications form pertaining to credit life insurance or credit
				accident and health insurance shall not be issued or delivered in this State
				unless such forms and the premium rates and identifiable charges therefor have
				been filed with the superintendent. The submission of language related to the
				request for insurance and any questions regarding eligibility for coverage in
				an application may be made in variable language format.
(b) If a group policy of credit life
				insurance or credit accident and health insurance has been or is delivered in
				another state before or after the effective date of this Part, the insurer
				shall be required to file the certificate of group insurance, notice of
				proposed group insurance, if any, to be delivered or issued for delivery in
				this State as specified in section
				185.5(c)
				and (d)  of this Part (together with its
				certification that the provisions of said group policy are consistent or shall
				be made consistent with the provisions of said certificate or notice of
				proposed group insurance) and such forms shall be approved if:
(1) they conform to the requirements
				specified in section
				185.5(c)
				and (d)  of this Part; and
(2) the schedules of premium rates applicable
				to the insurance evidenced by such certificate or notice are not in excess of
				the insurer's schedules of premium rates on file with and approved by the
				superintendent.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.4 - Forms of credit life insurance and credit accident and health insurance

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Credit life
				insurance and credit accident and health insurance policies which provide
				benefits differing in kind or character from those set forth in paragraphs (1)
				through (3) of this subdivision shall be deemed not to conform with section 3201 (b)  of the Insurance
				Law:
(1) individual policies of credit life
				insurance issued to debtors on the term plan;
(2) group policies of credit life insurance
				issued to creditors providing insurance upon the lives of debtors on the term
				plan which may include disability benefits commonly described as waiver of
				premiums, extended death benefit or total and permanent disability benefits,
				provided such additional disability and death benefits are provided at no
				additional charge to the debtor. The provisions of this paragraph pertaining to
				disability benefits shall not be deemed to preclude the continued issuance of
				disability benefits on debtors in this State, on a basis other than that
				specified herein, under a group policy of credit life insurance delivered
				outside this State and in force prior to October 1, 1958; provided, however,
				that issuance of such other disability benefits was permitted under the laws of
				the state in which such policy was delivered; and
(3) individual policies of credit accident
				and health insurance issued to debtors and group policies of credit accident
				and health insurance issued to creditors, in either case on a term plan
				providing:
(i) periodic benefits payable on
				any one of the following plans:
(a) after the
				14th day of disability due to sickness or accident and retroactive to the first
				day of such disability;
(b) after
				the 14th day of disability due to sickness or accident;
(c) after the 30th day of disability due to
				sickness or accident and retroactive to the first day of such disability;
				or
(d) after the 30th day of
				disability due to sickness or accident;
(ii) lump sum benefits payable where the
				coverage is on open-end loans or charge plans and the maximum amount of
				insurance does not exceed $2,500 after the 90th day of disability due to
				sickness or accident; and
(iii) any
				other plan approved by the superintendent.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.6 - Amount and term of credit life insurance and credit accident and health insurance

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				amount of credit life insurance is limited as follows:
(1) The amount of insurance on any person
				insured under a policy shall not at any time exceed, but may be less than:
(i) in all cases, except as hereinafter
				provided, the lesser of any statutory limit or the greater of the actual amount
				of unpaid net indebtedness and the scheduled amount of the unpaid net
				indebtedness.
(ii) in the case of a
				loan commitment pursuant to a program for defraying the cost of attendance of a
				student at a college or university or at an elementary or secondary school, the
				lesser of any statutory limit and the total of the unpaid balance of the
				scheduled periodic payments, whether due or not due, and the amount of any
				outstanding loan commitment pursuant to such a program;
(iii) in the case of a transaction secured by
				a real estate mortgage, the lesser of any statutory limit and the amount of the
				indebtedness so secured;
(iv) with
				respect to loans made by production credit associations organized pursuant to
				the Farm Credit Act of 1933,  12 U.S.C.A. sections 2001  et seq., as amended, and
				with respect to loans made by a bank, trust company or industrial bank to a
				borrower engaged in the business of farming, crop production or the raising,
				breeding, fattening or marketing of livestock for the purposes of such business
				and other requirements of the borrower, the amount of insurance may exceed the
				unpaid indebtedness but shall not exceed the greater of the loan commitment or
				the outstanding balance of the loan at the inception of the period for which
				the borrower is insured; or
(v)
				with respect to loans made by farm credit banks organized pursuant to the
				Federal Farm Loan Act,  12 U.S.C.A. sections 2011  et seq., as amended, the
				amount of insurance on any person insured under the policy shall not at any
				time exceed the amount of unpaid indebtedness at the inception of the period
				for which premiums are paid, but is not otherwise limited.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.7 - Premiums and identifiable charges

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Premium rates in connection with any
				indebtedness where there are no identifiable charges to the debtor will be
				considered not unreasonable in relation to the benefits provided.
(b)
Prima facie
identifiable
				charges are as given in or derived from information provided in subdivisions
				(d) through (h) of this section. The actual rates to be charged any account in
				each experience unit, as defined in subdivision (i) of this section, shall be
				based upon the procedures as outlined in subdivisions (j) through (l) of this
				section. If not in excess of the standards of this section, proposed premium
				rates or identifiable charges to debtors or creditors for:
(1) credit insurance provided by a group term
				policy; or
(2) credit insurance
				provided by individual term policies distributed on a mass merchandising basis
				and administered by group type methods;
shall be considered not unreasonable in relation to the
				  benefits provided.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.8 - Premium refunds

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each
				individual policy of credit life insurance and credit accident and health
				insurance on which the premium is paid by the debtor and each group certificate
				or statement of group insurance for which an identifiable charge is made to the
				debtor shall provide that, in the event of termination of the insurance prior
				to the scheduled maturity date of the indebtedness, any refund of premium or
				identifiable charge due shall be paid or credited promptly to the
				debtor.
(b) If a creditor requires
				a debtor to pay the premium or an identifiable charge for credit life insurance
				and credit accident and health insurance and such insurance is declined by the
				insurer or otherwise does not become effective, the insurer or creditor shall
				immediately give written notice to such debtor and shall promptly arrange for
				refund or credit to the debtor of any premium or identifiable charge so paid
				for such insurance.
(c) In the case
				of credit life or accident and health insurance, a refund of premium or
				identifiable charge shall be made for any portion of premium or charge actually
				charged to the debtor which provides coverage for any period of insurance
				ending beyond any one of the following:
(1)
				the date on which termination of insurance becomes effective;
(2) in the case of monthly installment, the
				installment due date nearest the date of termination;
(3) the date based on a procedure allowed by
				the Banking Law and used for determining any unearned interest on the loan;
				or
(4) the date based on any other
				procedure filed by the insurer and approved by the superintendent.
Termination shall include termination for any reason, except
				  death in the case of credit life insurance where the premium has been
				  discounted for mortality as described in section
				  185.7(c)(4)(i) 
				  of this Part. For each period of insurance for which a refund is due, such
				  refund shall be equal to the premium for the portion of the period of insurance
				  after the termination date. The premium for each such period of insurance shall
				  be calculated using the same assumptions that were used to calculate the
				  premium or identifiable charge. Each insurer shall file for approval and
				  include in the policy appropriate formulas and/or factors for refund, or
				  reference to such formulas and/or factors as are on file with the
				  superintendent. No refund or credit is required if the amount is less than one
				  dollar.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.9 - Commissions and fees or other allowances

Current through Register Vol. 46, No. 28, July 10, 2024
(a) An insurer issuing group credit life and
				group credit accident and health insurance policies may pay commissions on said
				business only to the insurance agent or broker who solicits the master group
				policy and/or is designated the agent or broker of record. The general agent or
				agent or broker of record may not be:
(1) the
				policyholder or any of its employees, officers or directors;
(2) a trustee, trustees or agent or any of
				their employees, officers or directors, in the event that a group credit
				insurance policy is issued to a trustee, trustees or agent designated by two or
				more creditors or vendors; or
(3)
				the creditor or vendor member of a trust or agency or any of its employees,
				officers or directors.
The aforesaid general agent or agent or broker of record may
				  share commissions only with another agent or broker who aids in the
				  solicitation of the master policy but in no event, either directly or
				  indirectly, with any of the above enumerated parties.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.10 - Dividends, retrospective rate credits and retrospective premiums

Current through Register Vol. 46, No. 28, July 10, 2024
(a) For the
				purposes of this section, the following definitions apply:
(1) A retrospective rate credit or
				retrospective rate refund is an amount payable under nonparticipating group
				policies. It reflects the difference between the premium charged and the actual
				experience as calculated at the end of the policy year based upon a formula
				approved by the board of directors. It is analogous to a dividend payable to a
				participating group policyholder.
(2) A deposit premium is the scheduled
				premium paid by the creditor during the policy year before the determination of
				the retrospective premium.
(3)
				Standard premium is the maximum premium calculated in accordance with the
				provisions of section
				185.7 
				of this Part.
(4) A retrospective
				premium is the premium calculated at the end of the policy year based upon a
				formula and factors stated in the policy and the actual incurred
				losses.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.11 - Payment of claims

Current through Register Vol. 46, No. 28, July 10, 2024
(a) All claims
				shall be promptly reported to the insurer or its designated claim
				representative, and the insurer shall maintain adequate claim files. All claims
				shall be settled as soon as possible and in accordance with the terms of the
				insurance contract.
(b) All claims
				shall be paid either by draft drawn upon the insurer, by the insurer or its
				claim representative, payable to the individual or firm to whom payment of the
				claim is due or, upon direction of such individual or firm, to a person
				designated by such individual or firm.
(c) No plan or arrangement shall be used
				whereby any person, firm or corporation, other than the insurer or its
				designated claim representative, shall be authorized to settle or adjust
				claims. The creditor shall not be designated as claim representative for the
				insurer in adjusting claims; provided, that a group policyholder may, by
				arrangement with the insurer, draw drafts in payment of claims due to the group
				policyholder subject to audit and review by the insurer. The insurer shall make
				periodic audits of claim payments made on its behalf by claim representatives
				or group policyholders.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.12 - Experience statistics

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each
				insurer writing credit life insurance and credit accident and health insurance
				shall maintain statistics on a calendar year basis, and submit them to the
				superintendent by July 1st each year for the previous calendar year. The
				experience shall reflect direct business. For each experience unit the
				following shall be supplied:
(1) gross
				premiums received;
(2) refunds of
				premium on terminated insurance;
(3) beginning and ending value of the refund
				liability;
(4) earned
				premiums;
(5) interest required on
				advance premiums and/or any active life reserves;
(6) number and amount of claims
				paid;
(7) increase in claim
				reserve;
(8) claims
				incurred;
(9) reserve increases
				other than paragraphs (3) and (7) of this subdivision;
(10) commissions;
(11) fees and other allowances;
(12) dividends and experience rating
				refunds;
(13) mean amount of life
				insurance in force;
(14) mean
				number of individual policies in force during the calendar year; and
(15) number of accident and health claims on
				which first payment for any claim was made during the calendar year.
For each paragraph the statistic shall be submitted
				  separately by rate basis. Rate classes shall be determined by varying age
				  restrictions, extent of underwriting, and presence of a preexisting condition
				  exclusion.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.14 - Special rules for credit insurance on transactions secured by real estate mortgages

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In
				addition to all other provisions of this Part, this section shall apply to
				policy forms and certificates for credit transactions in this State involving
				first mortgage loans, other than home equity loans, and shall be controlling in
				any conflict with other provisions of this Part. This section shall not apply
				to policies and certificates covering home equity loans or second or junior
				mortgage loans, unless an insurer advises the superintendent in writing that it
				opts for a particular policy or policies and certificates to be subject to the
				requirements of this section in lieu of those of section
				185.7  of this Part. For the
				purpose of this section, the addition of a new creditor or a change in premium
				rates, other than that required by subdivision (c) of this section, shall be
				considered an amendment to the policy.
(b) The following provisions shall apply to
				mortgage credit life and accident and health insurance policies issued,
				altered, modified or amended on or after the effective date of this Part.
(1) No coverage shall terminate prior to the
				earliest of:
(i) termination of the mortgage
				by prepayment, refinancing, foreclosure or maturity;
(ii) transfer of title by debtor to other
				than his spouse;
(iii) attainment
				of age 70 for life insurance or attainment of age 65 for accident and health
				insurance;
(iv) nonpayment of
				premium within 31 days of the due date (modified as noted in paragraph [5] of
				this subdivision);
(v) any payment
				under a mortgage note becoming six months overdue;
(vi) assumption of coverage by another
				insurer;
(vii) in the case of a
				group policy, the opportunity for the covered person to obtain an individual
				conversion policy when the indebtedness is assigned to any other party or when
				the group policy terminates, or for such other reasons as approved by the
				superintendent (see paragraph [5] of this subdivision); or
(viii) in the event of joint coverage for
				life insurance or accident and health insurance, the coverage may cease on the
				older life at the limiting age, but shall continue on the younger life until
				the limiting age.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.15 - Prohibited practices

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No
				insurer, parent or subsidiary, officer, agent, broker, solicitor or
				representative thereof shall engage in any of the following practices:
(1) deposit of premiums to the account of the
				insurer in the financial institution when such account is controlled by the
				creditor and pays no interest, or a rate of interest less than
				customary;
(2) allowing the
				remittance of premiums to the insurer after the expiry of the grace period on a
				regular basis;
(3) the retention of
				premiums by an agent or broker to whom the creditor remits premiums for a
				period of time which is not reasonably related to the time normally expected to
				be needed for the agent or broker to remit the premiums to the insurer, if such
				delay is a continuing feature of the premium paying process; or
(4) any other practice which unduly delays
				receipt of premiums by the insurer on a regular basis.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 185 - Credit Life Insurance And Credit Accident And Health Insurance › Section 185.16 - Separability provision

Current through Register Vol. 46, No. 28, July 10, 2024
If any provision of this Part or the application thereof to
				  any person or circumstance is for any reason held invalid, the remainder of the
				  Part and the application of such provision to other persons or circumstances
				  shall not be affected thereby.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 186 - Insurance Covering Debtors Or Personal Property Purchased On Installment Or Deferred Payment Plans › Section 186.1 - Applicability

Current through Register Vol. 46, No. 28, July 10, 2024
This Part is applicable to all fire, casualty and marine
				  insurers and other licensees of this department and to all persons, firms and
				  corporations coming within the jurisdiction of this department, in respect to
				  insurance, other than credit life and credit accident and health insurance, on
				  risks located within the State of New York covering:
(a) debtors, and/or creditors; or
(b) personal property purchased on
				installment or deferred payment plans or their equivalent.
New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 186 - Insurance Covering Debtors Or Personal Property Purchased On Installment Or Deferred Payment Plans › Section 186.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Credit property
				insurance means insurance against loss of or damage to personal property,
				covering a creditor's security interest in such property, when such insurance
				is written as part of a credit transaction, but only insofar as it applies to
				property sold to individual consumers for personal use, or pledged by them, and
				not used in any business, trade or profession of the purchaser.
(b) Creditor means the lender of money or
				vendor of goods, property, rights or privileges, for which the payment of the
				indebtedness arising therefrom is arranged through a credit transaction, any
				successor to the right, title or interest of any such lender or vendor, and any
				affiliate, associate or subsidiary of any of them, any director, officer or
				employee of any of them, or any other person in any way associated with any of
				them.
(c) Debtor means a borrower
				of money, a guarantor of such borrower, or a purchaser of goods, property,
				rights or privileges for which payment is arranged through a credit
				transaction.
(d) Identifiable
				charge means the amount a creditor charges a debtor or collects from him for
				insurance, other than credit life and credit accident and health insurance, in
				addition to any other stated charges, including interest or discount, permitted
				by the Banking and Personal Property Laws of this State.