New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter V - Rates And Rating Organizations › Subchapter D - Rate Regulation And Promotion Of Competition › Part 161 - Flexible-rating System; Rating Plans; Tort Reform Refiling Requirements › Section 161.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For the purposes of this Part, the following definitions
					 shall apply:
(a) An 'a' rated risk
				  means any insurance coverage for which rates are individually determined based
				  upon judgment because neither a rate service organization, nor the insurer has
				  yet established a manual rate based upon experience, except that if a rate
				  service organization or the insurer acquires sufficient experience to
				  establish, or the insurer itself has, a manual rate for such coverage, then
				  such coverage shall no longer be considered an 'a' rated risk for such
				  insurer.
(b) Base rate means the
				  rate designed to reflect the average aggregate experience of a particular
				  market, prior to adjustment for individual risk characteristics resulting from
				  application of any rating plan.
(c)
				  Commercial risk insurance has the meaning set forth in section 107 (a)(47)  of the Insurance
				  Law.
(d) Commercial umbrella policy
				  means a commercial liability insurance policy (except as modified by
				  subdivisions [i] and [j] of this section) written as excess over underlying
				  policies providing standard form general liability and motor vehicle liability
				  insurance issued to and warranted to exist by the named insured, that include
				  coverage limits of at least $300,000 in the aggregate for bodily injury
				  liability, and $50,000 for property damage liability. With respect to losses
				  not covered by underlying insurance, the policy shall require an insured's
				  retention of risk, and be excess over, at least $10,000 per accident or
				  occurence.
(e) A composite rating
				  plan is any rating plan or system whereby the manual rates for a policy
				  insuring general liability with several exposure bases for different liability
				  coverages or insuring several different insurance exposures (such as automobile
				  liability, general liability, burglary, glass, etc.) may be converted into one
				  or more selected exposure bases (such as payroll or sales).
(f) An expense reduction plan is any rating
				  plan or system whereby a base rate for property or liability insurance is
				  reduced based upon a reduction in acquisition, underwriting or loss adjustment
				  expenses associated with the risk.
(g) An experience rating plan is any rating
				  plan or system whereby a base rate for liability insurance is adjusted or
				  modified based on the actual past loss experience of the insured.
(h) A flexibility band or flex-band means the
				  percentage range of rate level increases or decreases that an insurer may
				  implement without the prior approval of the superintendent.
(i) High limits excess liability policy means
				  any commercial liability policy, including a commercial umbrella policy, when
				  written over:
(1) one or more underlying
				  liability policies that in the aggregate provide primary coverage of at least
				  $1 million; or
(2) a self-insured
				  liability retention of at least $1 million.