New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter A - Rules of General Application › Part 88 - Requirements Of Or Plan Of Authorized Insurer Proposing To Cease To Maintain Or Change Its Existing Licensing Status In This State › Section 88.3 - Contents of plan

Current through Register Vol. 46, No. 28, July 10, 2024
The plan submitted shall include in substance at least the
					 following provisions, or others, determined by the superintendent to be not
					 less favorable to the people of this State.
(a) A provision that policies in force will
				  continue in accordance with policy provisions and the provisions of the New
				  York Insurance Law applicable to such lines of insurance. For policies subject
				  to section 3425  of the Insurance Law, a procedure or
				  method for the orderly termination of business in force on the date of approval
				  of the plan.
(b) A provision that
				  the insurer will comply with all fair claims practices requirements contained
				  in the Insurance Law and applicable department regulations.
(c) A provision that the superintendent may,
				  in his discretion, require the insurer to maintain a staffed service office in
				  New York and/or that an 800 telephone number directly to the insurer's home
				  office be established for the use of the insurer's policyholders and claimants.
				  Such telephone number may be listed in telephone directories in this State and
				  such listing will not constitute the solicitation of business in this State.
				  Policyholders, producers ad claimants shall be furnished with said telephone
				  number with each communication from the insurer.
(d) A provision that the superintendent, in
				  his discretion, may require that any or all New York business be reinsured
				  under a transfer and assumption agreement to an insurer licensed to do business
				  in this State.
(e) A provision that
				  the insurer will not write excess line business in New York after it ceases to
				  maintain its licensing status in this State.
(f) A provision that the insurer will not
				  reapply for a license to do business in New York or seek a certificate or
				  recognition as an accredited reinsurer for a period of no less than five
				  years.
(g) A provision that
				  insureds, claimants and producers be advised of the insurer's intention to
				  cease to be licensed in New York State. Such notice must be given at least 30
				  days before the insurer ceases to operate in the State.
(h) A provision that a security deposit will
				  be made and maintained in an amount sufficient to provide for all outstanding
				  liabilities for New York policyholders, claimants and creditors including but
				  not limited to unearned premiums, policy reserves, policy liabilities and
				  unpaid losses including incurred but not reported.
(i) A provision that the insurer will comply
				  with all of the rulings and directives pertaining to insurers ceasing to do
				  business in this State issued by the governing bodies of the New York
				  Automobile Insurance Plan, (popularly known as the "Assigned Risk Plan"), the
				  New York Property Insurance Underwriting Association (popularly known as the
				  "FAIR PLAN"), the Medical Malpractice Insurance Association, and of any other
				  residual market facility.
(j) A
				  provision that New York policyholders will not be unfairly discriminated
				  against with regard to dividends, or otherwise.
(k) A provision that the insurer will have
				  responsible representatives available in New York for conferences or
				  discussions when required by the superintendent.
(l) A provision that the superintendent may
				  require the insurer to submit reports which the superintendent determines are
				  necessary for the implementation of the approved plan, or for the protection of
				  policyholders and claimants.
(m) A
				  provision that the insurer will remain subject to appropriate assessments,
				  examination by the New York State Insurance Department and shall be liable for
				  the costs of examination under applicable statutes until notice is given that
				  reports are no longer required.
(n)
				  A provision that, to the extent necessary to secure the execution of the
				  insurer's responsibilities, the payments of any claims and the satisfaction of
				  its liabilities, the insurer will remain subject to the provisions of New York
				  statutes and regulations affecting its operations and to the jurisdiction of
				  the New York State Insurance Department.
(o) The foregoing provisions shall, to the
				  extent determined appropriate by the superintendent, also apply to insurers
				  which propose to change licensing status by eliminating one or more lines of
				  insurance.