N.Y. Insurance Law § 2316: Prohibition of anti-competitive behavior

* § 2316. Prohibition of anti-competitive behavior. (a) (1) No insurer

or rate service organization shall monopolize or attempt to monopolize,

or combine or conspire with any other person or persons to monopolize,

in any territory, the business of insurance or any kind, subdivision or

class thereof.

(2) No insurer or rate service organization shall agree with any other

insurer or rate service organization to charge or adhere to any rate,

although insurers and rate service organizations may continue to

exchange statistical information.

(3) No insurer or rate service organization shall make any agreement

with any other insurer, rate service organization or other person to

restrain trade.

(4) No insurer or rate service organization shall make any agreement

with any other insurer, rate service organization or other person the

effect of which may be substantially to lessen competition in any

territory or in any kind, subdivision or class of insurance.

(5) No insurer may acquire or retain any capital stock or assets of,

or have any common management with, any other insurer or insurers, if

the effect of such acquisition, retention or common management may be

substantially to lessen competition in any territory or in any kind,

subdivision or class of insurance.

(6) No insurer or rate service organization shall make any agreement

with any other insurer or rate service organization to refuse to deal

with any person in connection with the sale of insurance.

(7) No rate service organization or member or subscriber thereof shall

interfere with the right of any insurer to make its rates independently

of such rate service organization or to charge rates different from the

rates made by such rate service organization.

(8) No member of or subscriber to a rate service organization shall

refuse to do business with, or prohibit or prevent the payment of

commissions to, any licensed agent or broker on the ground that such

agent or broker does business with an insurer which makes its rates, or

any portion thereof, independently of such rate service organization.

(9) Nothing contained in this article shall be construed as requiring

any insurer to become a member of or a subscriber to any rate service

organization, or as preventing any insurer, while a member of or

subscriber to a rate service organization, from making its own rates for

any kind, subdivision or class of insurance, for which it does not elect

to authorize the rate service organization to act on its behalf.

(10) Any insurer which is a member of or subscriber to a rate service

organization may make its own rates for any kind, subdivision or class

of insurance. No rate service organization shall have authority to act

on behalf of any insurer which is a member of or subscriber to such rate

service organization except as authorized in writing by such member or

subscriber, which authority may be supplemented, modified or revoked, in

whole or in part, at any time by such member or subscriber at its

option.

(11) No rate service organization shall have or adopt any rule or

exact any agreement, or formulate or engage in any program, the effect

of which would be to require any member, subscriber or other insurer to

utilize some or all of its ratings services, or to adhere to its rates,

rating plans, rating systems, underwriting rules, or policy forms, or to

prevent any insurer from acting independently.

(b) (1) Any rate made in violation of subsection (a) hereof shall be

disapproved by the superintendent pursuant to the applicable procedures

prescribed in subsection (b) of section two thousand three hundred

twenty of this article, and each violator shall be subject to the

penalties of subsection (c) of such section.

(2) The superintendent, through the attorney general, and any person

injured in his business or property by reason of anything forbidden in

subsection (a) hereof, may maintain an action to enjoin any violation of

such subsection.

(3) Any person injured in his business or property by reason of

anything forbidden in subsection (a) hereof may maintain an action and

shall recover threefold the damages sustained by him.

(c) Nothing in this section shall be construed as applying to or

prohibiting cooperative action authorized and regulated under this

article. Nor shall this section apply to kinds of insurance or insurance

activities the rates for which are subject to prior approval pursuant to

subsection (b) of section two thousand three hundred five of this

article, except that this article shall not be construed as requiring an

insurer to become a member of or subscriber to a rate service

organization.

* NB Expires July 1, 2026