N.Y. Insurance Law § 5404: Rates, rating plans, rules and statistics

§ 5404. Rates, rating plans, rules and statistics. (a) The rates,

rating plans, rating rules and statistics applicable to the insurance

written by the association shall be subject to the relevant provisions

of article twenty-three of this chapter except as otherwise provided in

this section.

(b) Rates, rating plans and rating rules applicable to fire insurance,

extended coverage, additional perils, broad form coverage pursuant to

subsection (g) of section five thousand four hundred two of this article

and homeowners insurance upon a determination of necessity having been

made by the superintendent pursuant to section five thousand four

hundred twelve of this article written by the association shall be no

greater than the following percentages of those recommended for the

voluntary market by the principal rate service organization in this

state:

(1) one hundred twenty percent with respect to:

(A) owner-occupied residential dwellings consisting of not more than

four dwelling units;

(B) household furnishings and personal property contained in any

household unit;

(C) contents of any retail-type business located in store-type

premises and operating in a single location, provided such business is

owned by its operators, who are all related by blood or affinity;

(D) real property of eleemosynary institutions used exclusively for

such eleemosynary purposes including furnishings and personal property

contained therein;

(2) one hundred thirty percent with respect to:

(A) non-owner occupied residential dwellings consisting of not more

than four dwelling units;

(B) residential structures consisting of more than four but not

exceeding eight units with or without business occupancies;

(C) homeowners insurance upon a determination of necessity having been

made by the superintendent pursuant to section five thousand four

hundred twelve of this article;

(3) one hundred forty percent with respect to residential dwellings

consisting of more than eight dwelling units, with or without business

occupancies;

(4) one hundred thirty percent with respect to any risks not otherwise

provided for in paragraphs one, two and three of this subsection.

(c) The rates, rating plans and rating rules recommended by the

principal rate service organization, together with such other

information the superintendent may require, shall be submitted by the

association at least sixty days prior to the date on which they are to

become effective for risks written by it.

(d) Filed rating rules or plans may provide standards for the

application of surcharges for risks containing unsafe or hazardous

conditions, and shall provide for prompt removal of the surcharges upon

the elimination of those conditions.