N.Y. Insurance Law § 6303: Limitations

§ 6303. Limitations. (a) The exemption that may be granted pursuant to

this article shall apply only if:

(1) the risk, as defined in regulations of the superintendent,

produces a minimum annual premium in excess of one hundred thousand

dollars or such higher amount as the superintendent may prescribe by

regulation;

(2) the coverage is for a risk or class of risks which is of an

unusual nature, a high loss hazard, or difficult to place, pursuant to a

list promulgated or amended by the superintendent; or

(3) until June thirtieth, two thousand twenty-seven, the policy, other

than a medical malpractice insurance policy, is issued to a large

commercial insured that employs or retains a special risk manager to

assist in the negotiation and purchase of a policy exempted under this

article, provided, however, that:

(A)(i) the special risk manager is not employed by the insurer issuing

the policy or any person in the insurer's holding company system; and

(ii) the special risk manager is licensed as an insurance producer in

this state pursuant to article twenty-one of this chapter, unless

exempted from licensing therein; and

(B) a policy form that has not been previously filed with the

superintendent shall be filed with the superintendent for informational

purposes within three business days after first delivery of a policy

using such form, but no later than sixty calendar days after the

inception date of such policy.

(b) For the purposes of this section:

(1) "Large commercial insured" means an entity that generates annual

commercial risk insurance premium, other than for medical malpractice

insurance, in excess of twenty-five thousand dollars with respect to the

kinds of insurance specified in paragraphs four through fourteen,

sixteen, seventeen, nineteen through twenty-two, twenty-seven and

twenty-nine of subsection (a) of section one thousand one hundred

thirteen of this chapter and such insurance as the superintendent deems

to be substantially similar to one of the foregoing kinds and:

(A) has a net worth of at least seven million five hundred thousand

dollars as of the insured's fiscal year end immediately preceding the

policy's effective date;

(B) has gross assets exceeding ten million dollars and a net worth of

at least one million five hundred thousand dollars as of the insured's

fiscal year end immediately preceding the policy's effective date;

(C) is a for-profit business entity that generates annual gross

revenues exceeding fifteen million dollars, and has a net worth of at

least one million five hundred thousand dollars as of the insured's

fiscal year end immediately preceding the policy's effective date;

(D) is a for-profit business entity that has gross assets exceeding

ten million dollars and generates annual gross revenues exceeding

fifteen million dollars as of the insured's fiscal year end immediately

preceding the policy's effective date;

(E) is a not-for-profit organization or public entity with an annual

budget exceeding twenty million dollars for each of its three fiscal

years immediately preceding the policy's effective date;

(F) has fifty employees or, together with its parent, subsidiaries and

affiliates, one hundred employees, as of the insured's fiscal year end

immediately preceding the policy's effective date; or

(G) is a municipality with a population of fifty thousand or more

persons.

(2) "Special risk manager" means a person who meets all of the

following requirements:

(A) the person is an employee of, or third-party consultant retained

by, the large commercial insured;

(B) the person provides skilled services in loss prevention, loss

reduction, or risk and insurance coverage analysis and assessment, and

purchase of insurance; and

(C) the person:

(i)(I) has a bachelor's degree or higher from an accredited college or

university in risk management, business administration, finance,

economics, or any other field determined by the superintendent to

demonstrate minimum competence in risk management; and

(II)(aa) has five years of experience in risk financing, loss

prevention, risk and insurance coverage analysis and assessment, or

purchasing commercial risk insurance; and

(bb) has:

(aaa) a designation as a chartered property and casualty underwriter

(in this clause referred to as a "CPCU") issued by the American

Institute for CPCU/Insurance Institute of America;

(bbb) a designation as an associate in risk management (ARM) issued by

the American Institute for CPCU/Insurance Institute of America;

(ccc) a designation as certified risk manager (CRM) issued by the

National Alliance for Insurance Education & Research;

(ddd) a designation as a Risk and Insurance Management Society (RIMS)

fellow (RF) issued by the Global Risk Management Institute; or

(eee) any other designation, certification, or license determined by

the superintendent to demonstrate minimum competency in risk management;

(ii)(I) has at least seven years of experience in risk financing, loss

prevention, risk and insurance coverage analysis and assessment, or

purchasing commercial risk insurance; and

(II) has any one of the designations specified in subclauses (aaa)

through (eee) of subitem (bb) of clause (II) of item (i) of this

subparagraph;

(iii) has at least ten years of experience in risk financing, loss

prevention, risk and insurance coverage analysis and assessment, or

purchasing commercial risk insurance; or

(iv) (I) has a graduate degree from an accredited college or

university in risk management, business administration, finance,

economics, or any other field determined by the superintendent to

demonstrate minimum competence in risk management; and

(II)(aa) has at least three years of experience in risk financing,

loss prevention, risk and insurance coverage analysis and assessment, or

purchasing commercial risk insurance; or

(bb) has any one of the designations specified in subclauses (aaa)

through (eee) of subitem (bb) of clause (II) of item (i) of this

subparagraph.

(3) "Municipality" shall mean any county, city, town or village.

(c) Effective on the fifth January first occurring after the date of

the enactment of this subsection and each fifth January first occurring

thereafter, the amounts specified in paragraph one of subsection (b) of

this section may be adjusted to reflect the percentage change for such

five-year period in the consumer price index for all urban consumers

published by the Bureau of Labor Statistics of the United States

Department of Labor. The superintendent may conduct a public hearing to

determine whether such increase is necessary.

(d) (1) Except as provided in paragraph two of this subsection, every

policy issued pursuant to the provisions of this article shall contain a

notice to the policyholder that the rate and policy form are not subject

to the filing requirements of this state and such other notices required

by the superintendent pursuant to regulation.

(2) Every policy issued pursuant to paragraph three of subsection (a)

of section six thousand three hundred three of this article shall

contain a notice to the policyholder that the rates are not subject to

the filing requirements of this state and the policy forms are not

subject to the approval requirements of this state, and such other

notices required by the superintendent pursuant to regulation.

(e) The superintendent may by regulation prescribe limitations on the

total amount of business that an insurer may transact pursuant to this

article or reimpose filing or approval requirements where and to the

extent that the superintendent deems it in the interest of the

policyholders.