N.Y. Insurance Law § 6905: Policy forms and rates

§ 6905. Policy forms and rates. (a) Policy forms and any amendments

thereto shall be filed with the superintendent within thirty days of

their use by the insurer if not otherwise filed prior to the effective

date of this article. Every such policy shall provide that, in the event

of a payment default by or insolvency of the obligor, there shall be no

acceleration of the payment required to be made under such policy unless

such acceleration is at the sole option of the corporation; provided

that (1) policies may insure amounts payable under a credit default swap

or interest rate, currency or other swap upon a credit event or

termination event if the expected amount payable on an accelerated basis

in respect of any individual obligation referenced by a credit default

swap or in the aggregate under an interest rate, currency or other swap

does not exceed the single risk limits prescribed in paragraph five of

subsection (d) of section six thousand nine hundred four of this article

and (2) policies insuring credit default swaps referencing an obligation

shall be treated as if the insurer had directly insured the referenced

obligation for all other purposes of this article, except that the

currency of amounts owed under the credit default swap, rather than the

currency of the obligations referenced by the credit default swap, shall

apply for purposes of determining whether the obligation is a

permissible guaranty under subsection (b) of section six thousand nine

hundred four of this article. The superintendent may prescribe minimum

policy provisions determined by the superintendent to be necessary or

appropriate to protect policyholders, claimants, obligees or

indemnitees.

(b) Rates shall not be excessive, inadequate, unfairly discriminatory,

destructive of competition, detrimental to the solvency of the insurer,

or otherwise unreasonable. In determining whether rates comply with the

foregoing standards, the superintendent shall include all income earned

by such insurer. Criteria and guidelines utilized by insurers in

establishing rating categories and ranges of rates to be utilized shall

be filed with the superintendent for information prior to their use by

the insurer if not otherwise filed prior to the effective date of this

article.

(c) All such filings shall be available for public inspection at the

department of financial services.