2013 New York Consolidated Laws
ISC - Insurance
Article 63 - (6301 - 6304) SPECIAL RISKS; FILING EXEMPTION
6303 - Limitations.

 
    § 6303. Limitations. (a) The exemption that may be granted pursuant to
  this  article  shall  apply  only  if  the  business is underwritten and
  transacted from an office within this state; and:
    (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 fifteen, 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.