2021 New York Laws
ISC - Insurance
Article 69 - Financial Guaranty Insurance Corporations
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.