N.Y. Insurance Law Section 2339
Charging or receiving of rates

  • deviations

(a)

This section shall apply only to kinds of insurance the rates for which are subject to prior approval pursuant to subsection (b) of § 2305 (Rates or rating plans)section two thousand three hundred five of this article.

(b)

No member of or subscriber to a rate service organization, and no insurer which makes and files its own rates, shall charge or receive any rate which deviates from the rates, rating plans, classifications, schedules, rules and standards made and filed by such rate service organization, or by such insurer, as the case may be, which are applicable to any kind or type of business done by such member or subscriber, or by such insurer, except as provided in this article.

(c)

Any insurer which is a member of or subscriber to a rate service organization may make written application to the superintendent for permission to deviate from the rates, schedules, rating plans or rules filed on its behalf by the rate service organization. The application shall specify the basis for the modification and a copy shall also be sent simultaneously to such rate service organization. In considering the application to deviate the superintendent shall give consideration to the available statistics and the principles for rate making as provided in § 2304 (Rate making and supporting information)section two thousand three hundred four of this article. If the superintendent finds the deviation to be justified, he shall approve it to be effective for a period to be fixed by him, but in no event for a period of less than one year, unless sooner terminated by the applicant with the permission of the superintendent or unless sooner withdrawn or appropriately adjusted by an order of the superintendent made in accordance with the provisions of this article generally applicable to rate filings. If the superintendent finds that the deviation applied for does not meet the requirements of this article, he shall send to the applicant written notice of his disapproval, specifying in what respects he finds it fails to meet the requirements of this article. The superintendent shall inform the rate service organization of his action upon the deviation application.

(d)

(1) Notwithstanding any other provision of law, except as provided in paragraph three of this subsection, the state insurance fund shall not charge an insured any rate, or receive from an insured any rate in excess of the total of (i) the applicable loss cost approved by the superintendent, (ii) the applicable expense component of the state insurance fund and (iii) a fair and reasonable differential charge which takes into consideration the nature and hazards of the insured’s business or operations, the insured’s prior loss experience, the insured’s prior and presently existing safety practices, the insured’s prior premium payment history, the number of persons the insured employs in such business or operations and the specific type of work they perform, the insured’s prior and current compliance with obligations imposed upon the insured by the workers’ compensation law and other laws which require premium or other payments by the insured on the basis of earnings and other remuneration earned by persons engaged in the furtherance of the insured’s enterprise or enterprises, the promptness and completeness of such reports as the insured has filed on accidents and claims, and such other factors as may be relevant to the appraisal of the insured or proposed insured as a risk in whole.

(2)

A differential charge applied by the state insurance fund to a workers’ compensation and employer’s liability insurance policy may be challenged by the insured by an appeal to the superintendent after an exhaustion by the insured of all internal review procedures of the state insurance fund as established by rules adopted by the commissioners of the state insurance fund and filed with the secretary of state; provided that a writing setting forth the grounds upon which such appeal is based is served and filed with the superintendent and with the secretary to the board of commissioners of the state insurance fund within thirty days after a final determination by the state insurance fund. Appeals to the superintendent shall be determined upon papers and documents that were before the state insurance fund in connection with the internal review procedures, the writing setting forth the grounds of the insured’s appeal and any answer to such appeal served by the state insurance fund upon the insured and filed with the superintendent within thirty days after the service of the insured’s notice.

(3)

The provisions of this section shall not apply to a policy sold by the state insurance fund under article six-G of the executive law. The rate which the state insurance fund may charge under such article shall be governed only by such regulations or guidelines as the superintendent may issue.

Source: Section 2339 — Charging or receiving of rates; deviations, https://www.­nysenate.­gov/legislation/laws/ISC/2339 (updated Sep. 22, 2014; accessed Jun. 22, 2024).

2301
Purpose
2302
Applicability
2303
Standards for rates
2304
Rate making and supporting information
2305
Rates or rating plans
2306
Delegation of rate filing obligation
2307
Rating classifications or territories
2308
Imposition of prior approval
2309
Excess rate
2310
Informational filings
2311
Suspension of filing requirement
2312
Immigration bond premium
2313
Rate service organization
2314
Charging of rates
2315
Recording and reporting of experience
2316
Prohibition of anti-competitive behavior
2317
Joint underwriting or joint reinsurance
2318
Risk sharing plans
2319
Information to be furnished insureds
2320
Enforcement and penalties
2321
Enforcement and penalties
2322
Final determination
2323
Profitability and rates of return
2324
Rebating and discrimination
2325
Accounts and statistics
2326
Evaluation of competitive rating provisions
2327
Verification of driving history
2328
Certain motor vehicle insurance rates
2329
Motor vehicle insurance rates
2330
No fault motor vehicle insurance rates
2331
Motor vehicle comprehensive insurance rates
2332
Non-commercial private passenger automobile insurance rates
2333
Non-commercial private passenger automobile insurance rates
2334
Non-commercial private passenger automobile insurance rates
2335
Motor vehicle liability insurance rates
2335‑A
Prohibition of rate increases for persons involved in emergency use of vehicles
2336
Motor vehicle liability, comprehensive and collision insurance rates
2336‑A
Snowmobile liability insurance rates
2336‑B
Boat liability insurance rates
2337
Private passenger automobile physical damage insurance
2338
Appeal from rate service organization action
2339
Charging or receiving of rates
2340
Credit property insurance
2342
Expiration of certain provisions
2343
Medical malpractice insurance rates
2344
Flexible rate limitations in problem markets
2345
Disclosure of premium reductions and surcharges
2346
Reduction in rates of fire insurance, homeowners insurance or property/casualty premiums for residential property
2346‑A
Reduction in rates of certain commercial risk insurance premiums for real property
2347
Workers’ compensation rate changes
2348
Anti-theft and fraud savings
2349
Multi-tier program
2350
Flexible rating for nonbusiness automobile insurance policies
2351
Homeowners’ insurance policies
2352
Multiple rating programs
2353
For-hire motor vehicle safety program

Accessed:
Jun. 22, 2024

Last modified:
Sep. 22, 2014

§ 2339’s source at nysenate​.gov

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