New York State Department of Financial Services issued new rules to implement a new state law that deregulates most insurance business for large, sophisticated companies and public entities.
The law exempts insurers from rate filing and form approval requirements when issuing a policy to companies that generate annual commercial risk insurance premiums totaling over $25,000 in property/casualty insurance. Businesses that retain special risk managers to assist in negotiating and purchasing policies could also qualify.
Insurers would be allowed to issue policies to these insureds without submitting rate filings to regulators or obtaining the department superintendent’s prior approval.
The exemption doesn’t apply to workers’ comp, medical malpractice and certain other kinds of P/C insurance.
To be eligible to use the exemption, an insurer must issue the policy to an entity that also meets the definition of a large commercial insured. A business entity could be considered a large commercial insured, if it generates annual gross revenues exceeding $15 million and has a net worth of at least $1.5 million.
The law was signed by Gov. Andrew Cuomo last August.