New York Insurance Department Adds Coverages to ‘Free-Trade Zone’

July 7, 2008

Insurers would no longer file rates and forms with regulators for some professional liability and errors and omissions coverages under a plan by the New York insurance department to add those coverage to the ‘free trade zone.’

State law allows the department to move risks that are jumbo in dimension or exotic in nature to the so-called free-trade zone — meaning that rates and policy forms for those special risks needn’t be filed with regulators, but they must still comply with insurance laws and state regulations.

The coverages the department said it will add to the free-trade zone are: E&O policies for health maintenance organizations, independent physicians’ associations, preferred provider organizations, third party administrators and utilization review organizations, as well as professional liability coverage for actuaries.

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