Section 3401. Insurable interest in property. 3402. Executory contract not a change in interest, title or possession. 3403. Anti-arson application. 3404. Fire insurance contracts; standard policy provisions; permissible variations. 3405. Fire insurance contract; losses from nuclear reaction or radiation. 3406. Copy of examination of insured to be delivered to insured. 3407. Property insurance; proofs of loss; notice of loss. 3407-a. Property/casualty insurance contract and policy standard provisions. 3408. Fire insurance; appraisal of loss; procedure for selection of umpire on failure to agree. 3409. Distribution of hazardous material report forms. 3410. Fire insurance contract; payment of liens on proceeds; certain cases. 3411. Automobile physical damage insurance covering private passenger automobiles; standard provisions; required inspections; duties of insurers and insureds. 3412. Automobile physical damage insurance covering private passenger automobiles; salvage; total losses; thefts; duties of insurers. 3413. Standard claim forms for fire losses. 3414. Reports by insurers of certain casualty loss on property owned or operated by religious organizations. 3415. Supplemental claim form to be submitted for certain fire loss claims in excess of ten thousand dollars in a city with a population of one million or more persons. 3420. Liability insurance; standard provisions; right of injured person. 3425. Certain property/casualty insurance policies; cancellation and renewal provisions; agents` contracts and brokers` accounts. 3426. Commercial lines insurance; cancellation and renewal provisions. 3427. Gap insurance; cancellation, renewal and other provisions. 3428. Cancellation of insurance contracts; return premiums; financed insurance premiums. 3429. Geographical location of risks; fire, fire and extended coverage policies; private passenger automobile insurance policies. 3430. Right of insured, agent or broker aggrieved on basis of geographical location of property or risks. 3431. Immunity; insurers` reports to insureds, to applicants for insurance and to terminated agents or brokers. 3432. Immunity; reports to certain public officials and to designated organizations. 3433. Termination of contracts or accounts of licensed agents or brokers; prohibition; geographical location. 3434. Motor vehicle insurance policies; disabled persons; prohibitions against cancelling, refusing to issue or renew policies or renew policies. 3435. Group property/casualty insurance. 3435-a. Motor vehicle insurance policies; New York state licensed drivers; prohibitions against refusing to issue policies or renew policies. *3436. Medical malpractice insurance; type of coverage. * NB There are 2 S 3436`s *3436*. Group credit unemployment insurance and individual credit unemployment insurance. * NB There are 2 S 3436`s 3439. Reinsurance contracts excepted. 3440. Insurance covering private passenger motor vehicles; rental vehicle coverage. 3442. Credit card, debit card, or checking account group policies. 3443. Workers` compensation and employers` liability insurance; optional policyholder deductibles. 3444. Flood insurance notice. *3445. Windstorm insurance notice. * NB There are 2 S 3445`s *3445*. Employer sponsored group personal excess insurance. * NB There are 2 S 3445`s 3446. Product or system group insurance policies. S 3401. Insurable interest in property. No contract or policy of insurance on property made or issued in this state, or made or issued upon any property in this state, shall be enforceable except for the benefit of some person having an insurable interest in the property insured. In this article, "insurable interest" shall include any lawful and substantial economic interest in the safety or preservation of property from loss, destruction or pecuniary damage. S 3402. Executory contract not a change in interest, title or possession. The making of a contract to sell or to exchange real property shall not constitute a change in the interest, title or possession, within the meaning of the applicable provisions of any contract of fire insurance, including any contract supplemental thereto, covering property located in this state. S 3403. Anti-arson application. (a) In this section: (1) "Anti-arson application" means any application for insurance or renewal of insurance, covering the peril of fire or explosion that includes certain questions contained in subsection (c) of this section, which shall be answered by the applicant in addition to the basic information normally supplied to an insurer by an applicant. (2) "Insurance policy" and "contract" shall not mean an existing property insurance policy or contract, provided however that assignment of the policy or contract because of the transfer of a major financial interest in the insured real property shall require completion of an anti-arson application if otherwise required under this section. (3) "Property" means real property and the buildings and improvements thereon. (b) Except as provided in subsection (g) of this section the use of the anti-arson application shall be mandatory for all property insurance policies covering the peril of fire or explosion. (c) The superintendent, in promulgating the anti-arson application form, shall consider generally recognized two-tier application forms. If the initial first-tier application elicits certain predesignated answers, then the administration of a second-tier supplementary application shall be mandatory. The superintendent shall consider securing the disclosure of the following types of information including, but not limited to: (1) the name and address of the applicant and any mortgagees and any other parties who have an ownership interest in the property and any other parties who have a real interest in the property or in the proceeds of the claim; (2) the amount of insurance requested and the method of valuation used to establish the amount of insurance; (3) the dates and selling prices of the property in all real estate transactions involving such property during the last three years; (4) the applicant`s loss history over at least the last five years with regard to any property in which he held an equity interest or a mortgage and where any such loss exceeded one thousand dollars in damages; (5) all taxes unpaid or overdue for one or more years, and any mortgage payments overdue by three months or more; (6) all current violations of fire, safety, health, building, or construction codes on the property to be insured; and (7) the present occupancy of the structure. (d) No insurer, broker or authorized agent may enter into a contract to insure any building, against the peril of fire or explosion unless such insurer, broker or authorized agent, first receives an anti-arson application signed and affirmed by the insured, if required by the superintendent in accordance with the provisions of this section. Nothing herein shall be construed to restrict the insurance of property by binder pursuant to rules and regulations as promulgated by the superintendent. (e) A material misrepresentation in the anti-arson application shall be grounds to rescind the insurance policy. (f) Insureds shall notify their insurer in writing of any change in the information contained in the anti-arson application, upon renewal or annually, whichever is sooner. A material misrepresentation in such notification shall be grounds to rescind the insurance policy. (g) (1) The provisions of this section shall not apply to any insurance policy or contract covering the peril of fire or explosion with respect to owner-occupied real property used predominantly for residential purposes which consists of not more than four dwelling units. (2) The provisions of this section shall only apply to cities with a population over four hundred thousand persons according to the nineteen hundred seventy census, except that within a reasonable time after receiving a petition by the governing board of a local municipal corporation as those terms are defined in article one of the general municipal law, the superintendent shall mandate the use of the anti-arson application within specific designations contained in such petition. (h) The superintendent may suspend or waive the requirement of subsection (f) of this section if an insurer can demonstrate that information that is substantially equivalent to the information obtained pursuant to the two-tier application form completed upon policy inception is available to the insurer by other means. S 3404. Fire insurance contracts; standard policy provisions; permissible variations. (a) The printed form of a policy of fire insurance, as set forth in subsection (e) hereof, shall be known and designated as the "standard fire insurance policy of the state of New York." (b) (1) No policy or contract of fire insurance shall be made, issued or delivered by any insurer or by any agent or representative thereof, on any property in this state, unless it shall conform as to all provisions, stipulations, agreements and conditions with such form of policy, except policies subject to the provisions of section three thousand one hundred two of this chapter which shall be required to comply with the provisions of paragraph one of subsection (f) of this section. (2) There shall be printed or typewritten at the head of such policy the name and home office address of the insurer or insurers issuing the policy and a statement whether such insurer or insurers are stock or mutual corporations or are reciprocal insurers or Lloyds underwriters. In lieu of such statement a corporation organized under a special act of the legislature of any state may so indicate upon its policy. The head of the policy may also have such devices as the insurer or insurers issuing it desire. (3) The standard fire insurance policy need not be used for effecting reinsurance between insurers. (4) If the policy is issued by a mutual, cooperative or reciprocal insurer having special regulations with respect to the payment by the policyholder of assessments, such regulations shall be printed upon the policy, and any such insurer may print upon the policy such regulations as may be appropriate to or required by its form of organization. (c) Two or more insurers authorized to do the business of fire insurance in this state may, with the approval of the superintendent, issue a combination standard form of fire insurance policy which shall contain the following provisions: (1) A provision substantially to the effect that the insurers executing such policy shall be severally liable for the full amount of any loss or damage, according to the terms of the policy, or for specified percentages or amounts thereof, aggregating the full amount of such insurance under such policy. (2) A provision substantially to the effect that service of process, or of any notice or proof of loss required by such policy, upon any of the insurers executing such policy, shall be deemed to be service upon all such insurers. (d) (1) Appropriate forms of a supplemental contract or contracts or extended coverage endorsements insuring against one or more of the perils which the insurer is empowered to insure, in addition to the perils covered by such standard fire insurance policy, may be approved by the superintendent, who may authorize their use in connection with a standard fire insurance policy. (2) The first page of the policy, in a form approved by the superintendent, may be rearranged to provide space for the listing of amounts of insurance, rates and premiums for the basic coverages insured under the standard form of policy and for additional coverages or perils insured under attached endorsements, and such other data as may be conveniently included for duplication on daily reports for office records. (e) The form of the standard fire insurance policy of the state of New York (with permission to substitute for the word "company" a more accurate descriptive term for the type of insurer) shall be as follows: FIRST PAGE OF STANDARD FIRE POLICY No. ............ {Space for insertion of name of company or companies issuing the policy and other matter permitted to be stated at the head of the policy.} {Space for listing amounts of insurance, rates and premiums for the basic coverages insured under the standard form of policy and for additional coverages or perils insured under endorsements attached.} In Consideration of the Provisions and Stipulations herein or added hereto and of .......................................... Dollars Premium this Company, for the term of ........, from the ........ day of ........, 19.. to the ........ day of ........, 19.. at noon, Standard Time, at location of property involved does insure ......................... and legal representatives, TO THE LESSER AMOUNT OF EITHER: 1) THE ACTUAL CASH VALUE OF THE PROPERTY AT THE TIME OF THE LOSS, OR 2) THE AMOUNT WHICH IT WOULD COST TO REPAIR OR REPLACE THE PROPERTY WITH MATERIAL OF LIKE KIND AND QUALITY WITHIN A REASONABLE TIME AFTER SUCH LOSS, WITHOUT ALLOWANCE FOR ANY INCREASED COST OF REPAIR OR RECONSTRUCTION BY REASON OF ANY ORDINANCE OR LAW REGULATING CONSTRUCTION OR REPAIR, AND WITHOUT COMPENSATION FOR LOSS RESULTING FROM INTERRUPTION OF BUSINESS OR MANUFACTURE, OR 3) TO AN AMOUNT NOT EXCEEDING ................ DOLLARS, BUT IN ANY EVENT FOR NO MORE THAN THE INTEREST OF THE INSURED, AGAINST ALL DIRECT LOSS BY FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE PERILS INSURED AGAINST IN THIS POLICY, EXCEPT AS HEREINAFTER PROVIDED, to the property described hereinafter while located or contained as described in this policy, or pro rata for five days at each proper place to which any of the property shall necessarily be removed for preservation from the perils insured against in this policy, but not elsewhere. Assignment of this policy shall not be valid except with the written consent of this Company. This policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated, which are hereby made a part of this policy, together with such other provisions, stipulations and agreements as may be added hereto, as provided in this policy. In Witness Whereof, this Company has executed and attested these presents; but this policy shall not be valid unless countersigned by the duly authorized Agent of this Company at ....................... ................................................................ ................................................................ Secretary. President. Countersigned this .... day of ....., 19 .... .................. Agent. SECOND PAGE OF STANDARD FIRE POLICY Concealment, fraud. This entire policy shall be void if, whether before or after a loss, the insured has wilfully concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof, or the interest of the insured therein, or in case of any fraud or false swearing by the insured relating thereto. Uninsurable and excepted property. This policy shall not cover accounts, bills, currency, deeds, evidences of debt, money or securities; nor, unless specifically named hereon in writing, bullion or manuscripts. Perils not included. This company shall not be liable for loss by fire or other perils insured against in this policy caused, directly or indirectly, by: (a) enemy attack by armed forces, including action taken by military, naval or air forces in resisting an actual or an immediately impending enemy attack; (b) invasion; (c) insurrection; (d) rebellion; (e) revolution; (f) civil war; (g) usurped power; (h) order of any civil authority except acts of destruction at the time of and for the purpose of preventing the spread of fire, provided that such fire did not originate from any of the perils excluded by this policy; (i) neglect of the insured to use all reasonable means to save and preserve the property at and after a loss, or when the property is endangered by fire in neighboring premises; (j) nor shall this Company be liable for loss by theft. Other Insurance. Other insurance may be prohibited or the amount of insurance may be limited by endorsement attached hereto. Conditions suspending or restricting insurance. Unless otherwise provided in writing added hereto this Company shall not be liable for loss occurring (a) while the hazard is increased by any means within the control or knowledge of the insured; or (b) while a described building, whether intended for occupancy by owner or tenant, is vacant or unoccupied beyond a period of sixty consecutive days; or (c) as a result of explosion or riot, unless fire ensue, and in that event for loss by fire only. Other perils or subjects. Any other peril to be insured against or subject of insurance to be covered in this policy shall be by endorsement in writing hereon or added hereto. Added provisions. The extent of the application of insurance under this policy and of the contribution to be made by this Company in case of loss, and any other provision or agreement not inconsistent with the provisions of this policy, may be provided for in writing added hereto, but no provision may be waived except such as by the terms of this policy is subject to change. Waiver provisions. No permission affecting this insurance shall exist, or waiver of any provision be valid, unless granted herein or expressed in writing added hereto. No provision, stipulation or forfeiture shall be held to be waived by any requirement or proceeding on the part of this Company relating to appraisal or to any examination provided for herein. Cancellation of policy. This policy shall be cancelled at any time at the request of the insured, in which case this Company shall, upon demand and surrender of this policy, refund the excess of paid premium above the customary short rates for the expired time. This policy may be cancelled at any time by this Company by giving to the insured a five days` written notice of cancellation with or without tender of the excess of paid premium above the pro rata premium for the expired time, which excess, if not tendered, shall be refunded on demand. Notice of cancellation shall state that said excess premium (if not tendered) will be refunded on demand. Mortgagee interests and obligations. If loss hereunder is made payable, in whole or in part, to a designated mortgagee not named herein as the insured, such interest in this policy may be cancelled by giving to such mortgagee a ten days` written notice of cancellation. If the insured fails to render proof of loss such mortgagee, upon notice, shall render proof of loss in the form herein specified within sixty (60) days thereafter and shall be subject to the provisions hereof relating to appraisal and time of payment and of bringing suit. If this Company shall claim that no liability existed as to the mortgagor or owner, it shall, to the extent of payment of loss to the mortgagee, be subrogated to all the mortgagee`s rights of recovery, but without impairing mortgagee`s right to sue; or it may pay off the mortgage debt and require an assignment thereof and of the mortgage. Other provisions relating to the interests and obligations of such mortgagee may be added hereto by agreement in writing. Pro rata liability. This Company shall not be liable for a greater proportion of any loss than the amount hereby insured shall bear to the whole insurance covering the property against the peril involved, whether collectible or not. Requirements in case loss occurs. The insured shall give immediate written notice to this Company of any loss, protect the property from further damage, forthwith separate the damaged and undamaged personal property, put it in the best possible order, furnish a complete inventory of the destroyed, damaged and undamaged property, showing in detail quantities, costs, actual cash value and amount of loss claimed; and within sixty days after the loss, unless such time is extended in writing by this Company, the insured shall render to this Company a proof of loss, signed and sworn to by the insured, stating the knowledge and belief of the insured as to the following: the time and origin of the loss, the interest of the insured and of all others in the property, the actual cash value of each item thereof and the amount of loss thereto, all encumbrances thereon, all other contracts of insurance, whether valid or not, covering any of said property, any changes in the title, use, occupation, location, possession or exposures of said property since the issuing of this policy, by whom and for what purpose any building herein described and the several parts thereof were occupied at the time of loss and whether or not it then stood on leased ground, and shall furnish a copy of all the descriptions and schedules in all policies and, if required, verified plans and specifications of any building, fixtures or machinery destroyed or damaged. The insured, as often as may be reasonably required, shall exhibit to any person designated by this Company all that remains of any property herein described, and submit to examinations under oath by any person named by this Company, and subscribe the same; and, as often as may be reasonably required, shall produce for examination all books of account, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by this Company or its representative, and shall permit extracts and copies thereof to be made. Appraisal. In case the insured and this Company shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty days of such demand. The appraisers shall first select a competent and disinterested umpire; and failing for fifteen days to agree upon such umpire, then, on request of the insured or this Company, such umpire shall be selected by a judge of a court of record in the state in which the property covered is located. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this Company shall determine the amount of actual cash value and loss. Each appraiser shall be paid by the party selecting him and the expenses of appraisal and umpire shall be paid by the parties equally. Company`s options. It shall be optional with this Company to take all, or any part, of the property at the agreed or appraised value, and also to repair, rebuild or replace the property destroyed or damaged with other of like kind and quality within a reasonable time, on giving notice of its intention so to do within thirty days after the receipt of the proof of loss herein required. Abandonment. There can be no abandonment to this Company of any property. When loss payable. The amount of loss for which this Company may be liable shall be payable sixty days after proof of loss, as herein provided, is received by this Company and ascertainment of the loss is made either by agreement between the insured and this Company expressed in writing or by the filing with this Company of an award as herein provided. Suit. No suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, and unless commenced within twenty-four months next after inception of the loss. Subrogation. This Company may require from the insured an assignment of all right of recovery against any party for loss to the extent that payment therefor is made by this Company. THIRD PAGE OF STANDARD FIRE POLICY ATTACH FORM BELOW THIS LINE BACK OF STANDARD FIRE POLICY (OPTIONAL) Standard Fire Insurance Policy of the States of Expires ___________________________________ Property __________________________________ Assured ___________________________________ No. _______________________ (COMPANY) It is important that the written portions of all policies covering the same property read exactly alike. If they do not, they should be made uniform at once. (f) (1) Subject to the approval of the superintendent, a policy which insures solely against the peril of fire or which insures against the peril of fire in combination with other kinds of insurance either for a divisible or indivisible premium need not comply with the provisions of subsection (e) of this section, provided: (A) the policy contains, with respect to the peril of fire, terms and provisions no less favorable to the insured than those contained in the standard fire policy; (B) the provisions in relation to mortgagee interests and obligations in such standard fire policy are incorporated without substantive change; and (C) the policy or contract is complete as to all of its terms without reference to the standard form fire insurance policy or any other policy. (2) Policies of automobile or aircraft physical damage insurance or policies of inland marine insurance may be issued as heretofore without reference to the limitations contained in paragraph one of this subsection. (g) Notwithstanding any other provision of law to the contrary, the provisions of the appraisal clause set out on the second page of the standard fire policy and the provisions of section three thousand four hundred eight of this chapter, including determinations as to the amount of loss or damage rendered thereunder, shall be binding on all parties to the contract of fire insurance evidenced by the policy. (h) As used in this section, "binder" means a written document (1) which includes the name and address of the insured and any additional named insureds, mortgagees, or lienholders; a description of the property insured; a description of the nature and amount of coverage which shall be deemed to include the terms of the standard fire insurance policy except as conspicuously noted on the binder; the identity of the insurer and of the authorized representative executing the binder; the effective date of coverage; the binder number or the policy number where applicable to a policy extension, and (2) which temporarily obligates the insurer to provide that insurance coverage pending issuance of the insurance policy. The cancellation of such a binder shall be governed at the minimum by the provisions of the standard fire insurance policy and the provisions of this chapter applicable thereto. No exempt organization, as defined in section five hundred ninety of the banking law, or licensed mortgage banker which originates mortgage loans shall, at the time of title closing for a loan secured by a one to four family residential real property, refuse to accept a binder, issued by an insurer, or a duly authorized representative of an insurer, licensed to do business in this state, as evidence that hazard insurance has been procured for the mortgaged premises. Nothing herein is intended to prohibit the mortgage banker or exempt organization from requiring the borrower to also furnish a receipt indicating that the annual or installment premium on such insurance policy has been paid. S 3405. Fire insurance contract; losses from nuclear reaction or radiation. (a) Insurers issuing the standard fire insurance policy pursuant to section three thousand four hundred four of this article are authorized to affix or include in the policy a written statement that such policy does not cover loss or damage caused by nuclear reaction or nuclear radiation or radioactive contamination, all whether directly or indirectly resulting from an insured peril under such policy. (b) This section shall not prohibit the attachment to any such policy of an endorsement specifically assuming coverage for loss or damage caused by nuclear reaction or nuclear radiation or radioactive contamination. S 3406. Copy of examination of insured to be delivered to insured. (a) If any policy or contract of insurance against loss or damage to property located in this state contains any provision requiring the insured to permit any examination by the insurer of the insured, or of a member of his family, or of any employee of the insured, and if any such examination takes place and is reduced to writing, whether or not signed by the insured or by such person so examined, such insurer shall, within ten days from the time when the insured shall have requested the same in writing, deliver to the insured a copy of such examination so reduced to writing. (b) If such copy is not delivered to the insured as required, no part of the examination shall be used by the insurer as a part of the proof of loss or damage or as evidence in any action or proceeding based upon or involving such policy or contract. S 3407. Property insurance; proofs of loss; notice of loss. (a) The failure of any person insured against loss or damage to property under any contract of insurance, issued or delivered in this state or covering property located in this state, to furnish proofs of loss to the insurer or insurers as specified in such contract shall not invalidate or diminish any claim of such person insured under such contract, unless such insurer or insurers shall, after such loss or damage, give to such insured a written notice that it or they desire proofs of loss to be furnished by such insured to such insurer or insurers on a suitable blank form or forms. If the insured shall furnish proofs of loss within sixty days after the receipt of such notice and such form or forms, or within any longer period of time specified in such notice, such insured shall be deemed to have complied with the provisions of such contract of insurance relating to the time within which proofs of loss are required. Neither the giving of such notice nor the furnishing of such blank form or forms by the insurer shall constitute a waiver of any stipulation or condition of such contract, or an admission of liability thereunder. (b) If any contract of insurance issued or delivered in this state, covering loss of or damage to property by fire provides that the insured give immediate notice, in writing, to the insurer, of any loss or damage, it shall be sufficient compliance if immediate written notice is given, by or on behalf of the insured, to any licensed agent of the insurer in this state, with particulars sufficient to identify the insured and the property insured under such contract and to notify the insurer of the time and place of such loss or damage. S 3407-a. Property/casualty insurance contract and policy standard provisions. No property/casualty insurance policy or contract shall be issued or issued for delivery on a risk located or resident in this state insuring against damage to the insured`s real property unless it contains in substance the following provision or a provision which is equal or more favorable to the insured: a provision that in the event of a pending claim for damage to real property, upon request, the insurer shall furnish to the insured`s representative, designated in writing, or if none has been designated, to the insured, a copy of any written estimate or estimates of the cost of damages to real property resulting from the loss which the insurer has independently prepared for its own purposes, or had prepared on its behalf for its own purposes, specifying all appropriate deductions, within thirty days after the request or preparation, whichever is later, of such estimate or estimates. An insurer shall not be required to provide an estimate on claims for damages to real property unless it has independently prepared one or had one prepared on its behalf for the insurer`s own purposes. S 3408. Fire insurance; appraisal of loss; procedure for selection of umpire on failure to agree. (a) Whenever application shall be made for the selection of an umpire pursuant to the provisions relating to appraisals contained in the standard fire insurance policy of the state of New York it shall be made to a justice of the supreme court residing in the county or to a county judge of the county in which the lost or damaged property is or was located. The application shall be on five days` notice in writing to the other party. Any such notice in writing, when served by the insured, may be served upon any local agent of the insurer. (b) The court shall, on proof by affidavit of the failure or neglect of the appraisers to agree upon and select an umpire within the time provided in such policy, and of the service of notice pursuant to subsection (a) hereof, forthwith appoint a competent and disinterested person to act as such umpire in the ascertainment of the amount of such loss or damage. S 3409. Distribution of hazardous material report forms. The superintendent shall require every insurance company issuing a policy of fire insurance against a risk located in this state to annually issue to each of its fire insurance policyholders engaged in commerce in this state a suitable supply of forms supplied by the office of fire prevention and control for reporting the presence of hazardous materials as required by section two hundred nine-u of the general municipal law. S 3410. Fire insurance contract; payment of liens on proceeds; certain cases. (a) Every fire insurance policy insuring the interest of an owner pursuant to this article shall include a statement that, prior to the payment of any proceeds thereunder otherwise payable to the insured for damages resulting to the premises from a loss occasioned by fire, the insurer will deduct and pay the claim of any tax district which renders a certificate of lien pursuant to the provisions of section three hundred thirty-one of this chapter. (b) Such statement shall further relate that upon the payment of such claim the insurer shall, to the extent of such payment, be released from any obligation to pay the same to the insured and that the payment of any such claim within thirty days of receipt by the insurer of the certificate of lien shall, as between the insured and the insurer, operate as a conclusive presumption that such claim was valid and properly paid. S 3411. Automobile physical damage insurance covering private passenger automobiles; standard provisions; required inspections; duties of insurers and insureds. (a) The provisions of this section shall be applicable to all automobile physical damage insurance policies covering private passenger automobiles registered in this state, notwithstanding any other provisions of this chapter. (b) In this article, "renewal" means the issuance and delivery by an insurer, at the end of the policy period, of a policy superseding a policy previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term. Any policy with a policy period or term of less than one year shall, for the purpose of determining each renewal date in this section, be considered as if written for a policy period or term of one year commencing with the annual anniversary date, and any policy written for a period or term of more than one year or any policy with no fixed expiration date shall, for the purpose of this section, be considered as if written for successive policy periods or terms of one year commencing with the annual anniversary date. (c) No policy providing automobile physical damage insurance for private passenger automobiles registered in this state shall be issued, delivered, or renewed unless it complies with this section. (d) A newly issued policy shall not provide coverage for automobile physical damage perils prior to an inspection of the automobile by the insurer. (e) For a renewal of a policy referred to in subsection (d) of this section, an insurer may require, as a condition of such renewal, that the automobile be made available for inspection. (f) If an insurer requests an inspection pursuant to subsection (e) of this section, the insured shall make the automobile available for inspection by the insurer, upon reasonable notice. If the insured fails to make the automobile available for inspection, the insurer may refuse to continue such physical damage coverage. (g) If an automobile subject to the provisions of this section is acquired by the insured as a replacement for or an addition to an automobile insured for physical damage coverage, and the insured requests physical damage coverage for the replacement or additional automobile, such coverage for physical damage shall not be effective before such inspection is made. If, at the time of the request for such coverage, the automobile is unavailable for inspection because of conditions of purchase or other circumstances and is thereafter made available for inspection, the insurer shall promptly inspect the automobile, and physical damage coverage shall not become effective before the inspection has been made. (h) Where an inspection is made pursuant to this section, it shall be conducted by the insurer or its authorized representative and shall be recorded on a form prescribed by the superintendent. Such form shall be retained by the insurer with its policy records for such insured, and a copy of such form shall be made available to the insured upon request. (i) Payment of a physical damage claim shall not be conditioned upon the repair of the automobile, provided, however, the insured shall replace any inflatable restraint system (airbag), as defined in subparagraph (b) of S 4.1.5.1 of standard 208 of part 571 of title 49 of the code of federal regulations, that inflated and deployed, or that was stolen, which is included in a physical damage or theft claim. The insurer may request that the automobile be made available for inspection whether or not the automobile is repaired. The results of such inspection may form a basis for determining the value of the automobile in the event of a subsequent loss. If the automobile is repaired the insurer shall request the repair invoice and shall require the insured and the automobile repairer to certify, under penalties of perjury, whether the applicable deductible has been paid to the automobile repairer, whether any repairs have been made and whether the repairs did not include all items allowed by the insurer. (j) The superintendent may approve policy forms for physical damage coverage, for new and renewable business, which exclude coverage for specified items of personal property located in or upon the automobile. (k) Each insurer which offers physical damage insurance subject to the provisions of this section shall offer such insurance with a standard deductible of two hundred dollars for each occurrence. The insured shall, however, at the inception of the policy or at the annual anniversary date, or at the time of the replacement or addition of an automobile, have the option of purchasing a policy with a lesser deductible, but in no event may the insurer sell a policy with a deductible of less than fifty dollars for fire, theft or comprehensive insurance coverages (one hundred dollars for assigned risk policies issued pursuant to paragraph two of subsection (a) of section five thousand three hundred three of this chapter) and one hundred dollars for collision insurance coverage except that window glass coverage may be sold without a deductible. Each insurer which offers physical damage insurance subject to the provisions of this section shall also offer physical damage coverages with co-insurance or deductible provisions or combinations thereof as the superintendent may prescribe, including but not limited to deductibles of two hundred fifty dollars, five hundred dollars and one thousand dollars. (l) Every insurer subject to the provisions of this section shall report to the commissioner of motor vehicles any evidence of overcharges, improper repairs or adjustments or other wrongdoing by motor vehicle repair shops, in order that the department of motor vehicles may properly discharge its responsibilities under the vehicle and traffic law to protect consumers from dishonest, deceptive and fraudulent practices in the repair of automobiles, to protect the public from improper repairs and to eliminate unqualified motor vehicle repair shops. (m) (1) The superintendent, in regulations implementing the provisions of this section, shall also require that insurers take appropriate action to ensure that there is wide public dissemination of the provisions of this section relating to the rights and obligations of insureds and insurers. (2) The inspections provided for in this section may be dispensed with or deferred under circumstances specified in regulations of the superintendent. Such circumstances may include but are not limited to, the insuring of a new automobile, the insuring of an automobile whose inspection would constitute a serious hardship to the insurer, the insured or an applicant for insurance, and the insuring of an automobile for a limited specified period of time. (3) Inspections made pursuant to this section shall be made at locations and times reasonably convenient to the insured. The results of any inspection may be considered in determining the value of the automobile. (n) If the superintendent, after notice and hearing, finds that any insurer or its authorized representative has violated any provision of this section, he shall order the payment of a penalty, not to exceed five hundred dollars for each such offense. Each issuance, procurement or negotiation of a policy of insurance in violation of this section shall be a separate offense. S 3412. Automobile physical damage insurance covering private passenger automobiles; salvage; total losses; thefts; duties of insurers. (a) Notwithstanding any other provision of this chapter, the provisions of this section shall be applicable to all physical damage losses incurred on policies covering private passenger automobiles registered in this state for model year nineteen hundred seventy-three or later. (b) In accordance with regulations of the superintendent insurers shall, except where the insured is permitted to retain the automobile as part of the claim settlement, take possession of any salvage and the certificate of title, properly endorsed to them of private automobiles whenever a loss is determined by the insurer to be a total loss or a constructive total loss. Insurers, in disposing of the salvage, shall fully comply with the requirements of section four hundred twenty-nine of the vehicle and traffic law. An insurer shall also have the right, where a claim is filed for the replacement of an inflated and deployed or stolen inflatable restraint system (air bag), as defined in subparagraph (b) of S 4.1.5.1 of standard 208 of part 571 of title 49 of the code of federal regulations, to inspect the vehicle for which the claim is being filed to verify that the air bag did inflate and deploy or was stolen. The insurer shall also have the right to take possession of a deployed airbag. (c) Except with respect to vehicles recovered after a theft loss has been paid and which meet the criteria set forth in subdivision two of section four hundred thirty of the vehicle and traffic law, insurers shall not, directly or indirectly, transfer within or without this state any vehicle for salvage, except to a governmental agency, an automobile dealer, a vehicle dismantler, or a scrap processor licensed, registered or certified in accordance with the provisions of the vehicle and traffic law, or any such person meeting licensing, registration or certification requirements of the state in which such person does business. An insurer or its agents shall not purchase salvage vehicles or used major component parts of motor vehicles except from a registered vehicle dismantler or an automobile dealer. (d) Insurers shall report private passenger automobiles involved in total losses, including the vehicle identification number and such other information as may be required, to a central organization engaged in automobile loss prevention as designated by the superintendent, in accordance with regulations of the superintendent. The central organization shall also be responsible for recording any special vehicle identification number issued by the commissioner of motor vehicles pursuant to subdivision two of section four hundred thirty-one of the vehicle and traffic law and in accordance with regulations of the superintendent. (e) Prior to the payment of total losses, insurers shall comply with verification procedures in accordance with regulations of the superintendent. (f) Police and other law enforcement agencies charged with the investigation of automobile thefts shall promptly report to the owner of the automobile and the central organization designated by the superintendent, all locations of private passenger automobiles reported stolen or found to be abandoned. In accordance with regulations of the superintendent, the central organization shall be responsible for receiving and recording such reports, and shall promptly transmit such information to the insurer of the automobile physical damage coverage. (g) All policies providing automobile physical damage coverage shall include a provision authorizing the insurer to take the insured motor vehicle into custody for safekeeping, when notified that the motor vehicle reported stolen or found to be abandoned has been located. (h) (1) The central organization designated by the superintendent and each insurer authorized to issue automobile comprehensive insurance policies covering losses incurred to private passenger vehicles shall upon request of any appropriate law enforcement agency or insurance organization engaged in automobile loss prevention release information in its possession resulting from an investigation conducted by it pertaining to such comprehensive loss, including information as such agency or organization deems related to its investigation. Should a central organization or the insurer be of the opinion that the loss was caused by any criminal or fraudulent act of any person or organization, or that an improper action occurred in the disposition of automobiles subject to the provisions of this section, it shall notify the appropriate law enforcement agency or insurance organization engaged in automobile loss prevention of that opinion, and it shall notify the insurance department or department of motor vehicles of any improper action of their respective licensees or registrants. (2) Any information or evidence furnished pursuant to this subsection shall be held in confidence by the appropriate agency or insurance organization engaged in automobile loss prevention, until such information is required to be released pursuant to a criminal proceeding, or if such agency or organization shall be served a summons or subpoena to testify as to any information or evidence in its possession regarding such automobile comprehensive loss in any civil action where an insured or other person is seeking recovery under a policy against an insurer for such loss. S 3413. Standard claim forms for fire losses. (a) (1) On or before April first, nineteen hundred eighty-two, the superintendent shall establish a standard claim form to be used for all fire loss claims under an insurance policy which is issued or issued for delivery in this state covering such losses for property located in this state. (2) The superintendent shall investigate and review claim forms which are currently utilized prior to establishing such standard claim form. (3) All insurers shall require the completion and filing of the standard claim form. (b) The adoption of such standard claim form by the superintendent shall not preclude an insurer from obtaining any necessary additional information regarding a claim from the claimant or any other source. (c) (1) The superintendent is authorized and empowered to take such action as he shall deem appropriate for the proper implementation hereof and to provide by regulation that any form which does not comply with this section shall not be issued or reissued. (2) The regulation so promulgated shall specify an effective date, which shall not be less than one hundred eighty days after the date of promulgation, after which no insurer may require any claimant to complete a form differing from the one prescribed by the superintendent, other than additional requests for information pursuant to subsection (b) of this section. S 3414. Reports by insurers of certain casualty loss on property owned or operated by religious organizations. (a) Insurers shall report all claims in excess of two hundred fifty dollars filed for casualty losses resulting from desecration, vandalism and theft of religious articles sustained by a "Religious Corporations Law corporation", "incorporated church" or "unincorporated church", as such terms are defined in section two of the religious corporations law, to the division of criminal justice services for a period of twelve months commencing with the effective date of the rules and regulations required to be promulgated pursuant to subsection (b) of this section. (b) Such division shall promulgate rules and regulations within ninety days of the effective date of this section detailing the contents of such reports which shall require at least the following information: (1) name and address of the claimant; (2) nature, substance and approximate dollar value of the claim; (3) date and specific place in which the claim arose. S 3415. Supplemental claim form to be submitted for certain fire loss claims in excess of ten thousand dollars in a city with a population of one million or more persons. (a) For the purposes of this section, the following terms shall have the following meanings: (1) "Supplemental claim form" means a form which shall be established by the superintendent and which shall be used as provided in this section for fire loss claims. The superintendent shall, within one hundred twenty days, promulgate regulations for the implementation of the supplemental claim form as provided herein. (2) "Local fire investigation agency" or "agency" means an officer or agency of a city with a population of one million or more persons designated by the mayor of such city. (3) "Fire loss claim" means a claim for fire loss in excess of ten thousand dollars under a policy covering real property located in a city with a population of one million or more persons, property permanently affixed to such real property or personal property, except motor vehicles, located on or within such real property against the perils of fire or explosion which is issued or issued for delivery in this state. (b) Within thirty days after the effective date of this section, the mayor of a city with a population of one million or more persons shall designate a local fire investigation agency. Within sixty days after such designation the local fire investigation agency shall establish and shall thereafter maintain a central registry of those fires and explosions in such city which have been determined to be incendiary. (c) All fire loss claims filed by an insured or an insured`s representative after the effective date of a regulation promulgated by the superintendent establishing a supplemental claim form shall be subject to the provisions of this section. (d) Within seven days after the receipt of a fire loss claim, the insurer shall contact the central registry maintained by the local fire investigation agency for information as to whether the fire or explosion which is the subject of the claim has been determined to be incendiary. (e) Within seven days after the receipt of such request the local fire investigation agency shall advise the insurer whether or not the fire or explosion has been determined to be incendiary. If within such seven day period the agency advises the insurer that the fire or explosion has been determined to be incendiary, unless the insurer is reasonably satisfied that neither the insured nor any of its agents, officers, directors, or persons in control of or controlled by the insured intentionally started the fire or cause the explosion or acted in concert with another individual to start the fire or cause the explosion, the insurer shall require the insured to submit a supplemental claim form and shall withhold payment of the claim until a completed supplemental claim form has been received. (f) The withholding of any payment pursuant to this section shall not constitute an unfair claim settlement practice within the meaning of section two thousand six hundred one of this chapter or any implementing regulation thereof. (g) Within twenty days after receiving a completed supplemental claim form from an insured, the insurer shall file a copy with the local fire investigation agency. (h) Supplemental claim forms shall not be subject to public disclosure under the freedom of information law or any other law which requires public disclosure of records maintained by a governmental agency. (i) The supplemental claim form shall require the insured to provide the insurer with the following information: (1) the name and address of the insured and of all persons with an interest of five percent or more in the proceeds of the claim; (2) the names and addresses of all persons with an ownership interest in the property, any mortgagee, vendee in possession, receiver, executor or trustee; (3) if any of the persons described in paragraphs one and two of this subsection is a trustee, the names and addresses of the beneficiaries of the trust; (4) if any of the persons described in paragraphs one and two of this subsection is a partnership, the names and addresses of all the partners, including limited partners; (5) if any of the persons described in paragraphs one and two of this subsection is a corporation (other than a banking organization as defined in section two of the banking law, a national bank association, a federal savings and loan association, the mortgage facilities corporation, savings bank life insurance fund, the savings bank retirement system, an authorized insurer as defined in section one hundred seven of this chapter or a trust company or other corporation organized under the laws of this state all the capital stock of which is owned by at least twenty savings banks or by at least twenty savings and loan associations or a subsidiary corporation all of the capital stock of which is owned by such trust company or other corporation or a corporation the shares of which are listed on a national securities exchange or regularly quoted in over-the-counter market by one or more members of a national or affiliated securities association) the names and addresses of all officers, directors and persons having an interest in more than ten percent of the issued and outstanding stock of the corporation. (j) For the purposes of section 176.05 of the penal law, a supplemental claim form shall be considered to be a part of a claim for payment or benefit pursuant to an insurance policy and the information required in such form shall be considered to be material thereto. S 3420. Liability insurance; standard provisions; right of injured person. (a) No policy or contract insuring against liability for injury to person, except as provided in subsection (g) hereof, or against liability for injury to, or destruction of, property shall be issued or delivered in this state, unless it contains in substance the following provisions or provisions which are equally or more favorable to the insured and to judgment creditors so far as such provisions relate to judgment creditors: (1) A provision that the insolvency or bankruptcy of the person insured, or the insolvency of his estate, shall not release the insurer from the payment of damages for injury sustained or loss occasioned during the life of and within the coverage of such policy or contract. (2) A provision that in case judgment against the insured or his personal representative in an action brought to recover damages for injury sustained or loss or damage occasioned during the life of the policy or contract shall remain unsatisfied at the expiration of thirty days from the serving of notice of entry of judgment upon the attorney for the insured, or upon the insured, and upon the insurer, then an action may, except during a stay or limited stay of execution against the insured on such judgment, be maintained against the insurer under the terms of the policy or contract for the amount of such judgment not exceeding the amount of the applicable limit of coverage under such policy or contract. (3) A provision that notice given by or on behalf of the insured, or written notice by or on behalf of the injured person or any other claimant, to any licensed agent of the insurer in this state, with particulars sufficient to identify the insured, shall be deemed notice to the insurer. (4) A provision that failure to give any notice required to be given by such policy within the time prescribed therein shall not invalidate any claim made by the insured or by any other claimant if it shall be shown not to have been reasonably possible to give such notice within the prescribed time and that notice was given as soon as was reasonably possible. (b) Subject to the limitations and conditions of paragraph two of subsection (a) hereof, an action may be maintained by the following persons against the insurer upon any policy or contract of liability insurance which is governed by such paragraph, to recover the amount of a judgment against the insured or his personal representative: (1) any person who, or the personal representative of any person who, has obtained a judgment against the insured or his personal representative, for damages for injury sustained or loss or damage occasioned during the life of the policy or contract; (2) any person who, or the personal representative of any person who, has obtained a judgment against the insured or his personal representative to enforce a right of contribution or indemnity, or any person subrogated to the judgment creditor`s rights under such judgment; and (3) any assignee of a judgment obtained as specified in paragraph one or paragraph two of this subsection, subject further to the limitation contained in section 13-103 of the general obligations law. (c) If an action is maintained against an insurer under the provisions of paragraph two of subsection (a) of this section and the insurer alleges in defense that the insured failed or refused to cooperate with the insurer in violation of any provision in the policy or contract requiring such cooperation, the burden shall be upon the insurer to prove such alleged failure or refusal to cooperate. (d) If under a liability policy delivered or issued for delivery in this state, an insurer shall disclaim liability or deny coverage for death or bodily injury arising out of a motor vehicle accident or any other type of accident occurring within this state, it shall give written notice as soon as is reasonably possible of such disclaimer of liability or denial of coverage to the insured and the injured person or any other claimant. (e) No policy or contract of personal injury liability insurance or of property damage liability insurance, covering liability arising from the ownership, maintenance or operation of any motor vehicle or of any vehicle as defined in section three hundred eighty-eight of the vehicle and traffic law, or an aircraft, or any vessel as defined in section forty-eight of the navigation law, shall be issued or delivered in this state to the owner thereof, or shall be issued or delivered by any authorized insurer upon any such vehicle or aircraft or vessel then principally garaged or principally used in this state, unless it contains a provision insuring the named insured against liability for death or injury sustained, or loss or damage occasioned within the coverage of the policy or contract, as a result of negligence in the operation or use of such vehicle, aircraft or vessel, as the case may be, by any person operating or using the same with the permission, express or implied, of the named insured. (f) (1) No policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any natural person arising out of the ownership, maintenance and use of a motor vehicle by the insured shall be issued or delivered by any authorized insurer upon any motor vehicle then principally garaged or principally used in this state unless it contains a provision whereby the insurer agrees that it will pay to the insured, as defined in such provision, subject to the terms and conditions set forth therein to be prescribed by the board of directors of the Motor Vehicle Accident Indemnification Corporation and approved by the superintendent, all sums, not exceeding a maximum amount or limit of twenty-five thousand dollars exclusive of interest and costs, on account of injury to and all sums, not exceeding a maximum amount or limit of fifty thousand dollars exclusive of interest and costs, on account of death of one person, in any one accident, and the maximum amount or limit, subject to such limit for any one person so injured of fifty thousand dollars or so killed of one hundred thousand dollars, exclusive of interest and costs, on account of injury to, or death of, more than one person in any one accident, which the insured or his legal representative shall be entitled to recover as damages from an owner or operator of an uninsured motor vehicle, unidentified motor vehicle which leaves the scene of an accident, a motor vehicle registered in this state as to which at the time of the accident there was not in effect a policy of liability insurance, a stolen vehicle, a motor vehicle operated without permission of the owner, an insured motor vehicle where the insurer disclaims liability or denies coverage or an unregistered vehicle because of bodily injury, sickness or disease, including death resulting therefrom, sustained by the insured, caused by accident occurring in this state and arising out of the ownership, maintenance or use of such motor vehicle. No payment for non-economic loss shall be made under such policy provision to a covered person unless such person has incurred a serious injury, as such terms are defined in section five thousand one hundred two of this chapter. Such policy shall not duplicate any element of basic economic loss provided for under article fifty-one of this chapter. No payments of first party benefits for basic economic loss made pursuant to such article shall diminish the obligations of the insurer under this policy provision for the payment of non-economic loss and economic loss in excess of basic economic loss. Notwithstanding any inconsistent provisions of section three thousand four hundred twenty-five of this article, any such policy which does not contain the aforesaid provisions shall be construed as if such provisions were embodied therein. (2) (A) Any such policy shall, at the option of the insured, also provide supplementary uninsured/underinsured motorists insurance for bodily injury, in an amount up to the bodily injury liability insurance limits of coverage provided under such policy, subject to a maximum of two hundred fifty thousand dollars because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, up to five hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, or a combined single limit policy of five hundred thousand dollars because of bodily injury to or death of one or more persons in any one accident. Provided however, an insurer issuing such policy, in lieu of offering to the insured the coverages stated above, may provide supplementary uninsured/underinsured motorists insurance for bodily injury, in an amount up to the bodily injury liability insurance limits of coverage provided under such policy, subject to a maximum of one hundred thousand dollars because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, up to three hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, or a combined single limit policy of three hundred thousand dollars because of bodily injury to or death of one or more persons in any one accident, if such insurer also makes available a personal umbrella policy with liability coverage limits up to at least five hundred thousand dollars which also provides coverage for supplementary uninsured/underinsured motorists claims. Supplementary uninsured/underinsured motorists insurance shall provide coverage, in any state or Canadian province, if the limits of liability under all bodily injury liability bonds and insurance policies of another motor vehicle liable for damages are in a lesser amount than the bodily injury liability insurance limits of coverage provided by such policy. Upon written request by any insured covered by supplemental uninsured/underinsured motorists insurance or his duly authorized representative and upon disclosure by the insured of the insured`s bodily injury and supplemental uninsured/underinsured motorists insurance coverage limits, the insurer of any other owner or operator of another motor vehicle against which a claim has been made for damages to the insured shall disclose, within forty-five days of the request, the bodily injury liability insurance limits of its coverage provided under the policy or all bodily injury liability bonds. The time of the insured to make any supplementary uninsured/underinsured motorist claim, shall be tolled during the period the insurer of any other owner or operator of another motor vehicle that may be liable for damages to the insured, fails to so disclose its coverage. As a condition precedent to the obligation of the insurer to pay under the supplementary uninsured/underinsured motorists insurance coverage, the limits of liability of all bodily injury liability bonds or insurance policies applicable at the time of the accident shall be exhausted by payment of judgments or settlements. (B) In addition to the notice provided, upon issuance of a policy of motor vehicle liability insurance pursuant to regulations promulgated by the superintendent, insurers shall notify insureds, in writing, of the availability of supplementary uninsured/underinsured motorists coverage. Such notification shall contain an explanation of supplementary uninsured/underinsured motorists coverage and the amounts in which it can be purchased. Subsequently, a notification of availability shall be provided at least once a year and may be simplified pursuant to regulations promulgated by the superintendent, but must include a concise statement that supplementary uninsured/underinsured motorists coverage is available, an explanation of such coverage, and the coverage limits that can be purchased from the insurer. (3) The protection provided by this subsection shall not apply to any cause of action by an insured person arising out of a motor vehicle accident occurring in this state against a person whose identity is unascertainable, unless the bodily injury to the insured person arose out of physical contact of the motor vehicle causing the injury with the insured person or with a motor vehicle which the insured person was occupying (meaning in or upon or entering into or alighting from) at the time of the accident. (4) An insurer shall give notice to the commissioner of motor vehicles of the entry of any judgment upon which a claim is made against such insurer under this subsection and of the payment or settlement of any claim by the insurer. (g) No policy or contract shall be deemed to insure against any liability of an insured because of death of or injuries to his or her spouse or because of injury to, or destruction of property of his or her spouse unless express provision relating specifically thereto is included in the policy as provided in paragraphs one and two of this subsection. This exclusion shall apply only where the injured spouse, to be entitled to recover, must prove the culpable conduct of the insured spouse. (1) Upon written request of an insured, and upon payment of a reasonable premium established in accordance with article twenty-three of this chapter, an insurer issuing or delivering any policy that satisfies the requirements of article six of the vehicle and traffic law shall provide coverage against liability of an insured because of death of or injuries to his or her spouse up to the liability insurance limits provided under such policy even where the injured spouse, to be entitled to recover, must prove the culpable conduct of the insured spouse. Such insurance coverage shall be known as "supplemental spousal liability insurance". (2) Upon issuance of a motor vehicle liability policy that satisfies the requirements of article six of the vehicle and traffic law and that becomes effective on or after January first, two thousand three, pursuant to regulations promulgated by the superintendent, the insurer shall notify the insured, in writing, of the availability of supplemental spousal liability insurance. Such notification shall be contained on the front of the premium notice in boldface type and include a concise statement that supplementary spousal coverage is available, an explanation of such coverage, and the insurer`s premium for such coverage. Subsequently, a notification of the availability of supplementary spousal liability coverage shall be provided at least once a year in motor vehicle liability policies issued pursuant to article six of the vehicle and traffic law, including those originally issued prior to January first, two thousand three. Such notice must include a concise statement that supplementary spousal coverage is available, an explanation of such coverage, and the insurer`s premium for such coverage. (h) In this section, the term "insurance upon any property or risk located in this state" includes insurance against legal liability arising out of the ownership, operation or maintenance of any vehicle which is principally garaged or principally used in this state, or arising out of the ownership, operation, use or maintenance of any property which is principally kept or principally used in this state, or arising out of any other activity which is principally carried on in this state. (i) Except as provided in subsection (j) of this section, the provisions of this section shall not apply to any policy or contract of insurance in so far as it covers the liability of an employer for workers` compensation, if such contract is governed by the provisions of section fifty-four of the workers` compensation law, or by any similar law of another state, province or country, nor to the kinds of insurances set forth in paragraph three of subsection (b) of section two thousand one hundred seventeen of this chapter. (j) (1) Notwithstanding any other provision of this chapter or any other law to the contrary, every policy providing comprehensive personal liability insurance on a one, two, three or four family owner-occupied dwelling, issued or renewed in this state on and after the effective date of this subsection shall provide for coverage against liability for the payment of any obligation, which the policyholder may incur pursuant to the provisions of the workers` compensation law, to an employee arising out of and in the course of employment of less than forty hours per week, in and about such residences of the policyholder in this state. Such coverage shall provide for the benefits in the standard workers` compensation policy issued in this state. No one who purchases a policy providing comprehensive personal liability insurance shall be deemed to have elected to cover under the workers` compensation law any employee who is not required, under the provisions of such law, to be covered. (2) The term "policyholder" as used in this subsection shall be limited to an individual or individuals as defined by the terms of the policy, but shall not include corporate or other business entities or an individual who has or individuals who have in effect a workers` compensation policy which covers employees working in and about his or their residence. (3) Every insurer who is licensed by the superintendent to issue homeowners or other policies providing comprehensive personal liability insurance in this state shall also be deemed to be licensed to transact workers` compensation insurance for the purpose of covering those persons specified in this subsection. S 3425. Certain property/casualty insurance policies; cancellation and renewal provisions; agents` contracts and brokers` accounts. (a) This section shall apply to covered policies of insurance as defined in paragraphs one, two and three hereof. (1) "Covered policy" means a contract of insurance, referred to in this section as "automobile insurance", issued or issued for delivery in this state, on a risk located or resident in this state, insuring against losses or liabilities arising out of the ownership, operation, or use of a motor vehicle, predominantly used for non-business purposes, when a natural person is the named insured under the policy of automobile insurance. (2) "Covered policy" also means a contract of insurance, referred to in this section as "personal lines insurance", other than a contract of insurance defined in paragraph one hereof, issued or issued for delivery in this state, on a risk located or resident in this state, insuring any of the following contingencies: (A) loss of or damage to real property used predominantly for residential purposes and which consists of not more than four dwelling units, other than hotels and motels; (B) loss of or damage to personal property in which natural persons have an insurable interest, except personal property used in the conduct of a business; and (C) other liabilities for loss of, damage to, or injury to persons or property, not arising from the conduct of a business, when a natural person is the named insured under the policy. (3) A personal umbrella liability policy shall be considered a "covered policy" under paragraph two, and not paragraph one, of this subsection. (4) A contract which insures any of the foregoing contingencies described in paragraph one or two hereof as well as other contingencies shall be a covered policy if that portion of the annual premium attributable to such foregoing contingencies exceeds that portion attributable to other contingencies. (5) A covered policy shall not include a policy issued pursuant to any plan established under article fifty-three or fifty-four of this chapter or legal services insurance. (6) "Renewal" or "to renew" means the issuance and delivery by an insurer, at the end of the policy period, of a policy superseding a policy previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term; provided, however, that any policy with a policy period or term of less than one year shall, for the purpose of this section, be considered as if written for a policy period or term of one year, or any policy with no fixed expiration date, shall, for the purpose of this section, be considered as if written for successive policy periods or terms of one year. (7) With respect to personal lines insurance, "required policy period" means a period of three years from the date as of which a covered policy is first issued or is voluntarily renewed. (8) With respect to automobile insurance, "required policy period" means a period of one year from the date as of which a covered policy becomes effective after first issuance or voluntary renewal. (9) With respect to automobile insurance, "voluntary renewal" means the renewal of a covered policy which has completed the required policy period pursuant to this section. (10) "Nonpayment of premium" means the failure of the named insured to discharge any obligation in connection with the payment of premiums on a policy of insurance or any installment of such premium, whether the premium is payable directly to the insurer or its agent, or indirectly under any premium finance plan or extension of credit. Payment to the insurer, or to an agent or broker authorized to receive such payment, shall be timely, if made within fifteen days after the mailing to the insured of a notice of cancellation for nonpayment of premium. (11) "Administrative suspension" means a temporary suspension of a driver`s license pending a hearing, prosecution or investigation or an indefinite suspension of a driver`s license because of the failure of the person suspended to perform an act, which suspension will be terminated by the performance of the act by the person suspended. (b) During the first sixty days a covered policy is in effect, no notice of cancellation shall be issued or be effective unless it states or is accompanied by a statement of the specific reason or reasons for such cancellation. (c) After a covered policy has been in effect for sixty days, or upon the effective date if the policy is a renewal, no notice of cancellation shall be issued to become effective unless required pursuant to a program approved by the superintendent as necessary because a continuation of the present premium volume would be hazardous to the interests of policyholders of the insurer, its creditors or the public, or unless it is based on one or more of the following: (1) With respect to automobile insurance policies: (A) nonpayment of premium; (B) suspension or revocation during the required policy period of the driver`s license of the named insured or any other person who customarily operates an automobile insured under the policy, other than a suspension issued pursuant to subdivision one of section five hundred ten-b of the vehicle and traffic law or one or more administrative suspensions arising from the same incident which has or have been terminated prior to the effective date of cancellation; or (C) discovery of fraud or material mis-representation in obtaining the policy or in the presentation of a claim thereunder. (2) With respect to personal lines insurance policies: (A) nonpayment of premium; (B) conviction of a crime arising out of acts increasing the hazard insured against; (C) discovery of fraud or material misrepresentation in obtaining the policy or in the presentation of a claim thereunder; (D) discovery of willful or reckless acts or omissions increasing the hazard insured against; (E) physical changes in the property insured occurring after issuance or last annual anniversary date of the policy which result in the property becoming uninsurable in accordance with the insurer`s objective, uniformly applied underwriting standards in effect at the time the policy was issued or last voluntarily renewed; or (F) a determination by the superintendent that the continuation of the policy would violate or would place the insurer in violation of this chapter. (3) The provisions of this subsection shall apply to each and every coverage or limit afforded under the policy. (d) (1) Unless the insurer, at least forty-five but not more than sixty days in advance of the end of the policy period, mails or delivers to the named insured, at the address shown in the policy, a written notice of its intention not to renew a covered policy, or to condition its renewal upon change of limits or elimination of any coverages, the named insured shall be entitled to renew the policy upon timely payment of the premium billed to the insured for the renewal. The specific reason or reasons for nonrenewal or conditioned renewal shall be stated in or shall accompany the notice. This paragraph shall not apply when the named insured, an agent or broker authorized by the named insured, or an insurer of the named insured, has mailed or delivered written notice to the insurer that the policy has been replaced or is no longer desired. (2) If an insurer has the right to cancel a policy it may, in lieu of cancellation, condition continuation of such policy upon change of limits or elimination of any coverage not required by law, if written notice of such intention is mailed or delivered to the insured at the address shown in the policy at least twenty days prior to the effective date of such action. (3) At its discretion, the insurer may, in lieu of renewing the policy in the form as last issued, substitute at the annual renewal date another approved policy form which contains at least substantially equivalent value in the aggregate of benefits, as determined by the superintendent. Notice of intention to substitute a different policy form on a renewal shall be made in the same manner as is prescribed in paragraph one of this subsection for a conditioned renewal but with respect to automobile insurance policies shall not be subject to the percentage limitations contained in subsection (f) of this section applicable to a conditioned renewal. Notice of intention to substitute a different policy form shall be accompanied by a full and clear comparison of the differences between the policy form as last issued and the substitute policy form. (e) With respect to personal lines insurance policies, no notice of nonrenewal or conditional renewal of a covered policy shall be issued to become effective during the required policy period unless it is based upon a ground for which the policy could have been cancelled. (f) (1) With respect to automobile insurance policies, the total number (rounded to the nearest whole number) of notices of intention not to renew a covered policy, and of notices of intention to condition renewal upon reduction of limits or elimination of any coverages, which an insurer may issue shall be limited for each calendar year to two percent of the total number of covered policies of the insurer in force at last year-end in each such insurer`s rating territory in use in this state which have completed their required policy period under this section. However, the insurer may non-renew or conditionally renew one policy in any such insurer`s rating territory in use in this state, if the applicable percentage limitation results in less than one policy. Cancellations made pursuant to subsection (b) or (c) of this section shall be independent of and in addition to the number of notices of intention not to renew or to condition renewal upon reduction of limits or elimination of any coverages not required by law, permitted under this subsection. (2) For every two new automobile policies which the insurer voluntarily writes in each such territory, such insurer shall be permitted to non-renew or conditionally renew one additional automobile policy in that territory in excess of the two percent limit established in paragraph one of this subsection, subject to a fair and nondiscriminatory formula developed by the superintendent, which shall consider the number of automobile policies written less cancellations initiated by the insurer within the first sixty days of the policy period. (3) The superintendent shall revoke the rights of any insurer or group of insurers under paragraph two of this subsection, upon a determination, after a public hearing, that such an insurer or group of insurers has utilized such rights to the detriment of any class or group of classes within a rating territory. (g) Notwithstanding any of the provisions and limitations of this section, any property/casualty insurance company organized for the sole and exclusive purpose of providing insurance policies to members of an organization, and providing such insurance policies on risks in New York, may refuse to renew automobile liability policies of persons who fail to meet the requirements contained in the by-laws of such company prohibiting the sale of policies to non-members of the organization, provided that such company shall continue to participate in any assigned risk plans established pursuant to article fifty-three of this chapter. (h) Proof of mailing of a notice of cancellation, reduction of limits, substitution of policy form, elimination of coverages, conditioned renewal or of intention not to renew, or proof of the mailing of the reasons therefor, to the named insured at the address shown in the policy, shall be sufficient proof of the giving of notice and the giving of reasons required by this section. (i) No insurer shall refuse to issue or renew a covered policy solely on the ground of the advanced age of the applicant or insured. (j) (1) Where an insurer or an agent who is authorized by such insurer to accept lines of insurance from licensed agents or brokers notifies a licensed agent or broker that its contract or account shall be terminated: (A) with respect to a personal lines insurance policy required to be continued by this section, the insurer shall offer to continue the policy for any remaining part of the required policy period and any statutory extension and the insurer shall offer to continue the policy through the terminated agent or broker for at least its next one year policy period which commences within one year following the date of mailing or delivery to the terminated agent or broker of written notice of termination of such contract or account, and thereafter, at the specific request of the insured, shall offer to continue the policy through such terminated agent or broker for any remaining part of the required policy period including statutory extension; (B) with respect to an automobile insurance policy subject to this section, the insurer shall offer to continue the policy for any remaining part of the required policy period and, unless the policy is cancelled or non-renewed in accordance with the provisions of either subsection (b), (c) or (f) of this section, it shall, at the specific request of the insured, offer to continue the policy through the terminated agent or broker for three successive one year policy periods which commence within the year following the date of mailing or delivery to the terminated agent or broker of written notice of termination of such contract or account; (C) with respect to all new personal lines and automobile insurance business offered by such terminated agent or broker which is subject to the provisions of this section, the insurer shall accept all such business meeting the insurer`s then current underwriting standards during the period of one hundred twenty days next following the date of mailing or delivery to the agent or broker of written notification of such termination; (D) the terminated agent or broker shall be entitled to receive commissions on account of all business continued or written pursuant to this paragraph at the insurer`s prevailing commission rate for such lines of insurance; and (E) the provisions of subparagraph (B) hereof in relation to continuation of coverage for three successive one year policy periods are subject to the rights of the insurer pursuant to subsection (b), (c) or (f) of this section to cancel or non-renew. The provisions of subparagraph (D) hereof in relation to commissions shall not be mandatory after completion of the three one year policy periods provided for in subparagraph (B) hereof. (2) This subsection shall not apply to an agent who agrees to represent exclusively one insurer or a group of insurers under common management or an agent or broker whose license has been revoked by the superintendent or whose contract or account has been terminated for insolvency, abandonment, gross and willful misconduct, or failure to pay over to the insurer moneys due to the insurer after receipt of a written demand therefor. (k) The superintendent may, after public hearing, promulgate rules and regulations implementing and coordinating the provisions of this section and article fifty-three of this chapter. (l) (1) The superintendent shall monitor the operation of this section. Every insurer subject to the provisions of this section shall file in the office of the superintendent periodic reports in such form as the superintendent may prescribe. (2) The superintendent shall collect, analyze and compile such reports with regard to the number of new insureds, non-renewed insureds and business written by each insurer in each rating territory of each such insurer and, in each case, the class of insureds (including age and sex) affected so that a statistical analysis of the results obtained pursuant to subsections (f) and (m) of this section shall be provided to each house of the legislature by March fifteenth, in the years nineteen hundred ninety-two, nineteen hundred ninety-six, nineteen hundred ninety-eight and two thousand one. (m) (1) Paragraphs eight and nine of subsection (a), subsection (f) and subparagraphs (B) and (E) of paragraph one of subsection (j) of this section shall not apply to any new covered policy of automobile insurance voluntarily written on or after August first, nineteen hundred eighty-five and prior to January first, nineteen hundred eighty-six, and on or after August second, two thousand one, but the legal rights granted to insurers or policyholders under such provisions shall not be extinguished or impaired thereby. (2) In lieu of such provisions, paragraph seven of subsection (a), subparagraph (A) of paragraph one of subsection (j) and paragraph three of this subsection shall apply to such automobile insurance policies which are newly and voluntarily written to have an effective date on or after August first, nineteen hundred eighty-five and prior to January first, nineteen hundred eighty-six, and on or after August second, two thousand one. (3) On and after August first, nineteen hundred eighty-five and prior to January first, nineteen hundred eighty-six, and on or after August second, two thousand one, no notice of nonrenewal or conditional renewal of such covered automobile insurance policies referred to in this subsection shall be issued to become effective during the required policy period unless it is based upon a ground for which the policy could have been cancelled or unless it is based upon one or more of the following grounds which occurred during the thirty-six month period ending on the last day of the fourth month preceding the month of the effective date of such notice of nonrenewal or conditional renewal: (A) Where a named insured and/or any other person who customarily operates an automobile insured under the policy is convicted of any of the following: (i) operating a motor vehicle while intoxicated or impaired by the consumption of alcohol; or (ii) operating a motor vehicle while impaired by the use of a drug (within the meaning of section eleven hundred ninety-two of the vehicle and traffic law); or (iii) homicide or assault arising out of the use or operation of a motor vehicle, or criminal negligence in the use or operation of a motor vehicle resulting in the injury or death of another person, or use or operation of a motor vehicle directly or indirectly in the commission of a felony; or (iv) operating a motor vehicle in excess of the speed limit, or in a reckless manner, where injury or death results therefrom; or (v) operating a motor vehicle in excess of the speed limit, or reckless driving, or any combination thereof, on three or more occasions; or (vi) operating a motor vehicle insured under the policy without a valid license or registration in effect (except when the person convicted had possessed a valid license or registration which had expired and was subsequently renewed), or during a period of revocation or suspension thereof, or in violation of the limitations applicable to a license issued pursuant to article twenty-one or article twenty-one-A of the vehicle and traffic law; or (vii) operating a motor vehicle while seeking to avoid apprehension or arrest by a law enforcement officer; or (viii) filing or attempting to file a false or fraudulent automobile insurance claim, or knowingly aiding or abetting in the filing or attempted filing of any such claim; or (ix) leaving the scene of an incident without reporting; or (x) filing a false document with the department of motor vehicles, or using a license or registration obtained by filing a false document with the department of motor vehicles; or (xi) operating a motor vehicle in a race or speed test; or (xii) knowingly permitting or authorizing an unlicensed driver to operate a motor vehicle insured under the policy. (B) Where a named insured or any other person who operates a motor vehicle insured under the policy is individually or are aggregately involved in three or more vehicle accidents while operating a motor vehicle insured under the policy, resulting in either personal injury, or in property damage in excess of two hundred dollars. For the purpose of this paragraph any of the following occurrences involving a motor vehicle operated by a named insured or such other person shall not be considered an accident: (i) such motor vehicle was struck in rear; or (ii) such motor vehicle was struck while legally parked; or (iii) only the operator of another motor vehicle involved in the accident was convicted of a crime, offense or violation contributing to the accident; or (iv) the named insured or other operator of the motor vehicle insured under the policy, or the insurer thereof, was reimbursed by or on behalf of a person responsible for the accident or has a judgment against such person. Where more than one motor vehicle in a household is insured by the same insurer, the number of accidents which would permit conditional renewal or non-renewal shall, as for the aggregate, be increased by two for each additional motor vehicle insured. For the purposes of this paragraph accidents occurring as a result of the use or operation of a motor vehicle in response to an emergency, where the operator was responding to a call of duty as a paid or volunteer member of any police or fire department, first aid squad, or of any law enforcement agency; or was performing any other governmental function in a public emergency, shall not be accidents which afford an insurer the right to cancel or to refuse to renew. (C) Where there is a material change in the type of motor vehicle insured which so substantially increases the hazard insured against as to render the motor vehicle uninsurable in accordance with the insurer`s objective, uniformly applied underwriting standards in effect at the time the policy was issued or last voluntarily renewed and which are currently in effect; provided, however, that if the insured motor vehicle is uninsurable for physical damage coverages only, the insurer must offer to renew the policy without the physical damage coverages. (D) Where such other objective, uniformly applied standards for cancellation or non-renewal exists, as may be prescribed by regulation promulgated by the superintendent. (n) Notice of cancellation/real property escrow accounts. With respect to all covered policies for which the insurer submits bills for real property insurance premiums directly to a mortgage investing institution, or such other institution or agent as designated in writing by the mortgage investing institution, under a real property insurance escrow account, the insurer must send copies of a notice of cancellation for nonpayment of premiums to both (i) the insured mortgagor of the real property and (ii) the mortgage investing institution, or such other designated institution or agent. Failure to send this notice to both parties in paragraph (i) and paragraph (ii) shall render the notice of no force and effect. * (n) Withdrawal from writing automobile and homeowners` insurance. In the event of a determination by the superintendent that an insurer`s elimination of premium installment plans, reduction in commission, or any other marketing action was implemented to effectuate a withdrawal or substantial withdrawal from writing automobile insurance: (1) an agent shall be permitted to terminate its contract with the insurer, or that portion of the contract authorizing the agent to accept automobile insurance, and the insurer shall be required to accept new business and issue renewals in accordance with paragraph one of subsection (j) of this section; (2) notwithstanding the provisions of subparagraph (D) of paragraph one of subsection (j) of this section, where an agent`s contract is terminated or a portion thereof is terminated pursuant to this subsection, commissions for automobile insurance shall be paid at the rate in effect applicable to the agent for the longest duration during the twelve-month period immediately preceding the action which is determined by the superintendent to have been implemented to effectuate a withdrawal or substantial withdrawal from writing automobile insurance; (3) premium payment installment options shall be maintained in a manner substantially similar to options offered by the automobile insurance plan established pursuant to article fifty-three of this chapter; (4) paragraphs one and two of this subsection shall not apply to an agent who agrees to represent exclusively one insurer or group of insurers; and (5) with respect to homeowners` insurance, in the event that an insurer intends to materially reduce the volume of policies written pursuant to paragraph two of subsection (o) of this section, any commissions payable pursuant to an agent contract shall be mandatory for an additional one year period beyond the completion of the required policy period specified in paragraph seven of subsection (a) of this section. The provisions of this paragraph shall not apply to policies cancelled or nonrenewed by the insured or policies not renewed or cancelled pursuant to subparagraph (A), (B), (C), (D) or (E) of paragraph two of subsection (c) of this section. * NB Effective until April 30, 2003 * (n) In the event of a determination by the superintendent that an insurer`s elimination of premium installment plans, reduction in commission, or any other marketing action was implemented to effectuate a withdrawal or substantial withdrawal from writing automobile insurance: (1) an agent shall be permitted to terminate its contract with the insurer, or that portion of the contract authorizing the agent to accept automobile insurance, and the insurer shall be required to accept new business and issue renewals in accordance with paragraph one of subsection (j) of this section; (2) notwithstanding the provisions of subparagraph (D) of paragraph one of subsection (j) of this section, where an agent`s contract is terminated or a portion thereof is terminated pursuant to this subsection, commissions for automobile insurance shall be paid at the rate in effect applicable to the agent for the longest duration during the twelve-month period immediately preceding the action which is determined by the superintendent to have been implemented to effectuate a withdrawal or substantial withdrawal from writing automobile insurance; (3) premium payment installment options shall be maintained in a manner substantially similar to options offered by the automobile insurance plan established pursuant to article fifty-three of this chapter; and (4) paragraphs one and two of this subsection shall not apply to an agent who agrees to represent exclusively one insurer or group of insurers. * NB Effective April 30, 2003 * (o) (1) An insurer that intends to materially reduce its volume of policies written, covered by this section, shall submit to the superintendent, at least thirty days in advance of implementing such actions, a plan for orderly reduction that: (i) describes the contemplated actions; (ii) sets forth the reasons for such actions; (iii) describes the measures such insurer intends to take in order to minimize market disruption; and (iv) provides such other information as the superintendent may require. (2) (A) An insurer that writes homeowners insurance policies as defined in subsection (a) of section two thousand three hundred fifty-one of this chapter, who intends to materially reduce its volume of such policies written, shall submit to the superintendent, at least sixty days in advance of implementing such actions, a plan for the orderly reduction of the number of policies written. Such plan shall: (i) describe the contemplated actions; (ii) set forth the reasons for such actions; (iii) describe the measures such insurer intends to take in order to minimize market disruption; and (iv) provide such other information as the superintendent may require. (B) The superintendent after receiving such plan shall have thirty days in which to approve it or disapprove it. The superintendent shall approve such plan if the applicant demonstrates that such material reduction is accomplished in a manner that minimizes market disruption in areas of material reduction. In the review of each plan submitted prior to the submission of the report required by subparagraph (E) of this paragraph, the superintendent shall assess the impact of the planned withdrawal in the counties of Nassau and Suffolk; areas within one mile of a saltwater shoreline, canal or bay in the counties of Queens, Kings, Richmond, Bronx or Westchester; and areas where policies issued by the New York property insurance underwriting association have increased by an amount deemed significant by the superintendent since January first, nineteen hundred ninety-two. For plans filed subsequent to the submission of the report required by subparagraph (E) of this paragraph, the superintendent shall assess the impact of the planned withdrawal on such areas as the superintendent may identify pursuant to subparagraph (E) of this paragraph. In the event that the plan is disapproved, the superintendent shall state the points of objection with such plan and any amendments to such plan that the superintendent may require consistent with the provisions of this section, including, but not limited to, amendments designed to accomplish such material reduction in a manner that minimizes market disruption. The insurer shall file an amended plan within fifteen days from the date of return. Any intended withdrawal pursuant to the plan is prohibited until such time as the original or any amended plan is approved by the superintendent. (C) The superintendent shall promulgate rules and regulations to establish standards for the definition of "materially reduce its volume of policies" as used in this paragraph. Such definition shall require that a plan be filed with the superintendent if the insurer plans to reduce the net number of homeowners insurance policies as defined in subsection (a) of section twenty-three hundred fifty-one of this chapter by twenty percent or more, or plans to reduce the net number of such policies it writes by five hundred, whichever is greater, within a five year period of time; provided, however, that if an insurer is not otherwise required to file a plan pursuant to this subparagraph, a plan shall be filed if the insurer plans to reduce the net number of such policies it has in force in a twelve month period by four percent or more or the net number of such policies it writes by one hundred, whichever is greater.
The provisions of this subparagraph shall not apply to policies cancelled or nonrenewed by the insured or policies not renewed or cancelled pursuant to subparagraph (A), (B), (C), (D) or (E) of paragraph two of subsection (c) of this section. (D) The superintendent shall promulgate rules and regulations to establish standards to approve such an application and to define "minimizes market disruption." (E) The superintendent shall conduct a study of market dynamics and homeowners insurance policies written as defined in subsection (a) of section twenty-three hundred fifty-one of this chapter, cancelled or nonrenewed in geographic regions as he designates, including but not limited to coastal regions, urban regions and rural areas and shall report such findings to the governor and legislature on or before February fifteenth, nineteen hundred ninety-eight. * NB Effective until April 30, 2003 * (o) An insurer that intends to materially reduce its volume of policies written, covered by this section, shall submit to the superintendent, at least thirty days in advance of implementing such actions, a plan for orderly reduction that: (1) describes the contemplated actions; (2) sets forth the reasons for such actions; (3) describes the measures such insurer intends to take in order to minimize market disruption; and (4) such other information as the superintendent may require. * NB Effective April 30, 2003 (p) Notwithstanding the provisions and limitations of this section or any other provision of law, the superintendent may, for a stated period not to exceed three months (which the superintendent may thereafter extend another three months), declare a moratorium precluding policy termination, or suspend or otherwise adjust the provisions and limitations of this section, for any area of the state that has been declared by the president of the United States or by the governor to be in a state of emergency due to disaster or catastrophe. (q)(1) Notwithstanding any other provision of this section, a covered policy shall not be subject to a required policy period if the policy is: (A) a policy issued to an insured for a seasonal purpose; (B) a policy issued to cover a specific event or particular project that will be performed in less than one year; (C) a new policy where the specific term is made to coincide with the term of an insured`s already existing covered policy with the same insurer; with any insurer, at the insured`s written request; or, in the case of a personal umbrella policy, with different insurers. The new policy shall have the same required policy period as that of the existing policy, except where one policy is an automobile insurance policy and the other policy is a personal lines insurance policy; or (D) a new policy issued pursuant to a mass merchandising program where the specific term is made to coincide with the term of all other policies in the program. (2) In regard to a policy subject to subparagraphs (A) and (B) of paragraph one of this subsection, the insurer shall not be required to give the notice of nonrenewal or conditional renewal required by subsection (d) of this section if: (A) the policy provides coverage for sixty days or less; (B) the policy contains a prominent and explicit notice of expiration, specifying the date the policy will expire and stating that no notice of nonrenewal will be issued; and (C) the policy is accompanied by a conspicuous notice in bold type, explaining that the policy provides short-term coverage for the policy period as specified on the declarations page. (3) Subsection (f) of this section shall not apply to an automobile insurance policy subject to subparagraphs (A) and (B) of paragraph one of this subsection. S 3426. Commercial lines insurance; cancellation and renewal provisions. (a) Definitions. As used in this section: (1) "Covered policy" means, for purposes of this section, a policy of commercial risk insurance, professional liability insurance or public entity insurance, and shall include any contract, certificate or other evidence of such insurance. (2) "Required policy period" means a period of one year from the date as of which a covered policy is renewed or first issued. (3) "Nonpayment of premium" means the failure of the named insured to discharge any obligation in connection with the payment of premiums on a policy of insurance or any installment of such premium, whether the premium is payable directly to the insurer or its agent, or indirectly under any premium finance plan or extension of credit. Payment to the insurer, or to an agent or broker authorized to receive such payment, shall be timely for the purpose of this section if made within fifteen days after the mailing to the insured of a notice of cancellation for nonpayment of premium. (4) "Renewal" or "to renew" means the issuance or offer to issue by an insurer of a policy superseding a policy previously issued and delivered by the same insurer, or another insurer under common control, or the issuance or delivery of a certificate or notice extending the term of a policy beyond its policy period or term; provided, however, that any policy with a policy period or term of less than one year shall, for the purpose of this section, be considered as if written for a policy period or term of one year, and any policy with no fixed expiration date shall, for the purpose of this section, be considered as if written for successive policy periods or terms of one year. (5) "Administrative suspension" means a temporary suspension of a driver`s license pending a hearing, prosecution or investigation, or an indefinite suspension of a driver`s license because of the failure of the person suspended to perform an act, which suspension will be terminated by the performance of the act by the person suspended. (6) "Excess liability policy" means a policy of commercial risk, public entity or professional liability insurance, including a commercial umbrella policy, when written over one or more underlying liability policies that provide with respect to the same risk coverage of at least five hundred thousand dollars in the aggregate. (7) "Hyper limits excess liability policy" means an excess liability policy of commercial risk, public entity or professional liability insurance, including a commercial umbrella policy, when written over one or more underlying liability policies issued by authorized insurers that provide with respect to the same risk coverage of at least ten million dollars in the aggregate. (8) "Jumbo risk" means a business entity that generates gross revenues exceeding one hundred million dollars annually and that develops an annual liability premium for the policy of at least five hundred thousand dollars, but shall not include any public entity or not-for-profit corporation. (9) "Renewal date" means the date specified in a conditional renewal notice, renewal certificate or in the renewal policy itself, for coverage under a renewal policy to take effect. (10) "Blanket" or "mass" nonrenewal means a situation where the insurer within a six month period is nonrenewing policies representing more than one percent of a market. (11) "Market" shall have the meaning ascribed by paragraph one of subsection (a) of section two thousand three hundred forty-four of this chapter. (b) During the first sixty days a covered policy is initially in effect, except for the bases for cancellation set forth in paragraph one, two or three of subsection (c) of this section, no cancellation shall become effective until twenty days after written notice is mailed or delivered to the first-named insured at the mailing address shown in the policy and to such insured`s authorized agent or broker. (c) After a covered policy has been in effect for sixty days unless cancelled pursuant to subsection (b) of this section, or on or after the effective date if such policy is a renewal, no notice of cancellation shall become effective until fifteen days after written notice is mailed or delivered to the first-named insured and to such insured`s authorized agent or broker, and such cancellation is based on one or more of the following: (1) With respect to covered policies: (A) nonpayment of premium; (B) conviction of a crime arising out of acts increasing the hazard insured against; (C) discovery of fraud or material misrepresentation in the obtaining of the policy or in the presentation of a claim thereunder; (D) after issuance of the policy or after the last renewal date, discovery of an act or omission, or a violation of any policy condition, that substantially and materially increases the hazard insured against, and which occurred subsequent to inception of the current policy period; (E) material physical change in the property insured, occurring after issuance or last annual renewal anniversary date of the policy, which results in the property becoming uninsurable in accordance with the insurer`s objective, uniformly applied underwriting standards in effect at the time the policy was issued or last renewed; or material change in the nature or extent of the risk, occurring after issuance or last annual renewal anniversary date of the policy, which causes the risk of loss to be substantially and materially increased beyond that contemplated at the time the policy was issued or last renewed; (F) a determination by the superintendent that continuation of the present premium volume of the insurer would jeopardize that insurer`s solvency or be hazardous to the interests of policyholders of the insurer, its creditors or the public; (G) a determination by the superintendent that the continuation of the policy would violate, or would place the insurer in violation of, any provision of this chapter; or (H) where the insurer has reason to believe, in good faith and with sufficient cause, that there is a probable risk or danger that the insured will destroy, or permit to be destroyed, the insured property for the purpose of collecting the insurance proceeds, provided, however, that: (i) a notice of cancellation on this ground shall inform the insured in plain language that the insured must act within ten days if review by the department of the ground for cancellation is desired pursuant to item (iii) of this subparagraph (H); (ii) notice of cancellation on this ground shall be provided simultaneously by the insurer to the department; and (iii) upon written request of the insured made to the department within ten days from the insured`s receipt of notice of cancellation on this ground, the department shall undertake a review of the ground for cancellation to determine whether or not the insurer has satisfied the criteria for cancellation specified in this subparagraph; if after such review the department finds no sufficient cause for cancellation on this ground, the notice of cancellation on this ground shall be deemed null and void. (2) With respect to that portion of a covered policy providing motor vehicle coverage, in addition to the basis for cancellation set forth in paragraph one of this subsection, suspension or revocation during the required policy period of the driver`s license of any person who continues to operate a motor vehicle insured under the policy, other than a suspension issued pursuant to subdivision one of section five hundred ten-b of the vehicle and traffic law or one or more administrative suspensions arising from the same incident which has or have been terminated prior to the effective date of cancellation. (3) With respect to professional liability insurance policies, in addition to the bases for cancellation set forth in paragraph one of this subsection, revocation or suspension of the insured`s license to practice his profession or, if the insured is a hospital, it no longer possesses a valid operating certificate under section twenty-eight hundred one-a of the public health law. (4) With respect to an excess liability policy, in addition to the basis for cancellation set forth in paragraph one of this subsection, cancellation of one or more of the underlying policies providing primary or intermediate coverage, where: (A) such cancellation is based upon paragraph one, two or three of this subsection; and (B) such policies are not replaced without lapse. (5) Written notice of cancellation in accordance with this subsection shall be mailed or delivered to the first-named insured, at the address shown on the policy, and to the insured`s authorized agent or broker. (d) (1) After a covered policy has been in effect for sixty days, or on and after the effective date if such policy is a renewal, no premium increase for the term of the policy shall be made to become effective unless due to and commensurate with insured value added, subsequent to issuance or the last renewal date, pursuant to the policy or at the insured`s request or, in lieu of cancellation, where such increase is based upon one or more of the grounds for cancellation set forth in subparagraph (D) or (E) of paragraph one of subsection (c) of this section. (2) No covered policy which provides for a policy term of less than one year may be issued, or issued for delivery, in this state, except: (A) a policy issued to an insured for a seasonal purpose; (B) a policy issued to cover a specific event or particular project that will be performed in less than one year; (C) a new policy where the specific term is made to coincide with the term of an insured`s already existing policy with the same insurer, with any insurer at the insured`s written request or, in the case of an excess liability policy, with different insurers; or (D) a group property/casualty policy or certificates, policies issued pursuant to a safety group or mass merchandising program, or a medical malpractice or for-hire vehicle policy whose expiration date is common to all other policies issued by an insurer; in any of which events the first policy period may be for a period of less than one year with subsequent renewals requiring at least a one year policy period, and any such policies issued since the effective date of this section may be amended to conform to a common expiration date. (e) (1) A covered policy shall remain in full force and effect pursuant to the same terms, conditions and rates unless written notice is mailed or delivered by the insurer to the first-named insured, at the address shown on the policy, and to such insured`s authorized agent or broker, indicating the insurer`s intention: (A) not to renew such policy; or (B) to condition its renewal upon change of limits, change in type of coverage, reduction of coverage, increased deductible or addition of exclusion, or upon increased premiums in excess of ten percent (exclusive of any premium increase generated as a result of increased exposure units, pursuant to subsection (d) of this section, or as a result of experience rating, loss rating, retrospective rating or audit), except that with respect to an excess liability policy, the insurer may also, consistent with regulations promulgated by the superintendent, condition its renewal upon requirements relating to the underlying coverage, in which event the conditional renewal notice shall be treated as an effective notice of nonrenewal if such requirements are not satisfied as of the later of the expiration date of the policy or sixty days after mailing or delivery of such notice; or (C) that the policy will not be renewed or will not be renewed upon the same terms, conditions or rates; such alternative renewal notice must be mailed or delivered on a timely basis and advise the insured that a second notice shall be mailed or delivered at a later date indicating the insurer`s intention as specified in subparagraph (A) or (B) of this paragraph and that coverage shall continue on the same terms, conditions and rates as the expiring policy, until the later of the expiration date or sixty days after the second notice is mailed or delivered; such alternative renewal notice also shall advise the insured of the availability of loss information pursuant to subsection (g) of this section and, upon written request, the insurer shall furnish such loss information within twenty days consistent with the provisions of such subsection. (2) A nonrenewal notice as specified in subparagraph (A), a conditional renewal notice as specified in subparagraph (B), and the second notice described in subparagraph (C) of paragraph one of this subsection shall contain the specific reason or reasons for nonrenewal or conditional renewal, set forth the amount of any premium increase (or, where such amount cannot reasonably be determined as of the time the notice is provided, a reasonable estimate of the premium increase based upon the information available to the insurer at that time), and describe in plain and concise terms the nature of any other proposed changes specified in paragraph one of this subsection. The superintendent shall by regulation specify the permissible range of such estimate (which shall not exceed five percent of the actual amount) and the permissible methods by which an insurer may satisfy the notice requirements of this section. (3) The notice required by paragraph one of this subsection shall be mailed or delivered at least sixty, but not more than one hundred twenty, days in advance of the expiration date of the policy, except that for an excess liability policy or a policy issued to a jumbo risk, the notice shall be mailed or delivered at least thirty, but not more than one hundred twenty, days in advance of the expiration date of the policy. (4) Paragraphs one, two and three of this subsection shall not apply when the named insured, an agent or broker authorized by the named insured, or another insurer of the named insured has mailed or delivered written notice that the policy has been replaced or is no longer desired. (5) (A) If the insurer employs an alternative renewal notice as authorized by subparagraph (C) of paragraph one of this subsection, the insurer shall provide coverage on the same terms, conditions, and rates as the expiring policy, until the later of the expiration date or sixty days after the mailing or delivery of the second notice described in such subparagraph, except to the extent that, prior thereto, the insured has replaced the coverage or elects to cancel, in which event such cancellation shall be on a pro rata premium basis. (B) In the event that a late conditional renewal notice or a late nonrenewal notice is provided by the insurer prior to the expiration date of the policy, coverage shall remain in effect, at the same terms and conditions of the expiring policy and at the lower of the current rates or the prior period`s rates, until sixty days after such notice is mailed or delivered, except to the extent that, prior thereto, the insured has replaced the coverage or elects to cancel, in which event such cancellation shall be on a pro rata premium basis; provided, however, that if the insured elects to renew on the basis of the conditional renewal notice, then such terms, conditions and rates shall govern the policy upon expiration of such sixty day period unless such notice was provided at least thirty days prior to the expiration date of the policy, in which event the terms, conditions and rates set forth in the conditional renewal notice shall apply as of the renewal date. (C) (i) In the event that a late conditional renewal notice or a late nonrenewal notice is provided by the insurer on or after the expiration date of the policy, coverage shall remain in effect on the same terms and conditions of the expiring policy for another required policy period, and at the lower of the current rates or the prior period`s rates unless the insured during the additional required policy period has replaced the coverage or elects to cancel, in which event such cancellation shall be on a pro rata premium basis. (ii) Every notice mailed or delivered pursuant to this subsection shall advise the insured of the insured`s rights to coverage and the duration thereof. (6) Paragraph five of this subsection shall not create a new annual aggregate liability limit (if any) for the covered policy, except that the annual aggregate limit of the expiring policy shall be increased in proportion to the policy extension pursuant to such paragraph five; provided, however, that if the insured elects to accept the terms, conditions and rates of the conditional renewal notice pursuant to subparagraph (B) of paragraph four of this subsection, a new annual aggregate limitation (if any) shall become effective as of the inception date of the renewal, subject to regulations promulgated by the superintendent. (7) Each insurer subject to this section shall adopt and implement reasonable standards and procedures to ensure compliance with the provisions of subparagraphs (A), (B) and (C) of paragraph one and paragraphs two and three of this subsection. Each such insurer shall maintain a written or electronic record of any notice not in compliance with such provisions. Such record shall indicate the expiration date of the policy, the date notice should have been sent, the date when notice was sent, the policy number, and the name and address of the insured. Such records shall be available for inspection upon request by the superintendent. (8) No insurer may issue blanket or mass nonrenewal notices for any market, except upon submission to the superintendent, at least forty-five days in advance of mailing or delivery of such notices, of a plan for orderly withdrawal that describes the proposed nonrenewals, states the basis for such nonrenewals, and identifies any measures such insurer intends to take in order to minimize market disruption. (9) This subsection shall not apply to a hyper limits excess liability policy except in regard to nonrenewal or to a policy of the type specified in subparagraph (A) or (B) of paragraph two of subsection (d) of this section. (f) If an insurer provides the notice described in paragraphs one, two and three of subsection (e) of this section, and thereafter the insurer extends the policy for ninety days or less, an additional notice of nonrenewal is not required with respect to the extension. (g) (1) Every notice mailed or delivered by an insurer pursuant to this section shall advise the first-named insured and such insured`s authorized agent or broker of the availability of loss information consistent with paragraph two of this subsection. (2) Upon written request by the first-named insured or such insured`s authorized agent or broker, the insurer shall mail or deliver the following loss information covering a period of years specified by the superintendent by regulation or the period of time coverage has been provided by the insurer, whichever is less, within twenty days of such request: (A) Info