N.Y. Comp. Codes R. & Regs. tit. 11 § 73.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 73.2 - Types of coverages and risks

Claims-made coverage any not be provided in any policy issued or renewed in this State, except that:

(a) The following coverages or risks may be written on a claims-made basis:

(1) completed operations liability;

(2) directors and officers liability;

(3) employee benefits liability;

(4) errors and omissions liability;

(5) excess liability;

(6) fiduciary liability;

(7) pollution and environmental impairment liability;

(8) public entity liability;

(9) products liability;

(10) professional liability (including medical malpractice liability);

(11) ski resort liability, subject to subdivision (f) of this section;

(12) employment practices liability; and

(13) risks specified in paragraph (d)(1) of this section.

(b) A commercial umbrella policy may be issued or renewed on a claims-made basis over underlying coverages which are written on a claims-made basis pursuant to this section. The umbrella policy must provide coverage on an occurrence basis over underlying coverages written on an occurrence basis, as well as for any coverages not subject to an underlying coverage requirement.

(c)

(1) Any commercial liability policy may be issued or renewed on a claims-made basis if at least 90 percent of the liability insurance premium for the policy is attributable to product liability, completed operations liability or medical malpractice liability exposure.

(2) Legal services insurance may be provided on a claims-made basis when written as part of a policy of liability insurance covering related risks of a type specified in subdivision (a) of this section.

(d)

(1) A liability policy may be issued or renewed in this State on a claims-made basis if the policy:

(i) insures a large commercial insured;

(ii) provides primary coverage of at least $5,000,000 per occurrence;

(iii) provides umbrella or excess coverage of at least $1,000,000 per occurrence, where the underlying limits are at least $2,000,000 per occurrence; or

(iv) is written with a deductible, or over a self-insured retention, of at least $100,000 per occurrence.

(2) Any policy issued or renewed pursuant to this subdivision must comply with all the provisions of this Part, except:

(i) subdivisions (e)(1), (e)(3)(ii), (f), (h)(1), (2) and (4), and (n) of section 73.3 of this Part;

(ii) subdivisions (a)(5), (b) and (c) of section 73.7 of this Part; and

(iii) section 73.8 of this Part.

(e) Notwithstanding any other provision of this Part, claims-made coverage shall not be permitted for:

(1) motor vehicle liability; or

(2) any liability risk or coverage subject to section 3425 of the Insurance Law.

(f) In light of substantial liability insurance availability problems experienced by ski resorts, ski resort liability insurance may be written on a claims-made basis, provided that any such policy also:

(1) is written with notice of circumstance, circumstance reporting, notice of incident or incident reporting;

(2) offers general liability limits of at least $5,000,000 per occurrence;

(3) has no annual aggregate limits on general liability losses;

(4) in the event of sale, retirement or dissolution on the part of the insured, offers unlimited extended reporting period coverage for an additional premium of not more than 100 percent of the expiring policy's earned premium; and

(5) otherwise complies with the requirements of this Part.

Because it is based upon current availability problems, this permission in regard to claims- made policies for ski resort liability will be reviewed by the department on a periodic basis.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 73.2