§ 2316 — Prohibition of anti-competitive behavior

* § 2316. Prohibition of anti-competitive behavior. (a) (1) No insurer\nor rate service organization shall monopolize or attempt to monopolize,\nor combine or conspire with any other person or persons to monopolize,\nin any territory, the business of insurance or any kind, subdivision or\nclass thereof.\n (2) No insurer or rate service organization shall agree with any other\ninsurer or rate service organization to charge or adhere to any rate,\nalthough insurers and rate service organizations may continue to\nexchange statistical information.\n (3) No insurer or rate service organization shall make any agreement\nwith any other insurer, rate service organization or other person to\nrestrain trade.\n (4) No insurer or rate service organization shall make any agreement\nwith any other insurer, rate service organization or other person the\neffect of which may be substantially to lessen competition in any\nterritory or in any kind, subdivision or class of insurance.\n (5) No insurer may acquire or retain any capital stock or assets of,\nor have any common management with, any other insurer or insurers, if\nthe effect of such acquisition, retention or common management may be\nsubstantially to lessen competition in any territory or in any kind,\nsubdivision or class of insurance.\n (6) No insurer or rate service organization shall make any agreement\nwith any other insurer or rate service organization to refuse to deal\nwith any person in connection with the sale of insurance.\n (7) No rate service organization or member or subscriber thereof shall\ninterfere with the right of any insurer to make its rates independently\nof such rate service organization or to charge rates different from the\nrates made by such rate service organization.\n (8) No member of or subscriber to a rate service organization shall\nrefuse to do business with, or prohibit or prevent the payment of\ncommissions to, any licensed agent or broker on the ground that such\nagent or broker does business with an insurer which makes its rates, or\nany portion thereof, independently of such rate service organization.\n (9) Nothing contained in this article shall be construed as requiring\nany insurer to become a member of or a subscriber to any rate service\norganization, or as preventing any insurer, while a member of or\nsubscriber to a rate service organization, from making its own rates for\nany kind, subdivision or class of insurance, for which it does not elect\nto authorize the rate service organization to act on its behalf.\n (10) Any insurer which is a member of or subscriber to a rate service\norganization may make its own rates for any kind, subdivision or class\nof insurance. No rate service organization shall have authority to act\non behalf of any insurer which is a member of or subscriber to such rate\nservice organization except as authorized in writing by such member or\nsubscriber, which authority may be supplemented, modified or revoked, in\nwhole or in part, at any time by such member or subscriber at its\noption.\n (11) No rate service organization shall have or adopt any rule or\nexact any agreement, or formulate or engage in any program, the effect\nof which would be to require any member, subscriber or other insurer to\nutilize some or all of its ratings services, or to adhere to its rates,\nrating plans, rating systems, underwriting rules, or policy forms, or to\nprevent any insurer from acting independently.\n (b) (1) Any rate made in violation of subsection (a) hereof shall be\ndisapproved by the superintendent pursuant to the applicable procedures\nprescribed in subsection (b) of section two thousand three hundred\ntwenty of this article, and each violator shall be subject to the\npenalties of subsection (c) of such section.\n (2) The superintendent, through the attorney general, and any person\ninjured in his business or property by reason of anything forbidden in\nsubsection (a) hereof, may maintain an action to enjoin any violation of\nsuch subsection.\n (3) Any person injured in his business or property by reason of\nanything forbidden in subsection (a) hereof may maintain an action and\nshall recover threefold the damages sustained by him.\n (c) Nothing in this section shall be construed as applying to or\nprohibiting cooperative action authorized and regulated under this\narticle. Nor shall this section apply to kinds of insurance or insurance\nactivities the rates for which are subject to prior approval pursuant to\nsubsection (b) of section two thousand three hundred five of this\narticle, except that this article shall not be construed as requiring an\ninsurer to become a member of or subscriber to a rate service\norganization.\n * NB Expires July 1, 2026\n