§ 2320 — Enforcement and penalties; where prior approval is not required

New York § 2320

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 23: Property/casualty Insurance Rates

Text

* § 2320. Enforcement and penalties; where prior approval is not\nrequired. (a) The superintendent may as often as he deems it expedient\nexamine any insurer or rate service organization to ascertain whether\nits rating and underwriting practices are in accordance with law. Rate\nservice organizations which make or file rates, whether or not advisory,\nshall be examined at least once in every five years pursuant to the\nprovisions of this chapter applicable to the examination of insurers.\nFiled reports on examinations shall be available for public inspection\nat the department.\n (b) (1) If the superintendent determines after a hearing that any rate\nused by an insurer does not comply with the applicable provisions of\nthis article, he shall order that the rate be disapproved, and the order\nmay include provision for premium adjustment. The order may also require\nthat, for such period of time as the superintendent may determine,\nsubsequent rate filings of the insurer subject to subsection (a) of\nsection two thousand three hundred five of this article shall not become\neffective unless the filings are made in accordance with the provisions\nof subsection (b) of such section.\n (2) The superintendent may, upon fifteen days prior written notice:\n (A) order the suspension, prospectively, of a rate used by an insurer\nand reimpose the last previous rate in effect; or\n (B) order the suspension, prospectively, of a rate used by an insurer\nand determine an adjusted rate that complies with the standards set\nforth in this article.\nIn any such event, the insurer may within that same fifteen day period\nmake a written request for a hearing, in which event the superintendent\nmay establish an interim rate by reimposing the last previous rate in\neffect or determining an adjusted rate pursuant to subparagraphs (A) and\n(B), respectively, of this paragraph. This interim rate shall remain\neffective pending the close of the hearing, which shall be held within\nfifteen days of the insurer's request. Within fifteen days after the\nclose of the hearing, the superintendent shall determine the rate that\ncomplies with the standards set forth in this article based upon the\nhearing record, and the rate so determined shall apply prospectively for\na period not to exceed one year.\n (3) At any such hearing, the insurer shall have the burden of\njustifying the rate in question. All such determinations of the\nsuperintendent shall be on the basis of findings of fact and\nconclusions. Nothing in this subsection shall preclude the\nsuperintendent from determining that the last previous rate in effect or\nthe rate filed by the insurer or rate service organization complies with\nthe standards set forth in this article. Nothing in this subsection\nshall preclude the insurer or a rate service organization from making or\nmodifying any rate filing at any time.\n (c) If the superintendent, after notice and hearing, finds that any\ninsurer, rate service organization or other person has violated the\napplicable provisions of this article, he shall order the payment of a\npenalty. The issuance, procurement or negotiation of a single policy of\ninsurance shall be deemed a separate offense. A penalty not to exceed\none thousand dollars may be imposed for each such offense. A further\npenalty not to exceed two thousand five hundred dollars may be imposed\nfor each offense in which the superintendent finds that there was a\nknowing violation, provided that a minumum penalty of at least\ntwenty-five thousand dollars shall be imposed regardless of the number\nof such knowing offenses.\n (d) This section shall be applicable to kinds of insurance or\ninsurance activities the rates for which are not subject to prior\napproval and which are subject to this article.\n * NB Expires July 1, 2026\n