§ 6905. Policy forms and rates.
(a)Policy forms and any amendments\nthereto shall be filed with the superintendent within thirty days of\ntheir use by the insurer if not otherwise filed prior to the effective\ndate of this article. Every such policy shall provide that, in the event\nof a payment default by or insolvency of the obligor, there shall be no\nacceleration of the payment required to be made under such policy unless\nsuch acceleration is at the sole option of the corporation; provided\nthat (1) policies may insure amounts payable under a credit default swap\nor interest rate, currency or other swap upon a credit event or\ntermination event if the expected amount payable on an accelerated basis\nin respect of any individual obligation referenced by a credit default\nswap or in
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§ 6905. Policy forms and rates. (a) Policy forms and any amendments\nthereto shall be filed with the superintendent within thirty days of\ntheir use by the insurer if not otherwise filed prior to the effective\ndate of this article. Every such policy shall provide that, in the event\nof a payment default by or insolvency of the obligor, there shall be no\nacceleration of the payment required to be made under such policy unless\nsuch acceleration is at the sole option of the corporation; provided\nthat (1) policies may insure amounts payable under a credit default swap\nor interest rate, currency or other swap upon a credit event or\ntermination event if the expected amount payable on an accelerated basis\nin respect of any individual obligation referenced by a credit default\nswap or in the aggregate under an interest rate, currency or other swap\ndoes not exceed the single risk limits prescribed in paragraph five of\nsubsection (d) of section six thousand nine hundred four of this article\nand (2) policies insuring credit default swaps referencing an obligation\nshall be treated as if the insurer had directly insured the referenced\nobligation for all other purposes of this article, except that the\ncurrency of amounts owed under the credit default swap, rather than the\ncurrency of the obligations referenced by the credit default swap, shall\napply for purposes of determining whether the obligation is a\npermissible guaranty under subsection (b) of section six thousand nine\nhundred four of this article. The superintendent may prescribe minimum\npolicy provisions determined by the superintendent to be necessary or\nappropriate to protect policyholders, claimants, obligees or\nindemnitees.\n (b) Rates shall not be excessive, inadequate, unfairly discriminatory,\ndestructive of competition, detrimental to the solvency of the insurer,\nor otherwise unreasonable. In determining whether rates comply with the\nforegoing standards, the superintendent shall include all income earned\nby such insurer. Criteria and guidelines utilized by insurers in\nestablishing rating categories and ranges of rates to be utilized shall\nbe filed with the superintendent for information prior to their use by\nthe insurer if not otherwise filed prior to the effective date of this\narticle.\n (c) All such filings shall be available for public inspection at the\ndepartment of financial services.\n