March 13, 1967
Circular Letter 2 (1967)
TO ALL INSURERS LICENSED TO WRITE PROPERTY OR CASUALTY INSURANCE IN THE STATE OF NEW YORK AND TO ALL RATING ORGANIZATIONS
Decision has been made by this Department that in the rating of property or liability coverages or a combination of such coverages, governing bodies of centrally organized churches may be combined with their local or member churches and considered as a single unit for rating purposes, provided that they meet the following criteria:
1. Property Coverages
The central authority within the church organization has such a legal interest in or control of the property of its member or local churches that any physical loss or damage to such property may result in a pecuniary loss to such church organization.
2. Liability Coverages
The central authority within the church organization exercises such management or control of the operations and activities of its member or local churches so that it may be legally liable for damages resulting from any occurrence arising from such operations and activities.
Eligibility for combining such entities in religious organizations as a single rating unit must conform with the above criteria and be clearly set forth in rating rules and rating plans applicable to the respective coverages and shall be filed with the Insurance Department for approval.
Existing policies issued to religious organizations covering a combination of separate legal entities may not continue in force and effect beyond July 1, 1967, unless they have been written in accordance with approved filings which comply with or have been amended to comply with the above standards.
Very truly yours,
(Signed) RICHARD E. STEWART
Superintendent of Insurance