New York State seal

 

April 10, 1984

SUBJECT: INSURANCE

WITHDRAWN

CIRCULAR LETTER 9 (1984)

April 10, 1984

TO: ALL SPECIAL RISK INSURERS LICENSED PURSUANT TO SECTION 168-d OF THE INSURANCE LAW

SUBJECT: SPECIAL RISK INSURANCE

Pursuant to the provisions of Section 168-d of the New York Insurance Law and Regulation 86, as amended, the Department maintains a list of risks known as Class Two in the Special Risk Section of the Property Companies Bureau. Since the original list was promulgated the following classifications have been added thereto:

Statistical

 

Code

Classification

2-14161

Reinsurance Intermediaries Errors and

 

  Omissions

   

2-29002

Long Term Disability Benefits for Air

 

  Traffic Controllers

   

2-14162

Excess Medical Malpractice for Individual

 

  Physicians in New York

   

2-14163

Travelers Checks Distributors Errors

 

  and Omissions

   

2-14164

Excess and Surplus Lines Brokers Errors

 

  and Omissions

   

2-14165

Animal Liability

   

2-14166

Fiduciary Liability Coverage (Limited only

 

  to risks located outside of New York

 

  with fudiciary residing or contracting

 

  in New York)

   

2-14167

Part Time Physicians Malpractice

   

2-10012

Livestock - Infertility

   

2-10013

Livestock - Barrenness

   

2-10014

Livestock - Prospective Foal Coverage

   

2-10015

Livestock - Twin Coverage

   

2-14168

Political Action Committee Liability -

 

  Officers & Directors

   

2-14169

Fire Department Errors & Omissions

   

2-14170

Medical Arts Schools and Colleges

   

2-14171

Psychotherapists - Exluding Psychiatrists

   

2-14172

Insurance Syndicate Managers Errors

 

  and Omissions

   

2-14173

Neighborhood Medical Clinics

   

2-02048

Municipal Lease - Insurance Other than

 

  Real Property

   

2-14174

Joint Hospital and Attending Physicians

 

  Excess Professional Liability Insurance

 

  (meeting the nine criteria)

   

2-14175

Associated Person (Licensed by Commodity

 

  Futures Trading Commission)

In the belief that the following two classifications were being used inappropriately they have been redefined on the Department Class Two list as follows:

a) Category 2-23007 - Retitled - "Commerical Automobile Physical Damage - All Risk Coverage" - This coverage may be written on commercial vehicles, providing such coverage includes payment for items which are not covered in the STANDARD AUTOMOBILE insurance contract such as mechanical repair and rental car expense. A reward of not less than $ 500 must be provided for any information which leads to the arrest and conviction of a thief or vandal who has damaged the insured vehicle.

b) Category 2-27003 "Deductible Clause Variations"

This classification may be written on property risks insured for a million dollars or more, with singular exposure to a particular peril or at a particular location if the insured is willing to retain some of the primary exposure through use of a special Deductible Clause. This might take the form of an aggregate or cumulative Deductible Clause applying over and above the initial deductible. Or, where multiple exposures are involved the Deductible provision might be "split", applying with greater force at the most hazardous location or against the most significant peril. The term "variations" refers to the terms of the Decuctible Clause rather than the amount.

Insurers should be aware that they can no longer write new policies under the above classifications which do not comply with the foregoing. They should also be aware that policies now in effect can be allowed to continue to the next annual renewal date but that renewals should conform to the new definitions.

Please acknowledge receipt of this letter within fifteen (15) days of its date to:

Maurice D. Cohen, CFE

Supervising Insurance Examiner

Special Risk Section

Property Companies Bureau

Two World Trade Center

New York, NY 10047

Very truly yours,

[SIGNATURE]

James P. Corcoran

Superintendent of Insurance