June 3, 1988
Supplement No. 1 to Circular Letter No. 9 (1988)
TO: ALL PROPERTY/CASUALTY INSURANCE COMPANIES; CO-OPERATIVE FIRE INSURANCE COMPANIES; LLOYDS UNDERWRITERS AND RECIPROCAL INSURERS; AND, THE MEDICAL MALPRACTICE INSURANCE ASSOCIATION
RE: PROPERTY/CASUALTY INSURANCE SECURITY FUND
Attached is a revised report form prescribed for use in submitting quarterly payments to the Property/Casualty Insurance Security Fund. The form has been revised to include Financial Guaranty (line 10) as a Line of Business subject to contribution. The factor .0025 is to be applied to the quarterly net direct written financial guaranty premium. Correspondingly, the factors for Fidelity (line 23) and Surety (line 24) have both been lowered to .0025.
Furthermore, the form has been revised to include Earthquake insurance (line 12) as a Line of Business subject to contribution. The factor .0017 is to be applied to the quarterly net direct written earthquake premium.
The revised form should be used by all insurers in making their second and subsequent quarterly payments. Insurers who have not yet made their first quarterly payment should use this revised form to make that payment. Those insurers who have already filed their first quarterly report form and who had financial guaranty or earthquake net direct written premium in the first quarter, must file an amended report form to reflect such exposure. In most cases, an adjustment to the contribution corresponding to lines 23 and 24 will also be needed. (If additional payment is due, a check should accompany the amended form. If a credit results, the amended report form should still be filed, and the credit should be applied to the payment due in the second quarter.) The credit should be shown as an amount in "Less Credit Due" on the second quarterly report.
Those insurers who have already filed their first quarterly report form and who did not have financial guaranty or earthquake net direct written premium in the first quarter and had fidelity or surety net direct written premium in this quarter, should not file an amended first report form but should apply the credit to the payment due by listing the amount of credit in "Less Credit Me", on their second quarterly report form.
Section 7614 late payment penalty provisions will not be imposed cn. an insurer that has written Financial Guaranty or Earthquake insurance in the first quarter provided such payment is received by June 30, 1988.
Further supplements to the Circular Letter will be issued as the need arises.
Please acknowledge receipt of this supplement, and refer any questions relating to its contents to:
Mr. Frank M. D'Amico
Director of Taxes and Accounts
New York State Insurance Department
Governor Nelson K. Rockefeller Plaza
Agency Building One
Albany, New York 12257
Very truly yours,
JAMES P. CORCORAN
Superintendent of Insurance