STATE OF NEW YORK
25 BEAVER STREET
NEW YORK, NEW YORK 10004
|Supplement No. 12 to
Circular Letter No. 9 (1988)
June 25, 1999
|TO:||All Property/Casualty Insurance Companies; Co-operative Property/Casualty Insurance Companies; Reciprocal Insurers; Financial Guaranty Insurance Corporations; and the Medical Malpractice Insurance Association|
|RE:||Property/Casualty Insurance Security Fund|
Calculations made in accordance with the requirements of Sections 7603 and 7606 of the New York Insurance Law indicate that the net value of the Property/Casualty Insurance Security Fund as of December 31, 1998 was greater than $150 million. In accordance with Section 7603 (c)(1), three additional contributions are due after the determination that the net value is greater than $150 million. The total new contributions for 1999, due May 15, 1999, August 15, 1999 and November 15, 1999, will be less than the total contributions received for the corresponding quarters in 1998.
The contributions for each quarter shall be made by multiplying the factor listed for the line of insurance in the attached table by the 1999 quarterly net direct written premium for such line. The first payment will be due on or before July 30, 1999 instead of May 15, 1999 for the quarter ending March 31, 1999. The required report forms, additional information and instructions will follow both in hard copy and on the Insurance Departments website.
Pursuant to regulations of the Federal Crop Insurance Corporation (7 CFR Part 400, subpart L), Multiple Peril Crop Insurance premiums on policies reinsured by the Federal Crop Insurance Corporation under its Standard Reinsurance Agreement continue to be exempt from contribution.
In view of the issue date of this Circular Letter Supplement, the late payment provisions of Section 7614 will not be imposed on an insurer unable to meet the July 30, 1999 date. However, returns for the quarter ending March 31, 1999, received after August 10, 1999, will be subject to the foregoing penalty provisions. Such insurer must submit a reasonable explanation for the delay.
Further supplements to the Circular Letter will be issued as the need arises.
Please acknowledge receipt of this letter and refer any questions to:
Mr. Frank M. D'Amico
Director of Taxes and Accounts
New York State Insurance Department
Governor Nelson A. Rockefeller Plaza
Agency Building One
Albany, NY 12257
Very truly yours,