STATE OF NEW YORK
AGENCY BUILDING ONE
EMPIRE STATE PLAZA
ALBANY, NY 12257
|May 10, 2000
Supplement No.13 to Circular Letter No. 9 (1988)
|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|
Please be advised that determinations 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, 1999 was less than $150
million. Section 7603 provides that when the net value of the fund is less than $150
million, contributions shall be resumed. Such section further provides that if
contributions are so resumed they shall be apportioned among those kinds of insurance for
which payments were made from the fund during the fund year in which the net value was
reduced below such amount, and among insurers in accordance with their respective amounts
of net direct premiums written in each such kind of insurance.
During the fund year ending December 31, 1999, payments were made from the
Property/Casualty Insurance Security Fund for various kinds of insurance as defined in
Insurance Law Section 1113. Accordingly, contributions to the Property/Casualty Insurance
Security Fund shall be resumed on the basis of "net direct written premiums" on
policies insuring property or risks located or resident in this state for each of the
following Lines of Business as listed on Page 15 (New York Business) of the Annual
Statement. "Net direct written premiums" equals column 1 minus column 3 on Page
15. The premiums and dividends in column 1 and 3 respectively shall be adjusted to account
for premiums subject to contributions to the Public Motor Vehicle Liability Security Fund.
The contributions shall be made on a quarterly basis by multiplying the factor listed by
the 2000 quarterly net direct written premium to which it applies.
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 June 15, 2000 due date. However, returns for the first quarter received after June 30, 2000 will be subject to the foregoing penalty provisions. Such insurer must submit a reasonable explanation for the delay.
Please acknowledge receipt of this letter and refer any questions to :