STATE OF NEW YORK
25 BEAVER STREET
NEW YORK, NEW YORK 10004
|George E. Pataki
Gregory V. Serio
|November 24, 2003
Circular Letter No. 19 (2003)
|TO:||All Authorized Property/Casualty Insurers, Rate Service Organizations and Insurance Producer Organizations|
|RE:||Cancellation and Other Notices Additional Statutory Requirements|
3425 and 3426 of the Insurance LawAs a result of the enactment of Chapter 675 of the Laws of 2003,
which was signed into law on October 15, 2003, there are several new notice requirements
of which insurers should be aware. Chapter 675 will take effect on February 12, 2004.
Chapter 675 amends Section 3425 of the Insurance Law with respect to non-business automobile insurance policies and personal lines insurance policies, as follows:
Chapter 675 also amends Section 3426 of the Insurance Law with respect to commercial lines insurance, as follows:
It is noted that Section 3426 already provides that a notice of cancellation, conditional renewal or nonrenewal notice that fails to include a provision required by Section 3426 shall not be an effective notice for purposes of such section [See Section 3426(i)]; and that notices of cancellation, nonrenewal, alternative renewal and conditional renewal must also be provided to the agent or broker [See Section 3426(b), (c), and (e)].
It is expected that all insurers and rate service organizations will review their procedures, policy forms, and notices and make modifications and filings pursuant to Article 23 with the Department, as necessary, to be in compliance with these new requirements by no later than the effective date of February 12, 2004.
Very truly yours,