Circular Letter No. 3 (2004)
April 30, 2004
ALL AUTHORIZED PROPERTY/CASUALTY INSURERS, RATE SERVICE ORGANIZATIONS AND INSURANCE PRODUCER ORGANIZATIONS
TERMINATION OF ARTICLE 54 OF THE NEW YORK INSURANCE LAW
Pursuant to Section 5411 and Section 5412(g) of the New York Insurance Law, the provisions of Article 54 cease to be of any force or effect on or after April 30, 2004, except that policies issued or other obligations incurred by the New York Property Insurance Underwriting Association (the Association) shall not be impaired by the expiration of the article and the Association shall continue for the purpose of servicing such policies and performing such obligations.
Because of the sunset of this provision, the Association has informed us that it will take the following steps:
Discontinue "binding" of new business applications received on or after 12:01 a.m., April 30, 2004.
Discontinue "binding" of Coastal Market Assistance Program (C-MAP) applications received on or after 12:01 a.m., April 30, 2004, issued in connection with voluntary market wrap-around endorsement policies.
Return applications received on or after 12:01 a.m., April 30, 2004 along with any deposit premium together with an explanatory letter.
Discontinue issuance of any renewal policies with effective dates on or after 12:01 a.m., June 29, 2004 based on the Associations current renewal cycle of issuing renewals within at least 45 days, but not more than 60 days, in advance.
Policies issued or any other obligations incurred by the Association prior to 12:01 a.m., April 30, 2004 will continue to be serviced in accordance with Section 5411 and Section 5412(g) of the Insurance Law.
If you have any questions regarding the contents of this letter please contact:
Lucy Cilione, Supervising Insurance Examiner
New York Insurance Department
25 Beaver Street
New York NY 10004
Very truly yours,
Assistant Deputy Superintendent &
Bureau Chief, Property Bureau