STATE OF NEW YORK
25 BEAVER STREET
NEW YORK, NEW YORK 10004
|George E. Pataki
Gregory V. Serio
Circular Letter No. 5 (2004)
|TO:||ALL PROPERTY/CASUALTY INSURANCE COMPANIES; CO-OPERATIVE PROPERTY/CASUALTY INSURANCE COMPANIES; RECIPROCAL INSURERS; FINANCIAL GUARANTY INSURANCE CORPORATIONS; AND NEW YORK MEDICAL MALPRACTICE INSURANCE PLAN|
|RE:||PROPERTY/CASUALTY INSURANCE SECURITY FUND|
|STATUTORY REFERENCE: INSURANCE LAW SECTIONS 7603 AND 7606|
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, 2003 was greater than $150 million. In accordance with Section 7603(c)(1), additional contributions are due after the determination that the net value is greater than $150 million.
The first and second payments will be due on or before September 24, 2004; the third and fourth payments will be due on November 15, 2004 and February 15, 2005 respectively. The required report forms, additional information and instructions will follow both in hard copy and on the Departments website.
In view of the issue date of this Circular Letter, the late payment provisions of Section 7614 will not be imposed on an insurer unable to meet the September 24, 2004 due date. However, returns for the first and second quarters received after October 8, 2004 will be subject to the foregoing penalty provisions. Such insurer must submit a reasonable explanation for the delay.
During the fund year ending December 31, 2003, 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 continued 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 26 (New York Business) of the Annual Statement. "Net direct written premiums" equals column 1 minus column 3 on Page 26.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 2004 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.
Please acknowledge receipt of this letter and refer any questions to:
|Very truly yours,