New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
ONE COMMERCE PLAZA
ALBANY, NEW YORK 12257

Eliot Spitzer
Governor

Eric R. Dinallo
Superintendent


Circular Letter No. 10 (2007)
May 10, 2007
TO: TO ALL PROPERTY/CASUALTY INSURANCE COMPANIES; CO-OPERATIVE FIRE INSURANCE COMPANIES; LLOYDS UNDERWRITERS AND RECIPROCAL INSURERS; FINANCIAL GUARANTY INSURANCE CORPORATIONS; AND THE MEDICAL MALPRACTICE INSURANCE PLAN
RE: PROPERTY/CASUALTY INSURANCE SECURITY FUND

Please be advised that 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 ("the Fund") as of December 31, 2006 was greater than $150 million.

Also in accordance with Insurance Law Section 7603, the Superintendent has determined that payments made from the Fund have reduced the net value to an amount that shall cause contributions to be resumed until the end of the fund year.

The first quarterly filing will be due on June 15, 2007; the second, third, and fourth quarter filings will be due on August 15, 2007, November 15, 2007 and February 15, 2008, respectively. The required report forms, additional information and instructions will follow, both in hard copy and at posts on the Department’s website.

During the fund year ending December 31, 2006, payments were made from the Fund for various kinds of insurance as defined in Insurance Law Section 1113. Accordingly, contributions to the 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 Line of Business as listed on page 14 of the New York Supplement to the NAIC Annual Statement.

"Net direct written premiums" are equal to column 1 minus column 3 on Page 14 of the New York Supplement. The premiums and dividends in columns 1 and 3, respectively, shall be adjusted to account for premiums subject to contributions to the Public Motor Vehicle Liability Security Fund.

Fund contributions shall be made on a quarterly basis by multiplying the factor listed by the 2007 quarterly net direct written premium to which it applies. Applicable factors are included in the table that follows:

Annual Statement Line

Applicable Factor

1. Fire

.0001

2.1 Allied lines

.0001

2.2 Multiple peril crop

0000

2.3 Federal flood

.0001

3. Farmowners multiple peril

.0004

4. Homeowners multiple peril

.0006

5.1 Commercial multiple peril (non liability portion)

.0001

5.2 Commercial multiple peril (liability portion)

.0031

6. Mortgage Guaranty

0000

8. Ocean marine

.0001

9. Inland marine

.0000

10. Financial guaranty

.0000

11. Medical malpractice

.0031

12. Earthquake

.0001

13. Accident & Health

.0000

16. Workers’ Compensation

0000

17. Other liability

.0031

18. Product liability

.0031

19.1 Private passenger auto no-fault (PIP)

.0031

19.2 Other private passenger auto liability

.0031

19.3 Commercial auto no-fault (PIP)

.0031

19.4 Other commercial auto liability

.0031

21.1 Private passenger auto physical damage

.0000

21.2 Commercial auto physical damage

.0000

22. Aircraft (all perils)

.0019

23. Fidelity

.0003

24. Surety

.0003

26. Burglary and theft

.0001

27. Boiler and machinery

.0000

28. Credit

0000

31. Aggregate Write-Ins

0000


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 Circular Letter, and refer any questions relating to its contents, to:

Mark E. Daigneault
Director of Taxes and Accounts
New York State Insurance Department
One Commerce Plaza
Albany, NY 12257

 

 

Sincerely,

Christopher F. Rulon
Director of Administration
and Operations