STATE OF NEW YORK
ONE COMMERCE PLAZA
ALBANY, NEW YORK 12257
Eric R. Dinallo
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 Departments 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:
Please acknowledge receipt of this Circular Letter, and refer any questions relating to its contents, to:
Christopher F. Rulon