The Office of General Counsel issued the following informal opinion on December 6, 2002, representing the position of the New York State Insurance Department.
Re: Credit Card Enhancement Rate Filings.
Is an authorized insurer subject to the form and rate filing requirements of Article 23 of the New York Insurance Law, with respect to policies that cover risks or operations in New York, where its policies are issued outside of New York?
Yes. An authorized insurer is subject to the form and rate filing requirements of Article 23 of the New York Insurance Law, with respect to policies that cover risks or operations in New York, regardless of where the policies are issued or delivered.
An insurer that is licensed in New York, provides credit card enhancement coverage through a national program to residents of New York and elsewhere. The policy, was approved in the State of Illinois, is issued in Illinois on a blanket basis covering an entire class of credit card holders. Coverage is not solicited or sold in New York and the premium is paid by the credit card company. The benefits are provided uniformly on a nationwide basis to all credit card holders that hold the class of credit cards and such benefits are provided by the Credit Card Company, including collision damage waivers. It is the inquirers view that under these circumstances, the insurer should not be required to file rates in New York.
Pursuant to N.Y. Ins. Law § 2302(a) (McKinney 2000), Article 23 applies to "all kinds of insurance written on risks or operations in [New York]" by an insurer authorized to do business in New York, subject to certain exceptions, none of which are relevant herein. Thus, in the present case, since the policy will cover risks or operations located in New York, the insurer must file its forms and rates with the Department as prescribed by Article 23, regardless of where the blanket policy is issued or delivered. In addition, the insurer, in regard to the New York members, must comply with N.Y. Ins. Law § 3442 (McKinney 2000), which governs these kinds of policies.
For further information you may contact Senior Attorney Pascale Joasil at the New York City Office.