NEW YORK STATE
NINTH AMENDMENT TO REGULATION NO. 107
(11 NYCRR 71)
LEGAL DEFENSE COSTS IN LIABILITY POLICIES
I, NEIL D. LEVIN, Superintendent of Insurance of the State of New York, pursuant to the authority granted by Sections 201, 301, 1113(a)(13), (14) and (29), 1116, 3436, and 5504 and Articles 23, 31, 34 and 55 of the Insurance Law and Chapter 65 of the Laws of 1998, do hereby promulgate the following Ninth Amendment to Part 71 of Title 11 of the Official Compilation of Codes, Rules and Regulations of the State of New York (Regulation 107), to take effect upon publication in the State Register.
NEW MATERIAL UNDERSCORED, DELETED MATERIAL BRACKETED
A new subdivision (f) is added to Section 71.3 to read as follows:
(f) Legal services insurance that is a part of a policy of liability insurance that contains a provision reducing the limits of liability by the costs of legal defense, in accordance with the provisions of this Part, may reduce the per claim or aggregate liability limits of the liability policy if the policy limits are not reduced by greater than 25%.
A new subdivision (d) is added to Section 71.4 to read as follows:
(d) If legal services insurance is a part of the policy, then the separate defense limit may not be reduced by greater than 25%.
Section 71.8(a) is amended to read as follows:
(a) This Part shall not apply to aircraft liability policies, fidelity and surety policies, nuclear liability policies, marine protection and indemnity policies, or policies issued or renewed pursuant to section 1116 of the Insurance Law respecting [experimental projects in] prepaid legal services plans.
I, Neil D. Levin, Superintendent of Insurance of the State of New York, do hereby certify that the foregoing is the ninth amendment to 11 NYCRR 71 (Regulation 107), promulgated by me on March 1, 2000, pursuant to the authority granted by Sections 201, 301, 1113(a)(13), (14) and (29), 1116, 3436, and 5504 and Articles 23, 31, 34 and 55 of the Insurance Law and Chapter 65 of the Laws of 1998, to take effect upon publication in the State Register.
Pursuant to the provisions of the State Administrative Procedure Act, prior notice of the
proposed amendment was published in the State Register on December 1, 1999. No other
publication or prior notice is required by statute.
Neil D. Levin
Superintendent of Insurance
|Dated: March 1, 2000|