NEW YORK STATE
INSURANCE DEPARTMENT

REPEAL OF REGULATION NO. 132
(11 NYCRR 260)

EXPERIMENTAL MONOLINE PREPAID LEGAL SERVICES PLANS

FIRST AMENDMENT TO REGULATION NO. 161
(11 NYCRR 261)

PREPAID LEGAL SERVICES PLANS

FIRST AMENDMENT TO REGULATION NO. 162
(11 NYCRR 262)

LEGAL SERVICES INSURANCE 

I, Gregory V. Serio, Superintendent of Insurance of the State of New York, pursuant to the authority granted by Sections 201, 301, 1113(a)(29), and 1116 and Article 23 of the Insurance Law, Chapter 65 of the Laws of 1998, and Chapter 28 of the Laws of 2003, do hereby promulgate the following Repeal of Part 260 of Title 11 of the Official Compilation of Codes, Rules and Regulations of the State of New York (Regulation No. 132); the First Amendment to Part 261 of Title 11 (Regulation No 161); and the First Amendment to Part 262 of Title 11 (Regulation No. 162), to take effect upon publication in the State Register.

(Matter in brackets is deleted; new matter is underlined)

Part 260 of Title 11 is repealed.

Subdivisions (a), (h) and (k) of Section 261.0 of Part 261 are amended to read as follows:

(a) This Part implements, interprets and clarifies chapter 65 of the Laws of 1998, as amended by chapter 28 of the Laws of 2003. Prior to the enactment of chapter 65, section 1116 of the Insurance Law authorized insurers to offer experimental plans of prepaid legal services insurance, and except in connection with such a plan, the Insurance Law did not authorize insurers to provide legal services insurance.

(h) Pursuant to chapter 65 of the Laws of 1998, an authorized insurer may provide noninsurance benefits pursuant to a prepaid legal services plan, so long as the insurer is licensed to write legal services insurance. An insurer, however, is not required to offer legal services insurance as part of the plan. Such prepaid legal services plans are subject to the jurisdiction of the Insurance Department because they are offered by licensed entities and regardless of whether or not they include legal services insurance as part of the plan.

(k) Section 1116(h), as amended, provides that the superintendent shall promulgate such regulations that are necessary to implement the provisions of section 1116. The Part applies to prepaid legal services plans, and Part 262 of this Title (Regulation 162) applies to legal services insurance written as part of a liability insurance policy and also sets forth additional requirements for legal services insurance written pursuant to a prepaid legal services plan. Furthermore, the superintendent is directed to promulgate such rules and regulations as are necessary to implement the provisions of chapter 65 on or before April 1, 1999. Chapter 65 of the Laws of 1998, as amended by chapter 28 of the Laws of 2003, provides that the new paragraph (29) of section 1113(a) of the Insurance Law and various conforming amendments implementing new paragraph (29) shall take effect April 1, 1999 [and shall expire and be deemed repealed on April 1, 2003]. Section 1116(c), as amended, provides that contracts issued in connection with a prepaid legal services plan may be issued on a group basis subject to regulations promulgated by the superintendent. [Chapter 65 also provides that the relevant provisions shall apply to all contracts executed on or before April 1, 2003 until the expiration of such contracts or until April 1, 2007, whichever shall occur first.]

Section 261.8 of Part 261 is repealed.

Subdivisions (a) and (g) of Section 262.0 of Part 262 are amended to read as follows:

(a) This Part implements, interprets, and clarifies chapter 65 of the Laws of 1998, as amended by chapter 28 of the Laws of 2003, as it pertains to legal services insurance. This Part should be read in conjunction with [new] Part 261 of this Title (Regulation 161) which [is being] was promulgated at the same time. The preamble of Part 261 (section 261.0) more fully explains the background, legislative history and intent of chapter 65.

(g) Section 1116(h), as amended, provides that the superintendent shall promulgate such regulations that are necessary to implement the provisions of section 1116. Furthermore, the superintendent is directed by chapter 65 to promulgate such rules and regulations as are necessary to implement its provisions on or before April 1, 1999. Chapter 65, as amended by chapter 28 of the Laws of 2003, provides that the new paragraph (29) of section 1113(a) of the Insurance Law and various conforming amendments implementing new paragraph (29) shall take effect April 1, 1999 [and shall expire and be deemed repealed on April 1, 2003]. Section 1116(c), as amended, provides that contracts issued in connection with a prepaid legal services plan may be issued on a group basis subject to regulations promulgated by the superintendent. [Chapter 65 also provides that the relevant provisions shall apply to all contracts executed on or before April 1, 2003 until the expiration of such contracts or until April 1, 2007, whichever shall occur first.]

I, Gregory V. Serio, Superintendent of Insurance of the State of New York, do hereby certify that the foregoing is the Repeal of Part 260, First Amendment to Part 261 and First Amendment to Part 262 of Title 11 of the Official Compilation of Codes, Rules and Regulations of the State of New York (Regulations No. 132, 161, and 162), promulgated by me on

July 23, 2003, pursuant to the authority granted by Sections 201, 301, 1113(a)(29), and 1116 and Article 23 of the Insurance Law, Chapter 65 of the Laws of 1998, and Chapter 28 of the Laws of 2003.

Pursuant to the provisions of the State Administrative Procedure Act, prior notice of the proposed regulation was published in the State Register on May 7, 2003. No other publication or prior notice is required by statute.

_____________________________________

 

Gregory V. Serio
Superintendent of Insurance

July 23, 2003