Statement that the proposed action amending 11 NYCRR 62, Subpart 62-2 (Insurance Regulation 96) is a consensus rulemaking and that no person is likely to object to its adoption.
The present rule requires insurers to report fire losses in excess of $1,000 to a central reporting organization, denominated the Property Insurance Loss Register ("PILR"), as administered by the American Insurance Association ("AIA"). However, since 1997, the actual central reporting organization has been the Insurance Services Office, Inc. ("ISO"), which acquired the PILR database of property claims as part of its acquisition of the American Insurance Services Group, Inc. ("AISG") from AIA in that year. In 1998, ISO also acquired claims databases from National Insurance Crime Bureau ("NICB"). ISO created a single database ("ISO ClaimSearch®") that merged the former NICB and AISG databases for multiple purposes: claims administration, fraud detection and prevention, compliance reporting, and assistance with law enforcement efforts, which has been in use for the past 15 years.
This amendment replaces outdated references to "PILR" with "central organization." This change corrects the rule by removing outdated information, and provides the Superintendent greater flexibility to name a new central organization, if that becomes necessary, without having to make additional revisions to the rule. This amendment also removes instructions that are no longer operative by removing the last three sentences of section 62-2.4, which currently provides that law enforcement agencies, and certain tax districts and governmental agencies, must make their requests for fire insurance loss information from the Department's Criminal Investigations Unit, which would transmit such requests to PILR for processing. PILR would then have to furnish all available information compiled from reports required to be made by Subpart 62-2 to the Criminal Investigations Unit, which in turn would make such information available to the requesting agency. Actually, a requesting agency may obtain fire insurance loss information directly from ISO.
Because the amendment merely updates the rule by removing obsolete references and instructions, no person or entity is likely to object.
Accordingly, this rulemaking is determined to be a consensus rulemaking, as defined in State Administrative Procedure Act ("SAPA") § 102(11), and is proposed pursuant to SAPA § 202(1)(b)(i). Therefore, this rulemaking is exempt from the requirement to file a Regulatory Impact Statement, Regulatory Flexibility Analysis for Small Businesses and Local Governments, or a Rural Area Flexibility Analysis.