August 20, 1986

SUBJECT: INSURANCE

SUPPLEMENT NO. 1 to CIRCULAR LETTER NO. 3 (1986)

WITHDRAWN

TO: ALL AUTHORIZED ROPERTY/CASUALTY INSURERS IN NEW YORK STATE, INSURANCE & PRODUCER ASSOCIATIONS, EXCESS LINE BROKERS, UNDERWRITING MEMBERS OF THE NEW YORK INSURANCE EXCHANGE, INC.

RE: UPDATING LIABILITY INSURANCE AVAILABILITY SURVEY

Circular Letter No. 3, issued on April 17, 1986, contained a survey signed to ascertain markets particularly for difficult-to-place liability insurance coverages. As a result of survey responses, the Department via its Hotline and other market assistance programs has been able to identify markets for many prospective insureds experiencing difficulty in securing coverage.

Critical availability problems remain. Market conditions are also changing, due to significant developments, such as the omnibus legislation recently enacted into law in New York State designed to enhance availability and affordability of vital liability insurance coverages. We stress that, pursuant to the omnibus legislation, in connection with commercial risk, professional liability and public entity insurance coverages not exempted from the flexible-rating system, insurers must refile rates to reflect the likely cost reductive effects of the tort reforms embodied in the omnibus legislation and companion laws. These refilings must be made by insurers no later than 11. Friday, September 26, 1986, ninety days after the effective date, June 28, 1986, of the omnibus legislation. A special Circular Letter, specifically. addressed to this tort reform refiling requirement, will soon be issued. Regulations concerning the flex-rating system will also be published by the Department in the near future.

The new laws empower the Superintendent of Insurance to activate the New York Property Insurance Underwriting Association for specified liability insurance markets, in the event that meaningful coverage is determined to be lacking in the voluntary markets. In order to enable the Department to continue to assist in maximizing voluntary market placements and to determine the extent of availability problems on an ongoing basis, it is essential that you update the annexed survey, and return it to the Department no later than September 5, 1986. Until further notice, please update this availability survey on a quarterly basis, returning it to the Department by ten (10) days after the end of each quarter; the next survey should be made as of December 31, 1986. Only changes from your last response need to be indicated. Where appropriate, we encourage replies from insurance carriers to be made on a consolidated basis on behalf of parent, subsidiaries and affiliates. Please direct your reply and any questions to Richard Lynde (212-602-0363), Principal Insurance Examiner, Property & Casualty Insurance Bureau. In between survey updates, please inform Mr. Lynde about any new markets of which you become aware.

JAMES P. CORCORAN

SUPERINTENDENT OF INSURANCE

 

Please check the appropriate box to indicate whether or not your company will write liability insurance for each particular type of risk, provided of course, that it meets your underwriting criteria. If you will write a particular type of risk, provide the name and telephone number of a contact person that the Insurance Department may provide for inquiries about placement of coverage.

Note that some types of risk have been added to this supplemental survey and some have been deleted. The risks which have been added may be identified by the CAPITAL LETTERS. If you will not consider writing any of the exposures included in this survey, or if there is no change from your company's response to the earlier survey and you do not write any of the additional risks, please check only the appropriate box on the last page and complete the identifying information. If there are changes from your earlier. response, advise us only of those changes and the additional risks, if any, which you will consider writing.

Thank you for your cooperation and assistance.

* Reinsurers - Please advise if you would write these risks on a reinsurance basis (treaty or facultative). It is not necessary to supply the name of a contact person.

** Excess Lines Brokers - Please provide a positive response only if you can place coverage with a non-admitted insurer. The contact person should be the individual in your office to whom inquiries may be directed.

*** Producer Associations - Please advise your members that the Department is conducting this survey and advise the Department if you are aware of admitted markets.

Will your company write any of the risks for which you responded affirmatively if it involves a new business?

YES [] NO [] SOME [] Please list.

[]Our Company will not write any of the exposures included in this survey.

[]There is no change from our Companies response to your previous survey and we will not write any of the additional exposures included in this survey.

COMPLETED BY:

INSURER

NAME

TITLE

TELEPHONE

RETURN TO:

RICHARD LYNDE, PRINCIPAL EXAMINER

PROPERTY AND CASUALTY BUREAU

NEW YORK STATE INSURANCE DEPARTMENT

160 WEST BROADWAY

NEW YORK, NEW YORK 10013