Property and casualty fundamentals (insurable interest, indemnity, negligence, policy structure, coinsurance) are covered in the national basics guides. This guide covers New York rules that apply across property and casualty lines: the Standard Fire Policy, commercial cancellation and nonrenewal under section 3426, certificates of insurance, Regulation 64 claim rules, excess line placement and the security fund. Personal lines (homeowners and auto) rules are in the New York Homeowners and Personal Auto guides.

The New York Standard Fire Policy (Ins. Law 3404(e))

The 165-line Standard Fire Policy sets the minimum provisions for fire coverage.

Property insurance requires an insurable interest at the time of loss (Ins. Law 3401).

Commercial cancellation and nonrenewal (Ins. Law 3426)

• First 60 days: at least 20 days' written notice to the first named insured and the agent or broker (3426(b)).
• After 60 days: only listed grounds, such as nonpayment, fraud or material misrepresentation, or a material increase in hazard, effective no sooner than 15 days after mailing (3426(c)). For auto coverage, continuing to drive after a license suspension is another ground.
• The notice tells the insured they have 10 days to ask DFS to review it, and the insurer sends DFS a copy at the same time (3426(c)(1)(H)).
• Nonrenewal or conditional renewal: 60 to 120 days before expiration (30 to 120 days for excess liability and jumbo risks). A conditional renewal notice is required for a premium increase of more than 10% (not counting increases from more exposure units, experience or audit) (3426(e)).
• Late notice: coverage continues on the same terms, at the lower of the current or prior rate, until 60 days after the notice is given, unless the insured replaces or cancels it (3426(e)(5)).
• A businessowners policy is commercial, so section 3426 applies to it.

Agency terminations (Regulation 90)

An insurer terminating an agency contract gives specific reasons, not general statements like "insufficient volume," and at least 30 days' notice, with a shorter period allowed for untrustworthy conduct (11 NYCRR 218.4; Ins. Law 3433).

Certificates of insurance (Ins. Law 501 to 503)

A certificate of insurance isn't a policy or a binder and can't change the coverage. Nobody may require a certificate on a nonstandard form or with wording the policy doesn't contain. Violations cost $1,000 for the first and $2,000 for each later one.

Claims: Regulation 64 (11 NYCRR 216)

• Claims are acknowledged within 15 business days.
• A decision is due within 15 business days after proof of loss, or 30 business days if arson is suspected. If more time is needed, the insurer explains why and writes again every 90 days.
• Agreed amounts are paid within 5 business days.
• Actual cash value is the lesser of the cost to repair to pre-loss condition or to replace with a substantially identical item, including sales tax.
• A denial must cite the specific policy provision.

Rates

Rates may not be excessive, inadequate or unfairly discriminatory (Ins. Law 2303), and rates and rating systems are generally filed with the Superintendent (2305).

Excess line (surplus lines) placement

• Placing coverage with an eligible unauthorized insurer requires an excess line broker license (Ins. Law 2105, 2118).
• The broker must make a diligent effort: at least three declinations from authorized insurers, unless the coverage is on the Superintendent's export list (Regulation 41, 11 NYCRR 27.3). Noncommercial auto liability available from a residual market needs that facility's declination.
• Documents go to the Excess Line Association of New York (ELANY) for stamping within 45 days, and no declarations page may be delivered without the ELANY stamp (11 NYCRR 27.6).
• The insured is told the insurer isn't licensed in New York and its policies aren't protected by the New York security funds.

Security fund and other residual markets

• The Property/Casualty Insurance Security Fund (Insurance Law Article 76) pays covered claims of insolvent admitted property and casualty insurers, subject to limits.
• The Medical Malpractice Insurance Plan makes malpractice coverage available to eligible practitioners (Ins. Law 5501).

Common exam traps

• Standard Fire Policy: 5 days' notice to the insured, 10 days to the mortgagee; 60-day vacancy; 60-day proof of loss; suit within 24 months.
• Commercial: 20 days in the first 60 days, 15 days after on listed grounds, and 60 to 120 days for nonrenewal.
• Conditional renewal for premium increases over 10%.
• Excess line: three declinations, ELANY stamp within 45 days.
• Regulation 64: 15 business days to acknowledge and to decide; 5 business days to pay.