The latest episode of Ask Tim looks at the new almost-law that allows insurance carriers to write more policies in the so-called Free Trade Zone. I say "almost-law" because, while it has passed both chambers of the New York State Legislature, Gov. Cuomo has not yet signed it, though all indications are that he will.
- Carriers can write policies free from rate and form filing approval requirements for "large commercial insureds".
- A large commercial insured generates at least $25,000 in annual commercial insurance premium, employs or retains a "special risk manager," and meets at least one of the following criteria:
- Net worth of $7.5 million or more
- Net worth of $1.5 million or more and gross assets of more than $10 million
- For-profit business with net worth of at least $1.5 million and annual gross revenues of more than $15 million
- For-profit business with annual gross revenues of more than $15 million and gross assets of more than $10 million
- Not-for-profit or public entity with an annual budget of more than $20 million
- Municipality with a population of at least 50,000
- Has at least 50 employees or 100 employees within the corporate structure
- The special risk manager must be a licensed producer who meets specfic educational and experience criteria.
- Carriers must make informational filings, and the law contains other consumer protections.
- The law expires on June 30, 2013.