P&CNew Yorkhard
On day 18 of a 30-day file-and-use window under NY Ins. Law § 2305 for a commercial liability rate, the Superintendent issues a written disapproval citing inadequacy concerns. The insurer believes its actuarial support is solid. Which option BEST describes the insurer's procedural posture?
AThe rate is automatically deemed approved on day 31 because § 2305's 30-day clock cannot be cut short
BThe insurer must place the risk through ELANY
CThe insurer must convert the filing to a Free Trade Zone placement
The insurer may not use the rate and must either withdraw and refile or request a hearing under NY Ins. Law § 2321-2322
Why this is the answer
NY Ins. Law § 2305's 30-day deemer operates only if DFS takes no action. An affirmative written disapproval during the 30-day window blocks the deemer cold — the rate cannot be used. The insurer's choices are: (1) withdraw the filing and submit a revised version addressing the inadequacy concerns; (2) demand a hearing under NY Ins. Law § 2321-2322 where the insurer can present actuarial evidence; or (3) accept the disapproval and abandon the rate. ELANY (C) is irrelevant — that is the surplus-lines stamping office. Free Trade Zone (D) requires qualifying insured eligibility, not just insurer preference.
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