NU Online News Service, Nov. 21, 2:32 p.m.EST

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New York has implemented new speed-to-market rules thateliminate rate and form regulation of most commercial-riskinsurance policies.

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Benjamin Lawsky, New York State superintendent of FinancialServices, says regulations have been issued that exempt insurersfrom rate filing and form approval requirements when issuing apolicy to businesses that generate annual commercial risk insurancepremiums of more than $25,000 in property and casualtyinsurance.

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The new rule also applies when insurers retain special-riskmanagers to assist in negotiating and purchasing the policies,Lawsky says.

The regulation went into effect Nov. 15, accordingto Ron Klug, a spokesman for the New York DFS. The legislation the regulation implements passed theNew York State Senate June 21, and the New York Assembly the nextday. The bill was signed by Gov. Cuomo Aug. 17.

Insurers and brokers laud the decision.

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Gary Henning, northeast regional vice president for the AmericanInsurance Association, says, "We are appreciative of thelegislature's and the Cuomo administration's efforts to modernizecommercial-insurance regulation."

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Henning says that while AIA believes even more rate and formfreedom in New York would be appropriate, bringing additionalbenefits to both policyholders and insurers, "the new law is apositive step in AIA's ongoing commercial-lines modernizationefforts in the Empire State."

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Joel Wood, senior vice president, government affairs, for theCouncil of Insurance Agents & Brokers, says that for many yearsnow there has been an emerging consensus about sophisticatedbusiness insureds and the most effective way for companies andbrokers to provide the best possible and most affordable protectionto them.  "New York has always been a primary portal forinsurance regulation, and we hope others will continue to follow inthis direction," Wood adds.