NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES
 
REGULATION NO. 86
11 NYCRR PART 16
SPECIAL RISK INSURANCE
 
ELANY has compiled and consolidated Regulation 86 (11 NYCRR 16), inclusive of amendments 1 through 6. ELANY has made every effort to make certain that the transcribed and consolidated amendments are correct.  However, this is an unofficial publication of the information provided.
Last reviewed/updated 08/11/2015
Section 16.0 Introduction.
This Part implements article 63 of the Insurance Law and establishes methods, procedures and reports for licensing, facilitating, monitoring and verifying compliance with the requirements of the Insurance Law. In effect, article 63 allows special risks that are jumbo in dimensions or exotic in nature to be written, free of filing rates or policy forms with the superintendent, in what is sometimes called the "Free Trade Zone". In addition, article 63 allows certain coverage for "large commercial insureds" to be written as special risks. Although filing is not required except as specified in section 6303, rates and policy forms applied to special risks must still satisfy governing standards set forth in the Insurance Law and regulations.
 
Section 16.1 Definitions.
For purposes of this Part:
(a) Accident and health insurer has the meaning set forth in section 107(a)(1) of the Insurance Law.
(b) Authorized insurer has the meaning set forth in section 107(a)(10) of the Insurance Law.
(c) Large commercial insured has the meaning set forth in section 6303(b)(1) of the Insurance Law.
(d) Life insurer has the meaning set forth in section 107(a)(28) of the Insurance Law.
(e) Major type of insurance as used in this Part means the annual statement line of business based on the coverage part with the highest estimated premium at the time of issuance of the certificate of insurance.
(f) Medical malpractice insurance has the meaning set forth in section 5501(b) of the Insurance Law.
(g) Net premiums written means gross premiums (direct and assumed premiums, including policy and membership fees, less return premiums and premiums for policies not taken) less reinsurance ceded.
(h) Property/casualty insurer means an insurer licensed pursuant to article 41 or 61 of the Insurance Law.
(i) Special risk manager has the meaning set forth in section 6303(b)(2) of the Insurance Law.
(j) Special risk means:
(1) Class 1.
Where all or part of the insured's business operations, for which coverage is authorized by the kinds of insurance defined in section 1113(a) of the Insurance Law, is insured in a single policy written in accordance with section 6303 of the Insurance Law, and which is written with or is reasonably expected to produce a billed annual premium of at least:
(i) $100,000 for at least one kind of insurance; or
(ii) $150,000 for more than one kind of insurance where the premium for any one kind of insurance does not exceed $100,000.
(2) Class 2.
Coverages that are:
(i) of an unusual nature, a high loss hazard or difficult to place; and
(ii) enumerated in the list contained in section 16.12(e) of this Part, or additions thereto made pursuant to section 16.8(f) of this Part.
(3) Class 3. Coverage other than medical malpractice issued to a large commercial insured that employs or retains a special risk manager to assist in the negotiation and purchase of a policy exempted under this article, provided, however, that:
(i) the special risk manager is not employed by the insurer issuing the policy or any person in the insurer's holding company system; and
(ii) the special risk manager is licensed as an insurance producer in this State pursuant to Insurance Law article 21, unless exempted from licensing therein.
 
Section 16.2 Limitations on transactions.
(a) For property/casualty insurers:
(1)
(i) the insurer's net premiums written pursuant to section 6302 of the Insurance Law during the prior calendar year shall not exceed 75 percent of the surplus to policyholders, as reported in the insurer's annual statement filed with the superintendent for the corresponding calendar year;
(ii) the insurer's direct premiums written pursuant to section 6302 of the Insurance Law during the prior calendar year shall not exceed 75 percent of the surplus to policyholders, as reported in the insurer's annual statement filed with the superintendent for the corresponding calendar year; and
(iii) the insurer’s total net premiums written in the United States shall not exceed 200 percent of surplus to policyholders, as reported in the insurer's annual statement filed with the superintendent for the corresponding calendar year.
(2) An insurer may request the superintendent’s prior written approval to exceed the limitations specified in paragraph (1) of this subdivision. If the superintendent determines that it would not be harmful to policyholders or the people of this State, the superintendent may in such approval allow the insurer to exceed such limitations. The approval shall specify what limits may apply. In reviewing an application for such an approval, the superintendent shall consider:
(i) the market need for the coverage;
(ii) the insurer's financial condition;
(iii) the type of business to be written by the insurer within and without the insurer's holding company system, including a breakdown, by annual statement line of business, of business assumed and ceded within the insurer's holding company system;
(iv) the projected amounts of gross and net premiums to be written, by annual statement line of business, including a breakdown, by line of business, of the amounts of special risk premiums to be ceded to authorized special risk insurers; and
(v) other factors affecting the insurer’s compliance with applicable laws and regulations.
 
(b) For life and accident and health insurers:
(1) the insurer's net premiums written pursuant to section 6302 of the Insurance Law during the prior calendar year shall not, for any line of business written, exceed one percent of the insurer's total net premiums written as reported in the insurer’s annual statement filed with the superintendent for the corresponding calendar year for the same lines of business as reported in the gain and loss exhibit of the annual statement, separated into individual and group business; and
(2) the insurer’s direct premiums written pursuant to section 6302 of the Insurance Law during the prior calendar year shall not, for any line of business written, exceed one percent of the insurer's total net premiums written as reported in the insurer’s annual statement filed with the superintendent for the corresponding calendar year for the same lines of business as reported in the gain and loss exhibit of the annual statement, separated into individual and group business.
 
Section 16.3 Disclosure to insureds.
(a) The following notice shall appear conspicuously on the front page of each binder, policy, contract, rider or endorsement, and on all subsequent additions thereto, issued or renewed under class 1 or 2 pursuant to section 6303(a)(1) or (2) of the Insurance Law, provided, however, that such notice need not appear separately on a rider or endorsement issued contemporaneously with, and as part of, a policy or contract, if, in accordance with the provisions of Insurance Law section 6303(a)(1) or (2) and this Part, all such riders or endorsements, and the rates associated therewith have not been filed with, the superintendent:
NOTICE: THESE POLICY FORMS AND THE APPLICABLE RATES ARE EXEMPT FROM THE FILING REQUIREMENTS OF THE NEW YORK INSURANCE LAW AND REGULATIONS. HOWEVER, THE FORMS AND RATES MUST MEET THE MINIMUM STANDARDS OF THE NEW YORK INSURANCE LAW AND REGULATIONS.
 
(b) The following notice shall appear conspicuously on the front page of each binder, policy, contract, rider or endorsement, and on all subsequent additions thereto, issued or renewed under class 3 pursuant to section 6303(a)(3) of the Insurance Law, provided, however, that such notice need not appear separately on a rider or endorsement issued contemporaneously with, and as part of, a policy or contract, if, in accordance with the provisions of Insurance Law section 6303(a)(1) or (2) or (3) and this Part, all such riders or endorsements have in fact not been approved by, and the rates associated therewith have not been filed with, the superintendent:
NOTICE: THESE POLICY FORMS ARE NOT SUBJECT TO THE APPROVAL REQUIREMENTS AND THE APPLICABLE RATES ARE EXEMPT FROM THE FILING REQUIREMENTS OF THE NEW YORK INSURANCE LAW AND REGULATIONS. HOWEVER, THE FORMS AND RATES MUST MEET THE MINIMUM STANDARDS OF THE NEW YORK INSURANCE LAW AND REGULATIONS.
 
(c) Each “Notice” required by subdivision (a) or (b) of this section shall be in bold capital letters, no less than 14 point font, enclosed in a border.
 
Section 16.4 Policy forms and other standards.
(a) Every binder, policy, contract, rider and endorsement issued pursuant to section 6301 of the Insurance Law on special risks located or resident in New York State shall comply with minimum standard policy provisions of the Insurance Law and this Title.
(b) For a coverage coded as a class 3 risk pursuant to section 16.12 of this Part, the insurer shall electronically file with the superintendent a policy form that has not been previously filed with the superintendent. The insurer shall file the policy form in a form and manner acceptable to the superintendent, within three business days after first delivery of a policy using the form, but no later than 60 calendar days after the inception date of the policy.
(c)
(1) An insurer required to make a filing or a submission to the superintendent electronically pursuant to this Part may apply to the superintendent for an exemption from the electronic filing requirement by submitting a written request to the superintendent for approval at least 30 days in advance of making the filing or submission.
(2) The request for an exemption shall:
(i) identify the time period for which the insurer is requesting the exemption; and
(ii) specify whether the insurer is making the request for an exemption based upon undue hardship, impracticability, or good cause, and set forth a detailed explanation as to the reason that the superintendent should approve the request.
 
Section 16.5 Rate standards.
The rates applied to policies issued pursuant to section 6301 of the Insurance Law shall not be excessive, inadequate, unfairly discriminatory, destructive of competition, detrimental to insurer solvency, or otherwise unreasonable. Each insurer shall maintain in its files the premium charged for each special risk and the basis for the rate or premium.
 
Section 16.6 Licensing.
(a) An authorized insurer may apply for a special risk license to transact business written pursuant to section 6302 of the Insurance Law by completing an application form, prescribed by the superintendent and available from the Property Bureau of the Department of Financial Services. Every special risk license shall be issued for a term expiring on August 31st. Every such license may be renewed for the ensuing period of 12 months upon the filing of an application in conformity with this Part.
(b) An insurer shall file an application for a renewal license with the superintendent not less than 30 days prior to the date the license expires.
(c) Nothing in this Part shall authorize an insurer to do any kind of insurance business for which it is not licensed in this State.
 
Section 16.7 Reporting requirements.
(a) Financial reports.
Every insurer writing special risks pursuant to this Part shall file with its annual and quarterly statements supplemental financial reports using a form prescribed by the superintendent.
 
(b) Experience reports.
Every insurer writing special risks pursuant to this Part shall file with its annual and quarterly statements the following information on a direct basis, in accordance with section 16.12 of this Part, classification codes, in a form prescribed by the superintendent:
(1) written premiums;
(2) earned premiums;
(3) losses paid;
(4) cumulative number of claims closed with payment;
(5) cumulative number of claims closed without payment;
(6) outstanding loss reserves;
(7) number of claims outstanding;
(8) losses incurred;
(9) loss adjustment expenses paid;
(10) unallocated loss adjustment expenses paid;
(11) allocated loss adjustment expenses outstanding;
(12) unallocated loss adjustment expenses outstanding;
(13) allocated loss adjustment expenses incurred;
(14) unallocated loss adjustment expenses incurred;
(15) commissions incurred;
(16) commissions paid; and
(17) number of policies issued.
 
For premium tax purposes, premiums allocated to locations outside this State shall be coded separately.
 
(c) Other reports.
The superintendent may require the filing of such additional reports as are deemed necessary to implement the provisions of article 63 of the Insurance Law and this Part.
 
Section 16.8 Operational requirements.
(a) Class 1, class 2 or class 3 coverages may be provided only to:
(1) a single entity; or
(2) two or more related entities, in each of which the same person, group of persons, or corporation holds a controlling interest.
(b) Class 1, class 2 or class 3 coverages may not be provided in a manner that would constitute a group policy within the meaning of Part 153 of this Title.
(c)
(1) Except as provided in paragraph (2) of this subdivision, a policy may be written pursuant to Insurance Law article 63 and this Part if the policy provides only one or more of the kinds of insurance specified in Insurance Law section 1113(a)(4) through (14), (16), (17), (19) through (22), (27) and (29).
(2) A covered policy, as defined in section 3425(a)(2) of the Insurance Law or a policy providing coverage pursuant to Insurance Law section 1113(a)(1), (2), or (3) may be written as a class 2 risk if the coverage is included in the list of eligible class 2 risks contained in section 16.12(e) of this Part.
(3) A medical malpractice insurance policy may not be written as a class 3 risk.
(d) Notwithstanding any other provision of this Part, a policy may not be written pursuant to Insurance Law article 63 and this Part with respect to:
(1) insurance specified in Insurance Law section 2328;
(2) insurance specified in Insurance Law section 2305(b) except medical malpractice insurance may be written as a class 1 or 2 risk; or
(3) insurance required to satisfy any financial responsibility requirement of this State.
(e) Where a policy includes coverage for both New York and non-New York exposures, the total premium for all exposures may be used for purposes of determining class 1 or class 3 eligibility pursuant to section 16.1(j) of this Part. However, a report filed with the superintendent showing special risk premiums and losses shall only include risks related to New York exposures unless the statement filing instructions specify otherwise.
(f)
(1) Application may be made to the superintendent for adding a class to the list of eligible class 2 risks enumerated in section 16.12(e) of this Part.
(2) In reviewing such an application, the superintendent shall consider the following factors:
(i) whether the insurance coverage provided protects from perils or risks that are neither contained in, nor conducive to the use of, generic policy forms or filed rate schedules;
(ii) whether the type of insurance risk contains a substantial degree of peril or hazard that makes use of generic policy forms or filed rate schedules impractical; and
(iii) the extent to which the type of coverage is unavailable from authorized insurance markets.
(3) Class 2 additions shall be published in the State Register.
(4) Applications to the superintendent to add classes to the class 2 risk list shall include:
(i) a detailed description of the class for which filing exemptions are requested;
(ii) a statement indicating the reasons why the class should be considered unusual, having a high loss hazard, or difficult to place; and
(iii) a statement explaining why the filing requirements of the Insurance Law with regard to rates and forms would impose an undue impediment to the effective writing of the particular class of business in this State.
(g) Coverages qualifying as class 2 risks may be provided by separate individual policies or incorporated by endorsement into other policies. When coverages for class 2 risks are provided by endorsement, only the policy forms and rates applicable to such endorsement qualify for filing exemptions pursuant to this Part.
(h) No policy may be issued or renewed pursuant to class 3 on or after the date specified in Insurance Law section 6303(a)(3).
 
Section 16.9 Records maintenance and examination.
(a) An insurer granted a special risk license by the superintendent pursuant to section 6302 of the Insurance Law shall maintain in this State an underwriting office:
(1) that shall be under the control of the insurer's management and staffed with personnel who are charged with the responsibility for making underwriting decisions relating to policies issued pursuant to this Part; and
(2) in which the insurer shall maintain or have electronic access to the underwriting files, experience statistics, financial and other records, applicable to business underwritten and transacted under section 6302 of the Insurance Law, subject to examination by the superintendent as often as the superintendent deems necessary.
(b) An insurer that does not renew its special risk license shall make its records regarding special risk business available to the superintendent upon request.
 
 
 
Section 16.10 Other requirements.
All insurers licensed under section 6302 of the Insurance Law shall be subject to all other provisions of the Insurance Law and this Title that are not inconsistent with article 63 or this Part.
 
Section 16.11 Other provisions.
This Part shall not alter or change any other exemption from rate and form filing requirements extended pursuant to the Insurance Law or any other Part of this Title.
 
Section 16.12 Coding of class 1, class 2, and class 3 risks.
(a) The principal operations of class 1 and class 3 risks shall be coded in accordance with the classification codes filed by the Insurance Services Office under the commercial statistical plan.
(b) Class 2 risks shall be coded in accordance with the classification codes included in the list issued annually by the superintendent pursuant to section 16.1(f)(2) of this Part.
(c) The appropriate classification code shall be indicated on the lower left corner of the front page of each binder, policy, contract, rider or endorsement, and on all subsequent amendments thereto, used pursuant to this Part, with a summary classification of codes attached to the rating worksheets or similar data contained in the policy files.
(d)
(1) Special risks classified under class 2 that generate a premium in an amount that qualifies as a class 1 risk shall, for reporting purposes, be designated as class 2 risks; and
(2) Special risks classified under class 2 that also qualify as class 3 risks shall, for reporting purposes, be designated as class 2 risks.
(e) The following is a list and description of coverages that may be written as class 2 risks pursuant to section 16.1(f)(2) of this Part:
Statistical Code
Classification
2-14006
Air Bag Repacking
 
Coverage for liability claims resulting from the improper packaging of air bags.
2-14007
Alarm System Liability
 
Coverage against liability of alarm system installers and service contractors for failure to
perform services agreed upon with customers or for failure of an alarm to function.
2-14190
Amusement Parks and Carnivals
 
Property and/or liability coverage for the owners/operators of amusement parks, theme parks
and carnivals.
2-14191
Amusement Rides and Devices
 
Property and/or liability coverage for the owners/operators of amusement rides and devices
including bumper cars, go-carts and  go-cart tracks, giant slides, skateboard tracks, roller-blade
tracks, etc.
2-14165
Animal Liability
 
Coverage against bodily injury and property damage caused by animals owned by the
policyholders.
2-10017
Animal Mortality
 
Coverage against the death of any domesticated or wild animal from any cause.
2-14010
Animal Rides
 
Liability coverage against bodily injury or property damage caused during the operation of
animal ride concessions at zoos, amusement parks, circuses, picnics or private parties.
Includes coverage for children bitten or thrown by the animal due to excitement, or the
negligence of the attendant.
2-16003
Armored Car, Couriers or Check Cashing Operations
 
Crime coverage for armored car services, couriers transporting valuable documents
and securities, and check cashing operations.
2-22003
Auto Racing and Automobile Race Track Liability
 
Coverage for claims of spectators, participants or other third parties in connection with
the operation of an automobile race track or drag strip, or the staging or conduct of an
automobile race.
2-14206
Auto/Boom Truck Operations/Liability
 
Insurance policy providing both:
 
(i) commercial auto coverage with limits of liability that meet or exceed the minimum
financial responsibility limits; and
 
(ii) commercial general liability risks for owners, operators and lessors of self-propelled
or “road-ready” vehicles with articulated or telescopic arms, cranes or concrete pumpers
permanently affixed. Includes liability coverage for operation of boom trucks where
equipment was leased with (or without) the services of an operator. The policy shall
provide separate and equal per occurrence limits of liability for the commercial auto
liability coverage part and the commercial general liability coverage. In addition, any
general policy aggregate limit of liability shall not be applicable to the policy’s
commercial auto coverage part or to the products/completed operations coverage part
and the declarations page shall specifically so indicate.
2-13001
Automobile Personal Injury Protection (PIP) excess of $150,000
 
First Party, New York No-Fault PIP benefits, excess of $150,000.
2-22002
Automobile Racing Liability
 
Liability coverage for owners or lessors of race tracks for oval track events, drag races,
monster truck rallies, motocross, motorcycle, boat or snowmobile racing, and other types
of motorized vehicle competitive events.
2-50008
Aviation Hull Insurance
 
Coverage for loss or damage to aircraft.
2-50007
Aviation Liability Insurance
 
Coverage against third party liability or passenger liability arising out of occupancy,
operation or use of owned or non-owned aircraft. Coverage also may include liability
arising out of the insured’s use, ownership or maintenance of helipads and aviation
building or premises.
2-14019
Banks – Mortgage Interest – All Risks
 
Coverage of the bank's mortgage interest for any reason—must be a nonstandard form.
2-13002
Blood Banks, Blood and Organ Facilities Liability
 
Liability coverage for facilities that primarily deal with the collection, storage and
distribution of blood, blood products and human organs.
2-13003
Boats and Yachts
 
(a) High Speed Boats
 
Property and liability coverage for the owners and operators of boats capable of
attaining speeds in excess of 40 miles per hour; or
 
(b) Boat Rentals
 
Property and liability coverage for the owners and operators of boat rental facilities.
2-13000
Commercial Excess and Umbrella
 
Liability Insurance
 
  1. Coverage for commercial excess liability where the underlying policy limits are
at least $1 million per occurrence.
 
  1. Coverage for commercial umbrella liability where the underlying automobile
and general liability policies each contain limits of at least $1 million per occurrence.
2-01007
Commercial Excess Property Insurance
 
Coverage for commercial excess property insurance where the underlying policy
provides at least $1 million in coverage.
2-14000
Contractual Liability—Large Contracts
 
Coverage for liability assumed by an insured in an insured contract, where the value
of the contract exceeds $1 million.
2-50002
Cyber Risks
 
First and third party commercial lines coverage for loss or liability arising out of
or relating to cyber risks, including data privacy breaches and other privacy risks,
networks security risks, electronic advertising, intellectual property infringement
and virus risks.
2-14041
Data Processing Company Products Liability
 
Coverage against the failure of various data systems to perform the way the user
thought or was promised they would perform.
2-14043
Demolition Contractors Liability
 
Coverage against the hazards involved in destruction of old property.
2-14045
Directors and Officers Liability Insurance—Education
 
Policies providing liability coverage for directors and officers, including managers
and trustees, of schools, universities or boards of education.
2-14176
Directors and Officers Liability Insurance—Insurance Companies and Financial
Institutions
 
Policies providing liability coverage for the directors and officers of insurance
companies, banks, savings and loan associations, mortgage companies and other
financial institutions.
2-14177
Directors and Officer Liability Insurance—Certain Commercial Risks
 
  1. Policies providing liability coverage for the directors and officers of corporations
 that:
 
  1. have a net worth of at least $7,500,000, as determined by an independent certified
 public accountant, as of the insured's fiscal year end immediately preceding the
 policy’s effective date; or
 
  1. have gross assets exceeding $25,000,000 and a net worth of at least $1,500,000,
as determined by an independent certified public accountant, as of the insured's
fiscal year end immediately preceding the policy's effective date; or
 
(3) are for-profit business entities that generate annual gross revenues exceeding
$25,000,000, and have a net worth of at least $1,500,000, as determined by an
independent certified public accountant, as of the insured’s fiscal year end immediately
preceding the policy’s effective date; or
 
(4) are for-profit business entities that have gross assets exceeding $25,000,000 and
generate annual gross revenues exceeding $25,000,000, as determined by an independent
certified public accountant, as of the insured’s fiscal year end immediately preceding the
policy’s effective date; or
 
(5) are not-for-profit organizations or public entities with annual budgets exceeding
$25,000,000 for each of the three fiscal years immediately preceding the policy’s
effective date; or
 
(b) Policies containing primary liability limits of at least $5,000,000.
2-14161
Directors and Officers Liability Insurance—Political Action Committees
 
Policies providing liability coverage for directors, officers, managers, or trustees of
political action committees. This may also include liability coverage for the entity that
has established the political action committee in regard to the activities of such committee.
2-50003
Directors and Officers Liability Insurance—Private Company Package Policies
 
Directors and Officers, Employment Practices Liability, Fiduciary, Crime, and Kidnap
and Ransom containing primary liability limits of at least $5,000,000.
2-14047
Directors and Officers Liability Insurance—Public Officials
 
Policies providing liability coverage for directors and officers, including managers and
trustees, of public entities.
2-14048
Directors and Officers Liability Insurance—Union Officials
 
Policies providing liability coverage for directors and officers, including managers,
fiduciaries (including ERISA), administrators and trustees of unions or labor organizations,
and the employee benefit plans related thereto.
2-01006
Electrical Disturbance
 
Coverage for loss resulting from any electrical injury or disturbance to electrical
appliances, devices, fixtures or wiring caused by electrical currents artificially generated.
This coverage is designed to offset the "electrical apparatus" exclusion usually contained
in fire policies.
2-14181
Elevator Contractors Liability Insurance
 
Liability coverage for contractors who perform installation, repair or inspection services
of, or to, escalators or elevators.
2-14055
Environmental Impairment/Pollution Liability
 
Liability coverage and/or pollution clean-up expense coverage for the following:
asbestos abatement contractors; general pollution liability; environmental impairment;
lead abatement contractors; hazardous waste disposal sites; hazardous waste haulers
and shippers; hazardous waste site mitigation contractors; radon mitigation contractors;
radon testing firms; underground storage tanks—marketers; and underground storage
tanks—non-marketers.
2-14192
Explosives, Munitions or Fireworks—Manufacturing or Display
 
Property and/or liability coverage for the manufacturer of explosives, munitions or
fireworks and firms which produce fireworks displays or exhibitions.
2-14060
Exterminators, Herbicide and Pest Control Contractors Liability
 
Coverage for liability arising out of use of hazardous pesticides needed to control termites
and rodents; may include errors and omissions coverages and contractual liabilities from
warranties and annual inspections.
2-14061
Fair Employment Practices Liability
 
Employment practices and procedures, excluding intentional acts and excluding acts of
discrimination.
2-04002
Federal Crime Program—Excess on Commercial Risks
 
Coverage in excess of coverage available through state or federal crime insurance programs.
2-14183
Fiduciary Liability
 
Liability coverage for fiduciaries.
2-14160
Film Producers/Theatrical Producers Indemnity Insurance
 
Insurance for producers of motion pictures, television programs, theatrical (stage)
productions, documentaries, industrial films, commercials and educational productions,
including coverage for:
 
(a) unauthorized use of format, idea, titles, music, etc.;
 
(b) libel, slander, invasion of privacy, failure to acknowledge “credits” or contributions
of others;
 
(c) third party property damage;
 
(d) equipment owned or leased;
 
(e) props, sets and wardrobes;
 
(f) time element coverage for unavailability of cast, damaged film or negatives; and
 
(g) extra expense due to delays caused by a covered peril.
2-05001
Fine Art Dealers
 
All-risk or named perils coverage for property held for sale by fine art dealers.
2-01010
First Loss Property Insurance
 
Property and time element coverage for risks insured for at least $1 million, but less than
the total exposure to property and time element losses, where the remaining amount/exposure
is insured by facultative excess reinsurance or excess insurance.
2-05002
Flood Insurance
 
(a) Flood insurance excess of maximum limits available from the Federal Flood Program; or
 
(b) Primary coverage on property not eligible for the Federal Flood Program.
2-13004
Golf Driving Range Liability
 
Personal injury or property damage liability coverage associated with the operation of a
driving range, e.g., flying golf balls, improperly wielded golf clubs, etc.
2-10001
Horse and Pony Policy
 
Coverage for the death of the insured animal, including veterinary fees; coverage for loss by
theft or straying; and coverage for loss of the value of the insured animal caused by nonfatal
sickness or accident.
2-13005
Horseback Riding Establishments
 
Coverage for riding academies and pony rides.
2-14193
House Movers and Building Demolition Contractors
 
Coverage for liability arising out of the moving of a house or the demolition of a building,
for example, injury caused by falling brick, flying debris, etc. and structural or other
damage to a house being moved.
2-14072
Institutional Administrators Liability
 
Coverage for acts in the capacity of administrator of the institution.
2-14174
Joint Hospital and Voluntary Attending Physicians Excess Professional Liability Insurance
 
Voluntary Attending Physician Program (channeling) means a program recognized by
section 3436(a) of the Insurance Law which insures one or more hospital and includes, as
additional named insureds, persons who are voluntary attending physicians, with
coverage applicable to both practice conducted at a hospital with such program and the
physicians’ outside office practice, subject to the following minimum requirements:
 
  1. coverage for the primary level shall be, at the minimum, $1 million per
occurrence/$3 million in the aggregate, for each hospital, including its participating
attending physicians;
 
  1. coverage for excess layers shall be in excess of the primary layer specified in
paragraph (1) of this subdivision;
 
(3) each hospital participant must be a licensed general hospital as defined in section 2801
of the Public Health Law of the State of New York;
 
(4) the hospitals shall maintain a joint educational program;
 
(5) the hospitals shall subscribe to common guidelines for quality care assurance;
 
(6) the hospitals shall share in, and commonly develop, safety programs;
 
(7) there are demonstrable savings resulting from the joint insurance program;
 
(8) the producer of record shall obtain a statement from each hospital to the effect that the
aggregate limits of all coverage will, in the opinion of the directors or trustees (or their
equivalent) of each hospital, be adequate for the risk exposure;
 
(9) each hospital shall maintain full affiliation with the sponsoring program;
 
(10) coverage shall be issued either individually to the hospitals or on a group basis but, in
either case, the attending physicians shall be issued certificates of insurance evidencing
their coverage;
 
(11) each such channeling program, as an experimental program, shall be limited to no more
than 1,500 attending physicians, in actual practice, but a physician who retires from practice
shall not be included in the computation and another physician may be enrolled in such case;
and
 
(12) the channeling program shall have been permitted by the superintendent prior to the
enactment of section 3436(a) of the Insurance Law on July 1, 1986. No new program shall
be authorized, and no additional hospital shall join any existing program after such date.
2-07001
Kidnap and Ransom Insurance
 
Coverage for losses incurred by the insured as a result of the surrender of property due
to extortion associated with the kidnapping or alleged kidnapping of an employee or
members of the household of an employee.
2-14057
Large Deductible or Self-Insured Retention Insurance
 
Property and/or liability insurance policies having either a deductible or self insured
Retention of at least $50,000.
2-13006
Lead Liability Insurance
 
Coverage for personal injury resulting from the ingestion or inhalation of lead or
lead dust.
2-13007
Liquor Law Liability Coverage
 
Monoline liquor law liability coverage for taverns and restaurants only where liquor
sales exceed 75 percent of total sales revenue.
2-10004
Livestock—Prospective Foal Coverage
 
Coverage against death or injury to livestock prior to birth and resulting loss of earnings.
2-14088
Logger's Liability Coverage
 
Coverage for damage negligently caused by a logging contractor.
2-14162
Media Liability
 
Coverage provided to advertising agencies, advertisers, authors, personal appearance,
broadcasters, multi-media companies and publishers for liability arising from defamation
(including libel and slander), invasion of privacy, infringement of intellectual
property rights (including piracy, plagiarism, trademark and copyright), contextual errors
and omissions and incitement.
2-50004
Mergers and Acquisitions
 
Insurance for claims arising from merger and acquisition transactions, including all related
coverages that are permissible under the New York Insurance Law.
2-02026
Mobile Home—Emergency Removal Service
 
Coverage for liability of mobile home park owner when removal is necessary due to named
perils.
2-14196
Natural Disaster Protection—coverage for losses incurred by business owners and
homeowners to their place of employment and residences as a direct result of specified
natural disasters. This coverage is intended to supplement any available basic property
coverages maintained by the insured.
2-14999
Nuclear Risk Insurance
 
  1. Coverage for property of those directly engaged in the nuclear operations, including loss
due to radioactive contamination of the insured's premises.
 
  1. Coverage for bodily injury or property damage liability caused by the radioactive, toxic,
explosive, or other hazardous properties of nuclear material.
2-14104
Petroleum Refineries—Excess of Loss Liability
 
Coverage for liability over primary insurance.
2-50000
Political Risk Insurance
 
Coverage for losses arising out of the actions of a foreign government. This includes:
 
(1) loss of use or destruction of property located in a foreign country;
 
(2) loss of income from operations or uncompleted contracts in a foreign country;
 
(3) nonpayment on contract due to the inability to convert foreign currency into “contract”
currency;
 
(4) termination of contracts due to license cancellations and embargoes;
 
(5) war, civil war, revolution, rebellion or insurrection within a foreign country or along the
route of shipment which prevents completion of contracts; or
 
(6) expropriation, confiscation, naturalization, seizure, requisition or arbitrary and selective
intervention by a foreign government preventing completion of contracts or otherwise
affecting business operations of the insured in such country.
2-10014
Poultry
 
Insurance on the life of chickens, turkeys and other domestic poultry issued on a
nonstandard form; includes full weather perils as well as fire and other extended
coverage perils, transportation and flood. Death caused by huddling or piling of the
flock in reaction to a covered peril is also covered.
2-14115
Private Guards, Patrols, and Security Forces Premises and Operations Liability
 
Manufacturers and contractors exposure only.
2-14116
Product Failure Liability Insurance
 
Insurance covering a manufacturer for the failure of its products when the failure causes loss
of use of a customer's tangible property which has not been physically damaged or destroyed.
The product must fail to perform the function intended by the manufacturer and the failure
must be due to a mistake or deficiency in design, formula, plan, printed instructions, etc.,
prepared by the manufacturer. The policy excludes loss arising out of any product
manufactured entirely to a customer's specification or any other experimental or prototype
product that has not been tried, tested and approved by the manufacturer.
2-14194
Product Liability Insurance
 
Product liability coverage for the following classes of risk only: aircraft parts manufacturers;
automobile parts manufacturers; bioengineered products; farm equipment parts manufacturers;
firearms manufacturers; helmet manufacturers; pharmaceutical products manufactures.
2-50005
Product Liability for Fire Extinguishers and Accessories
 
Lead and Wire Seal, Hose, Horn and Nozzle Assemblies, Foam, Buckets, Reducer, Calcium
Chloride, Sodium, Bicarbonate, Fire Hats.
2-14118
Products—Recapture or Recalled
 
This provides coverage per the so-called “sistership liability” exclusion contained in the
products policy. The coverage applies to damages claimed for the withdrawal, inspection,
repair, replacement or loss of use of the named insured's products, or work completed by or
for the named insured or of any property of which such products or work form a part, if such
products, work or property are withdrawn from the market or from use because of any known
or suspected defect or deficiency.
2-14119
Product Tampering
 
Coverage for the liability of manufacturers and marketers for losses due to personal injury or
property damage caused by the unauthorized alteration, adulteration or contamination of the
insured's product by third parties.
2-50009
Property Insurance for Highly Protected Risks (HPR)
 
Highly protected risks are properties that are subject to a substantially lower than normal
probability of loss by virtue of superior construction, special fire protection equipment/procedures,
and management commitment to loss prevention.
 
PROFESSIONAL/ERRORS & OMISSIONS LIABILITY
 
The following categories may be underwritten to cover liability arising out the performance of
professional duties:
2-14002
Accountants
2-14204
Actuarial Professional Liability Coverage
2-14005
Advertisers
2-14013
Architects
2-50006
Attorney’s Errors and Omissions—Non law firms
 
Coverage for attorneys who are employed as lawyers by a business entity that is not a law firm.
2-14178
Attorney's Errors and Omission—Large or High Risk Firms
 
Policies providing professional liability coverage for law firms consisting of at least 25
attorneys, or firms of any size in which more than five percent of the aggregate annual
billings are derived from the following types of legal work:
 
(1) mergers and acquisitions;
 
(2) representing banks, savings and loan associations or other financial institutions on matters
other than collections or real estate closings;
 
(3) matters involving the Securities Exchange Commission;
 
(4) matters involving Admiralty Law; or
 
(5) matters involving intellectual property patents, trademarks and copyrights.
2-14021
Beauty Schools
2-14169
Cable Access Television (CATV)
2-14026
Clinical Laboratories
2-14028
Collection Agencies
2-14197
Commercial Real Estate Agents and Brokers
 
Policies covering the liability of real estate agents and brokers who are engaged in large
commercial real estate projects. The policies would include, but are not limited to, liability
coverage for acts arising out of the brokerage of sales and lease of real estate, property
management, construction management and consulting, general consulting, franchising, joint
ventures, mortgage brokering, appraisals, auction, referrals, business brokerage activities and
the development of owned commercial and residential real estate.
2-14163
Community Health Center Wraparound
 
Policies providing professional liability coverage to community centers which receive funds
under Section 330 of the Public Health Service Act and which have been made eligible for
malpractice coverage under the Federal Tort Claims Act pursuant to the Health Centers
Assistance Act of 1992 (Public Law 102-501).
2-14035
Corporate Trustees
2-14042
Data Processors—Programmers and Analysts
2-14051
Employee Benefit Plan Trustees
2-14054
Engineers
2-14164
Excess and Surplus Lines Brokers
2-14172
Film Distributors
2-14199
Health Maintenance Organizations (HMOs)
 
Policies providing errors and omissions coverage for a healthcare system that assumes or
shares both the financial risk and delivery risk associated with providing comprehensive
medical services to the voluntarily enrolled population in a particular geographic area,
usually in return for a fixed, prepaid fee. This coverage excludes health care professionals.
2-14200
Independent Physicians Association (IPA)
 
Policies providing errors and omissions coverage for an organization comprised of individual
physicians or physicians in small group practices that contracts with managed care organizations
(MCOs) on behalf of its member physicians to provide healthcare services. This coverage
excludes health care professionals.
2-14179
Insurance Companies and Financial Institutions
 
Policies providing errors and omissions coverage to insurance companies, banks, savings
and loan associations, mortgage companies and other financial institutions.
2-14198
Interior Designers
 
Professional liability coverage for the development and implementation of designs for
interior environments, including the preparation of drawings and specifications for
non-load-bearing interior construction.
2-14076
Investment Counselors, Asset Managers and Venture Capital Professionals and Management
Liability
2-14078
Land Surveyors
2-14180
Large Firms
 
Policies providing errors and omissions coverage to individuals, partnerships or professional
corporations having annual billings of $20,000,000 or more.
2-14092
Marine Surveyors
2-14170
Medical Arts Schools and Colleges
 
Including acts of students not otherwise covered.
2-14096
Mobile X–Ray–Units
2-14036
Municipal and Public Entities
2-14100
Mutual Funds
2-14103
Nursing Homes—Administrators
2-14106
Paramedics
2-14108
Pension Plan Consultants
2-14109
Pension Plan Trustees
2-14111
Physicians—Medical Students
 
Policies providing coverage for those in training to be physicians or nurses.
2-14185
Physicians—Temporaries
 
Policies providing coverage for physicians, under contract with a commercial entity, placed
on a part-time or full-time basis with hospitals, government agencies or private practices to
fill the temporary staffing needs of those providers.
2-14112
Police Officers
2-14201
Preferred Provider Organization (PPO)
 
Policies providing errors and omissions coverage for an organization that has a healthcare
benefit arrangement designed to supply services at a discounted cost by providing incentives
for members to use designated healthcare providers (who contract with the PPO at a
discount), and also provides coverage for services rendered by healthcare providers who
are not part of the PPO network. This coverage excludes health care professionals.
2-14171
Psychologists
2-14166
Publicists and Public Relations
2-14125
Reducing Salons
2-14129
Scalp Treatment
2-14138
Social Services Agencies
 
Excluding medical or other health services.
2-14139
Social Workers
2-14143
Stockbrokers
2-14168
Talent (Artists)
2-14202
Third Party Administrator (TPA)
 
Policies providing errors and omissions coverage for a company that provides administrative
services to managed care organizations or self-funded health plans but that does not have the
financial responsibility for paying benefits. This coverage excludes health care professionals.
2-14155
Trustees—Trust Department
2-14153
Trustees and Fiduciaries
2-14203
Utilization Review Organization (URO)
 
Errors and omissions policies for external organizations that conduct reviews to assess the
medical appropriateness of suggested courses of treatment for patients thereby providing
the patient and the purchaser increased assurance of the value and quality of healthcare
services. This coverage excludes healthcare professionals.
2-13008
Recreational Guide Services
 
Coverage for outfitters and guides for camping, hiking, rafting and similar recreational
activities.
2-22004
Residual Value Insurance (Commercial Risks Only)
 
Residual Value Insurance as defined in section 1113(a)(22) of the Insurance Law, but shall not
include residual value insurance on motor vehicles or policies subject to Insurance Law
section 3425. (Note that residual value insurance does not include gap insurance.)
2-27008
Schools—Special Education Programs
 
Legal Liability.
2-14130
Securities and Exchange Act Liability Insurance
 
Policies providing liability coverage for directors, officers, managers, trustees, shareholders
and other professionals for:
 
  1. liability arising out of the Securities and Exchange Act and similar Federal, State, local
or foreign government law involving the sale or purchase of securities;
 
  1. liability arising out of the registration (or failure to register) of securities with the
Federal Trade Commission; or
 
  1. liability arising out of the alleged use of nonpublic information in a manner violative
of the Securities and Exchange Act.
2-14195
Security Guards—Armed and/or Using Dogs
 
Professional liability coverage for security guard firms which provide guards using firearms
or dogs.
2-13009
Skating Rinks
 
Liability coverage for injury to participants and spectators in ice and roller skating rinks.
2-13010
Ski Area Liability
 
Liability coverage for owners and operators of ski resorts, ski lifts, ski equipment sales and
rental, ski lessons, ski trail maintenance, snow-making operations, etc.
2-28003
Ski Resort High Limit—Accidental Death and Dismemberment
 
Coverage in excess of $500,000 only.
2-14141
Special Events Insurance
 
Policies providing coverage for unique exposures of limited duration which require varied
and specialized pricing and coverage. Types of coverage would include legal liability,
contractual liability, all risk coverage, CGL coverage, etc. Policies would be issued to,
among others, sponsors, organizers, performers and participants of trade shows, parades,
flea markets, concerts, etc.
2-14142
Sports Instructors Liability
 
Coverage for judo and karate instructors, scuba or skin diving instructors and water-ski
or snow-ski instructors.
2-02038
Television Breakdown–closed circuits
 
Covers the reduction in gross admission fees caused by interruption by breakdown, failure,
malfunctioning or any disorder of equipment lines and appurtenances thereto, which
prevents presentation of the audio or showing of the telecast.
2-13011
Tractor Pulls/Mud Bogs
 
Liability coverage for claims of spectators, participants or other third parties in connection
with the operation of organized exhibitions, races or demonstrations primarily involving
“Monster” trucks, tractors and similar off-road vehicles.
2-50001
Trade Credit Insurance
 
Coverage for manufacturers, wholesalers, service organizations, etc., against the loss of
an outstanding monetary interest in trade receivables for goods or services provided on credit,
due to insolvency of the debtor or due to a political event in the debtor's country which
prevents repayment.
2-18001
Tuition Refund Broad and Limited Plans
 
This coverage refunds the unused fees due to class time lost when a student is absent or
withdrawn from classes because of illness or accident.
2-14205
Warehouseman’s Liability
 
Coverage for the liability of a warehouse owner and/or operator for loss or damage to the
lawful goods of others in their care, custody or control.
2-01001
Weather Insurance—Property coverage for a pecuniary loss or loss of use as a result of
any adverse weather event causing the pecuniary loss or loss of use.
 
Section 16.13 [Repealed]