New York Laws
Article 23 - Property/casualty Insurance Rates
2320 - Enforcement and Penalties; Where Prior Approval Is Not Required.

(b) (1) If the superintendent determines after a hearing that any rate
used by an insurer does not comply with the applicable provisions of
this article, he shall order that the rate be disapproved, and the order
may include provision for premium adjustment. The order may also require
that, for such period of time as the superintendent may determine,
subsequent rate filings of the insurer subject to subsection (a) of
section two thousand three hundred five of this article shall not become
effective unless the filings are made in accordance with the provisions
of subsection (b) of such section.
(2) The superintendent may, upon fifteen days prior written notice:
(A) order the suspension, prospectively, of a rate used by an insurer
and reimpose the last previous rate in effect; or
(B) order the suspension, prospectively, of a rate used by an insurer
and determine an adjusted rate that complies with the standards set
forth in this article.
In any such event, the insurer may within that same fifteen day period
make a written request for a hearing, in which event the superintendent
may establish an interim rate by reimposing the last previous rate in
effect or determining an adjusted rate pursuant to subparagraphs (A) and
(B), respectively, of this paragraph. This interim rate shall remain
effective pending the close of the hearing, which shall be held within
fifteen days of the insurer's request. Within fifteen days after the
close of the hearing, the superintendent shall determine the rate that
complies with the standards set forth in this article based upon the
hearing record, and the rate so determined shall apply prospectively for
a period not to exceed one year.
(3) At any such hearing, the insurer shall have the burden of
justifying the rate in question. All such determinations of the
superintendent shall be on the basis of findings of fact and
conclusions. Nothing in this subsection shall preclude the
superintendent from determining that the last previous rate in effect or
the rate filed by the insurer or rate service organization complies with
the standards set forth in this article. Nothing in this subsection
shall preclude the insurer or a rate service organization from making or
modifying any rate filing at any time.
(c) If the superintendent, after notice and hearing, finds that any
insurer, rate service organization or other person has violated the
applicable provisions of this article, he shall order the payment of a
penalty. The issuance, procurement or negotiation of a single policy of
insurance shall be deemed a separate offense. A penalty not to exceed
one thousand dollars may be imposed for each such offense. A further
penalty not to exceed two thousand five hundred dollars may be imposed
for each offense in which the superintendent finds that there was a
knowing violation, provided that a minumum penalty of at least
twenty-five thousand dollars shall be imposed regardless of the number
of such knowing offenses.
(d) This section shall be applicable to kinds of insurance or
insurance activities the rates for which are not subject to prior
approval and which are subject to this article.

* NB Expires July 1, 2026

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