New York Laws
Article 23 - Property/casualty Insurance Rates
2321 - Enforcement and Penalties; Where Prior Approval Is Required.

(b) (1) If the superintendent finds that any rate filing theretofore
filed does not comply with the provisions of this article or that such
filing provides rates or rules which are inadequate, excessive, unfairly
discriminatory, destructive of competition, detrimental to the solvency
of the insurer, or otherwise unreasonable, the superintendent may order
the filing withdrawn and the rate suspended prospectively upon fifteen
days prior written notice to the rate service organization or to the
insurer which filed them, provided, however, such rate service
organization or insurer may request a hearing, in which case no
withdrawal or suspension shall become effective pending the close of the
hearing, which shall be held within fifteen days of the request. Within
fifteen days after the close of the hearing, the superintendent shall
determine an adjusted rate based upon the hearing record deemed to be in
compliance with the standards set forth in this article, and the rate so
determined shall apply prospectively for a period not to exceed one
year.
(2) At any such hearing, the insurer or rate service organization
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) Whenever the superintendent finds, after notice and a hearing,
that unfair discrimination exists in the making or in the application of
rates made or used by any rate service organization or by any authorized
insurer, he may order that the rate service organization or the insurer
remove the discrimination; but the same shall not be removed by
increasing the rate on any risk affected by the order unless the rate is
approved by the superintendent as reasonable. Before making such order,
the superintendent shall give notice to the rate service organization,
if any, which made such rate, and to all insurers and other persons
which he may deem directly affected thereby. Every rate service
organization receiving any such notice shall promptly notify all its
members or subscribers who would be affected by the order, and notice to
such rate service organization shall be deemed notice to its members or
subscribers.
(d) Proceedings pursuant to subsections (b) and (c) hereof may be
instituted upon the initiative of the superintendent or upon written
application to the superintendent by any aggrieved person or
organization, other than a rate service organization, for a hearing, if
the superintendent finds that the application is made in good faith and
that the grounds otherwise justify holding such a hearing.
(e) Any person, association, corporation or rate service organization
wilfully violating the applicable provisions of this article shall, in
addition to any other penalty provided by law, be liable to the people
of this state for a penalty in an amount not less than twenty-five
dollars nor more than one thousand dollars for each offense. If the
superintendent finds after notice and hearing, that any authorized
insurer, licensed agent or licensed insurance broker has wilfully

violated any of the provisions of this article, he may, in lieu of any
other penalty provided by law, order the insurer, agent or broker, as
the case may be, to pay to the people of this state a penalty in the sum
of one hundred dollars, for each offense, and the failure of any such
person to pay the penalty within thirty days after the making of the
order, unless the order is suspended by a court of competent
jurisdiction, shall constitute a violation of the provisions of this
chapter. Within the meaning of this subsection, the issuance,
procurement or negotiation of each policy of insurance, by an insurer,
agent or broker, as the case may be, in willful violation of the
provisions of this article shall be deemed a separate offense.
(f) This section shall be applicable to kinds of insurance or
insurance activities the rates for which are subject to prior approval
and which are subject to this article.

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