New York Laws
Article 34 - Insurance Contracts-Property/casualty
3425 - Certain Property/casualty Insurance Policies; Cancellation and Renewal Provisions; Agents' Contracts and Brokers' Accounts.

(1) "Covered policy" means a contract of insurance, referred to in
this section as "automobile insurance", issued or issued for delivery in
this state, on a risk located or resident in this state, insuring
against losses or liabilities arising out of the ownership, operation,
or use of a motor vehicle, predominantly used for non-business purposes,
when a natural person is the named insured under the policy of
automobile insurance; provided, however, that the use or operation of
the motor vehicle by a transportation network company driver as a TNC
vehicle in accordance with article forty-four-B of the vehicle and
traffic law or the use or operation of the motor vehicle through a
peer-to-peer car sharing program in accordance with article forty of the
general business law, shall not be included in determining whether the
motor vehicle is being used predominantly for non-business purposes.
(2) "Covered policy" also means a contract of insurance, referred to
in this section as "personal lines insurance", other than a contract of
insurance defined in paragraph one hereof, issued or issued for delivery
in this state, on a risk located or resident in this state, insuring any
of the following contingencies:
(A) loss of or damage to real property used predominantly for
residential purposes and which consists of not more than four dwelling
units, other than hotels and motels;
(B) loss of or damage to personal property in which natural persons
have an insurable interest, except personal property used in the conduct
of a business; and
(C) other liabilities for loss of, damage to, or injury to persons or
property, not arising from the conduct of a business, when a natural
person is the named insured under the policy.
(3) A personal umbrella liability policy shall be considered a
"covered policy" under paragraph two, and not paragraph one, of this
subsection.
(4) A contract which insures any of the foregoing contingencies
described in paragraph one or two hereof as well as other contingencies
shall be a covered policy if that portion of the annual premium
attributable to such foregoing contingencies exceeds that portion
attributable to other contingencies.
(5) A covered policy shall not include a policy issued pursuant to any
plan established under article fifty-three or fifty-four of this chapter
or legal services insurance.
(6) "Renewal" or "to renew" means the issuance and delivery by an
insurer, at the end of the policy period, of a policy superseding a
policy previously issued and delivered by the same insurer, or the
issuance and delivery of a certificate or notice extending the term of a
policy beyond its policy period or term; provided, however, that any
policy with a policy period or term of less than one year shall, for the
purpose of this section, be considered as if written for a policy period
or term of one year, or any policy with no fixed expiration date, shall,
for the purpose of this section, be considered as if written for
successive policy periods or terms of one year.
(7) With respect to personal lines insurance, "required policy period"
means a period of three years from the date as of which a covered policy
is first issued or is voluntarily renewed.
(8) With respect to automobile insurance, "required policy period"
means a period of one year from the date as of which a covered policy
becomes effective after first issuance or voluntary renewal.
(9) With respect to automobile insurance, "voluntary renewal" means
the renewal of a covered policy which has completed the required policy
period pursuant to this section.
(10) "Nonpayment of premium" means the failure of the named insured to
discharge any obligation in connection with the payment of premiums on a
policy of insurance or any installment of such premium, whether the
premium is payable directly to the insurer or its agent, or indirectly
under any premium finance plan or extension of credit. Payment to the
insurer, or to an agent or broker authorized to receive such payment,
shall be timely, if made within fifteen days after the mailing to the
insured of a notice of cancellation for nonpayment of premium.
(11) "Administrative suspension" means a temporary suspension of a
driver's license pending a hearing, prosecution or investigation or an
indefinite suspension of a driver's license because of the failure of
the person suspended to perform an act, which suspension will be
terminated by the performance of the act by the person suspended.
(b) During the first sixty days a covered policy is in effect, no
notice of cancellation shall be issued or be effective unless it states
or is accompanied by a statement of the specific reason or reasons for
such cancellation.
(c) After a covered policy has been in effect for sixty days, or upon
the effective date if the policy is a renewal, no notice of cancellation
shall be issued to become effective unless required pursuant to a
program approved by the superintendent as necessary because a
continuation of the present premium volume would be hazardous to the
interests of policyholders of the insurer, its creditors or the public,
or unless it is based on one or more of the following:
(1) With respect to automobile insurance policies:
(A) nonpayment of premium, provided, however, that a notice of
cancellation on this ground shall inform the insured of the amount due;
(B) suspension or revocation during the required policy period of the
driver's license of the named insured or any other person who
customarily operates an automobile insured under the policy, other than
a suspension issued pursuant to subdivision one of section five hundred
ten-b of the vehicle and traffic law or one or more administrative
suspensions arising from the same incident which has or have been
terminated prior to the effective date of cancellation; or
(C) discovery of fraud or material mis-representation in obtaining the
policy or in the presentation of a claim thereunder.
(2) With respect to personal lines insurance policies:
(A) nonpayment of premium, provided, however, that a notice of
cancellation on this ground shall inform the insured of the amount due;
(B) conviction of a crime arising out of acts increasing the hazard
insured against;
(C) discovery of fraud or material misrepresentation in obtaining the
policy or in the presentation of a claim thereunder;
(D) discovery of willful or reckless acts or omissions increasing the
hazard insured against;
(E) physical changes in the property insured occurring after issuance
or last annual anniversary date of the policy which result in the
property becoming uninsurable in accordance with the insurer's
objective, uniformly applied underwriting standards in effect at the
time the policy was issued or last voluntarily renewed; or
(F) a determination by the superintendent that the continuation of the
policy would violate or would place the insurer in violation of this
chapter.
(3) The provisions of this subsection shall apply to each and every
coverage or limit afforded under the policy.
(d) (1) Unless the insurer, at least forty-five but not more than
sixty days in advance of the end of the policy period, mails or delivers
to the named insured, at the address shown in the policy, a written
notice of its intention not to renew a covered policy, or to condition
its renewal upon change of limits or elimination of any coverages, the
named insured shall be entitled to renew the policy upon timely payment
of the premium billed to the insured for the renewal. The specific
reason or reasons for nonrenewal or conditioned renewal shall be stated
in or shall accompany the notice. This paragraph shall not apply when
the named insured, an agent or broker authorized by the named insured,
or an insurer of the named insured, has mailed or delivered written
notice to the insurer that the policy has been replaced or is no longer
desired.
(2) If an insurer has the right to cancel a policy it may, in lieu of
cancellation, condition continuation of such policy upon change of
limits or elimination of any coverage not required by law, if written
notice of such intention is mailed or delivered to the insured at the
address shown in the policy at least twenty days prior to the effective
date of such action.
(3) At its discretion, the insurer may, in lieu of renewing the policy
in the form as last issued, substitute at the annual renewal date
another approved policy form which contains at least substantially
equivalent value in the aggregate of benefits, as determined by the
superintendent. Notice of intention to substitute a different policy
form on a renewal shall be made in the same manner as is prescribed in
paragraph one of this subsection for a conditioned renewal but with
respect to automobile insurance policies shall not be subject to the
percentage limitations contained in subsection (f) of this section
applicable to a conditioned renewal. Notice of intention to substitute a
different policy form shall be accompanied by a full and clear
comparison of the differences between the policy form as last issued and
the substitute policy form.
(e) With respect to personal lines insurance policies, no notice of
nonrenewal or conditional renewal of a covered policy shall be issued to
become effective during the required policy period unless it is based
upon a ground for which the policy could have been cancelled. With
respect to homeowners' policies as defined in section two thousand three
hundred fifty-one of this chapter, on properties located in areas served
by a market assistance program established by the superintendent for the
purpose of facilitating placement of homeowners' insurance, notices of
cancellation, nonrenewal or conditional renewal shall conform with
standards established by the superintendent in regulation. Such
standards shall require that the notice include, at a minimum:
notification of the possibility of eligibility for coverage through a
market assistance program or the New York property insurance
underwriting association; information on how to apply; and such other
information as required by the superintendent.
(f) (1) With respect to automobile insurance policies, the total
number (rounded to the nearest whole number) of notices of intention not
to renew a covered policy, and of notices of intention to condition
renewal upon reduction of limits or elimination of any coverages, which
an insurer may issue shall be limited for each calendar year to two
percent of the total number of covered policies of the insurer in force
at last year-end in each such insurer's rating territory in use in this
state which have completed their required policy period under this
section, except as set forth in subsection (r) of this section. However,
the insurer may non-renew or conditionally renew one policy in any such
insurer's rating territory in use in this state, if the applicable

percentage limitation results in less than one policy. Cancellations
made pursuant to subsection (b) or (c) of this section shall be
independent of and in addition to the number of notices of intention not
to renew or to condition renewal upon reduction of limits or elimination
of any coverages not required by law, permitted under this subsection.
(2) For every two new automobile policies which the insurer
voluntarily writes in each such territory, such insurer shall be
permitted to non-renew or conditionally renew one additional automobile
policy in that territory in excess of the two percent limit established
in paragraph one of this subsection, subject to a fair and
nondiscriminatory formula developed by the superintendent, which shall
consider the number of automobile policies written less cancellations
initiated by the insurer within the first sixty days of the policy
period.
(3) The superintendent shall revoke the rights of any insurer or group
of insurers under paragraph two of this subsection, upon a
determination, after a public hearing, that such an insurer or group of
insurers has utilized such rights to the detriment of any class or group
of classes within a rating territory.
(g) Notwithstanding any of the provisions and limitations of this
section, any property/casualty insurance company organized for the sole
and exclusive purpose of providing insurance policies to members of an
organization, and providing such insurance policies on risks in New
York, may refuse to renew automobile liability policies of persons who
fail to meet the requirements contained in the by-laws of such company
prohibiting the sale of policies to non-members of the organization,
provided that such company shall continue to participate in any assigned
risk plans established pursuant to article fifty-three of this chapter.
(h) (1) Proof of mailing of a notice of cancellation, reduction of
limits, substitution of policy form, elimination of coverages,
conditioned renewal or of intention not to renew, or proof of the
mailing of the reasons therefor, to the named insured at the address
shown in the policy, shall be sufficient proof of the giving of notice
and the giving of reasons required by this section.
(2) No notice of cancellation, reduction of limits, substitution of
policy form, elimination of coverages, conditioned renewal or of
intention not to renew, or notice of the reasons therefor, that fails to
include a provision required by this section shall be an effective
notice for purposes of this section.
(3) A copy of every notice of cancellation, reduction of limits,
substitution of policy form, elimination of coverages, conditioned
renewal or of intention not to renew, including the reasons therefor, or
a summary of such notice, shall be mailed, delivered or transmitted to
the insured's authorized agent or broker within seven days of the time
such notice is mailed to the named insured. Electronic transmission or
any other means of delivery or transmission of information commonly used
by the insurer to communicate with agents or brokers shall be deemed
sufficient for compliance with this paragraph. Failure to mail, deliver
or transmit a copy of such notice to the insured's authorized agent or
broker pursuant to this paragraph shall not render any such notice
ineffective, provided that all of the other requirements of this section
are met and shall not be considered failure to include a provision
required by this section for purposes of paragraph two of this
subsection.
(i) No insurer shall refuse to issue or renew a covered policy solely
on the ground of the advanced age of the applicant or insured.
(j) (1) Where an insurer or an agent who is authorized by such insurer
to accept lines of insurance from licensed agents or brokers notifies a

licensed agent or broker that its contract or account shall be
terminated:
(A) with respect to a personal lines insurance policy required to be
continued by this section, the insurer shall offer to continue the
policy for any remaining part of the required policy period and any
statutory extension and the insurer shall offer to continue the policy
through the terminated agent or broker for at least its next one year
policy period which commences within one year following the date of
mailing or delivery to the terminated agent or broker of written notice
of termination of such contract or account, and thereafter, at the
specific request of the insured, shall offer to continue the policy
through such terminated agent or broker for any remaining part of the
required policy period including statutory extension;
(B) with respect to an automobile insurance policy subject to this
section, the insurer shall offer to continue the policy for any
remaining part of the required policy period and, unless the policy is
cancelled or non-renewed in accordance with the provisions of either
subsection (b), (c) or (f) of this section, it shall, at the specific
request of the insured, offer to continue the policy through the
terminated agent or broker for three successive one year policy periods
which commence within the year following the date of mailing or delivery
to the terminated agent or broker of written notice of termination of
such contract or account;
(C) with respect to all new personal lines and automobile insurance
business offered by such terminated agent or broker which is subject to
the provisions of this section, the insurer shall accept all such
business meeting the insurer's then current underwriting standards
during the period of one hundred twenty days next following the date of
mailing or delivery to the agent or broker of written notification of
such termination;
(D) the terminated agent or broker shall be entitled to receive
commissions on account of all business continued or written pursuant to
this paragraph at the insurer's prevailing commission rate for such
lines of insurance; and
(E) the provisions of subparagraph (B) hereof in relation to
continuation of coverage for three successive one year policy periods
are subject to the rights of the insurer pursuant to subsection (b), (c)
or (f) of this section to cancel or non-renew. The provisions of
subparagraph (D) hereof in relation to commissions shall not be
mandatory after completion of the three one year policy periods provided
for in subparagraph (B) hereof.
(2) This subsection shall not apply to an agent who agrees to
represent exclusively one insurer or a group of insurers under common
management or an agent or broker whose license has been revoked by the
superintendent or whose contract or account has been terminated for
insolvency, abandonment, gross and willful misconduct, or failure to pay
over to the insurer moneys due to the insurer after receipt of a written
demand therefor.
(k) The superintendent may, after public hearing, promulgate rules and
regulations implementing and coordinating the provisions of this section
and article fifty-three of this chapter.
(l) (1) The superintendent shall monitor the operation of this
section. Every insurer subject to the provisions of this section shall
file in the office of the superintendent periodic reports in such form
as the superintendent may prescribe.
(2) The superintendent shall collect, analyze and compile such reports
with regard to the number of new insureds, non-renewed insureds and
business written by each insurer in each rating territory of each such

insurer and, in each case, the class of insureds (including age and sex)
affected so that a statistical analysis of the results obtained pursuant
to subsections (f) and (m) of this section, and the reasons in the
aggregate for the non-renewal of policies shall be provided to the
speaker of the assembly, the temporary president of the senate, the
chair of the assembly insurance committee, and the chair of the senate
insurance committee on or before June thirtieth, two thousand twenty and
every two years thereafter.
(m) (1) Paragraphs eight and nine of subsection (a), subsection (f)
and subparagraphs (B) and (E) of paragraph one of subsection (j) of this
section shall not apply to any new covered policy of automobile
insurance voluntarily written on or after August first, nineteen hundred
eighty-five and prior to January first, nineteen hundred eighty-six, and
on or after August second, two thousand one and prior to the effective
date of the property/casualty insurance availability act, and on or
after June thirtieth, two thousand twenty-six, but the legal rights
granted to insurers or policyholders under such provisions shall not be
extinguished or impaired thereby.
(2) In lieu of such provisions, paragraph seven of subsection (a),
subparagraph (A) of paragraph one of subsection (j) of this section and
paragraph three of this subsection shall apply to such automobile
insurance policies that are newly and voluntarily written to have an
effective date on or after August first, nineteen hundred eighty-five
and prior to January first, nineteen hundred eighty-six, and on or after
August second, two thousand one and prior to the effective date of the
property/casualty insurance availability act, and on or after June
thirtieth, two thousand twenty-six.
(3) On and after August first, nineteen hundred eighty-five and prior
to January first, nineteen hundred eighty-six, and on or after August
second, two thousand one and prior to the effective date of the
property/casualty insurance availability act, and on or after June
thirtieth, two thousand twenty-six, no notice of nonrenewal or
conditional renewal of such covered automobile insurance policies
referred to in this subsection shall be issued to become effective
during the required policy period unless it is based upon a ground for
which the policy could have been cancelled or unless it is based upon
one or more of the following grounds that occurred during the thirty-six
month period ending on the last day of the fourth month preceding the
month of the effective date of such notice of nonrenewal or conditional
renewal:
(A) Where a named insured and/or any other person who customarily
operates an automobile insured under the policy is convicted of any of
the following:
(i) operating a motor vehicle while intoxicated or impaired by the
consumption of alcohol; or
(ii) operating a motor vehicle while impaired by the use of a drug
(within the meaning of section eleven hundred ninety-two of the vehicle
and traffic law); or
(iii) homicide or assault arising out of the use or operation of a
motor vehicle, or criminal negligence in the use or operation of a motor
vehicle resulting in the injury or death of another person, or use or
operation of a motor vehicle directly or indirectly in the commission of
a felony; or
(iv) operating a motor vehicle in excess of the speed limit, or in a
reckless manner, where injury or death results therefrom; or
(v) operating a motor vehicle in excess of the speed limit, or
reckless driving, or any combination thereof, on three or more
occasions; or
(vi) operating a motor vehicle insured under the policy without a
valid license or registration in effect (except when the person
convicted had possessed a valid license or registration which had
expired and was subsequently renewed), or during a period of revocation
or suspension thereof, or in violation of the limitations applicable to
a license issued pursuant to article twenty-one or article twenty-one-A
of the vehicle and traffic law; or
(vii) operating a motor vehicle while seeking to avoid apprehension or
arrest by a law enforcement officer; or
(viii) filing or attempting to file a false or fraudulent automobile
insurance claim, or knowingly aiding or abetting in the filing or
attempted filing of any such claim; or
(ix) leaving the scene of an incident without reporting; or
(x) filing a false document with the department of motor vehicles, or
using a license or registration obtained by filing a false document with
the department of motor vehicles; or
(xi) operating a motor vehicle in a race or speed test; or
(xii) knowingly permitting or authorizing an unlicensed driver to
operate a motor vehicle insured under the policy.
(B) Where a named insured or any other person who operates a motor
vehicle insured under the policy is individually or are aggregately
involved in three or more vehicle accidents while operating a motor
vehicle insured under the policy, resulting in either personal injury,
or in property damage in excess of two hundred dollars. For the purpose
of this paragraph any of the following occurrences involving a motor
vehicle operated by a named insured or such other person shall not be
considered an accident:
(i) such motor vehicle was struck in rear; or
(ii) such motor vehicle was struck while legally parked; or
(iii) only the operator of another motor vehicle involved in the
accident was convicted of a crime, offense or violation contributing to
the accident; or
(iv) the named insured or other operator of the motor vehicle insured
under the policy, or the insurer thereof, was reimbursed by or on behalf
of a person responsible for the accident or has a judgment against such
person.
Where more than one motor vehicle in a household is insured by the
same insurer, the number of accidents which would permit conditional
renewal or non-renewal shall, as for the aggregate, be increased by two
for each additional motor vehicle insured. For the purposes of this
paragraph accidents occurring as a result of the use or operation of a
motor vehicle in response to an emergency, where the operator was
responding to a call of duty as a paid or volunteer member of any police
or fire department, first aid squad, or of any law enforcement agency;
or was performing any other governmental function in a public emergency,
shall not be accidents which afford an insurer the right to cancel or to
refuse to renew.
(C) Where there is a material change in the type of motor vehicle
insured which so substantially increases the hazard insured against as
to render the motor vehicle uninsurable in accordance with the insurer's
objective, uniformly applied underwriting standards in effect at the
time the policy was issued or last voluntarily renewed and which are
currently in effect; provided, however, that if the insured motor
vehicle is uninsurable for physical damage coverages only, the insurer
must offer to renew the policy without the physical damage coverages.
(D) Where such other objective, uniformly applied standards for
cancellation or non-renewal exists, as may be prescribed by regulation
promulgated by the superintendent.

* (n) Notice of cancellation/real property escrow accounts. With
respect to all covered policies for which the insurer submits bills for
real property insurance premiums directly to a mortgage investing
institution, or such other institution or agent as designated in writing
by the mortgage investing institution, under a real property insurance
escrow account, the insurer must send copies of a notice of cancellation
for nonpayment of premiums to both (i) the insured mortgagor of the real
property and (ii) the mortgage investing institution, or such other
designated institution or agent. Failure to send this notice to both
parties in paragraph (i) and paragraph (ii) shall render the notice of
no force and effect.
* NB There are 2 sb§(n)'s
* (n) Withdrawal from writing automobile and homeowners' insurance. In
the event of a determination by the superintendent that an insurer's
elimination of premium installment plans, reduction in commission, or
any other marketing action was implemented to effectuate a withdrawal or
substantial withdrawal from writing automobile insurance:
(1) an agent shall be permitted to terminate its contract with the
insurer, or that portion of the contract authorizing the agent to accept
automobile insurance, and the insurer shall be required to accept new
business and issue renewals in accordance with paragraph one of
subsection (j) of this section;
(2) notwithstanding the provisions of subparagraph (D) of paragraph
one of subsection (j) of this section, where an agent's contract is
terminated or a portion thereof is terminated pursuant to this
subsection, commissions for automobile insurance shall be paid at the
rate in effect applicable to the agent for the longest duration during
the twelve-month period immediately preceding the action which is
determined by the superintendent to have been implemented to effectuate
a withdrawal or substantial withdrawal from writing automobile
insurance;
(3) premium payment installment options shall be maintained in a
manner substantially similar to options offered by the automobile
insurance plan established pursuant to article fifty-three of this
chapter;
(4) paragraphs one and two of this subsection shall not apply to an
agent who agrees to represent exclusively one insurer or group of
insurers; and
(5) with respect to homeowners' insurance, in the event that an
insurer intends to materially reduce the volume of policies written
pursuant to paragraph two of subsection (o) of this section, any
commissions payable pursuant to an agent contract shall be mandatory for
an additional one year period beyond the completion of the required
policy period specified in paragraph seven of subsection (a) of this
section. The provisions of this paragraph shall not apply to policies
cancelled or nonrenewed by the insured or policies not renewed or
cancelled pursuant to subparagraph (A), (B), (C), (D) or (E) of
paragraph two of subsection (c) of this section.
* NB There are 2 sb§(n)'s
(o) (1) An insurer that intends to materially reduce its volume of
policies written, covered by this section, shall submit to the
superintendent, at least thirty days in advance of implementing such
actions, a plan for orderly reduction that: (i) describes the
contemplated actions; (ii) sets forth the reasons for such actions;
(iii) describes the measures such insurer intends to take in order to
minimize market disruption; and (iv) provides such other information as
the superintendent may require.
(2) (A) An insurer that writes homeowners insurance policies as
defined in subsection (a) of section two thousand three hundred
fifty-one of this chapter, who intends to materially reduce its volume
of such policies written, shall submit to the superintendent, at least
sixty days in advance of implementing such actions, a plan for the
orderly reduction of the number of policies written. Such plan shall:
(i) describe the contemplated actions; (ii) set forth the reasons for
such actions; (iii) describe the measures such insurer intends to take
in order to minimize market disruption; and (iv) provide such other
information as the superintendent may require.
(B) The superintendent after receiving such plan shall have thirty
days in which to approve it or disapprove it. The superintendent shall
approve such plan if the applicant demonstrates that such material
reduction is accomplished in a manner that minimizes market disruption
in areas of material reduction. In the review of each plan submitted
prior to the submission of the report required by subparagraph (E) of
this paragraph, the superintendent shall assess the impact of the
planned withdrawal in the counties of Nassau and Suffolk; areas within
one mile of a saltwater shoreline, canal or bay in the counties of
Queens, Kings, Richmond, Bronx or Westchester; and areas where policies
issued by the New York property insurance underwriting association have
increased by an amount deemed significant by the superintendent since
January first, nineteen hundred ninety-two. For plans filed subsequent
to the submission of the report required by subparagraph (E) of this
paragraph, the superintendent shall assess the impact of the planned
withdrawal on such areas as the superintendent may identify pursuant to
subparagraph (E) of this paragraph. In the event that the plan is
disapproved, the superintendent shall state the points of objection with
such plan and any amendments to such plan that the superintendent may
require consistent with the provisions of this section, including, but
not limited to, amendments designed to accomplish such material
reduction in a manner that minimizes market disruption. The insurer
shall file an amended plan within fifteen days from the date of return.
Any intended withdrawal pursuant to the plan is prohibited until such
time as the original or any amended plan is approved by the
superintendent.
(C) The superintendent shall promulgate rules and regulations to
establish standards for the definition of "materially reduce its volume
of policies" as used in this paragraph. Such definition shall require
that a plan be filed with the superintendent if the insurer plans to
reduce the net number of homeowners insurance policies as defined in
subsection (a) of section twenty-three hundred fifty-one of this chapter
by twenty percent or more, or plans to reduce the net number of such
policies it writes by five hundred, whichever is greater, within a five
year period of time; provided, however, that if an insurer is not
otherwise required to file a plan pursuant to this subparagraph, a plan
shall be filed if the insurer plans to reduce the net number of such
policies it has in force in a twelve month period by four percent or
more or the net number of such policies it writes by one hundred,
whichever is greater.
The provisions of this subparagraph shall not apply to policies
cancelled or nonrenewed by the insured or policies not renewed or
cancelled pursuant to subparagraph (A), (B), (C), (D) or (E) of
paragraph two of subsection (c) of this section.
(D) The superintendent shall promulgate rules and regulations to
establish standards to approve such an application and to define
"minimizes market disruption."
(E) The superintendent shall conduct a study of market dynamics and
homeowners insurance policies written as defined in subsection (a) of
section twenty-three hundred fifty-one of this chapter, cancelled or
nonrenewed in geographic regions as he designates, including but not
limited to coastal regions, urban regions and rural areas and shall
report such findings to the governor and legislature on or before
February fifteenth, nineteen hundred ninety-eight.
(p) Notwithstanding the provisions and limitations of this section or
any other provision of law, the superintendent may, for a stated period
not to exceed three months (which the superintendent may thereafter
extend another three months), declare a moratorium precluding policy
termination, or suspend or otherwise adjust the provisions and
limitations of this section, for any area of the state that has been
declared by the president of the United States or by the governor to be
in a state of emergency due to disaster or catastrophe.
(q)(1) Notwithstanding any other provision of this section, a covered
policy shall not be subject to a required policy period if the policy
is:
(A) a policy issued to an insured for a seasonal purpose;
(B) a policy issued to cover a specific event or particular project
that will be performed in less than one year;
(C) a new policy where the specific term is made to coincide with the
term of an insured's already existing covered policy with the same
insurer; with any insurer, at the insured's written request; or, in the
case of a personal umbrella policy, with different insurers. The new
policy shall have the same required policy period as that of the
existing policy, except where one policy is an automobile insurance
policy and the other policy is a personal lines insurance policy; or
(D) a new policy issued pursuant to a mass merchandising program where
the specific term is made to coincide with the term of all other
policies in the program.
(2) In regard to a policy subject to subparagraphs (A) and (B) of
paragraph one of this subsection, the insurer shall not be required to
give the notice of nonrenewal or conditional renewal required by
subsection (d) of this section if:
(A) the policy provides coverage for sixty days or less;
(B) the policy contains a prominent and explicit notice of expiration,
specifying the date the policy will expire and stating that no notice of
nonrenewal will be issued; and
(C) the policy is accompanied by a conspicuous notice in bold type,
explaining that the policy provides short-term coverage for the policy
period as specified on the declarations page.
(3) Subsection (f) of this section shall not apply to an automobile
insurance policy subject to subparagraphs (A) and (B) of paragraph one
of this subsection.
(r) An insurer that has no more than seven hundred fifty automobile
insurance policies in-force at last year-end and intends to non-renew
all of the policies shall submit to the superintendent a plan for the
orderly nonrenewal of the policies. The proposed plan shall not become
effective without the approval of the superintendent. The plan shall:
(1) describe the contemplated action;
(2) set forth the reasons for the action;
(3) describe the measures the insurer will take or has taken to
minimize market disruption as set forth in subsection (o) of this
section;
(4) explain why the action would not be detrimental to the interests
of the people of this state; and
(5) provide any other information as the superintendent may require.
(s) With respect to automobile insurance, no insurer shall refuse to
issue or renew a covered individually-owned private passenger policy
solely on the ground that the motor vehicle to be insured under such
policy shall be used for volunteer firefighting.

Structure New York Laws