N.Y. Comp. Codes R. & Regs. tit. 11 § 163.4

Current through Register Vol. 46, No. 41, October 9, 2024

Section 163.4 - Rules and standards governing nonbusiness automobile insurance policy premium change limitations for individual insureds as a consequence of file and use filings

(a) In any 12-month period, the total premium on any nonbusiness automobile insurance policy shall not change by more than 30 percent as a consequence of file and use filings. An insurer shall meet this requirement by adjusting the base rates or rating factors in the file and use filing. An insurer shall not cap an individual insured's premium as a final step. If a filing produces an annual total premium change on an insurance policy that exceeds the 30 percent maximum, then the filing shall be subject to the superintendent's prior approval.

(b) Changes in the premium of a nonbusiness automobile insurance policy as a consequence of changes in an insured's rating characteristics or changes in the coverages or the amounts of coverage being purchased shall not be considered within the calculation of the individual insured premium limitation contained in subdivision (a) of this section. For example, if an insured has an accident during the prior year and incurs a 25 percent surcharge or an uptier, then this 25 percent surcharge/uptier shall not be considered within the individual premium limitation. Similarly, if a change in the age of an insured results in the application of a different classification factor, the rate effect attributable to that classification change shall also not be considered within the individual premium limitation.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 163.4