Section 3425. Certain property/casualty insurance policies; cancellation and renewal provisions; agents' contracts and brokers' accounts

(a) This  section shall apply to covered  policies  of  insurance  as  defined  in
  paragraphs one, two and three hereof.
    (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.
    (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 shall be provided to each
  house of the legislature by  March  fifteenth,  in  the  years  nineteen
  hundred   ninety-two,  nineteen  hundred  ninety-six,  nineteen  hundred

  ninety-eight, two thousand one, two thousand six,  two  thousand  seven,
  two thousand eight and two thousand eleven.
    (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 eleven, 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) and paragraph  three
  of  this  subsection  shall  apply to such automobile insurance policies
  which 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
  eleven.
    (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 eleven, 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  which  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.