Analysis: – New York Insurance Law 3201 (McKinney 2000) stipulates, in pertinent part: (a) In this article, “policy form” refers to any policy, contract, certificate, or evidence of insurance and any application therefor, or rider or endorsement thereto, affording benefits of the types of insurance specified in paragraphs one, two, three, or twenty-four of subsection (a) of section one thousand one hundred thirteen of this chapter, a group annuity certificate, and a funding agreement.
- The phrase “policy form” does not include an agreement, special rider, or endorsement that relates only to the mode of benefit distribution or the reserve of rights and benefits at the request of the individual policyholder, contract holder, or certificate holder.
- B)(1) No insurance form may be distributed or issued for distribution in this state unless it has been filed with and authorized by the superintendent as meeting the requirements of this chapter and not being in conflict with the law.
A disclosure statement is not a policy form as defined by New York Insurance Law section 3201. (McKinney 2000). The objective of a disclosure statement is to explain the major characteristics of an insurance policy so that the insured may make an educated decision about whether or not to purchase the policy.
- Disclosure statements neither serve as proof of insurance nor give insurance benefits to the insured.
- Disclosure statements do not alter the insurance policy or contract’s terms, conditions, or benefits.
- They cannot be considered an insurance application, which is simply a request for insurance submitted by the insured.
Nonetheless, it should be emphasized that disclosure statements contained in the application, which is obviously a policy form as defined by New York Insurance Law section 3201 (McKinney 2000), would be subject to prior approval under this legislation.
Although a disclosure statement is not subject to prior approval under section 3201, a company’s compliance with applicable disclosure requirements will be examined in the course of the Department’s examinations of a company or the investigation of any complaints or market conduct abuses reported to the Department.N.Y.
Ins. Law 308, 309 (McKinney 2000) and other pertinent sections of the Insurance Law grant the superintendent extensive authority to demand the submission of these disclosure statements as part of the examination procedure. In pertinent part, New York Insurance Law 308 (a) (McKinney 2000) states: (a) The superintendent may also address to.
- Any approved insurer or its executives any inquiry relating to its transactions or condition or any subject related thereto.
- Italics added) N.Y. Ins.
- Law 309 (McKinney 2000) provides, in pertinent part: (a) The superintendent may make an examination into the affairs of any insurance corporation or other insurer doing or authorized to do any insurance business in this state or, of any pension fund, retirement system or other organization which is required by law to make reports or is subject to examination by the department, whenever he deems it necessary for the protection of the public’s interests.
Insurers must also preserve these disclosure documents for a period of six years following the date the policy is canceled or until the submission of the report on examination, whichever is longer.N.Y. Comp. Codes R. and Regs. tit.11, 243.2 (2001) (Regulation 152) stipulates, in pertinent part, that every insurer must maintain its claims, rating, underwriting, marketing, complaint, financial, and producer licensing records, as well as other records subject to examination by the superintendent, in accordance with the provisions of this Part.
Italics added) (b) Unless otherwise required by law or regulation, an insurer shall maintain: (1) A policy record for each insurance contract or policy for six calendar years after the date the policy is no longer in effect or until the filing of the report on examination in which the record was subject to review, whichever is longer.
As long as they are preserved in conformity with the rules of this Part, policy records need not be kept separate from those of other states. A separate copy is not required to be retained in an individual policy record, provided that any data pertaining to a particular contract or policy may be retrieved in accordance with section 243.3(a) of this Part.
A policy record must contain: I the policy term, rating basis, and return premium amounts, if applicable;(ii) the application, including any application form or enrollment form for coverage under any insurance contract or policy;(iii) the contract or policy forms issued, including declaration pages, endorsements, riders, and termination notices of the contract or policy.
Binders must be kept if neither a contract nor a policy was issued; (iv) any additional information required to reconstruct the solicitation, rating, and underwriting of the contract or policy. (italics added) (8) Any other record for six calendar years from the date of its creation or until after the filing of an examination report or the conclusion of an inquiry in which the record was submitted to review.
- Regulation 60, concerning the replacement of life insurance policies and annuity contracts, and Regulation 74, concerning life and annuity cost disclosure and sales illustrations, include essentially similar rules for the retention of mandatory disclosure statements.N.Y. Comp. Codes R. and Regs.
- Title 11, section 51.6 (b)(6) (2001), section 53-1.4 (a), and section 53-3.5 (e) (2000).
Therefore, insurers are required to keep disclosure statements for life insurance and annuity products on file and disclose them upon request. In conclusion, disclosure statements are not included in policy forms that must be submitted for prior approval in accordance with New York Insurance Law section 3201.
What does the disclosure statement contain?
What is a disclosure declaration? – A disclosure statement is a document that a landlord is required to provide to a tenant when signing or renewing a lease. It provides a summary of vital lease information so that the renter may comprehend, at a glance, the fundamental parts of the lease.
It may consist of: The duration or length of the lease whether there are opportunities for additional terms the occupancy expenses for leasing the property (including rent and any outgoings) Specific details for shopping center leases pertaining to the tenant’s fit-out requirements, as well as any terms about removal or destruction.
A landlord must provide the tenant with a disclosure statement and a copy of the proposed lease at least 14 days prior to the commencement of the lease. If modifications are made to the copy of the proposed lease that had been sent to the tenant, the landlord must provide the tenant with the amended lease at least 14 days prior to the start of the lease.
If the landlord provides the tenant with the disclosure statement and proposed lease fewer than 14 days before the lease entry date, the lease will begin 14 days after the tenant receives the disclosure statement and proposed lease. When a tenant has exercised or is entitled to exercise an option or when the landlord and tenant have agreed to a lease renewal, the landlord must provide the tenant with a disclosure statement at least 21 days prior to the expiration of the lease.
The disclosure statement must include any modifications to the prior disclosure statement provided to the tenant.
The purpose of the Product Disclosure Sheet is to assist customers in making well-informed decisions when acquiring a financial product, based on a thorough understanding of the product’s primary characteristics and hazards.
What benefits does a PDS offer?
Not to be confused with a PDF, a PDS (product disclosure statement) provides all the necessary information for deciding on a financial product. When suggesting or providing a financial product, financial service providers, such as banks, credit unions, and insurance companies, must furnish you with a PDS. Significant advantages and dangers are linked with the product. The price paid for a financial product Fees and costs the financial institution may collect from your usage of the product Detailed usage terms and conditions for the product. How to contact the supplier in the event of an emergency The primary goal of a PDS is to give you with all the information you need to decide on a policy or credit card.
However, a complete PDS must be given as soon as is practical and no later than five days after the product has been issued or sold, or when the confirmation requirement under section 1012G has been met.
What is the new disclosure obligation in insurance?
The insured’s obligation to disclose A consumer seeking for insurance (the insured) must provide pertinent information to the insurer in accordance with the obligation of disclosure. The obligation of disclosure is crucial to the insurance company’s choice to accept the insurance contract.
- Common Law Standing
- At, an insurance company (the insurer) may cancel a contract if the insured:
- Not met with the disclosure obligation
- and
- A misleading statement significant to the insurer’s decision to accept the contract was made.
On the basis of the insured’s supplied information, an insurer may decide not to accept the contract, impose conditions, or change the premium. However, the insured is responsible for disclosing all pertinent information to the insurer. The omission of a key information may be unintentional, but under common law, the insurer has the right to nullify the contract, which can have severe implications when a claim is filed.
- Part IV of the Act (Cth) establishes a legislative code to replace the common law.
- Recent amendments to simplify the consumer’s obligation of disclosure acknowledge the information gap between what the insurer knows and what the customer knows.
- When engaging into a contract of insurance, including the renewal, extension, variation, or reinstatement of a consumer insurance contract, Section 20B specifies that a customer must take reasonable care not to make a to the insurer.
A consumer insurance contract, as defined by the law, is one for personal, domestic, or home purposes and covers both general and life insurance contracts. Whether or not a customer has fulfilled the obligation depends on the specifics of each situation.
- The sort of agreement
- Documentation furnished by the insurer
- The inquiries made by the insurance
- How effectively the insurer communicated the significance of responding to the questions and the potential repercussions of failing to do so.
- In addition, the specific qualities of the consumer might be considered when deciding whether or not the customer took reasonable precautions to avoid making a false statement.
- Section 20B (4) states that a customer is not considered to have made a misrepresentation if he or she did not respond to a query or provided a clearly incomplete or irrelevant response.
If a customer violates the responsibility not to make a deception, Division 3 of Part IV outlines the remedies for an insurance company. Depending on the nature of the breach, the insurance company may reject a claim, decrease a payout, increase premiums, or terminate the contract.