Grace Period Guidance
While no company wants to receive a post approval review letter from the New York State Insurance Department, the process can provide valuable information for use in the development of new products, policy form drafting, and the maintenance of internal files. One example that has been raised several recent post approval reviews is the Notice of Premium Due required by Section 3211 of the New York State Insurance Law. That section does not explicitly require a policy provision, but the consistency with which the Department asks about compliance on post approval may make creation of a policy provision desirable to avoid the inquiry after issue. An alternative approach might be to document administrative compliance with this statutory mandate so that a response will be easier to prepare upon receipt. This administrative notice appears to be just one of many issues that are being raised in post approval reviews that were never a part of the prior approval review process and reflect the combination of market conduct and policy form review that happens in the post approval review process.
