Statements of Self-Support
Several companies have recently had their filings rejected based on statements of self-support that include the statement "and other relevant factors." In the Circular Letter that was issued after the revisions to section 4228 that first included the statement of self support requirement , the Department initially recommended this language. See www.ins.state.ny.us/circltr/1998/cl98_08.htm. However, in an opinion issued by the Office of General Counsel in 2001, www.ins.state.ny.us/ogco2001/rg106291.htm it was concluded that the requirement went beyond the language of the law.
It was my experience that many companies left the language in their certifications after that opinion by choice, and for many years there was no reaction by the Department. However, the Department now contends that the OGC opinion made use of that phrase impermissible. The use of "and other relevant factors" today will result in a CL6 file being rejected.
