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New York Adopts Regulation 209 to Prohibit Exclusions, Prior Criminal Convictions

The New York Department of Financial Services has issued notice of adoption of Regulation 209, effective July 1, 2017. The new regulation prohibits property/casualty insurers from issuing commercial crime insurance policies that exclude coverage for loss or damage caused by an employee of the insured who has been convicted of one or more criminal offenses prior to being employed, provided that the insured employer made a determination to hire or retain the employee after utilizing the factors set out in Correction Law Article 23-A. 

AAIS will be taking responsive filing action for its Agricultural Output, Artisans, Businessowners, Commercial Crime, and Commercial Output lines.

AAIS affiliates in affected lines will be notified by bulletin of filing action.

Link to INSURANCE REGULATION 209:
http://www.dfs.ny.gov/insurance/r_finala/2016/rf209txt.pdf