Pursuant to Section 207 of the State Administrative Procedure Act, the New York State Insurance Department must review after five years, and at five-year intervals thereafter, rules adopted on or after Jan. 1, 1997. The purpose of the review is to determine whether the rules should be continued as adopted, or else modified. The department invites public comment on the continuation or modification of the following rules, which were adopted in 2005.

New York Insurance Law Section 3403 specifies the circumstances under which an anti-arson application must be completed by an applicant for a new or renewal policy or binder covering the perils of fire or explosion. Regulation 96 created the anti-arson application form that elicits the disclosure of certain types of information. The regulation also provides for cancellation of coverage if the application is not received within the statutorily mandated time frame. A 1999 law allowed the superintendent to suspend or waive the requirement that the insurer use the anti-arson application upon renewal of policies if substantially equivalent information can be obtained by the insurer by other means. The 2000 amendment to Regulation 96 establishes a procedure whereby an insurer may request such suspension or waiver. In 2003, the department adopted a further amendment to the regulation to delete obsolete language and name references, update the language in warning statements to conform to statutory amendments regarding commission of a fraudulent insurance act, and conform the types of insureds and applicants for insurance who must receive the warning.

PIANY has supported legislation to repeal Section 3403 of the Insurance Law, relating to requiring the use of the anti-arson application for all property insurance policies covering fire or explosion, citing the severe implications associated with non-compliance as well as the fact that the form was made irrelevant by legislation enacted in 1996, requiring insurers to subsequently file plans with the department regarding how the company intends to detect, investigate and prevent fraudulent insurance activities. Since then, the insurers have actively engaged in fraud prevention methods that are far more effective than the application form. To read the NYSID's five-year review, logon to www.ins.state.ny.us/r_misc/5yearrev10.pdf.