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.
affiliates in affected lines will be notified by bulletin of filing action.
Link to INSURANCE REGULATION 209: