New York P&C Study Guide

New York P&C is its own world. It’s the largest market in the country, it’s a no-fault auto state, it approves rates before insurers can use them, and it bolts two extra benefit programs onto workers’ comp that exist almost nowhere else. There’s more New York-only material here than in almost any other state — which is exactly why these pages are worth the effort. Let’s work through it.

Licensing and rates — the quick version

The P&C broker license takes 90 hours of pre-licensing (heavy — but short of Florida’s 200), and CE is the same low 15 hours (1 of fraud) as every other New York line. Surplus lines run through a separate Excess Line Broker license, with ELANY stamping the placements. On rates, New York is a prior-approval state — insurers must get NYDFS sign-off before using a new rate — one of the few states (with California) that work this way.

Auto — no-fault, $50K PIP, and the serious-injury threshold

New York is a no-fault state (Article 51): your own policy pays your medical bills after a crash, regardless of fault. Minimum PIP is $50,000 per person — high for a no-fault state. Because it’s no-fault, you can only sue the other driver for pain and suffering if your injury clears New York’s serious-injury threshold (death, fracture, significant disfigurement, permanent loss of use, or a 90-day disabling injury, among others). Liability minimums are 25/50/10, and UM is mandatory and automatic — it can’t be rejected.

Then a uniquely New York institution: MVAIC (the Motor Vehicle Accident Indemnification Corporation), which pays no-fault and UM benefits to people hurt by uninsured or hit-and-run vehicles. No other state has it.

Homeowners — Sandy’s long shadow

New York homeowners rates also go through prior approval. The insurer of last resort is the New York FAIR Plan (NYPIUA), providing basic coverage when the voluntary market won’t. Hurricane Sandy (2012) drove more than $20 billion in New York losses, exposed wind-vs-flood claim disputes, and pushed major coastal-property reforms. As always, standard homeowners policies don’t cover flood — that’s NFIP or private flood, and it matters a great deal along Long Island, Staten Island, and the Rockaways.

Workers’ comp — and the New York extras (DBL & PFL)

New York requires workers’ comp for every employer, no size minimum. The New York State Insurance Fund (NYSIF) competes with private carriers and acts as the last resort. But the part the exam zeroes in on is what New York stacks alongside comp:

• DBL (Disability Benefits Law): required short-term disability coverage for non-work injuries and illness — separate from workers’ comp.
• PFL (Paid Family Leave): required paid leave for births, adoptions, family caregiving, and certain military events.

Cancellation and nonrenewal — among the most protective

New York is unusually policyholder-friendly here. Even in a new policy’s first 60 days, cancellation needs 30 days notice (most states allow 10). After 60 days, the allowed reasons each carry a short 15-day notice, and nonrenewal requires 45 days plus a stated reason. That stated-reason rule puts New York with Georgia, Pennsylvania, Illinois, North Carolina, and Virginia — and the 30-day