Sec. 262.10. Minimum provisions for legal services insurance written as part of a policy of liability insurance

Legal services insurance that is written as part of a policy of liability insurance:

(a) may be written on a group basis, only if the underlying liability insurance policy is written on a group basis in accordance with Part 153 of this Title (Regulation 135);

(b) shall be subject to the filing and approval requirements of article 23 of the Insurance Law, except that such coverage may qualify as a special risk coverage pursuant to Part 16 of this Title (Regulation 86) only if the coverage of the policy of liability insurance of which it is a part also qualifies as a special risk coverage pursuant to that Part, and the policy is written on such basis;

(c) shall be subject to section 3102 of the Insurance Law if the underlying liability insurance policy is subject to that section;

(d) shall be written on a “pay on behalf” basis, except for a policy of directors and officers insurance, which may be written on an “indemnification” basis; and

(e) shall provide that nothing in the policy shall be construed to prevent an insured from making a complaint to the appropriate Appellate Division or other body designated by the Appellate Division to investigate complaints in accordance with Judiciary Law section 90, or to the appropriate disciplinary body in the state where the legal service is being provided.