Colonial Life Insurance Co. of America v. Curiale case brief

Colonial Life Insurance Co. of America v. Curiale case brief summary
617 N.Y.S.2d 377 (1994)

CASE SYNOPSIS

Petitioner insurance company and respondent Superintendent of Insurance cross-appealed from the judgment of the Supreme Court in Albany County (New York) which dismissed the insurance company's petition challenging the validity of N.Y. Comp. Codes R. & Regs. tit. 11, part 361, but granted the insurance company's petition and invalidated N.Y. Comp. Codes R. & Regs. tit. 11, §§ 360.4(c), 360.3(a)(1)(ii).

CASE FACTS
The superintendent promulgated regulations to implement 1992 N.Y. Laws ch. 501. The insurance company petitioned under N.Y. C.P.L.R. art. 78 to invalidate the regulations. The supreme court dismissed the challenge to N.Y. Comp. Codes R. & Regs. tit. 11, part 361, but granted the petition and invalidated N.Y. Comp. Codes R. & Regs. tit. 11, §§ 360.4(c),360.3(a)(1)(ii). 

DISCUSSION

• On appeal, the court modified the judgment by converting the proceeding to a declaratory judgment action, declared that the insurance company had not shown part 361 to be invalid, declared that §§ 360.4(c), 360.3(a)(1)(ii) were invalid, and, as modified, affirmed the judgment. 
• The court held that § 360.4(c) impermissibly expanded the definition of "small group" contained in N.Y. Ins. Law § 3231(a), by requiring small group insurers to cover individual proprietors or groups of two, contrary to the clear and unambiguous language in the statute. 
• As to N.Y. Comp. Codes R. & Regs. tit. 11, § 360.3(a)(1)(ii), the superintendent exceeded his authority by redefining the calculation of participation levels. 
• Chapter 501 did not amend or change the minimum participation requirement set forth in N.Y. Ins. Laws § 4235(c)(1).

CONCLUSION
The court converted to a declaratory judgment proceeding the action brought by the insurance company to challenge regulations promulgated by the superintendent, and as so modified, affirmed the supreme court's judgment partially invalidating regulations enacted by the superintendent regarding commercial insurance policies.


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