§ 5404. Rates, rating plans, rules and statistics. (a) The rates,
rating plans, rating rules and statistics applicable to the insurance
written by the association shall be subject to the relevant provisions
of article twenty-three of this chapter except as otherwise provided in
this section.

(b) Rates, rating plans and rating rules applicable to fire insurance,
extended coverage, additional perils, broad form coverage pursuant to
subsection (g) of section five thousand four hundred two of this article
and homeowners insurance upon a determination of necessity having been
made by the superintendent pursuant to section five thousand four
hundred twelve of this article written by the association shall be no
greater than the following percentages of those recommended for the
voluntary market by the principal rate service organization in this
state:

(1) one hundred twenty percent with respect to:

(A) owner-occupied residential dwellings consisting of not more than
four dwelling units;

(B) household furnishings and personal property contained in any
household unit;

(C) contents of any retail-type business located in store-type
premises and operating in a single location, provided such business is
owned by its operators, who are all related by blood or affinity;

(D) real property of eleemosynary institutions used exclusively for
such eleemosynary purposes including furnishings and personal property
contained therein;

(2) one hundred thirty percent with respect to:

(A) non-owner occupied residential dwellings consisting of not more
than four dwelling units;

(B) residential structures consisting of more than four but not
exceeding eight units with or without business occupancies;

(C) homeowners insurance upon a determination of necessity having been
made by the superintendent pursuant to section five thousand four
hundred twelve of this article;

(3) one hundred forty percent with respect to residential dwellings
consisting of more than eight dwelling units, with or without business
occupancies;

(4) one hundred thirty percent with respect to any risks not otherwise
provided for in paragraphs one, two and three of this subsection.

(c) The rates, rating plans and rating rules recommended by the
principal rate service organization, together with such other
information the superintendent may require, shall be submitted by the
association at least sixty days prior to the date on which they are to
become effective for risks written by it.

(d) Filed rating rules or plans may provide standards for the
application of surcharges for risks containing unsafe or hazardous
conditions, and shall provide for prompt removal of the surcharges upon
the elimination of those conditions.