Risk Managers Urges Others to Adopt Contract Certainty

It did not take long for risk managers to applaud the move toward contract certainty in New York. The Risk and Insurance Management Society, Inc. (RIMS) commended New York Insurance Superintendent Eric Dinallo for asserting a strict policy on contract certainty for brokers and insurers operating in-state, calling for 90 percent of cases to achieve contract certainty within 30 days of inception and enforcing that service providers are in compliance within the next 12 months.

“Contract certainty is an issue at the heart of customer service deficiencies on the part of brokers and insurers,” RIMS said in a statement.

RIMS said it is eager to learn the next steps for the program, particularly how the New York Insurance Department intends to measure compliance and what penalties non-compliant companies can expect to face. RIMS said it expects that other states will also take initiative to reform the insurance placement process or insurance carriers themselves will take steps to lead the process internally.