A recent bulletin from the American Insurance Association indicates that the New York State Senate’s consideration of a proposed auto insurance reform package “presents a real opportunity to fix a broken system.”
“The Senate’s plan goes after the fraud and abuse that are driving up costs for both New York’s drivers and insurers,” stated Paul Moran, AIA VP, northeast region.
The AIA noted that the proposed reforms “would give insurers more time to investigate fraudulent claims. It would also give law enforcement needed tools to fight insurance fraud.” David Snyder, AIA VP and assistant general counsel indicated that “until recently, New York had one of the best auto insurance systems in the country, with generous benefits, affordable premiums and competition from many insurers. It is past time to restore it to its prior condition that benefited victims, rate payers and insurers.”
“The Senate’s package will begin to do that; continued stalemate will not. Instead, stalemate will continue the slide toward anti-competitiveness and anti-consumer costs and fraud,” he added.
Moran agreed that the Senate “has offered a plan for reform that would improve the auto insurance system in New York.” He also urged the State Assembly “to engage in real negotiations to enact cost-cutting reforms into law.”
The AIA also commended the Senate for passing legislation that would reinstate New York’s flex-rating and two percent non-renewal laws (See IJ Website Jan.22). The provisions, which had been enacted in 1995, lapsed last year. The AIA said they should be reenacted as they “give insurers needed tools to manage their business and make insurance more available and affordable.”
“The Assembly should follow the Senate’s lead and quickly pass legislation to reinstate these important tools that help foster a healthier and more competitive auto insurance marketplace,” Moran stated.
Was this article valuable?
Here are more articles you may enjoy.