The New York Legislature passed a measure that modernizes its regulatory environment for commercial lines, allowing insurers to move innovative products to market quicker and better meet the needs of business. Governor Andrew Cuomo is expected to signe the legislation.
The bill exempts insurance policies written for large commercial businesses from most rate and form filing requirements. Insurers are still required to make informational form filings which provide the Department of Insurance continued regulatory oversight.
The PCIAA commends the legislation, saying: "We applaud the Senate and Assembly, and particularly the Insurance Committee Chairs, Senator James Seward and Assemblyman Joseph Morelle who worked tirelessly on this issue, for taking this important step toward commercial lines modernization,” said Kristina Baldwin, PCI assistant vice president for state government relations. “Off-the-rack insurance products frequently do not fit the unique needs of large businesses. This bill will enable insurers to tailor coverage to meet these specialized needs in a timeframe which coincides with the quickly changing business requirements of commercial customers.”
This bill will also ensure the most efficient use of the Department of Financial Services’ (DFS) by allowing the agency to focus its resources where they are needed most. Rather than reviewing policies for large sophisticated businesses that employ risk managers who are experienced in reviewing coverage and negotiating with insurance companies, DFS can focus their attention on policies sold to individual consumers.
“PCI looks forward to continuing to work with the Legislature and the DFS to continue to modernize the regulation of insurance in New York State,” said Baldwin.