INDIANAPOLIS (Jan. 13, 2010) - The New York Insurance Association, Inc. filed suit today in the State Supreme Court to stop the state’s diversion of assessments that are meant to pay for the expenses of the New York State Insurance Department, to fund noninsurance programs. The following statement can be attributed to Paul Tetrault, Northeast state affairs manager for the National Association of Mutual Insurance Companies (NAMIC).
"This suit reflects the degree to which New York insurers have been aggrieved by indefensible budgetary machinations. As we pointed out in recent testimony to the Assembly Insurance Committee, the practice of increasing assessments to fund government programs unrelated to the insurance department budget is fundamentally unsound and wholly contrary to the statute authorizing assessments.
"The huge assessments levied on New York domestic insurers are probably the most egregious example of what we view as a troubling trend. State legislatures across the country seeking to balance budgets are increasingly using the insurance industry improperly as a source of revenue, failing to recognize the substantial amounts that insurers already pay in taxes, and the consequences of placing inequitable burdens on a vital part of the economy."
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Posted: Wednesday, January 13, 2010 4:08:20 PM. Modified: Friday, March 26, 2010 4:08:20 PM.
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