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Last year the New York legislature was labeled the most dysfunctional state legislature in the country. This year, the legislature passed the first on-time budget in 20 years and the New York Insurance Association (NYIA) reports there was a flurry of activity on insurance issues prior to the main session's end on June 24.
In NYIA's Albany Update, significant successful legislation cited includes A7255/S4854 which the association has been trying to get passed for several years. The measure will "require no-fault collection attorneys to purchase an index number before filing a lawsuit and cut back on the frivolous suits being used to harass auto insurers." The bill awaits the governor's approval. Additionally, A8818/S5739 is a one-year extension of the New York FAIR Plan, NYPIUA, which is expected to be signed by the governor.
Although there was no significant activity on producer compensation, legislation addressing security breaches did pass both houses. The measure, A4254/S3492, requires state agencies and businesses which own or license computerized data that includes private information to notify any resident of New York of any breach or suspected breach of that information by an unauthorized person. The bill also requires businesses to notify the attorney general of any breach. NYIA reports there is no private right of action by a consumer, but the attorney general may bring an action for actual damages or losses incurred by a person entitled to notice. Another bill, A8937/S5827, is related to the security breach legislation as it makes technical changes and importantly clarifies the damage provisions apply only to a person not receiving notification.
Legislation dealing with New York City police and firemen worker's compensation benefits, A5273/S2516, and underwriting restrictions based on volunteer fire departments, A4972/S1925, also passed. NYIA will seek Gov. George Pataki's veto of A2625/S5801 which requires the development of Internet driver safety courses. NYIA's main objection is the lack of evidence illustrating that driver safety courses reduce loss costs.
Direct questions to NAMIC State Affairs Manager Tami Stanton.
New York: Insurance Department Invites Comment on Burdensome, Costly Regulations (3/16/2010)
New York: Systemic No-Fault Problems, Potential Solutions Outlined for Senators (2/9/2010)
2009 SUMMARY OF NEW STATE LAWS – NEW YORK (1/22/2010)
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