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March 10, 2009

New York State Taxes and Assessments

In efforts to close existing and future budget gaps, New York has dramatically increased current and proposed assessments and taxes on insurers far in excess of equitable and appropriate levels. In recognition of recent developments having serious implications for both New York domestic companies as well as companies domiciled outside New York that write in the state, NAMIC is urging all member companies writing in New York to contact legislators and the governor’s office to express opposition to new taxes and assessments on insurers.

The New York Insurance Association, a NAMIC state advocacy partner, recently launched a full-scale grassroots campaign encouraging contact to government leaders by company executives, employees, agents, and policyholders. Information regarding the campaign can be accessed at NYIA’s website at www.nyia.org.

In opposing the imposition of new assessments and taxes, NYIA has made the following key points that can be used in communication with policymakers:

  • Proposed assessments meant to fund Insurance Department operations greatly exceed the amount needed for that purpose and will be diverted to other areas through budget sub-allocations.
  • New taxes on nondomestic companies will have retaliatory tax implications for New York domestic companies.
  • New taxes and assessments can affect insurers’ ability to compete and result in less competition in the New York property/casualty insurance market.
  • Increasing assessments imposing higher costs on New York property/casualty insurers is particularly ill-advised during an economic crisis since it can increase the economic hardships being faced by many in the state.
  • New York property/casualty insurers paid $5.6 billion in private passenger auto insurance claims, $1.5 billion in homeowners’ claims, and $1.6 billion in workers’ compensation claims during 2006, and property/casualty insurers invested more than $22 billion in New York municipal bonds in 2005.

NAMIC encourages member companies doing business in New York to incorporate these points in communications with policymakers as well as company-specific information regarding the impact of new taxes and assessments.

Potential points of contact are many. Contact information for the governor, superintendent of insurance, and the chairs of the Senate Insurance Committee and Assembly Insurance Committee appear below. In addition, the Senate has established a special website to gather input on the budget process at http://www.senate.state.ny.us/sws/budgetideas/index.htm.

Gov. David A. Paterson
State Capitol
Albany, NY 12224
Fax: (518) 474-8390

Superintendent of Insurance Eric R. Dinallo
25 Beaver Street
New York, NY 10004

Senate Insurance Committee Chairman Neil Breslin
502 State Capitol
Albany, NY 12224

Assembly Insurance Committee Chairman Joseph D. Morelle
Legislative Office Building 716
Albany, NY 12248

Direct questions and comments to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, March 10, 2009 12:00:00 AM. Modified: Wednesday, March 11, 2009 9:23:57 AM.

317.875.5250 - Indianapolis  |  202.628.1558 - Washington, D.C.

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