In this issue ...

• Draft Fraud and Modernization Agendas to Complement NYIA Legislative and Regulatory Priorities
• Legislature Introduces Chapter Amendment Bills
• WCB Proposes Amendments for Medical Fee Schedule Updates
• NICB and NYIA Publish Editorial on Insurance Fraud
• NYC Mayor Mamdani Signs Executive Order on Junk Fees
• DFS Claim Settlement Practices Regulation Expires
• DMV Releases 2026 Regulatory Agenda
• WCB Proposes Regulation Allowing Residents to Treat Injured Workers
• WCB Updates CARC and RARC Codes Guidance Document
• Governor Hochul Announces Special Election for Vacant Senate and Assembly Districts
• WCB Intends to Propose Regulations on Depositions and Payment without Prejudice

Draft Fraud and Modernization Agendas to Complement NYIA Legislative and Regulatory Priorities

NYIA’s Legislation and Regulation Committee met at the end of October to discuss and adopt our 2026 legislative and regulatory agendas. In addition to these annual agendas, NYIA has also formulated agendas related to standing strong against fraud and regulatory modernization. These agendas are meant to provide specific suggestions to stakeholders on two overarching issues that are plaguing the property and casualty market. If you have feedback on these draft agendas, please contact Staci at ssteinfeld@nyia.org by Friday, January 16.

Legislature Introduces Chapter Amendment Bills       

The legislature has introduced all chapter amendment bills that are being tracked by NYIA. As a reminder, the Governor signed seven bills into law last year with the agreement that the legislature will introduce and pass new legislation in 2026 that amends the original provisions. The chapter amendments for the following bills are now available. Note that some of the Senate bills have not yet been officially posted on the Senate website, so in those cases the Senate bill number is linked to the Assembly website.

• Third Party Litigation Funding: A9442 (Magnarelli)/S8808 (Cooney)
• Unfair, Deceptive, and Abusive Acts and Practices: A9444 (Lasher)/S8811 (Comrie)
• Impleading to Delay/AVOID Act: A9502 (Lunsford)/S8809 (Addabbo)
• Auto Glass Repair: A9461 (Hunter)/S8824 (Fahy)
• Car Sharing: A9508 (Weprin)/ S8786 (Skoufis)
• Battery Recycling: A9504 (Glick)/S8832 (Kavanagh)
• AI Frontier Models: A9449 (Bores)/ S8828 (Gounardes)

NYIA will be tracking these bills as they progress through the legislature and keep members apprised of any developments. If you have any questions, please contact Bob Farley at bfarley@nyia.org.

WCB Proposes Amendments for Medical Fee Schedule Updates

The Workers Compensation Board (WCB) has proposed amendments to update the medical fee schedule. The proposed text and comparisons to the current fee schedules can be found on the WCB website. The Notice of Proposed Rule Making will be published in the January 14, 2026, edition of the State Register. Comments on the proposal can be submitted to regulations@wcb.ny.gov until March 15, 2026. If you would like NYIA to submit comments on your behalf, please contact Staci at ssteinfeld@nyia.org by March 1, 2026. In addition to weighing in on the impact to workers compensation, NYIA is also communicating on the impact of the proposed fee schedule to no-fault auto insurance.

NICB and NYIA Publish Editorial on Insurance Fraud

NICB’s Howard Handler and NYIA’s Cassandra Anderson published an editorial on insurance fraud in AMNY. The editorial indicates that insurance fraud for all lines is becoming more prominent and sophisticated, especially in relation to no-fault auto insurance. It further articulates that these schemes exacerbate New York’s affordability crisis and impose an invisible tax on families. The article highlights several legislative solutions that can combat fraud including strengthening the penalties for causing a construction site accident, allowing insurers to retroactively cancel fraudulently obtained policies, and expanding the time allotted to insurers to investigate claims. As we settle into the new year, NYIA will continue our public relations efforts and bring the carrier voice forward.

NYC Mayor Mamdani Signs Executive Order on Junk Fees

Newly inaugurated New York City Mayor Zohran Mamdani signed Executive Order No. 9 in his first week in office. The order creates a citywide junk fee task force to combat hidden junk fees and promote affordability. The executive order also directs the Department of Consumer and Worker Protection (DCWP) to consider and take any actions it deems appropriate to crack down on deceptive or hidden fees. The DCWP is also charged with monitoring for compliance and taking corresponding enforcement actions. It is important to note that the executive order does not define junk fees or maintain what can be considered junk fees. NYIA will continue to monitor any actions of the task force and notify members.

DFS Claim Settlement Practices Regulation Expires

The Department of Financial Services (DFS) published a notice of expiration in the state register for the proposed 20th amendment to 11 NYCRR 216 (insurance regulation 64). The proposal concerned unfair claims settlement practices and cost control measures and would have exempted the regulation from applying during a state of emergency or natural disaster, obligated an insurer to notify the insured of a right of recourse if they offer a cash settlement for motor vehicle physical damage claims, and repealed the requirement for the Superintendent to review the total loss provisions for motor vehicles. The notice of expiration is due to inaction on the proposal within a year as DFS did not move forward beyond publishing the original proposal. The amendments cannot be considered unless DFS reproposes the regulation. NYIA weighed in at the beginning of 2025 detailing concerns with the right of recourse provision.

DMV Releases 2026 Regulatory Agenda

The Department of Motor Vehicles (DMV) released their 2026 regulatory agenda this week. Many items on last year’s agenda were carried over to the new year’s. DMV also added four new priorities on driver education courses, escort vehicle license endorsements, seatbelts on charter buses, and impaired driver penalties. Notably, the regulatory agenda does not include online verification for auto insurance (OLV).

WCB Proposes Regulation Allowing Residents to Treat Injured Workers

As part of the fiscal year 2025–2026 budget, Governor Kathy Hochul signed an amendment into law allowing residents and fellows (under the supervision of a WCB-authorized physician) to treat injured workers in the New York State workers’ compensation system. This amendment to Section 13-b of the state’s workers’ compensation law took effect earlier this year. The WCB has proposed a regulation to help implement this law and provide billing guidance, which was included in this week’s State Register. Public comments can be sent to regulations@wcb.ny.gov until March 8, 2026. If you would like NYIA to submit comments on your behalf, please contact Staci at ssteinfeld@nyia.org by February 27, 2026.

WCB Updates CARC and RARC Codes Guidance Document

The WCB has updated the CARC and RARC codes guidance document, specifically “Other Objections” listed in line numbers 19–22 and line 31, to align with revised Form C-8.1B. An Explanation of Benefit (EOB) is now sufficient for the following objection reasons and payers should not submit Form C-8.1B: the injured worker received a Section 32 settlement covering both future indemnity and medical services and the payer subsequently received the medical bill for services post settlement date; the injured worker received a third-party settlement covering both future indemnity and medical services and the payer subsequently received the medical bill for services post settlement date; and the name of the injured worker/claimant is incorrect. If you have any questions, or need more information, please contact officeofgeneralcounsel@wcb.ny.gov.

Governor Hochul Announces Special Election for Vacant Senate and Assembly Districts

Governor Kathy Hochul announced that a special election to fill the vacancies in the 47th and 61st Senate Districts, and the 36th Assembly District will be held on Tuesday, February 3. The vacancies were created by the resignations of former State Senator Brad Hoylman-Sigal, elected Manhattan Borough President, former State Senator Sean Ryan, elected Mayor of Buffalo, and former Assemblymember Zohran Mamdani, elected mayor of New York City. It is noteworthy that former Senator Brad Hoylman-Sigal was chair of the Judiciary Committee and the sponsor of the wrongful death legislation and that former Senator Sean Ryan sponsored the lead paint exclusion legislation.

WCB Intends to Propose Regulations on Depositions and Payment without Prejudice

The WCB has announced their intentions to propose a regulation updating the deposition process. This proposal will be published on January 21, 2026, in the State Register, posted to the Board’s website, and will be communicated via a Subject Number once available. The WCB has also released Subject Number 046-1787 announcing intentions to propose regulations to help implement Section 21-a of Workers' Compensation Law. This section was recently amended as part of the 2025–2026 state budget to allow payers to pay for medical care and treatment without prejudice and without admitting liability for up to one year. The new law will take effect January 1, 2027. NYIA will be monitoring these developments and will notify members when the amendments are available and formally proposed.