In this issue ...

• Budget Premium Change Notification Applicability
• Industry Inquiry on DFS Circular Letter No. 7 on Artificial Intelligence
• DFS Proposed Regulation on RBC Requirement
• WCB Chair Applauds Budget Legislation
• NCOIL Holds P/C Committee Meeting

Budget Premium Change Notification Applicability

As NYIA continues to collect questions on compliance with budget provisions, we wanted to remind members of the applicability of TED part BB regarding premium change notifications. The new law has applicability to carriers subject to Article 23 of the Insurance Law, with the specified requirements by line detailed below. The statute is scheduled to take effect on Monday, August 24, 2026, but NYIA is currently advocating for carriers to have greater flexibility with implementation and has indicated that 90 days is an impossible deadline. The enacted language would require:

1. Carriers of private passenger auto and residential policies to include a notice upon renewal that explains the reason for a premium increase above 10% and the primary rating factors causing the increase exclusive of insured value added.
2. Carriers of any motor vehicle policy and residential property policy for any increase to premium (below 10% threshold) to include a notice accompanying the premium bill that policyholders can request a written explanation for the premium increase, including the primary rating factors causing the increase. The carrier must also include contact information in the notice and respond to requests within 20 days.
3. Carriers of private passenger auto to provide notice to policyholders if rates are reduced by any percentage due to reforms enacted in the budget.

NYIA is also coordinating with the national trades to inquire with DFS regarding a range of questions related to the budget provisions. You can view the questions posed to DFS to date at this link, with questions that have already been answered on the last page of the document. We have received additional questions which we will pose to DFS next week.

If you have any questions or comments regarding implementation and compliance with the budget provisions, please reach out to Staci Steinfeld at ssteinfeld@nyia.org.

Industry Inquiry on DFS Circular Letter No. 7 on Artificial Intelligence
NYIA is requesting member feedback on DFS Circular Letter No. 7 on Artificial Intelligence. Specifically, we are seeking additional insight into what companies have determined to be a sufficient proxy assessment, as per section 12 of the letter. Additionally, we would be interested to know whether companies are encountering challenges with this requirement, and whether any best practices or guidance have been communicated by DFS. If you have any insights, please contact Staci at ssteinfeld@nyia.org.

DFS Proposed Regulation on RBC Requirement
DFS proposed a regulation to delete the January 1, 2027 sunset date for allowing electronically traded fund (ETF) shares to be treated as bonds for the purpose of risk-based capital (RBC) requirements. Public comments can be sent to Michael Campanelli at michael.campanelli@dfs.ny.gov until August 10, 2026. If you would like NYIA to submit comments on your behalf, please contact Staci Steinfeld at ssteinfeld@nyia.org by August 1, 2026.

WCB Chair Applauds Budget Legislation 

Workers Compensation Board (WCB) Chair, Frieda Foster, announced support of two legislative changes included in the FY 2027 budget aimed at improving the workers’ compensation system. First, “Universal Authorization” will allow all qualified, licensed health care providers to treat injured workers starting January 1, 2028, eliminating the current authorization requirement. Second, the legislation creates a new grant program to fund district attorney offices in establishing dedicated units to investigate and prosecute workers’ compensation fraud, using employer assessment funds which will be launched in 2027. The email communication outlining these provisions did not discuss other workers compensation provisions enacted in the budget, including the increased prior authorization threshold, among others.

NCOIL Holds P/C Committee Meeting

The National Council of Insurance Legislators (NCOIL) held a property/casualty committee meeting on Monday, June 8. The committee discussed amendments to the NCOIL Transportation Network Company (TNC) Model Act and the Model Act on Insurers Use of Aerial Imagery. The committee also heard comments on several models that are up for readoption, as they sunset every five years. The meeting closed with a reminder to register for the NCOIL summer meeting in Boston being held from Wednesday, July 15 to Saturday, July 18.