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Albany Update 04.03.24
In this issue …
DMV Preparing for Transition to OLV
Governor Kathy Hochul announced today that the New York State Department of Motor Vehicles (DMV) has launched a project to overhaul a significant portion of their aging technology systems. At the Insurance Industry Committee on Motor Vehicle Administration (IICMVA) conference, also held today, which NYIA participated in, DMV Deputy Commissioner Rebecca Wood indicated that an online verification (OLV) system is a component of this modernization project. While there is legislation needed, which is currently being considered as part of the New York State budget, DMV intends to move forward in preparation for the transition as a parallel track. DMV also acknowledged that implementation is going to be a multi-year effort. NYIA is continuing to advocate for the OLV legislation to be passed as part of the budget. Since the legislation was included in both the Governor’s executive budget and the Senate’s one house version of the budget, our efforts are now focused on the Assembly. We are thrilled to deliver this news to members about DMV’s intentions, are pleased our efforts to advance OLV are starting to come to fruition and will continue our advocacy in relation to the legislation.
DFS Proposes Photo Inspection Regulatory Amendment
Today the New York State Department of Financial Services (DFS) released a proposed amended auto inspection regulation, 11 NYCRR 67 (regulation 79), which outlines how an insurance company can waive inspections for all or some vehicles. The regulation is being amended in response to the law enacted last year to allow for optional photo inspections, a modernization initiative NYIA was instrumental in advancing. Additional information is in the Regulatory Activity – Insurance Law section of DFS’s website. NYIA is currently reviewing the formal proposed amendment, which follows a pre-proposed amendment DFS released last month. The proposal has a corresponding 60-day comment period that expires on Sunday, June 2, 2024. Comments can be submitted to Joana Lucashuk at joana.lucashuk@dfs.ny.gov. If your company has comments you would like NYIA to submit, please contact Bob Farley at bfarley@nyia.org by Friday, May 17.
DFS Proposes Group Capital Calculation Regulatory Amendment
DFS also a released a proposed third amendment to 11 NYCRR 82 (regulation 203), which pertains to Enterprise Risk Management and Own Risk Solvency Assessment; Group-Wide Supervision. The amendment is due to the group capital calculation (GCC) legislation advanced last year and relates to the GCC filing process, which indicates that the calculation shall be submitted electronically. The proposed regulation also details when an entity would be exempt from the filing, able to submit a limited group capital filing, needs to submit an annual GCC as well as provides parameters around “recognize and accept” for non-United States jurisdictions. Additional information is in the Regulatory Activity – Insurance Law section of DFS’s website. NYIA is currently reviewing the formal proposed amendment, which follows a pre-proposed amendment DFS released last month. The proposal has a corresponding 60-day comment period that expires on Sunday, June 2, 2024. Comments can be submitted to Joana Lucashuk at joana.lucashuk@dfs.ny.gov. If your company has comments you would like NYIA to submit, please contact Bob Farley at bfarley@nyia.org by Friday, May 17.
DMV Adopts RRG Regulatory Amendment
The New York State Department of Motor Vehicles (DMV) adopted a regulation today to amend parts 32.3(i), 34.2(k) and 34.8 of Title 15 NYCRR to expand the definition of what constitutes an insurance company to include certain risk retention groups (RRGs) with respect to automobile insurance. The adopted regulatory amendment, which takes effect immediately, is the same as what was originally proposed on January 17, 2024 (refer to page 3 of the document). The amendment is in response to a bill that was signed at the end of 2023, and a corresponding chapter amendment that was signed into law, S8053 (Webb)/A8505 (Kelles), which authorized RRGs to write auto insurance for certain nonprofit organizations.