PUBLICATIONS ▸ Overview | Albany Alert (m)  |  Albany Update (m)  |  Annual Conference Review  |  e|minute (m) | Enacted Law Bulletins (m) | Guiding Principles |  Legislative Introductions (m)  |  Your NY Connection Magazine (m)

Albany Update 03.20.24

In this issue …

NYIA Submits Comments on DFS Proposed AI & ECDIS Circular Letter

The association submitted comments on DFS’s proposed circular letter on artificial intelligence and external consumer data information sources. NYIA raised a wide range of issues with the proposal, based on member feedback, with focus on the fact that circular letters are advisory only and need to refer to existing statute, corresponding regulations or case law. We received a tremendous amount of input and appreciate the robust comments shared by member companies. We will continue to monitor this issue closely and provide members with any updates regarding DFS’s intended next steps.

Analysis of Senate and Assembly Budget Proposals

As a follow up to our Albany Alert and report provided on the bi-weekly call last week, NYIA has put together an analysis of the Senate and Assembly budget proposals. This analysis provides the Senate and Assembly action on Executive Budget proposals as well as a list of new proposals from the Senate. We are weighing in with public policymakers on these proposals as budget negotiations heat up. It is uncertain whether there will be an on-time budget by the deadline of April 1. We will keep members informed.

Electronic Delivery Legislation Amended

The bill to allow for electronic delivery policy notices (including cancellations and nonrenewals) has been amended. The legislation, A8219A (Berger)/S2731A (Sanders) now applies to auto insurance. NYIA is working to have legislation introduced to allow for electronic delivery with workers compensation. The law was changed a couple years ago to allow for electronic delivery but chapter amendments were passed so it only applied to insurance law. The current efforts are to fully allow for electronic delivery with auto insurance and workers compensation insurance by including references in their corresponding laws.

Bills on the Move

Three bills were advanced from the Assembly Insurance Committee this week:

• A8831 (Berger) – Repeals the insurance law relating to anti-arson applications. The bill is currently in the Senate Insurance Committee. NYIA strongly supports as a priority initiative.
• A7910A (Weprin) – Limits insurance rating and underwriting pertaining to affordable housing. NYIA remains concerned with erosion of risk-based pricing. This legislation is similar to the language included in the Executive Budget. A major difference is the Assembly version is more expansive as far as what an insurance company would not be able to inquire about or use, including ownership of the building. There is currently no Senate companion but the language may be negotiated as part of the budget. NYIA is seeking feedback. Please contact Bob Farley at bfarley@nyia.org with any comments.
• A9407 (Weprin) – Modifies the supplemental spousal liability insurance law. The legislation is similar to the Executive Budget proposal. A major difference is that the Assembly’s version would have the opt out still apply at renewal and amendment. There is currently no Senate companion but the language may be negotiated as part of the budget. NYIA is seeking feedback. Please contact Cassandra Anderson at canderson@nyia.org with any comments.

One bill advanced from the Assembly Labor Committee:

• A1219A (Bronson) – Limits the ability for contracted pharmacy use in workers compensation. The bill is currently on the Senate Active List. NYIA opposes.

Four bills have recently passed in the Assembly, as has been the case in previous years:

• A4011 (Weprin) – Requires standardized definitions in insurance policies. The bill is currently in the Senate Insurance Committee. NYIA opposes.
• A2741 (Paulin) – Requires summaries of insurance policies including the limits, terms, amount of premium as well as deductibles. The bill is currently in the Senate Insurance Committee. NYIA opposes.
• A2866 (Pheffer Amato) – Establishes standards for windstorm deductible triggers. The bill is currently in the Senate Insurance Committee. NYIA opposes.
• A1731A (Dinowitz) – Restricts insurers from requesting personal, financial and tax information from insureds as a standard practice in processing ordinary theft claims. The bill is currently in the Senate Insurance Committee. NYIA opposes.

PUBLICATIONS ▸ Overview | Albany Alert (m)  |  Albany Update (m)  |  Annual Conference Review  |  e|minute (m) | Enacted Law Bulletins (m) | Guiding Principles |  Legislative Introductions (m)  |  Your NY Connection Magazine (m)

Albany Update 03.12.24

In this issue …

NYIA Hosting Meeting on Cybersecurity Regulation Implementation

NYIA will be holding a meeting for members to discuss issues related to implementation of DFS’s amended cybersecurity regulation through the association’s Information Security Advisory Group. The meeting will be held virtually on Tuesday, March 26 from 2:00–3:00 p.m. You can add the meeting to your calendar. We encourage you to share this invitation with your company’s subject matter experts. Please contact Cassandra Anderson at canderson@nyia.org with any topics you would like raised. An agenda will be sent out closer to the meeting date.

DFS Releases Pre-Proposed Amended Regulation Related to Group Capital Calculation

The New York State Department of Financial Services (DFS) recently released a pre-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 pre-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. Comments can be submitted to Joana Lucashuk by email at joana.lucashuk@dfs.ny.gov by Thursday, March 14. If you have comments you would like NYIA to submit on your behalf, please contact Bob Farley at bfarley@nyia.org by Wednesday, March 13.

DFS Announces Funds Provided to Consumers and Health Care Providers

DFS recently announced as part of National Consumer Protection Week that the agency in 2023 collected more than $182 million, with $158 million recovered for consumers and health care providers and $23 million in restitution from enforcement actions. In their media release DFS issued they continue to tout their consumer protection and enforcement roles and highlight how a consumer can file a complaint with the department.