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Albany Update 2023.03 – Test
In this issue …
Online Verification of Auto Insurance Developments
The Department of Motor Vehicles (DMV) announced this week, that it has issued a Request for Information (RFI) for their Insurance Verification System. According to the Department of Motor Vehicles, the RFI, which requires written responses to be due back by March 14, 2023, will prove as a mechanism to develop a Request for Proposals (RFP), which will seek to develop a new online verification system. NYIA is pleased to see this concrete development in DMV moving from the Insurance Information Enforcement System to an online verification system. NYIA has been in regular communication with DMV, particularly over the past few months as we seek to build an effective new online verification process, which best serves the public, insurers, and all government entities involved.
DMV also issued their Regulatory Agenda in the January 4 State Register (pages 95–96 of the document), which included an item related to auto insurance reporting. DMV stated that they intend to, “Amend Part 35 to align with agency transformation efforts and take advantage of newer technology with the intent of identifying ways to enhance insurance industry compliance and maintain low uninsured motorist rates. Part 35 regulations are provided for under Article 6 of the NYS VTL.” Inclusion of this item further reinforces their desire to work with the industry to move to a new system.
The association is coordinating an all industry meeting on February 14 from 11:00 a.m. to noon to encourage collaboration on this issue as we continue to push for advancement. Contact Kaitlyn Flynn at kflynn@nyia.org if you would like to attend.
Peer to Peer Car Sharing Regulation Adopted
On February 8, 2023, DFS adopted the peer to peer car sharing regulation on a permanent basis. The regulation is effective immediately, which means February 8. The peer to peer emergency regulation is no longer in effect. There were no changes in the final adopted regulation from the proposed version, which DFS put forward this past November.
Supplemental Spousal Liability Insurance Declination Form
DFS notified NYIA that the department has released the supplemental spousal liability insurance declination form. NYIA is also continuing to field questions on this issue, including in relation to the applicability to commercial when it is not a sole proprietorship. We will provide members additional information as it becomes available.
NYIA Meeting with Assembly Insurance Committee Chair
On Wednesday, February 8 NYIA met with Assembly Insurance Committee Chair David Weprin, his staff and staff from the Assembly Program and Counsel who are responsible for the insurance portfolio. While the Assemblymember is already familiar with NYIA, the meeting was a good opportunity to talk more in depth on the range of issues related to property and casualty insurance companies. We provided the Assemblymember and his team with the association’s priority agenda and outlined key issues in the budget. The Assemblymember indicated his desire to work with the industry as the session advances.
New York State Budget Hearings
The Legislature began its annual hearings on the Executive Budget. These hearings, which cover all subject matter areas of the budget, started this week and will conclude on Wednesday, March 1, 2023. Following the conclusion of the hearings, we anticipate that the Senate and Assembly will release their one house versions of the budget by mid March.
DFS 2023 Regulatory Agenda
The Department of Financial Services (DFS) recently released their 2023 regulatory agenda (starting on page 84 of the document). While the items on the agenda may not advance this year, this document provides a sense of which regulations DFS is considering amending. In such release, there are a number of items that tend to appear on an annual basis. Additionally, DFS specifically notes that the agenda may change at any point in time. One important item in the agenda is the assignment of benefit regulation which would allow for an insurer to void the assignment if the claimant fails to appear for an independent medical exam or examination under oath. Please note that DFS has proposed this regulation previously, but such proposal expired before a formal adoption. Another important item is group capital calculation for holding companies. There were also some new proposals relating to travel insurance, as well as repeal of the Statistical Data Monitoring System, which members have included on NYIA’s priority regulatory agenda.
WCB Extends Emergency Regulation on Telemedicine
The New York State Workers Compensation Board (WCB) has adopted on an emergency basis, regulatory amendments to allow for telemedicine in certain circumstances. This emergency regulation supersedes a previous one adopted by the board, and keeps telemedicine in effect during the regulatory process for a permanent telehealth proposal. The emergency regulation is in effect until April 9, 2023.
Business Council Legislative Events
This week, NYIA participated in a series of legislative-oriented events hosted by the Business Council of New York. The events, which were held over two days, covered legislative matters of interest to both the Business Council as well as opportunities to connect with legislators and other public policymakers. The Business Council highlighted as part of their presentation on key legislative items, several pieces of legislation of interest to NYIA, including opposition to wrongful death legislation, support of photo inspections being optional, and support of repealing the anti-arson application. Through these events NYIA had the opportunity to interact with the Governor, legislative leaders, numerous legislators, including committee chairs, and countless legislative and executive staff.
Governor Announces New Program for Roadway Repair
Governor Kathy Hochul this week announced a new $100 million state program to renew 64 roadways in New York that have been impacted by extreme weather. The road improvement initiative is, in part, designed to prevent both traffic accidents, and thereby reduce insurance claims due to fewer claim experience. This initiative is a part of the Governor’s overall increased investment in New York State Infrastructure.
Bills on the Move
Below are bills that have recently moved in the Legislature. NYIA will be distributing an Enacted Law Bulletin with more information on the chapter amendments that passed both houses after the bills are signed by the Governor.
A2892 Bores/S833 Breslin
This bill would enact a chapter amendment to legislation signed last year, S9367/A1029, which changes supplemental spousal liability under an auto insurance policy from an opt in to an opt out. The bill passed the Senate 60–3 and remains in the Assembly Insurance Committee.
A2207 Eichenstein/S2231 Breslin
This bill would enact a chapter amendment to legislation signed last year, S7658B/A8869B, a bill that sought to prohibit an insurer from certain actions based solely on a claims being submitted as the result of a hate crime. The bill has passed the Assembly 142–0 and has passed the Senate 63–0.
A2202 Hunter/S1318 Breslin
This bill would enact a chapter amendment to legislation signed last year, S8127/A9088, that modified the excess line affidavit, regarding declinations that are filed by both retail and wholesale insurance brokers, when placing excess line transactions. This bill has passed the Assembly 142–0 and has passed the Senate 60–2.
A631 Carroll/S1335 Hoylman-Sigal
This bill would enact a chapter amendment to legislation signed last year, S5472A/A7876A, to require residential leases to include information on prior flood damage. This bill passed the Assembly 106–37 and was reported from Senate Rules to the Senate calendar.
S1161 Sanders/A2034 Joyner
This bill would establish a schedule of Workers Compensation disability to provide that a benefit of a worker shall not be less than 1/5th of the New York state average weekly wage, unless the employee’s weekly wage is equal to or less than such amount, whereupon such shall be the total 1/5th amount. Note that this legislation passed both houses last year and was vetoed by the Governor. The bill was reported from Senate Labor to the Senate calendar, and remains in the Assembly Labor Committee.
S1974 Ramos/A1219 Bronson
This bill would authorize workers compensation claimants to use any in-state pharmacy that is registered with the education department. The bill was reported from Senate Labor to the Senate calendar and is currently in the Assembly Labor Committee.
A1178 Jacobson/S439 Skoufis
This bill would require bodily injury be covered under supplementary uninsured/underinsured motorist insurance coverage for police vehicles. The bill, which also passed the Senate in 2022, has passed the Senate again this year, 62–0, and is currently in the Assembly Insurance Committee.
S160 Hoylman-Sigal
This bill would authorize audio-visual coverage of judicial proceedings. The bill was reported from Judiciary to Senate Finance.
S527 Thomas
This bill would authorize political subdivisions to establish demonstration programs to implement railroad grade crossing monitoring systems by means of photo devices. An imposition of liability would not be deemed a conviction, nor could it be used for insurance purposes. The bill was reported from Senate Transportation to the Senate Calendar.
S2422 Hoylman-Sigal
This bill would authorize New York City to set a city-wide speed limit as low as 20 miles per hour. The bill was reported from Senate Transportation to the Senate calendar.
S2712 Kennedy
This bill would establish a three-year schedule to transfer the revenue from the mandatory surcharge program for alcohol and other drug-related traffic offenses to the STOP-DWI Program established in 1197 of the Vehicle and Traffic Law, in order to reduce incidents to drug impaired driving. The bill was reported from Transportation to Senate Finance.