Sep 30, 2016

Cuomo vetoes proposal to reign in NYDFS

Gov. Andrew M. Cuomo has this week vetoed a legislative proposal (S.7534), designed to institute greater administrative functions to be performed by the New York State Department of Financial Services when it imposes guidance, regulations, inquiries and examinations on the insurance industry.

The bill was designed to provide for amendments to section 311 of the Insurance Law to establish administrative procedures around the process of the examination of insurance companies. The more in-depth administrative processes required by this bill were designed to require better analysis by the NYDFS when considering the imposition of certain regulatory guidance or inquiries or when conducting a regular examination of a company.

The processes established in the bill would, according to sponsors, shed better light on the NYDFS's rationale for the proposal of guidance or a regulation, or for an inquiry on a particular subject, or for why a company was fined as a result of a company exam. The proposal was claimed to achieve a better regulatory outcome when the final initiative, inquiry or exam is implemented, imposed or published.