Jan 19, 2018

State executive budget proposal to increase fines on insurance producers by 900 percent

The New York state executive budget proposal released on Jan. 17, contains language (similar to last year), which attempts to increase the level of insurance fines that can be assessed on insurance companies and agents by 900 percent.

PIANY continues to be strongly opposed to the measure, recognizing that one misstep could put a small producer out of business.

The text of the proposal can be found in Section 16 of the proposal on page 104, under Part O—Reform the Early Intervention Program.

Section 16 would amend Insurance Law Section 109 to increase the maximum fine for entities regulated under the Insurance Law found to have improperly paid a claim or made a false statement to the New York State Department of Financial Services.

The NYDFS tried to increase the fines by 900 percent last year in a similar proposal and PIANY successfully fought to defeat it. Your association will make defeating this proposal a priority again this year.