Skip Ribbon Commands
Skip to main content
Jan 21
Albany Update: Changes to Insurance Disclosure Bill Introduced, Executive Budget Released, Harris Confirmation Begins

As expected, chapter amendments to the Comprehensive Insurance Disclosure Act (CIDA) were introduced this week, which resolve our most serious concerns. The original bill, which we strongly opposed, would have required the automatic disclosure of all insurance information within 60 days of litigation, including the full policy application. This could have created substantial burdens and potential E&O exposure for agents, as well as compromising sensitive customer information. The chapter amendments remove the policy application from automatic disclosure, lengthen the time frame to 90 days, and will exempt motor vehicle PIP litigation. The amended CIDA is not expected to have a significant impact on independent agents.

The amendments will be retroactive back to the original effective date of the CIDA, eliminating the possibility that defendants will be forced to comply with the original, far more burdensome requirements, if disclosure is requested prior to passage of the chapter amendments. The amendments are expected to be passed and signed into law swiftly, prior to the March 1 disclsoure deadline in the original bill. 

On Tuesday, January 18th, Governor Hochul released her executive budget. The $216 billion budget is balanced and includes no new tax increases. Relevant items include:

  • Non-Compete/No-Poach Ban: A ban on non-compete agreements for workers making below the median wage in New York State and a total ban on “no-poach" agreements under State antitrust law. We believe the widespread ban on non-compete and no-poach agreements would be unnecessary and harmful to our industry.
  • Focus on Enhancing Current Healthcare System: The budget identifies numerous changes reduce the cost of healthcare and reduce the state's uninsured population, as well as rebuilding our healthcare workforce and economy. Conspicuously absent is any mention of a single-payer healthcare system. We are encouraged to see Governor Hochul focus on enhancing the current health insurance system rather than supporting a costly and unnecessary single-payer system.
  • Infrastructure Projects: The Governor's commitment to rebuilding infrastructure as a driver of economic recovery, including $1B each for bridge and highway repair programs and a multitude of infrastructure projects across the state, will benefit the construction industry.

On Monday, January 24th, The New York State Senate will begin the confirmation process of Acting DFS Superintendent Adrienne Harris. The Senate Insurance Committee will begin the confirmation hearings at 10:00, and will be webcast here. To be confirmed, she must receive a majority vote in the Insurance Committee, Banking Committee, and by the full Senate.

Harris brings extensive experience in economics and financial services. She served as a special assistant for economic policy for President Obama at the National Economic Council, and previously worked for the Brunswick Group as a senior advisor to financial companies, venture capital firms, and fintechs. Since leaving the White House in January 2017, Harris went on to serve as General Counsel and Chief Business Officer, and presently as Advisor at States Title, Inc. (now DOMA), which provides title insurance and settlement services in a number of state throughout the nation. She currently serves as a Professor and Faculty Co-Director at the Gerald R. Ford School of Public Policy's Center on Finance, Law and Policy at the University of Michigan.

 


Comments

There are no comments for this post.

 ‭(Hidden)‬ Blog Tools