Big I NY's Photo Inspection Law Now Effective
On May 15th, our law to allow carriers to waive CARCO inspections went into effect. From now until October 2027, carriers doing business in NY may waive any or all CARCO inspections. Already, many carriers have announced they are waiving inspections, including Safeco, Travelers, Plymouth Rock, National General, and New York Central Mutual. We expect more carriers to follow suit.
Big I NY Calls for Lawsuit Lending Divestment
This week, Big I NY joined groups representing businesses, municipalities, and insurers, in urging the New York State and New York City pension funds to investigate and divest from third party litigation financing (TPLF). In a letter to New York State Comptroller Tom DiNapoli and New York City Comptroller Brad Lander, which was covered by the New York Post, we wrote, “With no regulatory framework or disclosure requirements, TPLF is a substantial threat to the state's civil justice system and consumers. The offer by lenders to plaintiffs of easy, up-front cash increases the occurrence of filing of dubious claims, including against local and state governments. TPLF also deters a rational settlement process; compromises the attorney-client relationship by prioritizing their own profits over plaintiffs' best interest; and contributes to skyrocketing insurance premiums."
Big I NY Urges Lawmakers to Reject Unfair Business Practices Expansion
On May 14th, Big I NY and over 30 other groups issued a letter to state lawmakers urging them to reject a disastrous expansion of the state's unfair business practices law. New Yorkers already face the highest risk of litigation and the highest litigation costs. This proposal will make the Empire State even more litigious, burdening companies with increased risk of catastrophic liability. While the bill purports to offer remedies to small businesses, local firms already have a vast body of contract law to protect against misrepresentations and unfair practices. The potential for excessive damages and increased litigation costs will not only harm these businesses but lead to higher prices for consumers. This is particularly concerning for small businesses that operate on narrow margins and are still recovering from the economic impact of the pandemic.
We urge agents to contact their lawmakers and register their opposition. This bill, if enacted, would be disastrous to the state's business climate, further destabilize the insurance market, and expose independent insurance agencies to considerable liability and shakedown lawsuits.