Skip Ribbon Commands
Skip to main content
Dec 26
​ Governor Hochul Signs Big I Priority Auto Insurance Quoting Fairness Law, Vetoes Noncompete Ban

What Happened:

Great news! Governor Hochul has taken favorable action on two key bills affecting IAs and their customers.

On December 23rd, the Governor signed into law a Big I NY priority bill, A.4668-B, which will require carriers to run an insurance motor vehicle record before binding coverage. This will protect customers from unscrupulous quoting and pricing practices whereby certain carriers will bind a policy only to later run the MVR and substantially raise the premium. Responsible insurance agents and companies utilize all available underwriting resources prior to binding a policy for an insured. The practice of intentionally disregarding driver history information in order to present a false price to an insurance consumer undermines the credibility of the insurance industry as a whole.

The governor also vetoed a sweeping bill which would have banned the use of all noncompete agreements in New York. Big I New York strongly opposed this bill, as it did not include and explicit exemption for the sale or purchase of a business. We lobbied the Governor to veto the bill on the basis that it would significantly harm the independent agency system.

What's Next:

The governor signed the quoting fairness law on the condition that “chapter amendments" will be made to the law by the legislature. This means the legislature will quickly pass minor changes to the bill before it goes into effect. At this time we do not have the specific chapter amendment language, but based on conversations with the Governor's office we anticipate that the bill will apply only to new business and not renewals. The law will take effect on June 20th, 2024.

The Governor had proposed reasonable limits to the noncompete bill but was unable to come to an agreement with the legislature, and therefore vetoed the bill outright. We anticipate that the legislature and the governor will continue to negotiate to reach a compromise in the coming session.

Big I NY Has Your Back:

We will continue to lobby to ensure that the noncompete bill, if passed, includes reasonable limitations to protect independent agencies and their customers. We will also work to educate independent agents on the coming changes to the quoting fairness law.

This legislative session has been a powerful demonstration of the importance of agent advocacy. This year, we have now scored major legislative victories: the passage of the photo inspection reform law, passage of insurance quoting fairness law, and the veto of a noncompete ban bill. For each of these bills, agent participation, through emails phone calls and legislative meetings has been a key factor of our success.

Want to do even more to help us amplify our impact in Albany? Contribute to IAPAC, our political action committee today!  


Comments

There are no comments for this post.

 ‭(Hidden)‬ Blog Tools