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Member, Beacon International Group, Ltd.
NEW YORK—New York’s Legislature has passed a measure that would lighten regulation of some large commercial policies.
The state’s Assembly and Senate this week approved the legislation, A8464/S5811, which exempts insurers from certain rate and form approval requirements on policies for large commercial policyholders and special risks in New York.
New York Gov. Andrew Cuomo is expected to sign the bill, which would take effect 90 days after it becomes law.
The legislation “will help foster a more efficient regulatory system for commercial lines in New York,” said Gary Henning, vp, Northeast Region of the American Insurance Assn. in Washington, in a statement. “This new law will allow insurers to better meet the unique needs of their commercial policyholders.”
“Off-the-rack insurance products frequently do not fit the unique needs of large businesses,” Kristina Baldwin, the Property Casualty Insurers Assn. of America’s assistant vp for state government relations in Albany, N.Y., said in a statement. “This bill will enable insurers to tailor coverage to meet these specialized needs in a timeframe which coincides with the quickly changing business requirements of commercial customers.”
“Because of their size and experience, (large) organizations understand insurance coverage terms, conditions and pricing plans. They do not require the same protections that smaller firms and individuals need,” said Christopher A. Brassard, chair of the board of the DeWitt-based Independent Insurance Agents & Brokers of New York.