DeWITT — Big I New York, which describes itself as the Empire State’s “oldest” insurance producer trade association, says it mounted a “successful effort” to defeat a state-budget proposal that would have “seriously harmed” small insurance agencies. The recently enacted state budget does not include an “extreme increase” in fines for accidental violations of state […]
DeWITT — Big I New York, which describes itself as the Empire State’s “oldest” insurance producer trade association, says it mounted a “successful effort” to defeat a state-budget proposal that would have “seriously harmed” small insurance agencies.
The recently enacted state budget does not include an “extreme increase” in fines for accidental violations of state law, Big I New York said in an April 12 news release.
“The proposed increase in fines and penalties could have put small insurance agencies out of business,” Richard MacDonald, chairman of the Big I New York board of directors, contended. “Many violations are unintentional and the result of a misunderstanding about requirements. Mistakes like that should not jeopardize a business’s existence.”
DeWitt–based Big I New York is the rebranded name of the former Independent Insurance Agents & Brokers of New York Inc. (IIABNY).
Under current law, the fine for most violations of New York insurance law is $1,000 per offense. The proposed state budget would have increased the penalties where the violation related to either the failure to pay a claim or to making a false statement to the superintendent of financial services or the New York State Department of Financial Services.
The new penalty would have been the greater of $10,000 for each offense or two times the damages attributable to the violation or the economic gain realized from the violations.
Insurance agencies are subject to a variety of complex laws and regulations, according to Big I New York.
While making a “good faith effort” to comply with them, an insurance producer might “unintentionally” make a false statement, the group contends. For example, agencies must annually certify that they comply with all applicable parts of New York’s new cybersecurity regulation. An agency owner may mistakenly believe he has met the requirements and falsely certify that the agency is in compliance. Under the governor’s proposal, that mistake could have resulted in a $10,000 fine.
“Disproportionate” penalties like that could have been “difficult or impossible” for small agencies to absorb.
Big I New York “led the fight” to remove the fine increases from the budget. As a result, the increased fines were not part of the spending plan the legislature adopted in late March.
“The law is the law, and we of course believe that agencies are responsible for complying with it,” MacDonald said. “However, we also believe the penalty should not be extreme for an innocent mistake. The proposed fine increases were extreme and unjust, and we fought hard to protect our members from them. We are gratified that the legislature chose not to adopt them.”
Big I New York says it advocates for the educational, political, and business interests of its more than 1,750 agencies and their 13,000-plus employees.
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DeWITT — Big I New York, which describes itself as the Empire State’s “oldest” insurance producer trade association, says it mounted a “successful effort” to defeat a state-budget proposal that would have “seriously harmed” small insurance agencies.
The recently enacted state budget does not include an “extreme increase” in fines for accidental violations of state law, Big I New York said in an April 12 news release.
“The proposed increase in fines and penalties could have put small insurance agencies out of business,” Richard MacDonald, chairman of the Big I New York board of directors, contended. “Many violations are unintentional and the result of a misunderstanding about requirements. Mistakes like that should not jeopardize a business’s existence.”
DeWitt–based Big I New York is the rebranded name of the former Independent Insurance Agents & Brokers of New York Inc. (IIABNY).
Under current law, the fine for most violations of New York insurance law is $1,000 per offense. The proposed state budget would have increased the penalties where the violation related to either the failure to pay a claim or to making a false statement to the superintendent of financial services or the New York State Department of Financial Services.
The new penalty would have been the greater of $10,000 for each offense or two times the damages attributable to the violation or the economic gain realized from the violations.
Insurance agencies are subject to a variety of complex laws and regulations, according to Big I New York.
While making a “good faith effort” to comply with them, an insurance producer might “unintentionally” make a false statement, the group contends. For example, agencies must annually certify that they comply with all applicable parts of New York’s new cybersecurity regulation. An agency owner may mistakenly believe he has met the requirements and falsely certify that the agency is in compliance. Under the governor’s proposal, that mistake could have resulted in a $10,000 fine.
“Disproportionate” penalties like that could have been “difficult or impossible” for small agencies to absorb.
Big I New York “led the fight” to remove the fine increases from the budget. As a result, the increased fines were not part of the spending plan the legislature adopted in late March.
“The law is the law, and we of course believe that agencies are responsible for complying with it,” MacDonald said. “However, we also believe the penalty should not be extreme for an innocent mistake. The proposed fine increases were extreme and unjust, and we fought hard to protect our members from them. We are gratified that the legislature chose not to adopt them.”
Big I New York says it advocates for the educational, political, and business interests of its more than 1,750 agencies and their 13,000-plus employees.
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DeWITT — Big I New York, which describes itself as the Empire State’s “oldest” insurance producer trade association, says it mounted a “successful effort” to defeat a state-budget proposal that would have “seriously harmed” small insurance agencies. The recently enacted state budget does not include an “extreme increase” in fines for accidental violations of state […]
DeWITT — Big I New York, which describes itself as the Empire State’s “oldest” insurance producer trade association, says it mounted a “successful effort” to defeat a state-budget proposal that would have “seriously harmed” small insurance agencies.
The recently enacted state budget does not include an “extreme increase” in fines for accidental violations of state law, Big I New York said in an April 12 news release.
“The proposed increase in fines and penalties could have put small insurance agencies out of business,” Richard MacDonald, chairman of the Big I New York board of directors, contended. “Many violations are unintentional and the result of a misunderstanding about requirements. Mistakes like that should not jeopardize a business’s existence.”
DeWitt–based Big I New York is the rebranded name of the former Independent Insurance Agents & Brokers of New York Inc. (IIABNY).
Under current law, the fine for most violations of New York insurance law is $1,000 per offense. The proposed state budget would have increased the penalties where the violation related to either the failure to pay a claim or to making a false statement to the superintendent of financial services or the New York State Department of Financial Services.
The new penalty would have been the greater of $10,000 for each offense or two times the damages attributable to the violation or the economic gain realized from the violations.
Insurance agencies are subject to a variety of complex laws and regulations, according to Big I New York.
While making a “good faith effort” to comply with them, an insurance producer might “unintentionally” make a false statement, the group contends. For example, agencies must annually certify that they comply with all applicable parts of New York’s new cybersecurity regulation. An agency owner may mistakenly believe he has met the requirements and falsely certify that the agency is in compliance. Under the governor’s proposal, that mistake could have resulted in a $10,000 fine.
“Disproportionate” penalties like that could have been “difficult or impossible” for small agencies to absorb.
Big I New York “led the fight” to remove the fine increases from the budget. As a result, the increased fines were not part of the spending plan the legislature adopted in late March.
“The law is the law, and we of course believe that agencies are responsible for complying with it,” MacDonald said. “However, we also believe the penalty should not be extreme for an innocent mistake. The proposed fine increases were extreme and unjust, and we fought hard to protect our members from them. We are gratified that the legislature chose not to adopt them.”
Big I New York says it advocates for the educational, political, and business interests of its more than 1,750 agencies and their 13,000-plus employees.
