Relates to the establishment of a state insurance company advisory board, a state insurance producer advisory board and a state insurance adjuster advisory board

Title of bill

An act to amend the insurance law, in relation to the establishment of a state insurance company advisory board, a state insurance producer advisory board, and a state insurance adjuster advisory board

Purpose

The purpose of this bill is to create three state insurance advisory boards within the Department of Financial Services.

Summary of provisions

This bill adds new sections 201, 202 and 203 to the insurance law to establish three state insurance advisory boards within the Department of Financial Services focusing on three key segments of the regulated industry-insurance companies, producers and adjusters. The insurance company advisory board created under section 201 will consist of fifteen members representing insurers and one consumer representative, all who will be appointed by the Superintendent of the Department of Financial Services. To the extent practicable, the membership should reflect a range of size and geographic location with the state.

Under new section 202 of the insurance law is established a state insurance producer advisory board, composed of ten producers from the property/casualty, life and accident and health markets. Under new section 2003 of the insurance law is established a state insurance adjuster advisory board, composed of nine adjusters representing public, independent and company/staff adjusters.

All of the boards will have as their mission: Considering and recommending to the Superintendent:

1) ways to maintain and grow the insurance industry; 2) ways to encourage insurers to offer a diversity of affordable insurance & financial products throughout the state; 3) amendments to or new laws, regulations & guidance, or the repeal thereof, in furtherance of these goals.

Justification

In addition to regulating the insurance market in the state, the department of financial services is also charged by its enacting legislation to improve the economic atmosphere for insurance in New York. Notwithstanding the fact that the department routinely engages with various insurance industry sectors on regulatory matters, less frequently does it examine the strength of the insurance market with these regulated entities. This bill would create opportunities for each of these insurance segments to engage not less than three times a year, in a structured manner, with the department on important market issues, including the delivery of products to market and the type of insurance products available in the market.

Legislative history

New bill

Fiscal implications

None to the state

Effective date

This act shall take effect immediately.