The New York Senate Finance Committee (the “Committee”) has rejected several proposals in Former Governor Eliot Spitzer’s 2008-2009 Executive Transportation, Economic Development and Environmental Conservation Budget, which would have increased various civil penalties placed on insurance agents and brokers for violations of Insurance Law and related regulations. The proposals would have increased fines for violations of New York insurance law from $500 to $10,000 and fines for doing business as agent, broker or adjuster without a license from $5,000 to $10,000. It was projected that the increases would generated $1 million in additional revenue. Industry groups hailed the Committee’s rejections as a major victory, because they believed the penalty increases to be excessive.
The Committee also rejected the proposal to increase the surcharge on all automobile policies by $15, which we previously reported about here.
Click here to view the New York Senate Finance Committee’s Report on the Executive Budget.
