Significant fine increases for violating New York insurance law — proposed by former Gov. Eliot Spitzer — have been rejected by the Legislature, a move that one New York agents’ group called a major victory for Empire State agents.
The Spitzer-requested penalties were a series of drastically increased fines for violating insurance law, some of which increased fines by as much as 20 times their current rates.
Under the proposal, for instance, fines for insurance law violation would have grown from $500 to $10,000, fines for selling insurance without a license would have gone from $1,000 to $10,000, and fines for violating the insurance law regarding physical damage inspections of cars would have increased from $500 to $5,000.
The proposed fines have now been eliminated from the budget, said the Independent Insurance Agents & Brokers of New York, which praised members of the Senate and Assembly for their support in fighting off the fines.
Stephen R. Zogby, chairman of the group, said he was impressed with the Legislature’s action. “During a turbulent week, elected officials stayed focused on their mission and in a timely manner. I give them a lot of credit.”
It was not the only fee that agents’ group had railed against. A proposed $15 hike of the Motor Vehicle Law Enforcement and Highway Safety Fee has also been eliminated. This would have brought to $20 the cost to register a vehicle. The fee remains $5.
“Whether it’s the complexities of New York state licensing or simply agency personnel forgetful in their renewal procedures, an increased fine in the thousands of dollars could (have been) financially destructive” to agents, said Zogby.
Was this article valuable?
Here are more articles you may enjoy.
Big ‘I’ Report: Independent Agency Channel Placed 62% of Premiums in 2023 
Home Insurance at $10,000 a Year Shows California Buyers’ Pain 
Allstate, Nationwide Post Dramatic Q12024 Homeowners Loss Ratio Drops: S&P 
Dollar Tree Sold Lead-Tainted Applesauce After Recall From This Issue
