Advocacy; Carriers

​ Big I New York has asked Kemper Auto & Home to delay its announced commission reductions on certain auto insurance policies. The carrier was told in a meeting this week that the suddenness of its move is unreasonable and bad for its independent agents.The carrier informed many of its New York agencies this week that it is reducing the commission rate on its Kemper PrimeSM personal auto insurance product to an extremely low level. The change will take effect on June 1, 2022. Several Big I New York members contacted our office to ask whether the carrier's action is legal. We have concluded that…

​Governor Kathy Hochul has recommended Gaurav Vasisht to serve as Executive Director of the New York State Insurance Fund (NYSIF). Ultimate responsibility for appointing the Exeuctive Director rests with the NYSIF Board of Commissioners.Mr. Vasisht has served as an advisor to a former Chairman of the Board of Governors of the Federal Reserve System, as a lawyer to three Governors of New York, and in key roles at the New York Department of Financial Services, its predecessor, the New York Insurance Department, and the New York Attorney General's Office. As Senior Vice President and Director of the financial regulation program at the Volcker Alliance ("Alliance") from 2014…

​Recently, the NYS Department of Financial Services informed representatives of the insurance industry that the Department will significantly step up enforcement of the requirement that carriers notify DMV of new auto insurance business (NBS) within seven days of the issuance of the policy. The DFS’s position can best be characterized as “zero tolerance” for late reporting. Big I NY, along with insurance carriers and their trade associations, have been regularly engaged with DMV and DFS regarding NBS compliance over the past several years. The DFS’s aggressive enforcement posture marks a significant development which will have impacts across New York’s auto insurance space.   At this stage,…