Governor Cuomo signs legislation focused on life insurance coverage into law A new law in New York will ensure that consumers will get to keep their life insurance policies if their issuing insurer goes out of business. The legislation was signed into law by Governor Andrew Cuomo, who believes that the law is necessary to ensure that consumers retain the coverage that they rely on. Typically, if an insurance company goes out of business, the policies it was responsible for become void, unless they are purchased by another insurance provider.…
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New York regulators question insurance industry over cyber security preparedness
Insurance industry facing challenges in digital world Cyber security is becoming a major issue throughout the U.S. and the insurance industry is beginning to feel the pressure to become more prepared to deal with the threats that exist in the digital world. The insurance industry is well attuned to risks, but hackers and other malicious groups represent a risk that is nearly impossible to quantify due to the rapidly changing nature of the Internet and how data is being used and stored. In New York, insurance regulators are beginning to…
Read MoreNew York regulators to investigate insurer’s rate proposals for accuracy
As complaints regarding insurance rate hikes begin to weigh on regulators in New York, the state’s Financial Services Superintendent, Benjamin Lawsky, has announced a new investigation into the matter. Regulators will be investigating the data submitted by insurance companies to justify their premium increases. The goal is to determine the accuracy of the data that these insurers use. These investigations will work alongside the regular rate review process and insurers will not know when they will be investigated. Lawsky notes that any errors made by insurers in their requests for…
Read MoreInsurance companies in three states required to provide their response plans for climate change
The insurance commissioners for New York, California, and Washington state have announced that they will now be requiring insurers to disclose a climate change response plan that will outline the way in which they plan to respond to the changing risks that customers and businesses face as wildfires, severe storms, and rising sea levels become more common. Until now, those three states have asked only about a third of the larger insurance companies to provide information in the form of responses to a survey, but for all other insurers, it…
Read MoreAllstate initiates $6.3 million lawsuit to recover funds from New York area fraud
Allstate Insurance Company has filed an insurance fraud case worth $6.3 million in order to recover the money they lost from fraud by 83 defendants from the New York area. This is the seventh fraud complaint initiated by the insurer this year. The lawsuit was filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) as well as some common law principles. It claims that the 83 defendants took part in parallel, though separate, strategies to use misleading and fraudulent bills when making insurance claims with Allstate for durable medical…
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