Those opposed urge Governor Cuomo to veto the legislation, which could be costly to consumers.
A call has been made to Governor Cuomo regarding New York auto insurance legislation that passed within the last hours of the legislative session, which may result in a notable increase in the cost of coverage for drivers in the state.
The hope is that the legislation will be vetoed and that greater efforts will be taken against fraud.
New York auto insurance fraud is rampant within the no fault system, and those who made the call to the governor are hoping that legislators, drivers, insurers, and other interested parties will work together to come up with a reform that will battle the scams that are driving costs upward for everybody.
It was the New York Insurance Association (NYIA) that actually made the official request for the veto and that has suggested the reform talks. According to its president, Ellen Melchionni, “It was crucial that the legislature act this year to enact no-fault auto insurance reform.”
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However, she also went on to say that “The legislature failed to pass meaningful reform that would stop the rampant fraud in the system. Instead legislators passed a bill that will negatively impact consumers and likely result in the state’s drivers paying more for their auto insurance.”
The legislature adopted the New York auto insurance legislation S7787/A10784.
This was an amendment to the existing law for supplementary uninsured and underinsured (SUM) coverage, and watered down the choices available to the consumer. The current regulations say that policyholders must now opt out of their increased coverage for SUM, instead of the previous opt in process that was more transparent to consumers.
The impact of this legislation could drive premiums sharply upward, and many drivers may end up forking over more money than necessary for coverage that they didn’t specifically select to be a part of their New York auto insurance policy. This most recent legislation also involves a provision that is related to the no fault system, but that isn’t a part of an effort against fraudulent use of the system. The NYIA fears that the bill’s negative impact could be worsened by the fact that there was no meaningful reform passed by the legislature to the no fault system.