Contrary to the Supreme Court’s July 5, 2018 determination, the Appellate Division found that Insurance Law Section 6409(d) (concerning the giving of “other consideration or valuable thing”) is “unambiguous,” has a rational basis, and is subject to broad construction by DFS. Although Regulation 208 is now considered “a valid exercise of DFS’s general legislative authority […]
The Department of Financial Services’ (“DFS”) cybersecurity regulation, 23 NYCRR 500 (referred to in this article as the “Cyber Regulation”), became effective on March 1, 2017 with a two-year implementation deadline approaching on March 1, 2019. In a nutshell, the Cyber Regulation is designed to protect consumer data and to defend against security attacks. To […]
While married couples may create Last Will & Testaments and forget to change them following a divorce, numerous states have “revocation on divorce” statutes that typically treat a divorce as voiding a testamentary bequest to a former spouse. These revocation on divorce statutes were initially aimed at Last Wills & Testaments and rest on an […]
Numerous recent New York State Department of Financial Services (“DFS”) penalties against licensees involve a failure to disclose on DFS applications actions taken in other jurisdictions or failures to timely report administrative actions or criminal prosecutions by other agencies. By way of background, New York Insurance Law § 2110(i) requires a licensee to “report to […]
According to the Department of Financial Services’ January 2, 2013 release of disciplinary actions, 7 DFS licensees were revoked while 41 others were imposed fines ranging from $500 to $63,000. All since the DFS’ previous release of disciplinary actions in September 2012. As expected, a handful of small fines ($500, $750) were for technical reporting […]
On November 19, 2012, the New York Court of Appeals – the highest court of the State of New York, apparently strengthened the rights of policyholders as against their insurance brokers. In American Building Supply Corp. v. Petrocelli Group, the plaintiffinsured was required by its lease to obtain general liability insurance in the minimum amount […]
On November 19, 2012, the New York Court of Appeals – the highest court of the State of New York, apparently strengthened the rights of policyholders as against their insurance brokers. In American Building Supply Corp. v. Petrocelli Group, the plaintiff-insured was required by its lease to obtain general liability insurance in the m i […]
So far in 2012 the New State Department of Financial Services (DFS) has not issued any publicly available Office of General Counsel Opinions. A review of the most recent disciplinary actions taken by the DFS against insurance companies, agents, brokers, and adjusters (released September 10, 2012), sheds some light on what areas have been the […]
The Superintendent of Financial Services has proposed Regulation No. 68-C to address no-fault insurance fraud. The proposed regulation is designed to curb abuse of the no-fault insurance system. Highlights are as follows: • Health care providers will have to comply with a 120 day period to provide requested information or the claim can be denied. […]
On April 24, 2012, the Appellate Division in New York decided a case against an insurance company involving the New York False Claims Act and the issuance of “artisan policies.” Artisan policies are designed to provide coverage for small contractors, such as carpenters, plumbers and roofers, or other skilled manual laborers, but do not generally […]
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