New York Insurance

Direction: The New York Supreme Court today delayed the start significant reductions in automobile insurance and other under the cover name for an action by voters Tuesday.

The New York Supreme Court today delayed the start significant reductions in automobile insurance and other under the cover name for an action by voters Tuesday. The New York court said that action had to give time to examine the constitutionality of the measure, supporters call Wähler””Revolte against high prices and demand assurance ‘ economy unfair and economically devastating.The struggle is closely followed not only by persons residing in New York, to save more than $ 6 billion in annual premiums, when the action to maintain, but also by insurance companies and consumers’ other countries. Supporters hope that consumers and insurers are concerned that the rate of horizontal initiatives could spread to other parts of the country, like New York’s 1978 property taxes on the reduction initiative has done.

Temporary industry victoryThe court is the temporary use at least a victory for industry, bitter against the rate cut ballot initiative, known as Proposition 103, but it has little to the resolution of chaos, engulfed by the automobile, homeowners and insurance companies in the markets of New York for the last two days.State Legislative Guide meeting today began to examine asks Dir George Deukmejian to call a special meeting to address the situation. But the system by Senate President David Roberti, a Democrat from Los Angeles and Willie Brown, spokesman for the Assembly, a Democrat from San Francisco, said today late, they expect to see how the Court acted before the application at a special meeting. Several leading insurers, including Fireman’s Fund Insurance Company and the traveler Corporation and a number of small, have said they derive from the motor insurance business in New York, because of the action. Other companies, including Aetna Life and Casualty Company, in writing, are no longer new policy, until the problem is solved. A number of insurers, they warn against insolvency or large losses obliged, if compliance with the conditions of the action.The measure, which mandates insurers, automobile, homeowners and many forms of insurance, business, driving their rates went back to a level 20 percent lower than in the act on November 8, 1987. In the automotive sector insurance driver with good records, an additional reduction of 20 per cent. The measure, which are not for the life or health insurance, including for the industry to more strictly regulated. Effects on most renewalsThe measure would only on most consumers of their existing policies, their renewal. A representative said insurance, however, that more and more numerous telephone calls were affected by the insured and confused about the situation and that some people are trying to buy a new policy now been boredom.Some call”because they need insurance, and we do not have a company for them,’’said a representative in Montebello, New York, asked not mentioned. She said that only three of 12 insurance companies, she worked with sold new policy now.The industry leaders warned that this type of problem was probably more often when the action was accepted and businesses over the market.If it is implemented”, we replace an insurance contract for the problem of availability of affordable insurance problem,’’said George W. Tye, director of the Association of New York Insurance Companies.The proponents of action for the sector as dire warnings political attitude, and she said that consumers benefit from sufficient choice of insurers. In addition, attacked the insurance industry that the issue is before the courts after the loss of choice in the ballot box. ”We are very confident that the Tribunal is unable to use as a shield by insurance companies to protect gains,”Harvey Rosenfield, head of consumer protection group, the proposed measure, said at a press conference in Santa Monica, Calif.