New York Insurance

The Pataki administration proposed broad changes in New York’s auto insurance rules today, with the aim of reducing costs, as the State to win the undesirable characters difference that the nation higher.

The plan is the first comprehensive effort to you, George E. Pataki, the high cost of self-assurance. It draws freely on proposals Democrats and Republicans in the state, legislators, and he met with the first positive reactions prudent now insurance companies, consumer groups and legislators.

The proposals include a number of regulatory and law enforcement against fraud insurance industry is responsible for high prices. There is no freeze premiums, a step Democrats and consumer advocates who have asked, so that the possibility that prices will rise.

But Gregory V. Serio, M. Pataki nine insurance Superintendent, insisted that the package of measures with rates would be put down, when he would not say when and for how much. ”If we do not act, it is a rate problem, we have a problem of quota, New York,”he said.

Assemblyman Alexander B. Pete Grannis, Manhattan Democrat and chairman of the Insurance Committee, said:”It seems that the governor has finally on the table about this, and many of its proposals, what we proposed, we are quite encouraged What space Thursday to reach an agreement.”

The cost of automobile insurance was durchsickernd as a serious problem in New York for years. In New Jersey, which had long the nation from the higher quotas, almost led the defeat of Dir in 1997, Christie Whitman, Democrats and trying, unsuccessfully, the issue against Mr. Pataki during his re-election in 1998, the election campaign.

A combination of factors has brought to the forefront of this year. In New York, have rates relatively calm, but New Jersey has declined, and industry officials believe that this year again, when new figures are released, New York exceed its neighbours, since the State has the greatest rewards. In 1998, the latest year for which figures are available, the car was $ 959 average premium in New York and $ 1138 in New Jersey.

Some of New York’s auto insurance laws are adjusted so that expired this year, so that the governor and legislators are forced to the same case, opening the door for a wide debate. And Mr. Pataki is facing a serious challenge to the election during the next year, three years ago, with Democrats once again talking about making auto insurance a campaign.

”The number of stars is really in alignment with something happens this year,’’said Blair Horner, legislative power and the director of the New York Public Interest Research Group, the pressure for a rate cut.

Mr. Pataki, a Republican, announced today an executive for the appointment of Attorney General Eliot Spitzer L., a Democrat, especially as Attorney insurance fraud federal state. Mr. Spitzer said he welcomed the appointment, and his office and the governor are negotiating on additional personnel to Mr. Spitzer, the Office for discharging his new duties.

The governor’s plan, insurance companies to offer customers to choose lower rates in return for permission to go to doctors by companies for all medical requirements. The amendment, sought by insurers, were able to keep costs and, in some cases circumvent the unscrupulous doctors to work with fraud rings. Mr. Serio described as the most important element of the plan.

The hotel would also reduce to 30 days from 90, the amount of time a customer would have to file a medical claim with an insurer, and 45 days from 180, the time for providers of medical services begin to file claims. Insurers have long lamented that the most challenging periods to study the applications and gauge their validity.

The governor has proposed similar rules changes in the past, but has met with intense opposition, and Mr. Serio said they were changed to complaints filed by physicians and consumers is favourable.