IIABNY Defeats Budget Provisions Aimed at Agents

The Independent Insurance Agents & Brokers of New York (IIABNY) announced that agents will not be affected by penalty and fee hikes, as well as a fingerprinting requirement, that were proposed by New York Gov. David Paterson in his 2009 to 2010 state budget. IIABNY successfully lobbied for the elimination of these provisions, as they were not included in the final budget passed by lawmakers on April 3, 2009.

If enacted, the fee hikes and fingerprinting requirements would have placed significant financial burdens on insurance producers throughout the state, according to the organization.

The governor’s budget had included several increases in the penalties for various violations of New York Insurance Law. Many of the proposed increases for violations would have represented a 2,000% increase, including the fine for acting without a license and aiding an unauthorized insurer, which would have increased from $500 to $10,000. But after hearing this, hundreds of IIABNY members met with lawmakers in February during IIABNY’s annual Legislative Day in Albany to argue against the provisions.