Superintendent of Monetary Companies Adrienne A. Harris right now introduced that Zurich American Insurance coverage Firm (Zurich) and Progressive Direct Insurance coverage Firm (Progressive) have entered into separate Consent Orders with the Division of Monetary Companies (DFS) resolving DFS’s investigations into the businesses’ failure to well timed report sure insured automobile data to the Division of Motor Autos (DMV). Underneath these Consent Orders, Zurich has agreed to pay a tremendous of $2.2 million, and Progressive has agreed to pay a tremendous of $2 million, a complete of $4.2 million to New York State.
That is the primary such motion that DFS has taken in an industry-wide investigation of premature reporting to the DMV. New York’s Insurance coverage Regulation requires insurers to report newly insured automobiles inside seven days of their efficient date and any terminations and suspensions of insurance coverage inside thirty days to DMV’s Insurance coverage Data & Enforcement System (IIES) database. DFS continues to actively examine potential violations, working carefully with the DMV to carry the complete New York insurance coverage {industry} into compliance with New York State insurance coverage regulation.
“This reporting requirement is essential to guard New Yorkers on the street, because the requirement helps guarantee drivers can depend on the provision of insurance coverage protection to handle potential accidents and automobile repairs within the unlucky occasion of an accident,” mentioned Superintendent of Monetary Companies Adrienne A. Harris. “DFS expects insurers to adjust to this essential regulation to uphold the integrity and accuracy of auto insurance coverage data to the state to guard shoppers.”
“These consent orders are an essential technique of defending shoppers, and the DMV is grateful to the Division of Monetary Companies for taking motion,” mentioned DMV Commissioner Mark J.F. Schroeder. “Late or invalid insurance coverage filings have a unfavourable impression on New Yorkers, the DMV, and the insurance coverage {industry}, so we work carefully with insurance coverage firms to ensure prospects’ insurance coverage data is filed with us in a well timed method. When insurance coverage firms fail to conform, they put all New Yorkers in danger.”
These legal guidelines and laws shield New Yorkers by making certain that insurance coverage data is accessible within the occasion of collisions and different auto-related inquiries. After DMV observed industry-wide IIES reporting issues, DFS opened an investigation into premature reporting of insurance coverage data to DMV.
Underneath the Consent Orders, along with financial penalties, Zurich and Progressive should every present remediation plans detailing corrective actions which are topic to DMV’s approval. DFS acknowledges the cooperation of Zurich and Progressive, which had been the primary insurers to achieve settlements with DFS in its ongoing, industry-wide investigation.
DFS continues to actively examine different violations of IIES throughout the insurance coverage {industry} and is in communication with DMV and different insurance coverage firms in that market to carry the complete New York {industry} into compliance with New York regulation.
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