The CFPB may be on its way out, but some states are finding plenty of opportunities to take insurer’s money on their own. New York regulators have announced that they have concluded a lengthy investigation into car insurance providers for failing to submit timely reports on insured vehicles, imposing fines totaling a whopping $20.4 million.
The New York State Department of Financial Services (NYDFS) announced the resolution of the probe revealing that multiple insurance companies were penalized for not providing vehicle coverage details to the state’s Department of Motor Vehicles (DMV) within the required timeframe.
“Accurate and timely reporting by insurers is critical to protecting New Yorkers on the road, ensuring compliance with state laws, and maintaining the integrity of our enforcement systems,” stated NYDFS Superintendent Adrienne Harris. “These actions demonstrate DFS’s unwavering commitment to holding insurers accountable and safeguarding consumers.”
New York law mandates that insurance providers submit records of newly insured vehicles to the DMV within seven days of a policy’s start date. Additionally, cancellations and suspensions must be reported within 30 days to ensure proper enforcement and record-keeping.
The NYDFS emphasized that these measures are crucial for enabling law enforcement to identify uninsured vehicles, maintaining accurate state records, and ensuring consumer protection in case of accidents.
As part of the enforcement action, regulators issued 37 consent orders alongside the financial penalties, underscoring the widespread nature of noncompliance across the insurance industry.
Kemper Corp Group
Starr Indemnity
W.R. Berkley
Preferred Mutual
Hanover
New York Central Mutual
New York Marine and General
This latest development follows a recent NYDFS enforcement action in which Geico and Travelers were fined a combined $11.3 million for data security lapses that exposed sensitive information of over 120,000 policyholders.
The NYDFS remains one of the most influential state financial regulatory agencies, overseeing several of the nation’s largest banking and insurance institutions. Harris has previously indicated that the department would remain vigilant in consumer protection efforts, particularly in light of shifting federal regulatory policies.
“We’re going to keep focusing on getting money back for consumers,” Harris said in an interview. She said that her agency’s approach is not politically driven but remains committed to closing regulatory gaps when necessary. It is worth noting, however, despite the claims, the department has been quick to trot out an 8-figutre headline to the electorate.
The federal landscape continues to evolve, with recent efforts aimed at restructuring financial oversight, including potential agency mergers and shifts in enforcement priorities at the Consumer Financial Protection Bureau (CFPB). As these changes unfold, state regulators like the NYDFS may take on a more active role in overseeing our industry
