Day Pitney remains committed to providing quality legal counsel, while protecting our clients and employees, and transforming our communities into more just, equal and equitable spaces. For more information, please visit our COVID-19 Resource Center | Racial Justice and Equity Task Force.
The New York Department of Financial Services enacted new regulations this week that are aimed to prevent discrimination in auto insurance based upon education or employment. The sticky point is that many underwriters find this data to be predictive of losses. These two criteria will be generally prohibited from use in establishing initial tier placement, tier movement or premium rate for private passenger automobile insurance in New York.
The DFS left the door open to insurers to prove that the use of these two criteria would not result in unfairly discriminatory pricing. In the case of occupation, this means showing that a particular line of employment has a reasonable relationship to loss without reference to becoming unemployed or income. Insurers have 180 days to comply; the regulation will become effective 90 days after publication in the State Register and provides 90 days to amend multi-tier rating systems.
One unanswered question is whether the NYDFS may suggest that not marketing to certain populations based upon education or employment will result in discriminatory treatment. It will be important to look for clues to the use of this approach.
Day Pitney Advisory
Litigation partner James H. Rotondo and Insurance associate Jason E. Rusche authored the article, "The Litigation Privilege: Immunity for False Pleadings and Discovery Responses?" for the Connecticut Law Tribune.
On June 8, Day Pitney Counsel Elizabeth P. Retersdorf will present at “COVID-19 Litigation: Past, Present and Future,” hosted by the Mutual Service Office.
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Day Pitney Press Release
On March 24, Insurance and Reinsurance Partner Jonathan Zelig was elected President of the Massachusetts Insurance and Reinsurance Bar Association.
On April 8, the firm obtained an appellate victory on behalf of The Hartford.
Day Pitney Press Release
Day Pitney secured a significant victory for those Certain Underwriters at Lloyd's of London ("Lloyd's") who participated as reinsurers on a number of excess-of-loss reinsurance contracts.
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