The New York State Legislature has likely killed a series of proposed fine increases for agents, brokers and insurers, as well as a hike in the state's Motor Vehicle Insurance fee.
Fee and fine increases were outlined in former Governor Eliot Spitzer's 2008-09 Executive Budget, but were omitted from the one-house budget bills that passed the State Senate and Assembly last week.
Mr. Spitzer's proposal would have raised the Motor Vehicle Insurance fee from $5 to $20 on most vehicles registered in the state.
Additionally, fines for agent license violations would have been increased by thousands of dollars in some cases.
Michael Barrett, legislative representative for the Independent Insurance Agents and Brokers of New York (IIABNY), which opposed fee and fine increases, said, "We had been lobbying against this since former-governor Spitzer's budget came out. And I think a lot of legislators…agreed with us that those were really unreasonable [fine] increases."
He added, "People didn't like the increase in the [Motor Vehicle Insurance] fee. So at this point they are out of the one-house bills."
Mr. Barrett noted that a final budget has not yet passed, and it is possible, though not likely, that the fees and fines could find their way back in, but "so far so good."
However, he cautioned that "it's never over until it's over in this business. They do have to put a final budget together by [April 1], but I'm cautiously optimistic at this point that they're going to keep [the fee increases] out of there."
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