Under New York’s insurance law, all auto insurers are required to report newly insured vehicles to the DMV’s Insurance Information & Enforcement System (IIES) within seven days of the policy’s start date. (Credit: Roman Tiraspolsky/AdobeStock)
Auto insurers in New York are facing a total of $20.4 million in fines as the result of an investigation by the state’s Department of Financial Services.
New York State Department of Financial Services Superintendent Adrienne A. Harris announced on February 24 that a multi-year study into the failure of auto insurers to report vehicle information to the state’s Department of Motor Vehicles (DMV) resulted in 37 consent orders and the aforementioned fines spread across the industry.
Under New York’s state insurance law, all auto insurers are required to report newly insured vehicles to the DMV’s Insurance Information & Enforcement System (IIES) within seven days of the policy’s start date. The IIES is a comprehensive system that monitors the insurance status of all vehicles registered in New York. Registrants are required to provide the VIN of a vehicle while registering it, which is then used to track insurance changes according to carrier reporting.
State law also requires insurers to report the termination or suspension of an auto policy within 30 days of the end date.
This system serves to help law enforcement identify uninsured vehicles and keep them off the roadways.
“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,” Superintendent Harris said in a release. “These actions demonstrate DFS’s unwavering commitment to holding insurers accountable and safeguarding consumers.”
As part of the consent orders issued, insurers are required to implement comprehensive remediation plans to correct their report process that are subject to approval by the DMV.
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