The New York Department of Financial Services published a bulletin providing guidance to insurers on motor vehicle insurance reforms.
The reforms come following the signing of Chapter 55 of the Laws of 2026 on May 27, 2026, and Chapter 58 on May 26, 2026. The first amendment is an expanded definition of "fraudulent insurance act," which now includes a person who hires, requests, encourages, orchestrates, or invites another person to stage a motor vehicle accident.
Another reform is the introduction of a $100,000 cap on non-economic damages in an action resulting from a serious injury related to a motor vehicle accident that is brought by an at-fault injured person. The cap is placed on an injured person who was operating an uninsured motor vehicle, operating a motor vehicle while impaired, or operating a motor vehicle while in the commission of a felony.
The reforms also added the adoption of modified comparative negligence. This states that for an action to recover damages for personal injury, the culpable conduct attributable to the claimant bars recovery if the conduct of the claimant is greater than the culpable conduct of the person from whom recovery is sought.
The Department expects that these changes will result in reductions in claim frequency, severity, and loss adjustment expenses, and expects that insurers evaluate the projected savings when filing their rates. The changes should be reflected in rate filings by August 31, 2026.
The bulletin can be found here.