N.Y. Comp. Codes R. & Regs. tit. 9 § 4.78

Current through Register Vol. 46, No. 45, November 2, 2024

Section 4.78 - Executive order no. 78: establishing an advisory commission to make findings and recommendations about problems relating to liability insurance

WHEREAS, there have been sudden and dramatic increases in the cost of liability insurance, and in certain cases such insurance has recently been unavailable or available only with reduced coverage or available only from a single carrier;

WHEREAS, the availability of liability insurance at reasonable cost and with reasonable coverage is a matter of urgent concern in New York State for governmental entities, not-for-profit public service organizations, businesses, directors and officers, professionals of various kinds, and others, and has a significant effect on the economy of the State;

WHEREAS, the sudden emergence of this problem raises questions about its cause and gives ground for concern that the response not be precipitous;

WHEREAS, data and analysis to determine the causes of such difficulties are needed to enable New York State government to fashion a reasonable remedy to the problem;

WHEREAS, the provisions of the Insurance Law that allow premiums in certain lines of insurance to be set on a competitive basis and without prior regulatory approval were due to expire on December 31, 1985 and have been extended under recently enacted legislation until May 15, 1986;

WHEREAS, the above-described events raise questions as to the efficacy of these provisions of law;

WHEREAS, it is urged by some that significant changes in the law fixing liability for conduct which causes injury to another are needed to assure the availability of adequate insurance at reasonable cost; and

WHEREAS, the soundness of this suggestion cannot be assessed without an adequate inquiry:

NOW, THEREFORE, I, Mario M. Cuomo, Governor of the State of New York, by virtue of the authority vested in me by the Constitution and the laws of the State of New York, do hereby establish an Advisory Commission to Make Findings and Recommendations about Problems Relating to Liability Insurance ("the Advisory Commission") to study these matters and recommend possible legislative or administrative action.

I. Powers and Responsibilities

The Advisory Commission shall:

(1) study and report on the history and causes of, and contributing factors to, the current liability insurance availability and affordability problem, including why there has been a sudden withdrawal of such coverage from the market and a sudden dramatic increase in cost;

(2) analyze and report on the impact of the problem on the different classes of insureds;

(3) develop and recommend to the Governor any regulatory or policy changes necessary to alleviate such problem;

(4) develop and recommend to the Governor and the Legislature any legislative proposals necessary to alleviate such problem; and

(5) submit to the Governor and the Legislature a report, by March 31, 1986, which shall, at a minimum, identify the major causes of the problem, the areas of most pressing concern and the recommendations for immediate action developed by the Advisory Commission. The Commission shall recommend a time schedule for any further study it considers appropriate.

II. Membership

The Advisory Commission shall consist of a chairman and 14 other members to be appointed by the Governor, and four members appointed by the Governor upon the recommendation of the Temporary President of the Senate, the Speaker of the Assembly, the Minority Leader of the Senate, and the Minority Leader of the Assembly.

The members of the Advisory Commission shall receive no compensation for their services, but shall be allowed their actual and necessary expenses incurred in the performance of their duties.

The Advisory Commission may employ and at its pleasure remove such personnel as it may require, and fix their compensation.

The Advisory Commission may request and shall receive from any department, division, board, bureau, commission or agency of the State such assistance and data as will enable it properly to carry out its powers and responsibilities. The Director of the Budget, the Director of Economic Development, the Superintendent of Insurance, the Executive Director of the Consumer Protection Board, the Special Counsel to the Governor, and the Secretary of State shall serve as nonvoting, ex officio members of the Advisory Commission.

Signed: Mario M. CuomoDated: January 13, 1986

[FN*] [Revoked by Executive Order No. 31 (George E. Pataki), infra.]

[FN[DAGGER]] [Revoked by Executive Order No. 5 (Eliot Spitzer), infra.]

[Revoked by Executive Order No. 9 (David A. Paterson), infra.]

[Revoked by Executive Order No. 2 (Andrew M. Cuomo), infra.]

N.Y. Comp. Codes R. & Regs. Tit. 9 § 4.78