New York State Department of Financial Services Superintendent Adrienne A. Harris has concluded a sweeping, multi-year investigation into auto insurers’ failure to report insured vehicle information to the DMV in a timely manner, resulting in $20.4 million in fines. The enforcement action includes 37 consent orders and marks a significant step in holding insurers accountable for compliance failures.
“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,” said Harris. “These actions demonstrate DFS’s unwavering commitment to holding insurers accountable and safeguarding consumers.”
Under New York Insurance Law, insurers must report newly insured vehicles to the DMV’s Insurance Information & Enforcement System (IIES) within seven days of a policy’s effective date. Additionally, most terminations or suspensions of insurance must be reported within 30 days. These reporting requirements are crucial for law enforcement to identify uninsured vehicles, ensure accurate DMV records, and protect motorists in the event of an accident.
As part of the consent orders, insurers are now required to implement comprehensive remediation plans to correct reporting deficiencies. The plans will be subject to DMV approval, ensuring that future compliance is met.
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