Insurers Slam NY Over Use Of Assessment Funds

Law360, New York (January 14, 2010, 1:19 PM EST) -- An insurance trade group has accused the state of New York of abusing insurance law to create a slush fund for illegally doling out money to other state agencies.

The New York Insurance Association said the state's Insurance Department diverted assessment funds to pay expenses for other state departments over the past decade, according to a lawsuit filed Wednesday in the New York Supreme Court.

While the department has been allocating the funds to noninsurance agencies for years, the practice exploded beginning with the 2008-09 fiscal...
To view the full article, register now.