NY Insurance Regulator Reins In Industry With Bold Tactics
By Bibeka Shrestha
Law360, New York (February 27, 2013, 5:30 PM EST) -- Armed with strict new rules and led by a former prosecutor, the New York Department of Financial Services has been publicly pressuring insurers to resolve claims from Superstorm Sandy and reduce steep force-placed insurance rates, fueling a perception that the fledgling agency has more teeth than its predecessor.
The DFS began probing the force-placed insurance market, which consumer advocates long accused of being rife with kickbacks and excessive rates, almost as soon as the agency sprang into existence in October 2011. When Sandy struck a year...