Maria Vullo, Superintendent of the New York State Department of Financial Services (NYLJ/Rick Kopstein)
Gov. Andrew Cuomo has signed legislation creating a board to advise the state Department of Financial Services on New York insurance regulation.
Cuomo signed the bill (A376/S1066) on March 15. It includes amendments that the governor requested when signing into law a 2016 bill that also provided for establishment of a state Insurance Advisory Board.
Under the law, the 10 members of the unpaid board will be selected by the superintendent of the state Department of Financial Services, Maria Vullo, who is empowered by the law to make rules on how the board members are to be nominated. Seven members must be representatives of domestic insurance companies, one an insurance producer, and two consumer representatives.
The new statute stipulates that the board is to advise Vullo on how to both protect insurance consumers and the “financial condition of insurers.” It may propose laws or regulatory changes to further that goal, the statute says, so long as they “promote the prudent and continued availability of insurance products and services at affordable costs.”
Other state entities rely on the guidance of experts within their area of control, including the state Office of Court Administration, which uses several advisory committees to the chief judge or the chief administrative judge to devise policies toward the judiciary and the operations of the courts.
The state Department of Financial Services was created in 2011 from the consolidation of the NYS Department of Insurance and the state Department of Banking.