IN THE MATTER OF INSURANCE PREMIUM FINANCE ASSOCIATION OF NEW YORK STATE, ET
AL., RESPONDENTS, v. THE NEW YORK STATE DEPARTMENT OF INSURANCE, ET AL.,
APPELLANTS.
88 N.Y.2d 337, 668 N.E.2d 399, 645 N.Y.S.2d 428 (1996).
June 6, 1996
1 No. 151 (1996 NY Int. 125)
Decided June 6, 1996
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This opinion is uncorrected and subject to revision before publication
in the New York Reports.
Martin J. Hertz, for Appellant NY Auto Insurance Plan.
August L. Fietkau, for State Appellants.
Richard Gabriele, for Respondents.
SIMONS, J.:
This is an article 78 proceeding instituted by several premium
finance agencies and the trade association representing them. They
seek to annul a determination by respondent Salvatore Curiale,
Superintendent of Insurance of the State of New York, approving and
adopting an amendment for financing assigned risk insurance policies
proposed by respondent New York Automobile Insurance Plan (AIP). The
Superintendent adopted the amendment without publishing any notice of
the proposed rule, affording any opportunity for public comment,
issuing either a regulatory impact statement or regulatory flexibility
analysis, or filing the proposed amendment with the Secretary of
State. Because of those omissions, petitioner contends the Plan failed
to satisfy the requirements of the State Administrative Procedure Act
(SAPA), Executive Law § 102 and the filing requirements of article 4,
section 8 of the New York Constitution. Supreme Court granted the
petition and nullified the Plan. The Appellate Division affirmed and
granted respondents leave to appeal. We conclude that the cited
provisions do not apply to AIP or the amendment and therefore reverse.
In New York, all automobile owners are required to purchase and
maintain automobile liability insurance (Vehicle & Traffic Law § 312).
Some owners are unable to obtain coverage, however, because insurers
believe they pose unreasonable risks. In order to provide insurance
for all motorists owning and operating automobiles in New York, the
Legislature enacted Article 53 of the Insurance Law authorizing the
Superintendent of Insurance to approve a "reasonable plan" requiring
private insurance companies to provide automobile insurance to owners
SNIPPETS:
IN THE MATTER OF INSURANCE PREMIUM FINANCE ASSOCIATION OF NEW YORK STATE,
This opinion is uncorrected and subject to revision before publication in the New York
Richard Gabriele, for Respondents.
This is an article 78 proceeding instituted by several premium finance agencies and the trade
They seek to annul a determination by respondent Salvatore Curiale, Superintendent of
Because of those omissions, petitioner contends the Plan failed to satisfy the requirements
In order to provide insurance for all motorists owning and operating automobiles in New York,
The first assigned risk Automobile Insurance Plan was created and adopted pursuant to this
To enable and assist such persons to participate in the AIP, the State Legislature enacted
Petitioner Insurance Premium Finance Association is a trade association representing premium
Prior to October 1992 persons applying for insurance coverage under the AIP had two payment
the AIP proposed the amendment which petitioners challenge in this litigation (the "Six
The Plan was adopted by AIP after several months of study by a Task Force investigating the
They contend that they were not obliged to do so because AIP is not subject to the statute
Both parties agree that the AIP is not an "agency" within that definition because the
AIP was created by private insurers to provide liability insurance for drivers unable to
The Legislature authorized insurers to organize AIP so that "a detailed and comprehensive set
Accordingly, the order of the Appellate Division should be reversed, with costs, and the
Amendments to the plan may be made by the committee designated to administer the plan,
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