New York State
Insurance Department


ISSUED: 8/31/2001

FOR IMMEDIATE RELEASE

NEW YORK’S CONSUMERS REMAIN PROTECTED, LOWER COURT’S RULING STAYED

            The New York State Insurance Department today announced that Regulation 68 will be effective September 1, 2001. On advice of the Attorney General, the Department’s serving and filing of a notice of intent to appeal the temporary order by the New York Supreme Court, stays the effect of the lower Court’s order as a matter of law and the regulation remains in force.

            "Regulation 68 is an integral part of a comprehensive plan to reduce fraud, save consumers money, and continue stability and affordability in the auto insurance marketplace," said Department spokesperson Joanna Rose. "We fully expected the special interest groups to put their interests in lining their own pockets ahead of protecting New York’s consumers from the costs of automobile insurance fraud and abuse. We will continue to fight against fraud and protect New York’s hard-working honest insurance consumers. We are pleased that this important regulation will remain in place."

            The Department has issued Circular Letter #24 advising the industry that Regulation 68 remains in effect upon serving and filing of the notice of appeal as a matter of law. The September 1, 2001 effective date applies to all new policies issued after the date and all policies renewed after the date.


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