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Eric R. Dinallo   Superintendent of Insurance  25 Beaver Street  New York, N.Y. 10004

ISSUED 05/19/2009 FOR IMMEDIATE RELEASE

DINALLO: INSURERS REFUNDED $217 MILLION TO NEW YORKERS, FINED $18 MILLION

Insurance Department marks milestone with 150th Annual Report; Superintendent says consumer protection focus strong argument for continued state insurance regulation

Insurance companies refunded or credited more than $217 million to New Yorkers over the past two years and paid $18 in million in fines during that period, Insurance Superintendent Eric Dinallo said today as he submitted the 2008 Annual Report of the Superintendent to the Legislature. The fines and refunds were among the consumer protection measures Dinallo highlighted as he presented the historic report.

That amount does not include $2 billion recovered for policyholders affected by the destruction of the World Trade Center in the largest regulatory settlement ever reached in New York State. Also not included is $2 billion negotiated for SCA/XL policyholders by the Department.

The 2008 Annual Report is the 150th such report issued by the Department, which was established by the Legislature in 1859 and is believed to be the oldest independent regulatory agency in the United States.

“We are here to protect policyholders,” Dinallo, who was nominated as Superintendent in January 2007, said. “Consumer protection has been at the heart of the Insurance Department’s mission since William Barnes was named the first Superintendent 150 years ago. A century and a half after its founding, the Department’s commitment to consumers is unsurpassed. As these numbers note, while our daily work for consumers may not make the front pages, it is just as important as what we have done to keep the industry vital during these difficult times.”

Dinallo listed several consumer protection efforts undertaken during his tenure, including:

Enforcement actions for consumer protection resulted in fines, refunds, license revocations and other disciplinary activity, including:

“Especially in this difficult economy, we will keep working to make sure New Yorkers get the protection they deserve,” Dinallo said, noting the Department has a number of upcoming regulatory and legislative initiatives both small and large, including:

The Annual Report documents the Insurance Department’s activities, including its work to protect bond insurance policyholders and help to avert the collapse of American Insurance Group (AIG) as the most serious economic crisis since the Great Depression unfolded in 2008. The Report also describes Dinallo’s leadership role in urging the continued regulation of insurance by the states.

“State insurance regulators serve a vital and relevant role in overseeing and fostering a vibrant, well-functioning and competitive insurance marketplace with strong state-based consumer protections. This coordinated, national system of state-based insurance supervision continues to meet the needs of the modern financial marketplace while effectively protecting individual and commercial policyholders,” Dinallo said.

Other highlights of the report included:

The complete report is available on the Insurance Department’s website, www.ins.state.ny.us.

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