• New York ranks almost last amongst state insurance regulators (Rutgers Law).

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• The Non-admitted and Reinsurance Reform Act (NRRA) allows insurers to select the home state of the insured for tax purposes, and New York’s regulations, while strict, are seen as favorable to insurers. Furthermore, New York’s historical leniency in penalties for bad faith claims, combined with the difficulty of policyholders in proving such claims, makes it a less risky jurisdiction for insurers​ (Law.com) ​(Insurance Journal)​ (Investopedia).

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• States like California, Florida, and Texas usually see more complaints than New York due to their increased susceptibility to natural disasters. However, New York’s favorable laws for insurers and lack of regulation places the state has left policyholders without adequate protections against insurance carrier misconduct ​(R Street Institute)​ (NAIC)​ (III).

 

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