Sunday, February 15, 2009

New York Domestic Insurers: That'll Be Another $180 Million, Net 30, Please -- New York State Insurance Department Circular Letter No. 2 (2009)

February 11, 2009
TO:ALL NEW YORK DOMESTIC INSURERS
RE:DEFICIT REDUCTION PLAN - SECTION 332 ADDITIONAL ASSESSMENT

As part of the State's Deficit Reduction Plan, Chapters 1 and 2 of the Laws of 2009 were signed into law by Governor Paterson on February 4, 2009. Those provisions increase the Insurance Department's appropriation by $180 million, and authorize the Superintendent of Insurance to assess domestic insurers for the total value of the enacted appropriation for fiscal year 2008-09. The enacted appropriation for the fiscal year ending March 31, 2009 is $443.0 million. Accordingly, as mandated by the legislation, the Superintendent is required to impose an additional assessment on domestic insurers. Pursuant to Section 18 of the State Finance Law, payment is due within 30 days of receipt of the bill. The Department will consider late any payment postmarked after March 13, 2009, and may assess late penalties accordingly.

Sincerely,
Christopher F. Rulon
Deputy Superintendent for Operations

2 comments:

Jeff said...

Seeing that Wall St Bankers are now gone, where's the next pile of private money that can be raided without public outcry? I believe NYS is or will be running out of geese laying golden eggs very, very soon.

Roy A. Mura said...

I posted this so readers would know how seemingly indiscriminately NYS can levy and recoup its Wall Street-related losses on other NY businesses and taxpayers. This is just another indirect tax, as the NY domestic insurers will no doubt pass along their additional assessment to premium-paying policyholders.

Not sure whether to smile or wince at the fact that the $180 million additional appropriation equaled what NYS lost in income taxes on unpaid Goldman Sachs bonuses in Q4 of last year (http://www.foxnews.com/story/0,2933,470564,00.html). Coincidence?