Unless insurance carriers in New York obtain a court injunction, the state will become the 12th in the country to mandate that insurers disclose the reasoning behind their premium hikes. The new law was proposed by Benjamin M. Lawsky, the state superintendent of financial services, and is poised to go into effect by the end of November.
Not surprisingly, insurers are fighting back. Of the 12 insurers in the state, only two have not filed an objection against the law. Ten others said in letters last week that such a disclosure would give competitors an unfair advantage, possibly reducing commissions and raising prices even higher. They also noted that the documents were likely too complex for the average consumer to understand, a complaint that the law’s supporters termed “patronizing” and unfair.