The New York Insurance Association Inc. has gone to court to try to change the way New York state handles insurance assessments.
The state is supposed to be using the "332 assessments" to cover the expenses of the New York State Insurance Department, according to the NYIA, Albany, N.Y.
But, in 2009, the cash-strapped state used $317 million of the $455 million in insurer assessment revenue to fund other agencies, the NYIA says.
The level of diversion has increased dramatically since 2000, the NYIA says.
The NYIA has filed a suit seeking to change state use of insurer assessments with a state court in Albany.
"NYIA filed this lawsuit because the state is treating the 332 assessment as a bottomless ATM for programs that may be worthy but cannot legally be funded by this assessment," NYIA President Ellen Melchionni says in a statement.
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