New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle A - Governor's Office › Chapter I - Executive Orders › Part 4 - Executive Orders (Mario M. Cuomo) › Section 4.78 - Executive order no. 78: establishing an advisory commission to make findings and recommendations about problems relating to liability insurance

Current through Register Vol. 46, No. 28, July 10, 2024
WHEREAS, there have been sudden and dramatic increases in
					 the cost of liability insurance, and in certain cases such insurance has
					 recently been unavailable or available only with reduced coverage or available
					 only from a single carrier;
WHEREAS, the availability of liability insurance at
					 reasonable cost and with reasonable coverage is a matter of urgent concern in
					 New York State for governmental entities, not-for-profit public service
					 organizations, businesses, directors and officers, professionals of various
					 kinds, and others, and has a significant effect on the economy of the
					 State;
WHEREAS, the sudden emergence of this problem raises
					 questions about its cause and gives ground for concern that the response not be
					 precipitous;
WHEREAS, data and analysis to determine the causes of such
					 difficulties are needed to enable New York State government to fashion a
					 reasonable remedy to the problem;
WHEREAS, the provisions of the Insurance Law that allow
					 premiums in certain lines of insurance to be set on a competitive basis and
					 without prior regulatory approval were due to expire on December 31, 1985 and
					 have been extended under recently enacted legislation until May 15,
					 1986;
WHEREAS, the above-described events raise questions as to
					 the efficacy of these provisions of law;
WHEREAS, it is urged by some that significant changes in
					 the law fixing liability for conduct which causes injury to another are needed
					 to assure the availability of adequate insurance at reasonable cost; and
WHEREAS, the soundness of this suggestion cannot be
					 assessed without an adequate inquiry:
NOW, THEREFORE, I, Mario M. Cuomo, Governor of the State of
					 New York, by virtue of the authority vested in me by the Constitution and the
					 laws of the State of New York, do hereby establish an Advisory Commission to
					 Make Findings and Recommendations about Problems Relating to Liability
					 Insurance ("the Advisory Commission") to study these matters and recommend
					 possible legislative or administrative action.
I. Powers and Responsibilities
The Advisory Commission shall:
(1) study and report on the history and
				  causes of, and contributing factors to, the current liability insurance
				  availability and affordability problem, including why there has been a sudden
				  withdrawal of such coverage from the market and a sudden dramatic increase in
				  cost;
(2) analyze and report on the
				  impact of the problem on the different classes of insureds;
(3) develop and recommend to the Governor any
				  regulatory or policy changes necessary to alleviate such problem;
(4) develop and recommend to the Governor and
				  the Legislature any legislative proposals necessary to alleviate such problem;
				  and
(5) submit to the Governor and
				  the Legislature a report, by March 31, 1986, which shall, at a minimum,
				  identify the major causes of the problem, the areas of most pressing concern
				  and the recommendations for immediate action developed by the Advisory
				  Commission. The Commission shall recommend a time schedule for any further
				  study it considers appropriate.