The Insurance Division of the New York Department of Financial Services has proposed a regulation severely limiting the use of releases in the settlement of both first party and third party claims. The consequences of this proposal, in particular how the regulation places the interests of third party claimants above those of policyholders, are the subject of my Insight column in the October 15th issue of Insurance Advocate entitled “When is a Release Not a Release?” Here is a link.
While we’re on the subject, how about we agree that it is OK to refer to the Insurance Division of the New York Department of Financial Services as simply the NY Insurance Department, NYID or NYDOI as in the old days? Like those of us that still refer to the Met Life Building in Midtown Manhattan as the Pan Am building although it has not borne that names since 1981. Unfortunately, the NY Insurance Division of the DFS does not lend itself easily to an acronym, although Superintendent Lawsky has acknowledged that the DFS is lovingly referred to as Doofus in some quarters. So how about I-Doofus for the insurance division? Like the classic I Claudius? Just a thought.