New York state agency sued by association for using insurer assessments to fund other agencies

NY state sued over use of insurer assessments

ALBANY, N.Y. — A trade association is suing New York’s Insurance Department, claiming its assessment on insurers has been misappropriated over the past decade to help fund other state agencies.

The suit filed Wednesday by the New York Insurance Association says the current state budget includes nearly $455 million from assessments intended for Insurance Department expenses, but $317 million of that is allocated for other programs.

Association President Ellen Melchionni says the state is treating the assessments, which have risen more than $350 million since 2000, as “a bottomless ATM.”

State Insurance Department and Budget Division spokesmen declined to comment on pending litigation.