N.Y. Gov. Nixes State Agency Mailing Bill

New York Gov. Andrew Cuomo vetoed a bill (S.6285-A/A.9034B) on Aug. 17 that would have banned state agencies from disseminating ads to the public for products that relate to the subject matter of the agency — such as GEICO ads alongside vehicle registration renewals.

The Professional Insurance Agents of New York State, an independent agents advocacy group, expressed its disappointment at the governor’s decision. The group said the practice of state agencies disseminating ads — such as ads for national direct writers in Department of Motor Vehicles mailings — harms independent agencies.

Gov. Cuomo said he would order state agencies to add a disclaimer in any mailings with ads that the state does not endorse any particular products or services. But PIANY says that’s not enough.

N.Y. Raises Gift Value for Producers

Separately, Gov. Cuomo signed a bill last month that allows P/C insurers, brokers and agents to give gifts worth up to $25 to insureds or prospective clients during the insurance sales process.

The new law amends the existing anti-rebating provisions. Rebating, lowering commission or offering any valuable consideration or inducement for insureds or prospective clients have been prohibited in the state — with the only exception being keepsake gifts valued at less than $15. The new law also removes the previous restriction that such gifts must have “conspicuously stamped or printed thereon the advertisement of the insurer, agent or broker.”