NY Threatens Fines for Slow Auto ID Card Notification
Agencies with customers who have vehicles registered in New York soon may receive a push from their company partners to notify them as soon as they issue an auto ID card. This is especially important for agencies that do not use insurers’ portals or an integrated agency management system.
New York state regulators recently began enforcing a requirement that insurers notify the Department of Motor Vehicles of vehicle liability insurance coverage transactions within seven days. The regulation impacts vehicles registered in New York for which an insurer issues an insurance ID card or insurance certificate.
The New York Departments of Motor Vehicles and Financial Services earlier this year notified insurers of the change – and threatened fines for non-compliance. At least one carrier alerted its agents of the need to process new business promptly in order to avoid those fines. We anticipate that more carriers will do the same.