The insurance industry wanted meaningful no-fault auto insurance reform to a broken system that cost New Yorkers $385 million in 2010. What they got was a bill the NYIA says will negatively impact consumers.

“The legislature failed to pass any meaningful reform and then passed a bill we think will result in drivers paying more for insurance,” Melchionni says. “It was a major disappointment. It seems as if the legislature doesn't want to tackle the issues for fear of upsetting trial lawyers and doctors.”

The bill that was passed amends the supplementary uninsured—underinsured motorist (SUM) law, which protects drivers against other drivers who are not insured or underinsured.

Melchionni says policyholders opted for SUM coverage but now they must opt out of the increased SUM insurance.

“Drivers are going to be paying more for insurance they may not want and we are worried about the law's implementation; there are lots of technical problems with it,” she explains.

In an effort to make the bill more palatable to insurers, lawmakers attached a weak no-fault provision having to do with durable medical equipment, Melchionni adds.

“They hoped the addition of this provision would make the industry agree to swallow the bill, but it won't do anything meaningful to combat no-fault fraud,” she says.

The NYIA and its members are urging Cuomo to veto the bill.

The Department of Financial Services adopted a new regulation earlier this year to go after doctors looking to cheat the system.

Melchionni gives the DFS credit but for true no-fault reform, “changes to the statute are needed,” she says.