NY Cuts Rate For Assigned Risk Drivers
NU Online News Service, July 7, 4:14 p.m. EDT?New York Gov. George E. Pataki announced yesterday that premium rates would be cut by 2 percent for thousands of drivers in the state's assigned risk pool.[@@]
According to Gov. Pataki, the decrease would affect more than 337,000 persons receiving coverage under the New York Assigned Risk Plan.
The Republican governor's announcement of the rate reduction said that it and other recently announced rate decreases were the result of his efforts to fight auto insurance fraud and he called on the Democrat-controlled Assembly to move a fraud legislation package that, he said would further reduce fraud and provide more savings to New York drivers.
"This rate reduction is proof that our efforts to fight fraud are working and New York's drivers will now see lower insurance premiums as a result," Gov. Pataki said.
Democrats have balked at passing the legislative package arguing that some of the penalties it includes are too harsh, and that tackling fraud is a piecemeal approach to revising insurance law, which they say needs a provision for an ombudsman to monitor rates.
Gregory V. Serio, Superintendent of Insurance, said, "Under Governor Pataki's leadership, New York is on an aggressive crusade against insurance fraud and abuse. We are already on the path to lower rates, but still need stronger measures to attack fraud so even more New Yorkers will see their rates decrease."
The Assigned Risk Plan consists of those policyholders who are unable to obtain insurance in the voluntary market. They generally have poor driving records, little or no prior driving experience, or a high frequency of claims.
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