Agent associations in New York are responding with mixed reactions to Governor Eliot Spitzer's plan to increase the cost of penalties for certain insurance violations.

The increases, outlined in Gov. Spitzer's proposed Executive Budget, include a jump from $5,000 to $10,000 for “acting as an insurance producer or consultant without a license,” an increase that the Independent Insurance Agents and Brokers of New York (IIABNY) found particularly distressing.

IIABNY spokesman Bruce Barry said the association opposes all of the increases across the board, but the fine increase related to licensing was particularly striking because, in some cases, producers neglect to renew their licenses out of error rather than a willful attempt to defraud the public.