What’s new: In brief (December 08, 2004)

The Association of Designated Assessment Centres (ADAC) has come out against proposed changes which would eliminate DACs in Ontario. In a statement Wednesday, ADAC says, “Premier Dalton McGuinty’s government is quietly trying to take away the independent “referee” who decides how auto accident victims should be compensated for their injuries. The move – which could become reality as early as January 7, 2005 under the Liberal plan would give insurance companies all the power at the expense of the average consumer and policyholder.”

New York Attorney General Eliot Spitzer has made it official he will run for state governor in 2006. The announcement was expected and comes amidst probes carried out by Spitzer’s office into several areas of the insurance industry, notably broker compensation, but also finite risk reinsurance and most recently legal malpractice insurance. In his announcement this week, Spitzer says, “I bring people together whether they like it or not and we tackle complex problems not with band-aid solutions, but with major reform and real change. We did it in the financial industry and other sectors and we can do it in government.”

The Risk & Insurance Management Society (RIMS) says it will take part in hearings before the insurance committee of the New York State Assembly on broker compensation issues. It has already taken part in the U.S. Senate subcommittee hearings, as well as working with the National Association of Insurance Commissioners (NAIC) task force on the issue. And RIMS representatives have met with regulators and legislators, including Attorneys General from New York, Massachusetts and Connecticut, as well as insurance commissioners from New York and California.