A state law that prohibits corporations from suing a state’s governments over public safety is an important step in protecting public safety, according to the National Association of Insurance Commissioners.
The state law was signed into law by Gov.
Andrew Cuomo on Wednesday.
It allows corporations to sue a state if a public safety agency does not have adequate oversight or a process to prevent future injuries.
The law also bars the states from adopting policies that prevent insurance companies from negotiating rates with insurers.
The state has also been criticized for its use of arbitration clauses in its insurance contracts.
“We are pleased that the governor has signed this important legislation,” said Jeff Shafer, president and CEO of the NALCO, which represents insurance industry workers.
The NALCo, which includes all of the state’s insurance carriers, said in a statement the bill would help states protect their employees and businesses.””
The legislation also protects the interests of workers and small business by ensuring that insurance companies cannot use arbitration clauses to lock in lower rates for workers, and the ability of insurers to use arbitration as a method of reducing claims, when there is no dispute or disagreement in the insurance company’s policies.”
The NALCo, which includes all of the state’s insurance carriers, said in a statement the bill would help states protect their employees and businesses.
“States and insurance carriers should not be able to force them to settle lawsuits they know they can’t win,” Shafer said.
“If states and insurers want to protect workers and businesses, they need to ensure they can set rates and negotiate with their insurance companies without the use of any arbitration clauses.”
Shafer also pointed out that states have been sued by insurance companies over their use of their power under arbitration clauses.
“When a court issues a decision, the court does not hear a case or hear a witness testimony in an arbitration case.
It hears the arguments and the facts and issues the ruling,” Shafer said.
The NAPC, which advocates for consumers, said that the insurance industry is not the only one that needs to be more cautious when using arbitration clauses and said that states should look at whether the clauses are necessary to protect consumers.
“A state should be careful about the types of clauses they are using, whether they are in good faith, whether the state is following its own policy,” Shafe said.
Shafer said that he hopes the bill will become law as the industry moves forward with a plan to get its insurance companies to agree to arbitration clauses before their contracts become binding.
“This is not a big issue that will be resolved in a couple of years, but it’s important that the industry works to find a way forward, because it’s very clear that states are not going to do that in the long term,” he said.
A spokeswoman for the New York State Attorney General’s Office did not respond to a request for comment.