Key Takeaways
- The New York Department of Financial Services (DFS) regulates all insurance activities under the New York Insurance Law
- The Superintendent of Financial Services is appointed by the Governor and confirmed by the State Senate
- DFS was created in 2011 by merging the Insurance Department and Banking Department
- DFS handles licensing, rate review, market conduct examinations, and consumer complaints for P&C insurance
- New York uses a prior approval system for most property and casualty insurance rates
New York Department of Financial Services (DFS)
Important: This study guide covers New York state-specific Property & Casualty insurance content only. You should complete the national Property & Casualty exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The New York Department of Financial Services (DFS) is the state agency responsible for regulating the Property & Casualty insurance industry in New York. DFS was created in 2011 by merging the former Insurance Department and Banking Department.
The Superintendent of Financial Services
The Superintendent of Financial Services is:
- Appointed by the Governor
- Confirmed by the State Senate
- Responsible for enforcing the New York Insurance Law
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
Superintendent Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | Approve or disapprove P&C insurance rates |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations interpreting the Insurance Law |
Rate Regulation
New York uses a prior approval system for most P&C insurance:
Key Provisions
- Prior Approval: Most P&C rates must be approved by DFS before use
- Rate Standards: Rates must not be excessive, inadequate, or unfairly discriminatory
- Loss Costs: Advisory organizations file loss costs; insurers add their own expenses
- Rate Deviation: Insurers may deviate from filed rates with DFS approval
Prior Approval Lines
Most personal lines require prior approval:
- Personal auto insurance
- Homeowners insurance
- Workers' compensation
- Most commercial lines
Exam Tip: New York's rate regulation is strict. Know that most P&C rates require prior approval by DFS.
DFS Organization
DFS operates through several divisions for P&C insurance:
- Property Bureau - Handles property/casualty licensing and regulation
- Health Bureau - Life and health insurance
- Consumer Assistance Unit - Consumer complaints and questions
- Frauds Bureau - Investigates insurance fraud
- Financial Supervision - Monitors insurer solvency
How is the New York Superintendent of Financial Services selected?
When was the New York Department of Financial Services (DFS) created?