In a major victory for insurance modernization and consumer protection, New York Gov. Kathy Hochul officially signed S.5331-A/A.4404-A into law—bring the Empire State into a new era of real-time insurance verification for motor vehicles. PIANY enthusiastically supported this legislation from the start, advocating for its passage to reduce administrative burdens and protect insured drivers from unnecessary penalties.
What the new law does
S.5331-A/A.4404-A establishes a statewide online insurance verification system that allows the New York Department of Motor Vehicles, law enforcement and other authorized officials to instantly confirm whether a vehicle is insured properly. This replaces New York state’s outdated batch-update system, which often led to insured drivers being mistakenly flagged as uninsured due to data lags.
Under the new law, insurers will provide real-time access to policy information, including issuance, cancellation and lapse dates. This means fewer errors, faster resolution of coverage disputes and a more accurate picture of insurance compliance across the state.
Why it matters to agents and their clients
For agents, this law is significant. The previous system frequently resulted in clients receiving erroneous lapse notices, which triggered fines, registration suspensions and even vehicle impoundments. Agents often were left to clean up the mess—spending hours on phone calls, resubmitting documents and following up with the DMV.
With real-time verification, those headaches are expected to diminish significantly. Agents can focus more on advising clients and can focus less on troubleshooting system errors. Clients, in turn, will benefit from a smoother experience and greater confidence that their coverage status is accurately reflected.
PIA’s role in getting it done
PIANY played a central role in advocating for S.5331-A/A.4404-A. From early conversations with lawmakers to formal testimony and grassroots mobilization, PIA worked to highlight the flaws in the current system and the benefits of modernization. This legislative win reflects PIA’s ongoing commitment to improving the insurance landscape for agents and consumers alike.
What’s next
The law is set to take effect on Sunday, Dec. 31, 2028, giving insurers and the DMV time to build and test the system. In the meantime, PIANY will continue to monitor implementation and provide updates to members.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
