The New York State Appellate Division reversed the decision in American Economy Ins. Co vs State of New York on April 14, 2016, finding the closure of 25-A to claims associated with policies issued before October 1, 2013 was unconstitutional.
If the ruling stands or is upheld on appeal, there will be a material impact on both the number and associated cost of claims that may ultimately be eligible for entry into 25-A that were initially prevented entry by the 2013 law, as well as the expected future cost of funding 25-A through assessments. We discuss these potential impacts in a recent report by our Actuarial Practice.
