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The New York State Insurance Department has sent a reminder to all car insurers in the state that an admittedly confusing new law requires carriers to collect a $10 annual fee for each policyholder — at least for now.

The so-called “Motor Vehicle Law Enforcement Fee” goes into effect June 1 for every insured vehicle registered in the Empire State. Due to some confusion in the way the law was written, the department says it’s asking for some clarification on how to interpret the law.

The confusion stems from language in the law that says the fee can be cut in half for policies with terms of six months or less.

For now, the department has issued which go over different scenarios for several types of policies in the state, and when the fees should be refunded.

Topics Carriers New York