Colonial Life Insurance Co. of America v. Curiale
New York Supreme Court, Appellate Division, Third Department
617 N.Y.S.2d 377 (1994)
New York's Superintendent of Insurance Curiale (defendant) promulgated regulations establishing a mandatory risk-sharing pool distributing funds among insurers based on their demographic risk profile, implementing a statute requiring community rating and open enrollment for small-group policies; Colonial Life (plaintiff), which issued such policies, sued to invalidate the regulations, claiming the pool system was an unconstitutional tax and an uncompensated taking, and separately arguing part of the regulations exceeded the Superintendent's delegated authority. The trial court agreed the pool provisions (part 361) were valid but struck down separate provisions (part 360) as exceeding delegated authority; both sides cross-appealed.
Whether the promulgated regulations creating a mandatory monetary assessment amounted to an unconstitutional tax and a taking of property without just compensation.