Gotbaum v. Lewis
This case concerns a dispute over the regulatory authority of the New York State Superintendent of Insurance regarding employee welfare funds administered unilaterally by municipal unions but financed by the City of New York. Plaintiffs, trustees of these funds, sought a declaration that they were not bound by Insurance Law article III-A, citing decades of legislative intent and administrative practice that excluded unilaterally administered funds from its scope. Despite a history of failed legislative attempts to expand jurisdiction, the Superintendent of Insurance moved to compel registration. The court ultimately modified a prior order, denying the plaintiffs' motion and granting the defendant's cross-motion for summary judgment, thereby declaring that the Insurance Department possesses regulatory jurisdiction over these funds under Insurance Law article III-A, § 37-a.