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Fresh Litigation Route for NY and Marriage Equality

by: Eric Dinallo

Tue Feb 23, 2010 at 14:24:40 PM EST


I'm Eric Dinallo and I'm running for the New York State Attorney General. I wanted to introduce myself to The Albany Project readers by way of an op-ed that I wrote for the Gay City News this past week concerning Marriage Equality and its future in New York.  

As a bit of history, during my time as the New York Superintendent of Insurance, I ordered all insurance companies doing business in New York to recognize the marriages of same-sex couples who were legally wed elsewhere even though the right for gay and lesbian couples to marry was being denied by the courts.

As a result of that regulatory action, New York insurers must now provide the very same property, life, and health insurance policies and benefits to those same-sex married couples that are available to opposite-sex married couples under the state's insurance laws.

Unfortunately, Marriage Equality failed to pass the Senate this past year, but the fight is not over. As a former Assistant District Attorney in the Manhattan D.A.'s office and the Chief of the Investor Protection Bureau in the Attorney General's office, I understand the laws and rulings in place here in NY against discrimination. Marriage Equality is, above all, a civil rights issue and I want to share with you how we can turn the tide here in New York to make it a reality.  

As a public servant, I feel I have an obligation to protect what is fair and do what is right. As AG, I will fight discrimination wherever it is found.  Read the full op-ed after the break:

Eric Dinallo :: Fresh Litigation Route for NY and Marriage Equality
Remember that great song where Sinatra croons, "Love and marriage go together like a horse and carriage; it's an institute you can't disparage"?

Well, for the gay and lesbian citizens of the State of New York, the "institute" has been quite disparaged. And while Frank failed to mention it, marriage is not just about love, it's also about economics and the law. The discriminatory denial of the fundamental right of marriage to same-sex couples works real and substantial hardships on many New Yorkers.

For example, studies show that a same-sex unmarried couple can end up paying $450,000 more over their lifetimes than an opposite-sex married couple due to differential taxation, estate planning treatment, and, of course, insurance costs. In fact, when New York's highest court, the Court of Appeals, upheld marriage discrimination in 2006, the court acknowledged that New York affords married couples at least 316 benefits, including the "right to be treated as family members in obtaining insurance coverage." Advocates have identified more than 1,000 rights and benefits of marriage under state law.

Even as it refused to recognize a right to marriage for gay and lesbian couples under New York's Constitution, the Court of Appeals invited the State Legislature to address the issue. The New York State Assembly thereafter passed a same-sex marriage bill no less than three times. The State Senate, however, failed even to vote on the matter for three years; and when it held a belated vote in December, it refused to pass the bill.

To add insult to injury, 37 of the 38 senators who voted "no" declined, during the floor debate, even to give a reason for denying same-sex couples this fundamental right.

The good news is that some gay and lesbian New Yorkers now have the ability to enjoy at least 316 benefits that New York's judiciary and Legislature have, so far, unjustly refused them, and I am proud to say that I was able to play a role in addressing this ongoing injustice.
Five states, including bordering Connecticut, Massachusetts, and Vermont, as well as several other nations, currently allow same-sex marriages. Since 2008, New York has recognized such marriages entered into in other states and countries. During my tenure as the New York Superintendent of Insurance, I ordered all insurance companies doing business in New York to recognize the marriages of same-sex couples who were legally wed elsewhere.

As a result of that regulatory action, New York insurers must now provide the very same property, life, and health insurance policies and benefits to same-sex married couples that are available to opposite-sex married couples under the state's insurance laws.

It is, however, fundamentally unfair that only those same-sex couples who are able to travel elsewhere to get married can have their unions recognized in New York - and thereby obtain the economic and legal benefits that marriage allows. It is the least wealthy, and therefore the most economically vulnerable, same-sex couples who are also least likely to have the wherewithal to leave New York to get married - and therefore are being left without any of the crucial economic and legal benefits of marriage in our state.

The differing treatment of couples who can leave the state to get married and those without the means to travel only serves to underline the irrationality of the current state of the law. Indeed, it may provide a new basis to challenge the unjust 2006 ruling in the courts.

If I have the privilege to become New York's next attorney general, I will - as the state's chief law enforcement officer - ensure that every state agency and private company provides those same-sex couples who are able to marry outside New York with the benefits and rights they are entitled to under New York law. Furthermore, I will ensure that New York continues to advocate for the marriage rights of gays and lesbians in the courts.

Simply put, the Court of Appeals' conclusion that the unequal treatment of lesbian and gay New York couples is permitted under the due process and equal protection guarantees of our State's Constitution is wrong, and should not stand. I look forward to the day when "love and marriage" really do go together for gay and lesbian New Yorkers.

I know this isn't the only issue facing us going forward, but it's of utmost importance. Granting equal rights under the law to all our citizens should be a top priority for any prosecutor; especially for the Attorney General.  

I'm pleased to be part of this vital online conversation, and feel free to visit our website and let me know what you think in the comments or by sending me an email.

Eric

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Welcome to TAP, Mr. Dinallo. (0.00 / 0)
A pleasure to see you here.  

Thanks for sharing your ideas (0.00 / 0)
I appreciate you reaching out to this community, as I also appreciated you reaching out to Democrats in Tompkins County where I live.

Your record as NY Superintendent of Insurance was surely exemplary in regard to this issue, and I don't doubt your commitment to seeing justice done here.

However, it does not represent your entire record.  Can you take a minute to address a couple of other items that date back to your time as Superintendent of Insurance (and that were very interesting to the TAP community at the time):

1-- address what/how much you knew about the risks being taken by AIG prior to their rapid entry into crisis. See my diary on that and also this one.
2-- address the bill highlighted in this diary by Roati-- noting especially the comments.

Now, I know times have changed mightily since back then-- heck, the "Paulson Plan" was an insurance/banking deregulation scheme to make NYC "competitive" with London at the time, remember?  Not a TARP bailout approach...  But, seriously, now that times HAVE changed, will you be an AG that is another "Sheriff of Wall St." or are you inclined to focus on these more domestic issues?

And, for bonus points, what can an AG in NYS do to keep landowners and residents in the Marcellus and Utica Shale plays safe from the big natural gas exploration multinationals like Haliburton, Schlumberger and Exxon externalizing all their costs related to environmental degradation and roadway wear onto their communities?  


Great Questions (0.00 / 0)
Thank you, Robinia, for the questions and for your interest in the Insurance Regulatory process. It's not often I find someone as passionate about the subject as I am.

I'm sorry it has taken a while to respond. I've been traveling to Elmira, Buffalo and the North Country.

I read your previous post and understand your concerns. I want to point you to a Wall Street Journal Op-ed I wrote titled, What I Learned at the AIG Meltdown.

Please take the time to read the entire piece, but here's an important section:

My job at the time, as New York Insurance Superintendent, was to protect policyholders of AIG's New York insurance companies. I represented state regulators at meetings with Fed and Treasury officials that led to the federal rescue of AIG. Everything may not have been handled perfectly, but we believed then that we were staring into the abyss.

My role was to make it clear that whatever happened with the AIG parent company, policyholders and the funds set aside to pay their claims, would be protected. In my congressional testimony, I said that AIG's insurance companies had adequate reserves to protect policyholders.
In terms of the second issue you mentioned concerning document disclosure, I understand people's concerns but a full understanding of the issue and its ramifications is important.

I know this is a relatively short answer to a complicated question, but, let me share with you a simple principle of mine.  As a public servant,  I have always committed myself to protecting what is fair and doing what is right.

In general, I believe that fair markets are critical and that transparency is a important way to achieve that, but occasionally there are situations where a distinction must be made between regulators and prosecutors which can often be muddied.  Regulators are primarily responsible to ensuring that there is money in the bank to pay out to policyholders.  To do that job, regulators have to pour over all sorts of documentation. As a regulatory process, there is no need to have those documents made public since there is no assumption of wrong doing, and that action would place an unfair burden on businesses who were required to do so.

Prosecutors have a different job. Prosecutors are there to investigate fraud and abuse in the system and penalize law breakers.  That crosses a different threshold altogether.

The AG's office has subpoena power and there are some great ways I can use my combination of experience as an insurance regulator and assistant AG/Prosecutor to expand on some of the administrative investigations I did with health insurance companies.  It is something I plan to talk about in an upcoming op-ed/blog post about medical "pay out" rates.

In terms of the Marcellus Shale issue, the AG's office can offer municipalities its services to help level the playing field when it comes to negotiation with or litigation of the large corporations of which you speak. My approach to being the people's attorney is to be exactly that; not only to prosecute the bad guys on Wall Street and elsewhere, but to offer counsel and legal assistance to local government entities to tackle local issues as well.

Thank you for the thoughtful questions, and rest assured, I'll be back here to talk more about important issues that are facing New York.


[ Parent ]
Thanks. (0.00 / 0)
I am actually understanding this a bit better, I think.  Some of us here may have been misled by the term "investigation," which seems like law enforcement is going on.... but, I assume an audit procedure might go by the same term. The regulator/prosecutor distinction, and the confidentiality that the regulator might be expected to respect, is familiar to me from my work with organic farmers.  Under the NOP, it is essential that the inspectors who regulate organic farms do not divulge information they gain in the process of inspecting, as this info could be of advantage to a competing farm operation.  You could see the insurance business in the same light, I imagine.

Most of the problem with AIG was set squarely in the unregulated portion of its business, of course.  Those regulatory gaps-- sometimes purchased by special interests, as per the gas drilling "Halliburton loophole"-- are often the source of the people's headaches.  

People who learn from their experiences, and are even unafraid to SAY they learn from their experiences..... are usually good learners, and good learners make good leaders.


[ Parent ]
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