Alliance of American Insurers v. Roderick Chu, as Commissioner of Taxation and Finance of the State of New York…

Summary

The New York Court of Appeals reversed the Appellate Division and held that the 1979 and 1982 statutes diverting earnings of the Property and Liability Insurance Security Fund are unconstitutional to the extent they deprive contributors of income earned on contributions made under the 1969 law. The Court reasoned that contributors possessed a vested property right in that income, which the State could not retroactively extinguish. The decision is contested by a dissent arguing the statutes are valid regulatory measures.