Rebuttal Filed Today by IIABNY, CIBGNY Refutes NYSID 'Mischaracterization' (August 19, 2010) — IIABNY and the Council of Insurance Brokers of Greater New York today filed rebuttals to the New York attorney general’s memorandum and Insurance Department’s affidavit opposing the groups’ legal challenge to Regulation 194. The two insurance producer trade organizations sent the response to the attorney general today and will file it in New York State Supreme Court in Albany tomorrow. The rebuttal came in response to the attorney general’s July 28 filing, which in turn was a response to the action, known as an Article 78 proceeding, that the two groups initiated last spring. The responses and affidavits filed today came from IIABNY, CIBGNY, former IIABNY Chair of the Board Neal L. Sullivan of Sullivan Financial Group in Mahopac and agent George D. Yates of Dayton, Ritz & Osborne in East Hampton. Among other things, the affidavits contended: - that the Insurance Department’s response "mischaracterized" the groups’ positions and actions during the development of Regulation 194;
- that the department failed to support claims that insurance producers will incur little additional cost from complying with the regulation; and
- that the court precedents the department cited do not support its arguments that the New York Insurance Law authorizes the regulation or that the regulation’s requirements are reasonable.
Regulation 194 requires producers to disclose certain information about their compensation to all clients, regardless of whether the clients have asked for it. Should any client request more information, the regulation requires the producer to provide detailed information about his compensation for the policy sold and the compensation he would have received had the client chosen a different policy. "I believe that (New York Insurance) Superintendent (James) Wrynn and (Insurance Department) Attorney (Matthew) Gaul are well-meaning public servants with a high degree of integrity," IIABNY President and CEO Richard A. Poppa stated in his affidavit, "but, as to particular statements made by Mr. Gaul, we do believe that he has unfortunately mischaracterized IIABNY’s position with respect to the Regulation." Refuting the contention that IIABNY had supported the regulation in the past, Poppa added, "IIABNY has consistently opposed the Regulation, and the fact that IIABNY provided suggestions to the Superintendent at the Department’s request and in an effort to potentially avoid litigation concerning the Regulation in no way undercuts the force of IIABNY’s opposition." Top of page IIABNY Will File Rebuttal to AG’s Response to Legal Challenge (July 30, 2010) — IIABNY, the Council of Insurance Brokers of Greater New York and their attorneys are reviewing the state Attorney General Office’s response to their legal challenge to Regulation 194. The regulation, if implemented at the beginning of 2011, would force New York’s insurance producers to disclose certain compensation information to their customers. The response, filed in New York State Supreme Court this week, includes an affidavit, answer to the petition with exhibits and memorandum of law. IIABNY and CIBGNY strongly oppose the regulation and will submit a formal rebuttal to the court by Aug. 19. "In all of our petitions, affidavits and legal briefs, IIABNY and CIBGNY have vigorously contended that this regulation was issued completely without the required statutory authority, and that certain of its provisions are arbitrary, unreasonable and unconstitutional," said IIABNY President and CEO Richard A. Poppa. "We remain steadfast in our opposition, and we look forward to presenting our response to the state’s arguments." IIABNY (which in 2004 called on insurance agents and brokers to voluntarily disclose to their clients the existence and nature of all their compensation) and CIBGNY have opposed mandated disclosures as burdensome for producers and of little benefit to consumers. IIABNY and CIBGNY were part of an industry effort throughout 2009 aimed at convincing the New York Insurance Department to drop Regulation 194 or minimize its burdens on producers. After the department adopted the final version of the rule last winter, IIABNY and CIBGNY filed a legal action in May to block its implementation. Top of page N.Y. Insurance Dept. Approves 7.7% WC Loss Cost Hike (July 16, 2010) — The New York Compensation Insurance Rating Board announced today that the New York Insurance Department has approved its filing for increased Workers' Compensation insurance loss costs. The board said that loss costs will rise by an average of 7.7 percent effective Oct. 1. The impact on individual classifications is not yet available. The board said that it will publish them on its Web site by Aug. 1. Top of page House Passes 5-Year NFIP Extension; Senate Action Uncertain (July 16, 2010) — By a vote of 329-90, the House of Representatives yesterday approved a bill to improve the National Flood Insurance Program (NFIP) and reauthorize it for five years. The measure now moves to the Senate, where its fate is uncertain. Among other things, the measure would: Phase in actuarial rates for properties built before the effective date of a community's first Flood Insurance Rate Map Increase maximum coverage limits Provide notices to renters about flood insurance for contents Delay the implementation of new rate maps that move homeowners into higher-rated flood zones.
While the House leadership rejected a proposed amendment that would have authorized the NFIP to include coverage for wind damage, the bill does include one controversial amendment. It would require Write Your Own flood insurers to agree not to use "anti-concurrent causation" language to exclude wind damage claims when the insured property also suffers flood damage. Some insurance trade groups have elected to oppose the bill because of this provision. The Independent Insurance Agents & Brokers of America, however, issued a statement commending the House action. If it becomes law, the bill would bring to an end a series of short-term extensions that have resulted in the program lapsing three times so far this year. Under current law, the program will lapse again on Sept. 30. Procedural rules in the Senate make legislation much more difficult to pass, and it is unclear whether the NFIP bill will make it onto that body's agenda this year. Top of page NFIP Resumes to Sept. 30; House OKs Finan. Services Report (July 1, 2010) — The U.S. Senate finally followed House action yesterday and passed a retroactive extension of the National Flood Insurance Program through Sept. 30. IIABNY thanks its members who called New York Sens. Charles Schumer and Kirsten Gillibrand during IIABNY's most recent Call to Action. "It is alarming that the NFIP was allowed to remain expired for so long, causing so much confusion and potentially leaving desperate homeowners and small businesses unprotected for almost a month," said IIABA president and CEO Robert Rusbuldt in a statement. The program lapsed May 31, marking the fourth time Congress had allowed the NFIP to discontinue normal operatations. "We are also greatly concerned," said Rusbuldt, "these short expiration periods and patchwork of temporary extensions will negatively affect the market." IIABA is urging Congress to act on a long-term extension of the NFIP to provide a level of stability and protection for homeowners and businesses. House Moves Financial Services Reform Forward
The House of Representaives voted 237 to 192 yesterday to pass the "Dodd-Frank Wall Street Reform and Consumer Protect" conference report. The Senate is expected to vote on the report after the July 4 Congressional recess. IIABA cited several improvements to the report, specifically to the proposed Federal Insurance Office that would prevent unnecessary pre-emption of state laws. Top of page House Votes to Extend NFIP, Senate Action Pending (June 24, 2010) — Although the U.S. House of Representatives has again passed legislation to extend the National Flood Insurance Program on a short-term basis (until Sept. 30), Senate action is still pending. Meanwhile, the Federal Emergency Management Administration issued another guidance bulletin to follow for the program, which lapsed May 31. As the bulletin states, new policies cannot be issued and current policies cannot be renewed until Congress reauthorizes NFIP. However, policies in force on May 31 will remain in force, and claims are not affected, as previously announced. Top of page Flood Plan Likely to Expire (Again) on May 31 (May 28, 2010) — As the Memorial Day recess approaches for Congress, it is looking very likely that the National Flood Insurance Program will once again be allowed to expire - for the fourth time in the last year. The latest extension is set to expire at 12:01 a.m. on June 1, and Congress is expected to adjourn before taking action. Agents and brokers are reminded that during the hiatus new and renewal policies cannot be offered. FEMA published a guidance bulletin in April and additional guidance in October during previous hiatus periods. Claims are not affected during the hiatus. Top of page IIABNY Files Legal Action Today in State Supreme Court
(May 25, 2010) — The months-long preparations on a legal challenge to the state regulation requiring producers to disclose their compensation to clients ended today when attorneys for IIABNY and the Council of Insurance Brokers of Greater New York jointly filed papers in New York State Supreme Court. The attorneys, who filed the papers in the court's Third Judicial District in Albany, seek to initiate an Article 78 proceeding against the state Insurance Department. IIABNY President and CEO Richard A. Poppa, CAE, AAI, in coinciding with the filing that disputes the department's authority to enforce Regulation 194, addressed the association's membership in a video in which he details why the legal action proved necessary and what lies ahead. To learn more, visit IIABNY's Producer Comp Resource Page. The IIABNY proposal gives insurance producers clear direction on how to comply with the regulation, should it take effect. (Read more) Top of page IIABNY Submits Proposal To NYSID as Part of Comprehensive Approach to Tackling Producer Compensation Disclosure
(May 14, 2010) — IIABNY announced today that it has given the New York Insurance Department proposed wording for a document to help insurance producers comply with the new regulation on producer compensation transparency. The not-for-profit trade association said that it submitted the proposal to the department on May 13. During conversations with IIABNY staff, department officials encouraged the group to submit its ideas. New York Insurance Regulation 194, which the Insurance Department adopted earlier this year, requires insurance producers to disclose to their clients certain information about how insurance companies compensate them. The regulation is due to take effect next January 1. The IIABNY proposal gives insurance producers clear direction on how to comply with the regulation, should it take effect. (Read more) Top of page | 
