• June 19, 2008
• July 3, 2007
• June 29, 2007
IIABNY Leaders Discuss Property Insurance Market With NYPIUA
(Jan. 19, 2012) — A contingent from IIABNY visited the New York City offices of the New York Property Insurance Underwriting Association (NYPIUA) this afternoon to discuss how NYPIUA and New York’s insurance brokers can work together more effectively. Representing NYPIUA were:
Attending on behalf of IIABNY were:
Dane Austin, CPCU, AU, Are, President
Dennis Dee, Vice-President and Comptroller
Robin Pollack, CPCU, Vice-President of Underwriting and Customer Service
The conversation centered around the state of the New York property insurance market; the implementation of the market reforms enacted by the State Legislature and Gov. David Paterson in 2008; and the Coastal Market Assistance Program (C-MAP). The NYPIUA representatives encouraged brokers to access them more often, noting that the association can offer building coverage limits up to $1,500,000 if the building has a central station alarm and storm shutters (for risks in hurricane-exposed areas.) The two groups agreed to continue working together to educate brokers about NYPIUA’s coverage and service capabilities and to keep NYPIUA informed of any issues.
Tom Crowley of Maran Corporate Risk Associates (Southampton), Chair-Elect of the Board
Todd Rockefeller of DeRosa, Rockefeller, Sohigian & Werdal (Harrison), Director
Jim Sutton of James F. Sutton Agency (East Islip), Director
Dick Poppa, President and Chief Executive Officer
Kathy Weinheimer, Senior Vice-President of Industry Relations and Education
Michael Barrett, Legislative Representative
Jill Muratori, Legislative Representative
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Homeowners Bill Backed by IIABNY is Approved by Legislators
(June 19, 2008) — IIABNY is declaring the proposal agreed to today by New York lawmakers "a major victory" for insurance producers and their homeowner customers, especially those in coastal areas. Versions of the bill in the Senate and Assembly, granting permanent statutory status to the New York Property Insurance Underwriting Authority, are expected to pass before the legislative session ends June 23. The legislation in the Senate (S.8624) and its companion bill in the Assembly (A.11693) also feature, among other measures, broad form coverage, an incentive program, codification of the Coastal Market Assistance Program and restoration of flex rating for automobile insurance.
Here are the legislation's details:
NYPIUA is made permanent. The most notable aspect of the bill makes the New York Property Insurance Underwriting Association permanent. IIABNY has fought to obtain permanency for NYPIUA for years, only to see it used as a political bargaining chip and given yearly extenders. IIABNY saw a real opportunity to win permanency this year due in part to the appointment of Joseph Morelle (D-Rochester) as the new chairman of the Assembly Insurance Committee. IIABNY began discussions early in the legislative session with Chairman Morelle and Senate Insurance Committee Chairman James Seward (R-Oneonta) and worked diligently with both houses to make sure NYPIUA permanency was secured this year.
NYPIUA is authorized to write broad form coverage. To address the coverage deficiencies that currently exist with a bare bones NYPIUA policy, the legislation allows the program to offer broad form coverage to policyholders throughout the state. The additional comprehensive coverage will help producers provide better coverage to their customers. When a producer uses broad form coverage in conjunction with an HO-4 or Contents Broad Form (the wrap-around policy typically offered by most insurers), he or she can provide coverage that does not have the coverage gaps that currently exist with the basic NYPIUA dwelling form. NYPIUA will be authorized to offer broad form coverage for a period of five years under a study program. After five years, the state Superintendent of Insurance would report to the Legislature on the success of the program and make recommendations as to whether it should be continued.
NYPIUA incentive program is created. In an effort to encourage more companies to voluntarily write homeowners insurance in New York's coastal areas, NYPIUA will establish an incentive program to encourage the writing of homeowners insurance and wrap-around policies.
C-MAP program is codified. The bill codifies the Coastal Market Assistance Program, which was established by the Insurance Department in the mid-'90s. It also establishes a C-MAP Agents Advisory Council consisting of nine coastal insurance producer members. The Advisory Council will provide recommendations on the C-MAP program to NYPIUA.
Homeowners’ panel is made permanent. The Temporary Panel on Homeowners Insurance created in the mid-'90s is made permanent. It will continueto study and report on homeowners insurance issues on a yearly basis. The panel would include insurance producer members.
Flex rating is restored. After years of advocating for the return to flexible rating for automobile insurance, IIABNY was successful. The bill includes a new flexible rating system for automobile insurance. Insurers would be able to make overall rate changes of up to 5 percent. Companies could invoke no more than two rate increases within the percentage limitation in a 12-month period, and no rate increase could be implemented until the onset of a new policy period and upon at least a 30- to 60-day notice to the policyholder.
The bill also includes three-year extenders of several laws pertaining to automobile insurance that typically sunset each year. These laws, which include nonrenewal, surcharge, and agency terminations provisions, will now expire in 2011.
“IIABNY is pleased to have worked with the Insurance Chairs in both houses, Sen. Jim Seward and Assemblyman Joe Morelle, as well as insurance carriers, to develop this legislation” said IIABNY Chair Neal L. Sullivan, CPA. “We appreciate the efforts of the legislators and their staffs. It will have a positive impact on insurance consumers.”
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Governor Signs NYPIUA Extension Bill
(July 3, 2007) — New York Governor Eliot Spitzer has signed into law a bill extending the authority of the New York Property Insurance Underwriting Association for another year. The bill, A.9036, now Chapter 86 of the Laws of 2007, extends NYPIUA's authorization until June 30, 2008. Under prior law, the association's authority ran out last Saturday morning. Without new authorization, NYPIUA would have been unable to issue and renew policies.
IIABNY believes that the last-minute approach taken by lawmakers on this matter was unfortunate and unnecessary. The bill received final legislative approval late in the session and was transmitted to the governor for signature very close to NYPIUA's expiration date. The governor spent a good part of last week traveling; this non-controversial bill apparently did not receive his attention before the weekend. It is fortunate that June 30 fell on a Saturday this year; since real estate closings typically do not occur on weekends, the potential disuption was minimal. Still, this is no way to handle a program relied on by more than 50,000 New York homeowners and businesses. Indeed, it is one more reason, as if one was needed, why the legislature should make NYPIUA permanent.
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Spitzer Expected to Sign NYPIUA Reauthorization
(June 29, 2007) — A bill that would authorize the New York Property Insurance Underwriting Association for another year awaits action by the governor. IIABNY expects that New York Gov. Eliot Spitzer will sign Assembly bill 9036. Both houses of the state legislature passed the measure prior to their adjournment last week. Newly appointed Assembly Insurance Committee Chair Joseph D. Morelle (D-Irondequoit) sponsored the bill.
Without the governor’s approval, NYPIUA’s authority to write new policies and renew existing ones will expire on June 30 at 12:01 a.m. The pending legislation extends the expiration date by one year to June 30, 2008. The legislature has authorized NYPIUA on a temporary basis since its creation in the 1960s, making periodic reauthorizations necessary. IIABNY supports making the program permanent and has worked closely with the majorities in both houses toward that goal.
IIABNY is in close contact with the governor's office and will provide updated reports as they become available.
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