 IIABNY Supports Wrap-Up Rules
IIABNY provided comments to the Insurance Department in support of proposed rules that would set minimum standards for wrap-up insurance policies. Currently, there are no minimum coverage requirements for these policies with respect to subcontractors who are additional insureds. IIABNY agrees with the department that the rules will help to ensure that subcontractors have adequate coverage under the wrap-up insurance policies and that they are provided with relevant coverage information.
The department is proposing that wrap-up policies provide bodily injury and property damage liability coverages, and liability limits to each subcontractor included as an additional insured that are at least equal to those provided to the general contractor, developer or premises owner obtaining the policy. The policy would also have to provide subcontractors with the same period of extended completed operations exposure (ECOE) coverage as that provided to the general contractor, developer or premises owner. The proposal would also require that insurers provide additional insureds with a copy of the complete wrap-up insurance policy, including all applicable endorsements, or a certificate of insurance listing the effective date of the policy, the length of time for which the policy provides ECOE coverage after completion of a project, a summary of policy provisions, and applicable limits of liability provided. While supporting the measure, IIABNY suggested that that it would be beneficial to subcontractors to be given some sort of description of the terms of coverage prior to the effective date or being added to the policy so that they have a better understanding as to whether or not they are comfortable with the terms of the wrap-up policy. The proposal requires that within 30 days of the effective date of the policy or 30 days of an additional insured being added to the policy, the insurer provide the subcontractor named as an additional insured under a wrap-up policy either a copy of the policy or a certificate of insurance.
Legislature Passes Furlough Bill, But Court Blocks It
This week the Legislature passed another emergency spending measure, but this one included the Governor’s plan to furlough state workers for one day a week beginning May 17 until a budget is passed. The Governor said the one-day-a-week furlough would save the state $30 million dollars a week. Many lawmakers reluctantly backed the plan rather than face a government shutdown. Outraged union leaders immediately filed a lawsuit to challenge the furloughs, and on Wednesday a federal judge in Albany temporarily halted the plan to furlough 100,000 state workers finding that employees could face irreparable harm. A hearing for the lawsuit has been set for May 26. Some state agencies had actually begun preparing for the furloughs -- the Department of Motor Vehicles was set to close on Fridays and the Lottery Division on Wednesdays. Outraged Lawmakers Storm Governor's Office
Governor Paterson has called for a special election to be held Tuesday, November 2, 2010, to fill a vacancy in the 29th Congressional District left by the resignation of Eric Massa. If the date sounds familiar, that’s because it is the same date as the general election. The Governor says that by picking this date he will be able to keep the costs of the election down, which is the main reason he has been citing for the delay in calling for the special election. By picking this date, Democratic Party Leaders will also be able to choose their candidate without risk of having to face a primary challenge. Political newcomer Matt Zeller is the Democratic Leader’s choice, former Corning Mayor Tom Reed is the Republican’s. Governor Paterson Establishes Cabinet to Implement Federal Health Care Reform
Governor Paterson has created the Governor's Health Care Reform Cabinet to manage the implementation of federal health care reform in New York. The Cabinet will advise and make recommendations to the Governor on all aspects of federal health care reform and strategic planning to guide the implementation of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act. The Cabinet will be chaired by the Director of State Operations with the Deputy Secretary for Health, Medicaid and Oversight and the Deputy Secretary for Labor and Financial Regulation serving as vice-chairs. State agencies serving in the Cabinet include: the Department of Health, the Department of Insurance, the Division of the Budget, the Department of Civil Service, the Department of Taxation and Finance, the Department of Labor, the Office for Technology, the Office of Temporary and Disability Assistance, the Office of Mental Health, the Office of Mental Retardation and Developmental Disabilities, the Office of Alcoholism and Substance Abuse Services, the Office for the Aging, the Office of the Medicaid Inspector General, and the Office of Children and Family Services. The Deputy Secretary for Human Services, Technology and Operations, Deputy Secretary for Intergovernmental Affairs and Counsel to the Governor will also serve in the Cabinet. In addition, the Governor will name an external advisory group to assist and advise the Cabinet on reform provisions and ensure stakeholder and public engagement. The advisory group will include organizations representing health care providers, consumers, businesses, organized labor, local governments, and health plans and health insurers, as well as health policy experts. The Health Care Reform Cabinet will begin that work immediately, to ensure implementation of the necessary reforms when they take full effect on January 1, 2014. Recent Legislation
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