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|Dec. 19, 2013|
Special holiday edition—New York Weekly
PIANY wishes you and yours a warm and prosperous holiday season. We look forward to continuing to bring you the information your business needs, the way you want it. The PIANY Weekly will resume Jan. 2, 2014. And watch our website, Facebook and Twitter feed for ongoing information all year long.
Cuomo vetoes PIA top-priority certificates of insurance bill
Despite overwhelming support by the insurance and construction industries, and passage in both houses of the Legislature with wide majorities, Gov. Andrew Cuomo ignored almost-universal pleas for reform and vetoed a bill that would prohibit the illegal and improper use of certificates of insurance. During the last few weeks, hundreds of professional, independent insurance agents and brokers, their employees and others called and emailed the governor to voice support for the critically important measure. More …
Construction, insurance industries collaborate to address problem of evidencing contractor insurance
PIANY announced that a multi-industry working group developed the new ACORD 855 New York Construction Certificate of Liability Insurance Addendum. The product of more than a year of collaboration to address a burgeoning concern over inconsistencies and subsequent lack of confidence in coverage representations, the new Addendum highlights 13 coverage issues that are not currently included in the ACORD 25 Certificate of Liability Insurance form. It will be promulgated by ACORD in June 2014. More …
Contractors and workers at odds over scaffold law
A recent article in The New York Times outlines the debate between contractors and workers over New York’s scaffold law. Reforming the law, which has been on New York’s books since 1885, is one of PIANY’s top legislative priorities for 2014.
Efforts to delay NFIP rate increases continue
Last week, both the House and Senate rejected efforts to delay National Flood Insurance Program rate increases. However, earlier this year, Mississippi Insurance Commissioner Mike Chaney filed a suit to seek an injunction against these increases. More … According to a brief FEMA filed on Monday with the Federal District Court in Gulfport, Miss., FEMA has stated that Mississippi has no jurisdiction to file the lawsuit. The lawsuit now awaits the court’s ruling. More … Sen. Mary Landrieu, D-La., has stated that the U.S. Senate plans to vote in January on the delay of the flood insurance hikes. More …
June 2014 NFIP program changes
FEMA has released online the June 2014 NFIP Program Changes, which includes the following topics: 1.) change to maximum coverage limits; 2.) revised primary residence definition; 3.) deductible changes; 4.) maximum coverage availability; 5.) policy disclosure; 6.) changes to declarations page requirements; 7.) clarifications regarding subsidy elimination; 8.) clarification of grandfather rating procedures; and 9.) renewal notice instructions.
FIO report released at last, PIA comments
Last week, the U.S. Treasury’s Federal Insurance Office issued its modernization report, which found that the debate shouldn’t be whether or not insurance regulations should be state- or federal-based, but rather if there are certain areas in the state-based system that should be regulated on a federal level. More … According to a statement issued by PIA: "We are disappointed that the FIO, in its narrative regarding the 2007-09 financial crisis, does not appear to take into account the report issued by the Government Accountability Office. The FIO report sails by the GAO conclusion that the state insurance regulatory system worked well to help mitigate the negative effects of the crisis on the insurance industry." To see more of PIA’s statement, click here.
Indemnity Insurance Corp. RRG in rehabilitation
An order of rehabilitation for Indemnity Insurance Corp. RRG was entered on Nov. 7, 2013, by the Delaware Chancery Court. Indemnity Insurance Corp. RRG, consented to the order of rehabilitation, which prohibits claims from being submitted or paid for a period of 180 days from the date of the order. The order also prohibits payment of return premiums resulting from the cancellation of policies prior to their natural expiration. The board and management of Indemnity Insurance Corp. RRG are finalizing a proposed plan that will provide for a solvent run-off of policyholder liabilities. Federal law prohibits a guaranty fund from backing risk retention groups. A copy of the rehabilitation order can be obtained here and an FAQ can be found here.
Ask PIA: Drive-other-car coverage—rental cars
Q. Does a business auto policy, endorsed with drive-other-car coverage, afford New York rental car coverage to the named individual on the endorsement? A. No. The fact that a drive-other-car endorsement is being used to provide coverage for an employee of the business entity signals that the named insured is not an individual. For a comprehensive answer to this question, click here. To access our entire Ask PIA library of frequently asked questions and expert answers by PIA’s technical staff, click here.
Life, health and long-term disability
Your agency is a priority to PIA ... let us do your shopping. PIA aims to reduce your premiums and customize your employee benefits. Let us take care of your group medical, group term life insurance, group long-term disability and group dental. Take advantage of PIA Members’ Choice employee benefit programs. Get your no-obligation quote today. Call (800) 424-4244 or click here.
PIANY two-minute survey on cyber liability
Plan now for PIANY’s MetroRAP, Jan. 23
Insurance professionals from throughout the New York City metro area will flock to Brooklyn Thursday, Jan. 23, 2014, for PIANY’s MetroRAP. The event will feature a huge industry trade show; an awards luncheon; the New York Young Insurance Professionals’ networking reception; and more. Education classes include: a self-study program on Advertising, Rebating and Referrals: Staying Compliant When Designing Your Marketing Plans, which offers insurance professionals the chance to earn up to 15 "bridge" CE credits and get E&O credit from Fireman’s Fund and Utica Mutual. The morning session, Data Compromise and Insurance has been approved for 2 NYCE and 2 NJCE. And the afternoon session, E&O Hotspots—2014 and Beyond has been approved for 3 NYCE and 3 NJCE. For more information, or to register, click here.
Agent/broker of record changes
PIA’s Director of Research Dan Corbin, CPCU, CIC, LUTC, offers his experience and overviews the rules that come into play when an insured chooses to dissolve an existing agent/broker relationship to go elsewhere. This resource also includes information on the proper use of the ACORD 35 and ACORD 36 forms in these particular instances. This information can be accessed via PIANY’s QuickSource document QS90218.
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