PIA offers free Webinar on Floodbroker.com

Yesterday, Gov. Andrew M. Cuomo declared a State of Emergency due to flooding in several N.Y. counties. Do your clients know that, even if they don’t live on a coastline, everyone lives in a flood zone, and can be affected by recent combinations of rainfall and snowmelt? It’s up to you to show them why they need critical flood coverage … PIA has the tool you need. Register now for a free Webinar to learn all about Floodbroker.com and what it can do for your agency. The Webinar will be held Tuesday, April 22, 2014, at 11 a.m. Evan Spindelman, Floodbroker.com president, will discuss the Floodbroker.com program interface and illustrate how easy it is to quote flood—and sell more policies—right on an agency’s own website. The Webinar will conclude with an open Q&A session. For more information, or to register, click here.  

FEMA posts revisions to NFIP manual

The revisions to the National Flood Insurance Program Flood Insurance Manual that will become effective on June 1, 2014, have been posted on the Federal Emergency Management Agency’s website. Included are: revised primary residence definition and new underwriting requirement to verify the eligibility for primary residence; clarification of rules regarding tenant’s coverage and only one policy per building; new maximum limits for Other Residential buildings; revised deductible amounts, deductible factors and changes to the minimum deductible; inclusion of the 2014 edition of the Residential Basement Floodproofing Certificate; new Renewal Notice requirement to include a message on the back of the Renewal Notice; revised Cancellation Reason Code 9; and updates to the Community Rating System Eligible Communities list.  

FEMA implements Section 3 of HFIAA

In Bulletin W-14014, FEMA provides guidance on implementing section 3 of the Homeowner Flood Insurance Affordability Act of 2014. No longer will properties that are primary residences and businesses be charged full-risk rates when subject to a Pre-Flood Insurance Rate Map. HFIAA requires FEMA and write-your-own companies to restore Pre-FIRM subsidized rates for the following properties: a.) Pre-FIRM properties that were not insured when Biggert Waters was enacted; b.) Pre-FIRM properties that were sold after Biggert Waters was enacted; and c.) policies for Pre-FIRM properties that were rated full-risk under Biggert Waters due to a lapse in coverage. Effective May 1, 2014, FEMA is requiring the use of appropriate Oct. 1, 2013, Pre-FIRM Rate Tables.  

New hurricane forecast maps to show flood risk

On June 1, 2014, national forecasters plan to roll out new color-coded broadcast maps, in tandem with the opening of the Atlantic hurricane season. The maps, which are the result of experience and polling, will geographically show the potential for flooding as a result of storm surges. Historically, Americans living on vulnerable coastlines have paid more attention to hurricane wind strength, and not flooding, when deciding to evacuate. These maps aim to help residents understand how flooding can potentially affect them. More …  

PIANY members meet with Assemblyman Cahill as part of ongoing District Office Visits

PIANY past President Kevin Ryan, CIC, CPIA, and president of Valley Group, Inc. (left), and PIANY agency owner Robert J. Ryan Jr., CIC, president of Ryan & Ryan Insurance Brokers in Kingston (right), met with Assembly Insurance Committee Chair Kevin Cahill, D-103, this morning, as part of the association’s ongoing 2014 District Office Visit program. In the program, members sign up to visit their legislators, in small groups, in their district offices. Assemblyman Cahill heard PIANY’s top priorities, including addressing the fraudulent use of certificates of insurance by requiring them to be filed with and approved prior to use; standardizing triggers for hurricane deductibles; repealing mandatory photo inspections; and combating auto insurance fraud with no-fault reform. Last week, PIANY was invited by Assemblyman Cahill to provide testimony on the state’s auto insurance market.   

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PIANY applauds senators’ support of TRIA reauthorization

PIANY praised Sens. Charles E. Schumer, D-N.Y., and Christopher Murphy, D-Conn., who introduced legislation to reauthorize and extend the Terrorism Risk Insurance Act, set to expire at the end of 2014. Following the bills’ introduction, a bipartisan group in the U.S. Senate announced they reached an agreement to extend the program. Under the new legislation, TRIA would be extended for an additional seven years. It will include two changes (regarding co-pays and recoupment) to the current program that will be phased in over five years. More … A RAND Corp. study released last week supports TRIA’s reauthorization, and found that an extension would prevent the federal government from spending an estimated additional $1.5 billion to $7.2 billion in the event of a terrorist act on the U.S. More …  

FIO to look into auto-insurance affordability

The Federal Insurance Office has initiated a study that will look into the affordability of auto insurance. According to a notice posted to the Federal Register last week, the FIO is seeking comments by June 9, 2014, from state insurance regulators, consumer organizations, representatives of the insurance industry, policyholders, academia and others. Specifically, the FIO seeks comments regarding the definition of "affordability," as well as the metrics and data the FIO should use to monitor access to affordable auto insurance. More … While recognizing the FIO’s authority to monitor underserved communities and consumers, minorities and low- and moderate-income persons’ access to affordable insurance products, PIA opposes FIO pre-emption of state insurance oversight, whether optional or mandatory, and opposes any expansion of the FIO’s responsibilities or authority. To that end, PIA would encourage the FIO to work closely with state insurance departments in the development of this study. Last week, PIANY provided testimony at a public hearing called by the Assembly Standing Committee on Insurance to review the state’s auto insurance market and to address some of these issues. More …  

Another Fair Play Act

On Jan. 10, 2014, Gov. Cuomo signed into law the New York State Commercial Goods Transportation Industry Fair Play Act (Chapter 558). (For reference, see details on the New York State Construction Industry Fair Play Act.) This new law amends the Labor Law (Section 862-B) so that any person performing commercial goods transportation services for a commercial goods transportation contractor is presumed to be an employee of that commercial goods transportation contractor. Labor Law Section 862-B is incorporated by specific reference into Workers’ Compensation Law Section 2(4). Therefore, any worker performing services for a commercial goods transportation contractor who is injured on or after April 10, 2014, will be presumed the employee of that commercial goods transportation contractor for workers’ compensation purposes, subject to the independent contractor test contained in the statute. For more, see the Workers’ Compensation Board Subject No. 046-669.   

Payroll cap and maximum weekly WC benefit change July 1

The payroll cap under the New York Workers’ Compensation Construction Employment Payroll Limitation Program will be increased from $1,204.81 to $1,212.98 per week for policies with effective dates on and after July 1, 2014. According to provisions in the 2007 Workers' Compensation Reform Act, this limit is adjusted every year based upon changes in the average weekly wage as calculated by the Department of Labor. Also, the maximum workers' compensation weekly benefit is two-thirds of the statewide average weekly wage, so the maximum weekly benefit will increase from $803.21 to $808.65 effective July 1, 2014.  

Cuomo: Aetna to pay $500,000 penalty

Gov. Cuomo announced yesterday that Aetna Life Ins. Co. will pay a $500,000 penalty for consumer protection violations. A Department of Financial Services investigation concluded that, between 2002 and 2011, Aetna used noncompliant consumer policy forms for six group life insurance policies, and failed to inform the insureds.  

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AAIS identifies five new states with e-policy laws

The American Association of Insurance Services Inc. announced that five states (Indiana, Iowa, South Dakota, Utah and Wyoming) recently enacted laws to allow insurers to post policy forms, endorsements and other documents on a website, or transmit them electronically, in lieu of mailing them to insureds. These laws follow a series of similar measures enacted in several states in 2013, and more states are expected to follow suit before the end of this year’s legislative sessions. The laws are not fashioned after a single model law, leading to a great variation from state to state in the phrasing of requirements.  

Indemnity Insurance Corp. RRG in liquidation

An Order of Liquidation for Indemnity Insurance Corp. RRG was entered on April 10, 2014, by the Delaware Chancery Court. Indemnity Insurance Corp. RRG is hereby declared to be in an unsound condition and to continue to transact insurance in this condition is hazardous to its policyholders. The order states all insurance policies will remain in force until the earlier of the following events: Stated expiration of the policies, effective date coverage is replaced with another carrier or all insurance policies cancel on April 18, 2014, or the 30^th calendar day from the date of this order, whichever is later. The bar date for any and all claims must be filed with the receiver prior to the close of business on Jan. 16, 2015. Federal law prohibits a guaranty fund from backing risk-retention groups. For a copy of the liquidation order, click here.  

PIA’s Company Rating Tracking Service

Worried your company’s rating slipped overnight? If you want to stop worrying, sign up for PIA’s Company Rating Tracking Service. This unique service, available to PIA members exclusively, automatically sends you an email when one of your represented companies’ A.M. Best Co. rating or outlook changes, as long as you have given us a listing of the companies you represent. To participate, contact PIA’s Industry Resource Center by phone at (800) 424-4244 or by email at resourcecenter@pia.org with a listing of the companies your agency currently represents and we’ll get you signed up for the program. This service frees up your valuable time to do what you do best—sell and service your clients’ insurance needs. Please note: This alert is a product of PIA and is not affiliated with any service provided by A.M. Best Co.  

Upcoming Webinars offered by PIANY

Additional upcoming Webinars include the following: Top Ten Personal Lines Endorsements (Tuesday, May 6, from 10-11 a.m., NYCE: 1 BR, C3, PA, PC); Long-Term Care Insurance (Tuesday, May 13, from 10-11 a.m., NYCE: 1 BR, LB, C1, LA, PC); Training for Issuers of the ACORD 855 New York Construction Certificate of Liability Insurance Addendum (Tuesday, May 20, from 10 a.m.-noon, NYCE: 2 BR, C3, PC, PA); and Top Ten Commercial Lines Endorsements (Thursday, May 29, from 10 a.m.-11 a.m., NYCE: 1 BR, C3, PC, PA). For more information or to register, click here.   

PIANY IRC: Updated DMV code list

The New York State Department of Financial Services has recently updated the New York State Department of Motor Vehicles listing of companies authorized to insure motor vehicles in New York (both alphabetical and numerical). Don’t be without this handy reference guide. To get this current information, access QS31061.  

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