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  Dec. 16, 2014


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State Assembly committee releases ride-sharing bill

The Assembly Transportation Committee last week released a compromise bill establishing insurance and safety requirements for transportation network companies, often referred to as ride-sharing companies. The legislation came as a committee substitute for seven bills on the subject sponsored by 11 Assembly members. Action came after lengthy discussion during a committee hearing. There is a possibility of additional amendments as the legislative process continues. PIANJ is monitoring this legislation and will report on any future developments. For more information, see last week’s Reporter.   

Paid sick-leave legislation headed for floor vote by state Assembly

A bill (A-2354) to require all businesses in New Jersey to offer their employees paid sick leave has been released from a second committee for a floor vote by the full State Assembly. After several amendments were made, the legislation was voted out of the Assembly Budget Committee on Monday along party lines, with the Democratic majority members in favor and the Republican minority members against. The Assembly Labor Committee had released the legislation last month and sent it to the Budget Committee for review. Amendments made to the bill included a provision that would permit a single, unmarried employee to designate in advance another person who is not a relative for receiving care so that employee would qualify for the paid sick leave.   

Display digital proof of insurance bill amended on Assembly floor

A bill (A-3905) to allow motorists to display digital proof of insurance on electronic devices was scheduled for a vote on Monday, but was amended on the floor requiring the vote to be delayed in accordance with Assembly rules. Under current law, the operator of a motor vehicle must maintain evidence of insurance coverage with a paper insurance card provided by the motorist’s insurance company. This legislation would allow the proof of coverage on an electronic device provided by insurance carriers upon request of law enforcement or court officials. Currently, this is allowed in 37 states. The bill, which is supported by PIANJ and numerous other insurance trade associations and insurance companies, now goes to the Senate for consideration.   

ELEC offers business entity pay-to-play training seminars

The New Jersey Election Law Enforcement Commission will hold training seminars to assist business entities with the filing of annual disclosure reports pursuant to the state’s "pay-to-play" disclosure law. The seminars will be held at the Offices of the Commission (28 W. State St., Trenton), on Monday, Jan. 26, 2015; Friday, Feb. 13; Friday, March 13; and Wednesday, March 25; and will start at 10 a.m. To register for a seminar, log on to elec.state.nj.us, click the "Pay-to-Play" tab, and then "Seminar Registration" on the left-hand side of the screen. Since space is limited, you must reserve a seat in order to attend.   

PIA praises House passage of long-term TRIA renewal

House leaders have approved a six-year extension of the Terrorism Risk Insurance Act, including a Republican proposal to revise a bank regulatory law. The measure went to the House floor last week, and was approved by a vote of 417-7. PIA praises the passing of this bipartisan legislation that will greatly benefit Main Street insurance agents. The bill now moves on to the Senate. More … Some reports have indicated that the Senate is likely to pass the bill. However, they are not sure when that will happen. PIANJ has compiled a list of recent actions related to TRIA’s pending renewal. More …   

FEMA releases NFIP bulletins

Bulletin W-14059 clarifies landlord and tenant coverage for improvements and betterments under the Standard Flood Insurance Policy. The SFIP defines improvements as fixtures, alterations, installations, or additions comprising a part of the insured dwelling or the apartment in which the policyholder resides. Bulletin W-14060 provides additional guidance and clarifications to underwriting procedures for a transfer of business, when producers move any or all of their existing book(s) of business from one insurer to another. The new insurer must collect all underwriting information required at the time of the transfer in order to verify the correct rating and issuance of the policy. Bulletin W-14061 announces that the Standard Flood Hazard Determination Form renewal was published in the Federal Register on Dec. 11, 2014. Comments on the form will be accepted through Feb. 9, 2015.   

ISO files drone coverage options

The Insurance Services Office Inc. is preparing insurers for the rise of commercial drones around the world by offering new and versatile coverage options. The new endorsements address the growing liability exposures of commercial drones, which have already developed a wide range of potential and reported uses, including package delivery, crop protection, and aerial photography. The options modify coverage under ISO’s Commercial General Liability and Commercial Liability Umbrella/Excess programs and were recently developed and filed on a multistate basis for a June 2015 implementation. More …   

FMCSA proposes increasing required limits

The Federal Motor Carrier Safety Administration issued an Advanced Notice of Proposed Rulemaking for the increase in minimum levels of financial responsibility for motor carriers, including liability coverage for bodily injury or property damage; establish financial responsibility requirements for passenger carrier brokers; implement financial responsibility requirements for brokers and freight forwarders; and revise existing rules concerning self-insurance and trip insurance. The comment period ends Feb. 26, 2015.   


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Ask PIA: Home inspection—underground storage tank

Q. One of my clients received and complied with a request for a home inspection. The home inspection revealed an underground storage tank. The insurer is now ordering a nonrenewal because of the condition of the storage tank. However, when the policy originally was written underground storage tanks were not part of the insurer’s underwriting guidelines. Can the insurer really nonrenew because of this? A. Yes. The insurer is within their rights to nonrenew the policy. 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.   

Workers’ compensation for contractors

Do you need workers’ compensation for your contractor insureds? Think PIA first. PIA’s NumberONE Comp Program—an exclusive PIANJ member benefit—offers workers’ compensation coverage for many contractor classes of business based on underwriting guidelines. Our simplified submission process makes it easy for you to earn commission while placing your insureds with trusted carriers. For more information, call (800) 424-4244, ext. 850.   

PIA Webinars on LinkedIn, cyber liability, carrier liquidation, etc.

PIANJ will offer the following Webinars in the next few months: Coverage Abbreviations: OCP, K&R, COP/MOP, OCIP/CCIP, KMI (Tuesday, Jan. 6, 2015, from 10 a.m.-1 p.m., NJCE: 3 GEN); Key E&O Issues that Every Agent Should be Thinking About^FF^UM (Tuesday, Jan. 20, from 10 a.m.-1 p.m., NJCE: 3 GEN); and Cyber Liability—Why the Need? (Friday, Jan. 30, from 10-11 a.m., NJCE: 1 GEN); When a Carrier Goes into Liquidation (Thursday, Feb. 19, from 10-11:15 a.m., NJCE: TBA); Real Life Commercial Lines Claims (Tuesday, Feb. 24, from 10 a.m.-1 p.m. NJCE: TBA). ^FF ^UM—This course has been approved for E&O loss-prevention credit by Fireman’s Fund and Utica Mutual. Call the PIA E&O Department at (800) 424-4244 for details. For more information or to register, click here.   

Production fluctuation has an impact on business income coverage

Business income coverage is important to commercial clients and it allows them to recoup some of the money that could be lost after a claim occurs that either shuts down their business, or causes them to relocate. Your commercial insureds need to consider production fluctuation when they determine their appropriate insurance coverages. For more information, access QS90105 in the PIA QuickSource library.   

In memoriam: Don Malecki, insurance expert

PIA joins many others in the insurance industry in mourning the passing of Donald S. Malecki, who passed away on Dec. 12, 2014, at age 81. Malecki was a notable insurance expert with 50 years of experience in the risk management and insurance industry. In April, he had written graciously and eloquently about the illness that would claim his life. (PHOTO: Donald S. Malecki)  


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