Jun 19, 2013

PIANY applauds Assembly passage of certificates of insurance bill

Legislation to clarify information in certificates now moves to Senate

GLENMONT, N.Y.-The Professional Insurance Agents of New York State Inc. applauds the New York State Assembly for passing PIANYs highest priority bill (A.3107.D-Morelle/S.5804-Seward) last night. The changes incorporated into this proposal have been long-advocated by PIANY. The bill would make clear that no person will be allowed to request or require that a certificate of insurance form contains additional terms, conditions or language not found in the insurance policy or policy endorsement.

Additionally, the bill would clarify that a certificate of insurance does not confer any new or additional rights beyond what the insurance policy provides. The bill also would prevent a certificate of insurance from containing references to a contract other than the insurance policy to which it refers, or warranting that the policy complies with a third-party contract.

"We commend Assembly Majority Leader Joseph Morelle, Assembly Insurance Chair Kevin Cahill and Senate Insurance Committee Chair James Seward for their recognition of the untenable position insurance producers face when they are asked to modify certificates to misrepresent that coverage exists when it does not," said PIANY President Michael J. Skeele, CIC, CPIA. "Often this coverage is impossible to obtain, and by passing this bill, the Assembly has taken an essential step to protect all parties involved."

The bill now moves to the state Senate where similar legislation was passed earlier this session. The Senate is expected to take up this bill before the Legislature adjourns this week. "PIANY is anxious to get this critically important bill passed and signed into law, while the construction industry is in its busy season, to ensure that our businesses are covered properly, with the full knowledge of what their insurance policies contain." Skeele said.

PIA has worked aggressively with several trade organizations from several industries, including attorneys, producers, general contractors, commercial lenders and carriers to address the growing certificates issue with this important proposal.

PIANY is a trade association representing professional, independent insurance agencies, brokerages and their employees throughout the state.

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