Jul 10, 2015
N.Y. legislative overtime session closed with many positive developments for agents
The New York state legislative session that originally was slated to end on June 24 was extended by lawmakers in Albany through the week to address important issues including long-term rent-control regulations; mayoral control of New York City schools; and the 421-a tax abatement. Gov. Andrew M. Cuomo, Senate Majority Leader John Flanagan, R-2, and Assembly Speaker Carl E. Heastie, D-83, announced a framework for a three-way agreement on a number of priorities for the end of the 2015-16 legislative session. The three-way agreement, nicknamed by insiders as "The Big Ugly," included a number of reforms, including: extending rent laws in New York City; extending the property tax cap; extending and reforming the 421-a property tax exemption program for newly constructed housing developments in New York City; and increasing spending for education. Other important issues appear to have been dropped from the negotiating table, including an education tax credit which would incentivize donations to private school scholarship funds.
The Professional Insurance Agents of New York assessed the 2015 legislative session as positive for insurance agents, brokers and consumers, all-in-all. Early in the year, PIA was successful in having legislation signed into law to curtail the inappropriate use of certificates of insurance and increase certificateholders confidence in the coverages represented on such certificates by prohibiting requests to issue certificates that do not accurately reflect the terms of the underlying policy.
PIANY also delivered relief to agents and drivers with a regulation that expanded the time frame for photo inspections from five to 14 days for the inspection deferral period. The new regulation took effect April 1. PIANY led the fight to amend the regulation; meeting with various stakeholders, including the New York State Department of Financial Services, insurance carriers and other producer groups and vendors to achieve the welcome regulation that will benefit both consumers and agents. In addition to the increased 14-day time period, the new regulation reduces the minimum time frame from four years to two years for an insured to be eligible for an inspection waiver for an additional and/or replacement automobile when the insured has been continuously insured for automobile insurance, with the same insurer or another insurer under common control or ownership.
PIANY praised the New York State Assemblys passage of a bill (A.7537 by Assemblyman Todd D. Kaminsky, D-20) that would have standardized the windstorm triggers for homeowners hurricane deductibles; explaining that without this law, the majority of coastal policyholders are unaware that different insurance companies have different triggers for hurricane deductibles. As such, they cannot appreciate the out-of-pocket costs they would incur in the case of a storm, or how their policies stand up to their neighbors.
The association also worked to pass legislation (S.5250-Sen. James Seward, R-51/A.7742-Assemblyman Kenneth Zebrowski, D-96) that would have removed the requirement for businesses to provide 30 days notice to withdraw from the New York State Insurance Fund. This legislation would have placed NYSIF on more even footing with other insurers providing workers compensation insurance by removing the outdated and ultimately expensive requirement of policyholders seeking to replace their NYSIF policies with more affordable coverage in the private market. At the close of session, PIA pledged to continue its fight to level the playing field on behalf of agents and their insureds.
PIANY joined a large coalition of business and insurance groups to oppose a trial-lawyer led push for legislation to expand New Yorks bad-faith law and hurt consumers. The bill, S.4049/A.257, would have established a private cause of action against insurers for unfair settlement practices. Unfair claim practices currently are prohibited by Insurance Law Section 2601, which empowers the superintendent of insurance to enforce its provisions, including authority to impose significant fines and penalties. The proposed legislation would likely work to the detriment of consumers by leading to a counterproductive explosion in the number of such claims asserted against insurers–even when the denial of a claim was well founded. The result may lead to a harmful constriction in New Yorks insurance market and competition.
Finally, legislation to regulate ride-hailing services, commonly known as ride-sharing services, stalled in both houses amid concerns regarding required insurance coverages.
"While we are pleased with many victories this session, PIANY recognizes there is much to achieve in the Legislature on behalf of our members," said PIANY President Anthony Kubera, CIC. "Professional Insurance Agents can be assured their association will continue to work with lawmakers and regulators throughout the year, every year."