Jan 29, 2015

PIANY hails passage of law providing coverage clarity on certificates of insurance

ALBANY, N.Y.-The Professional Insurance Agents of New York State Inc., is applauding Gov. Andrew M. Cuomos signature of its top-priority bill (A.9590 and S.6545-A) into law today. The law addresses a growing problem for construction and insurance businesses, where certificates of insurance are issued that may not accurately represent policy coverages. The law was signed after an overwhelming grassroots showing of support by PIANY members, who sent letters and made telephone calls to the governor urging him to adopt this critically important proposal.

The corresponding bills were introduced in their respective houses by Assembly Majority Leader Joseph D. Morelle, D-136, and Senate Insurance Committee Chair James L. Seward, R-51, for the second time after similar legislation was vetoed by the governor last year.

Assembly Insurance Committee Chair Kevin Cahill, R-103, also sent a letter to the governor asking him to sign the bill. In his letter, Cahill argued that approving the bill "is a matter of great priority and public importance to residents of our state ... We must take this opportunity to prevent dangerous misrepresentations and suspect practices that can unleash untold harm on our insurance market as well as the safety and financial well-being of New Yorks laborers and businesses."

The law standardizes and regulates the use of certificate forms and requires that certificates clearly and accurately reflect the coverages in the policy.

PIANY and a coalition of other groups have worked for years with lawmakers to pass this law. The association worked with the governors office to address concerns stated in the governors veto last year and PIANY members have continued their campaign to get this bill passed by the Legislature (again) and signed into law.

"We commend the PIA members who wrote letters and made phone calls to the governor, explaining the precarious position businesses in both the construction and insurance industries are in without this legislation" said PIANY President Anthony A. Kubera, CIC. "They are to be commended for their tenacious efforts to alleviate a burgeoning issue for businesses across the state."

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

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