You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
REGIONAL DIRECTOR’S REPORT<br />
Russ Vollmer<br />
Tom Crowley<br />
Regional Directors<br />
MAY/JUNE 2008<br />
The following is a summary of the issues being addressed by IIABNY on behalf of our<br />
membership and the general public.<br />
Coastal Insurance. The Association is taking a multi-step approach to the coastal market<br />
situation that includes: regulatory reform to improve the climate for insurers and allow for<br />
the use of catastrophe modeling for rating purposes, legislative changes to make alternate<br />
markets more available, C-Map expansion (use of HO-3-like wrap policies) and<br />
improvements, permanency of the FAIR Plan, streamlining of rate review processes and some<br />
means of standardizing wind deductible triggers.<br />
Broker Compensation Disclosure. The Association’s board has approved a resolution<br />
calling for voluntary disclosure by agents and brokers. (We prefer voluntary disclosure at the<br />
request of a customer to mandatory disclosure to everyone.) Should the Insurance Dept.<br />
prepare a regulation on this issue, the Association has prepared suggested disclosure<br />
language to re<strong>com</strong>mend. IIABNY continues to be the only producer organization regularly<br />
testifying at public hearings on this issue. IIABNY will also review current and new alternative<br />
profit-sharing <strong>com</strong>pensation arrangements to determine their impact on agents.<br />
continued below -<br />
Workers Compensation. With respect to the NY Workers Compensation Law Reform Act of<br />
2007, IIABNY has prepared a white paper that outlines all the changes. This document can be<br />
accessed on the Research Page of IIABNY’s website: www.iiabny.org. We continue to meet<br />
with the Workers Compensation Board about the situation for out-of-state employees who<br />
travel into NY for meetings, seminars, etc. IIABNY is also looking into the State Fund’s NY<br />
Assessment being lower than that of private carriers, the Fund’s current 30-day advance<br />
notice requirement when a policyholder wants to change insurers and whether the Fund can<br />
be authorized to accept ACORD forms instead of their own..<br />
Auto Fraud. IIABNY is working with carriers and via the NY First Auto Fraud Coalition to<br />
broker a consensus between the Senate and Assembly about meaningful auto fraud<br />
legislation. So far, a result has been legislation enacted to de-certify health insurance<br />
providers who engage in fraud. (Auto insurance fraud adds an average of $124 a year to the<br />
premium for each NY insured vehicle.)<br />
Labor Law Reform. IIABNY continues to support the Businesses for a Better NY’s efforts at<br />
repealing the “no defense” provision in the current law. Currently, this effort, in the form of a<br />
dismissed lawsuit, is being appealed in the US Court of Appeals, 2md Circuit. There has been<br />
no legislative action on amending the law.<br />
Late Notice of Claims. IIABNY is drafting suggested legislation to define under what<br />
circumstances a claim can be denied by an insurer for late notice – essentially requiring the<br />
insurer to specifically demonstrate that the late notice was prejudicial to the insurer. The<br />
Association board adopted a policy statement on this issue and the statement can be viewed<br />
on IIABNY’s Leadership page at www.iiabny.org. Our statement has been distributed to the<br />
top 25 insurers in NY urging voluntary adoption of the suggested standards until a permanent<br />
solution is found. IIABNY has on several occasions been successful in having individual cases<br />
of late notice denials revered by the carrier involved.<br />
Other Issues.<br />
The NY Assembly has struck out the governor’s proposal to increase the $5 fee for<br />
each insured vehicle to $20 per vehicle.<br />
Commercial De-regulation is resurfacing again. This is an effort to free <strong>com</strong>mercial<br />
lines of insurance from much of the current regulations which could also put an end to<br />
many of the current protections in the current system. IIABNY will be watching this<br />
issue very closely.<br />
Wrap-Up insurance for major construction jobs is also resurfacing and with the<br />
contractors’ insurance situation being what it is today, this may well have some<br />
momentum this time and may, indeed, be the reason this is be<strong>com</strong>ing a current topic.<br />
Commercial loss runs are now being centrally reported much as personal lines claims<br />
are and some are currently available via lossruns.<strong>com</strong>.<br />
Respectfully submitted,<br />
Russ Vollmer<br />
Tom Crowley<br />
Regional Directors<br />
© 2008 www.tricountyagents.<strong>com</strong>
Change language