PIA Northeast | New York Legislator Booklet

Professional Insurance Agents Industry leading, member focused

About PIA Northeast As the premier professional association for independent insurance agents, PIA Northeast has provided excellence to its members for nearly 90 years. Through its strength of association in New York and surrounding states, it advances the independent agency system—in the Northeast and beyond.

PIA’s mission is to recognize, meet, and advance the diverse needs of its membership, and influence the industry by providing the best advocacy, information, education, and protection possible.

To this end, PIA and its members are able to serve as your go-to resource for knowledge and insight about how different bills and regulations may affect the insurance industry and the insurance-buying community—your constituents.

Who Do PIA Members Represent?

PIA members are business owners who employ more than 27,000 insurance professionals. They provide insurance for more than two million households and more than one million businesses, governmental units, and other organizations throughout New York state.

Number Breakdown of Personal Lines/Commercial Lines

Property/Casualty Clients

3,305,343 customers served

PIA’s non-partisan political action committee, founded in 1981, supports candidates and elected officials in New York who advance the independent agency system.

Donated

$366,300

to 620

legislative candidates since 2007

1,111,256 commercial-lines accounts

2,194,087 personal-lines accounts

Since 1981, AAC has received

more than 1,500 donations from insurance agents and brokers.

Our Priorities PIA’s advocacy efforts serve to protect insurance consumers—your constituents. Here are several issues the association is asking you for help with this legislative session:

Excess-Line Diligent Effort Allow Carriers to Waive Photo Inspections Standardized Definition of Windstorm Consumer Protections from Carrier Bait-and-Switch Activities Oppose Statutory Bad Faith

Excess-Line Diligent Effort S.8127, Breslin/A.9088, Hunter—Simplifies the excess-line insurance placement affidavit requirements PIANY supports this proposal that would simplify the requirements of agents and brokers placing business in the state’s excess-line marketplace. The legislation would amend Insurance Law Section 2118 to reduce the amount of data points insurance producers are required to collect and report on excess-line affidavits.

Producers are required to execute three separate affidavits for each policy they place in the excess-line marketplace. Reducing the data points required from nine to three per application will greatly improve the efficiency of the placement process while maintaining consumer protection safeguards.

Allow Carriers to Waive Photo Inspections S.6028, Breslin/A.6877, Zebrowski—Allows insurers to dispense with or defer inspections of private-passenger automobiles prior to the provision of coverage for physical damage thereto Currently, New York drivers are required to obtain a photo inspection within 14 days of a new personal auto insurance policy going into effect. Failure to obtain the inspection within this time frame results in an insurance company being required–by law–to cease physical damage coverage the driver has purchased.

PIA supports legislation to allow insurance companies to waive the photo-inspection requirements for some or all automobiles. Doing so would allow companies to remove this tedious and unnecessary task burdening many New York drivers. Additionally, drivers must have photo inspections performed at authorized CARCO sites. Many counties only have a small number of these sites, and many sites have limited hours of operation. Modern technology has given insurance companies far more options to confirm the physical state of a vehicle, and this decades-old, outdated legislation only serves to burden drivers.

Why PIANY Seeks to Make Photo Inspections Optional:

Number of CARCO inspection sites: Appointment only— limited 9 a.m.-5 p.m. hours 1 location offers 9 a.m.-12 p.m.

Sat & Sun

4

6 Rochester

Buffalo

2

0

Utica

Syracuse

0

1 Albany

The only site in Albany County

Binghamton

Binghamton & Syracuse have 0 CARCO inspection sites

64.7% CARCO inspection sites DO NOT have weekend inspections hours

66.2% CARCO inspection sites DO NOT have times M-F outside of 9 a.m.-5 p.m.

Standardized Definition of Windstorm S.6407-B, Sanders/A.950-C, Pheffer Amato—Makes provisions with respect to notices of homeowners deductible triggers for hurricane windstorms PIA seeks to establish a standard definition of windstorm that would apply to any homeowners policy with a specific deductible for windstorms. The exact definition of a windstorm can make a substantial difference in a homeowner’s deductible following a major storm. Where a standard deductible is usually a fixed amount, the windstorm deductible may be a percentage of the dwelling value. For many homeowners, the difference between the standard deductible and a 5% windstorm deductible could be tens of thousands of dollars. In the most recent list of approved deductibles, the Department of Financial Services approved 113 windstorm deductibles each with a different definition of windstorm. Standardizing the definition of windstorm would greatly help consumers purchase insurance and understand their financial obligations under a policy.

Consumer Protections from Carrier Bait-and-Switch Activities S.3578, Breslin/A.1809, Cahill—Requires third-party verification of driving history when used as a rating or underwriting factor A growing trend in the auto insurance marketplace is the practice by some insurers of re-rating policies, post-binding, after running the individual’s motor vehicle report. Often, this leads to a situation in which a policyholder’s premium is increased substantially shortly after the policy is bound. In many cases, policyholders have no idea when they agree to the terms and the price of the policy, that the policy could be re-rated and premiums could increase. PIA is aware of how damaging this practice can be and is committed to addressing this issue in a way that will protect consumers from this predatory practice and ensure a level playing field for producers.

Oppose Statutory Bad Faith S.6813, Ramos/A.7285, Weinstein—Relates to claimsettlement practices when an insurer refuses to pay or is delaying payment of a settlement PIANY opposes legislation that would create a statutory cause of action for bad faith against insurance companies. This legislation is a solution in search of a problem. Policyholders already have well-established common-law remedies to seek compensatory and, if appropriate, punitive damages against insurers that commit acts of bad faith. Instead of providing new rights to policyholders, this legislation threatens New York state insurers with extracontractual damages, interest, attorney’s fees, double and treble damages and other penalties while simultaneously overloading the New York state court system and increasing premiums for all policyholders.

(800) 424-4244 • www.pia.org 25 Chamberlain St., PO Box 997, Glenmont, NY 12077-0997 This piece was created by PIA Design & Print.

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