NU Online News Service, Sept. 24, 2:35 p.m.EDT

New York's insurance regulator has outlined several proposals toensure consumers have access to homeowners insurance, but insuranceassociations believe he is fixing a problem that doesn't exist.

Insurance Superintendent James J. Wrynn's proposals are aimed atensuring availability and affordability in the homeowners insurancemarketplace. The proposals would cover a catastrophe fund,windstorm deductibles and limits on nonrenewals.

The Property Casualty Insurers Association of America countered,saying the insurance superintendent is "trying to fix a problemthat doesn't exist."

Kristina Baldwin, assistant vice president for governmentaffairs for the Property Casualty Insurers Association of America,said, "We are concerned that these proposals could createmarketplace conditions that negatively affect both the availabilityand affordability of coastal homeowners insurance forconsumers."

The New York Insurance Association (NYIA) said it is surprisedby Mr. Wrynn's proposals and it is "unaware of an availabilityproblem in New York."

The state insurance department's proposal is "counterproductive,unnecessary, burdensome and unduly restrictive," the NYIA said in astatement.

Mr. Wrynn said he has called a meeting of the Temporary Panel onHomeowners Insurance Coverage for Oct. 13 to talk about hisproposals. The panel was created by law to look at insurance issueson the coast.

The insurance department "will explore the viability of creatinga pool or some plan that could be used to cover the cost of acatastrophe and reduce premium increases after a catastrophe,"according to a statement from the department.

Ms. Baldwin called the proposal "ill-advised."

"Government intrusion into the private market should be limitedto instances in which market problems require action," Ms. Baldwinsaid. "In this case, there are no problems." The reinsurance marketis stable and healthy, she added.

Mr. Wrynn's proposals include standardized windstormdeductibles. Insurers now charge deductibles for wind damagewhether it is caused by a hurricane or not. New regulations wouldlimit these deductibles.

Finally, Mr. Wrynn would like to impose regulations on insurersattempting to reduce risk by dropping policies on renewal.Currently insurers can drop 4 percent of their policyholderswithout department notification. Mr. Wrynn would like to changethis so if that any reduction in a given county is 2 percent ormore, the insurer must file a withdrawal plan.

The proposals could create an unattractive market for insurers,Ms. Baldwin said.

Windstorm deductibles in New York were devised in the 1990s toaddress availability problems on the coast. The deductibles allowedinsurers to increase policies written in high-risk areas, said Ms.Baldwin.

New regulations on nonrenewals proposed by Mr. Wrynn could deterinsurers from writing in New York, she predicted.