N.Y. Pols Leaving Fair Plan In Lurch?

By Mark E. Ruquet

NU Online News Service, June 17, 4:24 p.m. EDT?The Professional Insurance Agents of New York is urging independent agents to press their state representatives to extend the life of New York's residual property insurance association before the end of this legislative session.[@@]

The group said it is fearful legislators may ignore the issue in a push to adjourn, allowing coverage for more than 50,000 homes and businesses to expire.

In a statement, the association is urging its membership to press lawmakers to renew The New York Property Insurance Underwriting Association, which closed its doors April 30 after the legislature failed to renew the association's mandate.

NYPIUA provides "Fair Plan" property insurance to more than 57,000 homes and businesses throughout the state, primarily in the New York City area.

In a statement, T.J. Derella, president of PIANY, said that through the middle of June, NYPIUA has "been forced to send out more than 4,700 non-renewal notices affecting existing policyholders."

"In their rush to leave Albany, lawmakers are in danger of overlooking their responsibility to the public by failing to reauthorize this essential insurance provider," he said. "Property closings will be thwarted, people's insurance coverage will run out, and the fault will lie with the legislature."

In an interview with National Underwriter, he said the voluntary market, mainly through the excess & surplus lines market, has picked up some of the coverage, but more and more members are coming to the association saying they cannot find coverage.

"[PIANY has tried] to put pressure on the [state] leadership to act on this, but we decided it was time to send out an action alert to our members telling them that it is time to speak to the rank and file members of the Assembly and the Senate," he said, "This is an important bill that needs to be addressed before they go home for the session."

The session is scheduled to conclude June 22.

He said it is ironic that at one point the legislature was considering NYPIUA as an answer to the crisis in contractors insurance in the state and now fails to see it as a priority for property owners.

"We are greatly disappointed in both the Senate and the Assembly leadership for not acting on this, and we are strongly urging our members to get out and do something so this gets done," he added.

PIANY did not say anything sooner on this subject because it expected action would be taken before the end of the session, he said.

"Everyone thought this would get done before the session ended. This is not the first time," he noted. "It is much to our chagrin that it has not, and that is why this alert has gone out. We are worried this won't get done."

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N.Y. Pols Leaving Fair Plan In Lurch?

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