NU Online News Service, April 30, 3:00 p.m.EDT

No-fault auto insurance reform took center stage in a meetingbetween more than 100 insurance industry professionals and key NewYork state legislators, a joint statement of industry associationssaid.

Members of the American Insurance Association (AIA), NationalAssociation of Mutual Insurance Companies (NAMIC), New YorkInsurance Association (NYIA) and Property Casualty InsurersAssociation of America (PCI) met with a panel of legislators. Theyincluded Senate Insurance Committee Chair Neil Breslin, D-Albany;Assembly Insurance Committee Chair Joseph Morelle, D-Irondequoit;Senate Insurance Committee Ranking Member James Seward, R-Oneonta;and Assembly Insurance Committee Ranking Member William Barclay,R-Oswego.

The insurance groups said those at the meeting paid particularattention to the no-fault issue in the state, which EllenMelchionni, president of NYIA said cost New Yorkers about $229million last year.

The industry associations said they are supporting legislationthat would allow insurers more time beyond the current 30-daydeadline to investigate suspicious claims, and legislation thatwould call for mandatory arbitration of no-fault claims.

In addition, they are supporting a bill that would make thefraud practice of "running" a felony, and legislation that wouldde-certify from the no-fault system providers found guilty offraud.

Sen. Seward said, "The Insurance Department has done what it cando administratively. Now we need to act legislatively to toughenthe laws."

Insurers at the meeting also opposed coastal homeownerslegislation that would reduce the threshold for companies filingfor homeowner reduction plans. The bill would add a lower thresholdfor those insurers that are non-renewing policies in the state'scoastal areas, as opposed to statewide.

Insurers said the legislation is unneeded as the coastalhomeowners market in the state has stabilized.

The trade groups also called for tort reform in New York. PaulTetrault, state affairs manager for NAMIC, said, "Liability defensecosts, adjusted for inflation, have risen 485 percent since 1977and New York jury awards generally are 600 percent above the U.S.norm."

He added, "Sensible tort reform would strengthen our state'seconomy, create new job opportunities and reduce New York'scrushing income tax, business tax and property tax burdens."