NU Online News Service, May 12, 9:16 a.m.EDT

A meeting of New York legislators and insurance industry groupsled to no solution of coastal property owners' insurance issues,but may have underscored divisions between agents and insurers,said persons attending the meeting.

The session between lawmakers and industry representatives wascalled yesterday, by Assemblyman Joseph J. Morelle, D-Irondequoit,Brighton and Rochester, and Sen. Neil Breslin, D-Albany, both theleaders of their respective insurance committees,

Their announced purpose for the meeting in Albany was to discusscoastal property issues.

Representatives of the Independent Insurance Agents &Brokers of New York and the Professional Insurance Agents of NewYork brought up items that they say are bound to cause confusionfor homeowners should a major storm strike the area, while at thesame time touching on the issue of coverage availability forresidents.

Kathy Weinheimer, senior vice president of industry relationsfor the IIABNY and N. Stephen Ruchman, past president of the PIANY,said the meeting was an open fact finding forum where they and atleast one company representative discussed the challenges thatcoastal property policyholders are facing and what should be doneto remedy the situation.

Ms. Weinheimer said that while property owners can obtaininsurance, there are problems in certain areas, especially LongIsland, where homeowners are forced to purchase their coverage onthe excess and surplus lines market because standard line is notavailable.

While there are programs available to homeowners, such as CMAP(coastal market assistance program) there is a lack ofparticipation by insurers, and as Mr. Ruchman pointed out, thelevel of coverage is inferior to what is available in themarketplace.

For homeowners purchasing coverage in the E&S marketplace,Ms. Weinheimer noted that they do not have the advantage of aguarantee fund protection or standardized forms for theirplacements.

A major point of discussion, they said, was establishingtriggers for wind storm deductibles. Currently, there is nostandard trigger, which means homeowners can be subject to the whimof the carriers when wind storm loss deductibles can begin. This,they noted, can cause both confusion and frustration forhomeowners.

They agreed that the amount of the deductibles should be left toinsurers and the marketplace.

Insurers, said Mr. Ruchman, appear to disagree with the need fora standardized trigger. He noted only one company representative(State Farm) spoke at the meeting addressing property issues andwas opposed to the idea.

While the meeting did not produce any resolution to the issue,both attendees said Mr. Morelle promised to hold more discussionswith smaller groups to further discuss and address the issues in aneffort to find a resolution to the challenges confronting insurersand coastal property homeowners.

State Farm and Mr. Morelle's office did not immediately respondto a request for comment.