End In Sight For NYPIUA Stalemate?
By Mark E. Ruquet
NU Online News Service, June 1, 4:04 p.m. EDT?Legislation renewing New York's residual property insurance plan could come in the next few weeks, according to a trade group representative, but there appears to be no certainty.[@@]
The New York Property Insurance Underwriting Association, the state's residual market for property insurance, was allowed to expire April 30 in what is becoming a regular event for the program. This is the fourth week of the program's shutdown, which is accepting no new policies or renewals.
The state Senate and Assembly introduced bills extending the life of the program for anywhere between two months (Senate bill number S07181) to one year (Assembly bill number A11037). A third bill, A4527, proposed by the Assembly, would make the program permanent.
While all three bills have passed in the chambers they originated in, there has been no new movement to get passage of an extension in either the Democrat-dominated Assembly or the Republican-controlled Senate, industry executives said.
Don Cleasby, vice president and regional manager with the Property Casualty Insurers Association of America, based in Des Plaines, Ill., said there is some talk by legislators of getting a one-year extension passed within the next few weeks.
Michael Barrett, legislative representative with the Independent Insurance Agents & Brokers of New York, said it was possible, but it appeared doubtful, that an extension would be passed before the end of the June 22nd legislative session.
"Because of the state budget, the legislature will be meeting on and off through July, so something is possible," said Mr. Barrett.
Mr. Cleasby said companies are not reporting any difficulty yet, but "if it goes on much longer, this may be an issue. But no one anticipates that NYPIUA will not be renewed."
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