A New York agents group is warning its membership that another unnamed "major carrier" may be dropping homeowners insurance in some areas of the state.
The caution by an executive of the Professional Insurance Agents of New York came during a legislative activity session for agents at the state capital in Albany.
Ellen D. Kiehl, PIANY assistant executive director for government and legislative affairs, warned the group that the insurance industry "is a very psychological market, and once one company makes that type of announcement [to nonrenew in a particular area of the state], it sets off a chain reaction and other companies become wary of all the new business that may come on to the market."
Earlier this year, Allstate announced it was not renewing homeowners policies for New York City, Westchester County (which abuts the city's northern border) and all of Long Island. MetLife has since said all agent submissions from 10 New York counties must be pre-inspected.
Ms. Kiehl said she based her warning on what she heard from agents who represent carriers in Suffolk County, located on the eastern tip of Long Island.
She said in an interview that she had word from a "solid source" who gave here the name of a specific insurer.
PIANY said in a statement that the existing New York law regarding homeowner protections needs to be strengthened.
The group said current law requires Insurance Department approval before companies nonrenew a significant number of homeowners policies, and how many policies a company can drop without such approval is established based on the carrier's statewide policy count.
PIANY said that in recognition of the need to offer protect homeowners, it has been lobbying to win permanent status for the state's insurer of last resort, the New York Property Insurance Underwriting Association.
NYPIUA is due to expire on June 30. Historically the legislature has been unable to give NYPIUA permanent life, and on several occasions it has gone out of existence for a month as part of a continuing wrangle between the Republican-controlled Senate and Democratic-controlled Assembly.
The PIANY noted that a bill to repeal the sunset provision of NYPIUA has already passed the Assembly.
On other legislative topics, Ms. Kiehl said PIANY is supporting legislation that would let policyholders have access to their account information immediately when they are given non-renewal notices, giving them more time to find replacement coverage.
The PIANY is supporting a measure that would require insurers to include account histories when the client is cancelled or nonrenewed.
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