New York insurance agents are lauding Gov. George Pataki for signing into law legislation that will cut in half the time underwriters have to provide agents with information about pending issues with commercial policies that underwriters are not renewing or canceling.
The Professional Insurance Agents of New York State Inc. in a statement "commended" Gov. Pataki for signing the bill--A.1973-c--which cuts agents' wait time in half for commercial policy "loss run" data. It reduces the maximum time companies are allowed to supply loss runs upon request from the previous 20 to 10 days.
"Loss run" documents any occurrences, such as open claims, closed claims and any payments that have been made on claims on commercial policies, according to Ellen D. Kiehl, Ph.D., CAE, assistant executive director for government and industry affairs for the Professional Insurance Agents of New York, New Jersey, Connecticut and New Hampshire.
The primary concern of agents is that if a policy is terminated, the agent or broker needs the document in order to get replacement coverage. The old 20-day deadline has been in existence since 1986, Ms. Kiehl said.
The bill was signed Thursday, less than two weeks after being passed by both the Assembly and Senate. A PIA official said the trade group has been working for more than six years to get the bill passed.
PIANY President J. Carlos "Shawn" Via?a said the new 10-day rule will provide better turnaround time, which becomes crucial in achieving certain placements and in coping with hard-market conditions.
"We also want to acknowledge those companies that are now providing real-time electronic inquiry transactions whereby loss data is accessible instantly," Mr. Via?a said. "These accomplishments will go far in improved service to clients, affording a stronger competitive edge."
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