Coastal Insurance Reform The Top Issue For N.Y. Agents’ Group in 2008

Improvements to New York’s coastal property insurance program and a prohibition against denying some late-reported claims top the list of issues the Independent Insurance Agents and Brokers of New York said it will lobby for next year.

The agents’ trade group said it will ask the state’s insurance department to require companies participating in the state-sponsored Coastal Market Assistance Program to provide at least the minimal coverage found in a standard homeowners policy. Residents in Westchester County, New York City and Long Island have struggled to find coverage over the last several years as several companies have limited writing business in those areas, IIABNY said.

Under C-MAP, the state-sponsored New York Property Insurance Underwriting Association provides basic property coverages like fire and windstorm insurance. Private insurance companies supplement it with a second policy, thus limiting their exposure to catastrophic losses. However, companies have traditionally issued supplementary policies designed for the needs of renters rather than those of homeowners; IIABNY wants to change that.

IIABNY has also renewed its call for the legislature to make NYPIUA permanent.

The group said it plans to work with the state insurance department to create legislation that would prevent insurers from denying some late-reported claims. The group wants to take away insurers’ ability to deny a claim in instances where a late report does not hamper a company’s ability to investigate, defend or settle a claim.

Other major issues the group will lobby for include: increasing penalties for doctors and medical professionals who illegally charge the state’s no-fault auto insurance system, mandatory arbitration of no-fault claims, and the establishment of medical protocols for no-fault injuries.

Source: IIABNY