“On behalf of our member-agents and the insurance-buying public throughout the state, PIANY commends the passage of this law,” said Martin Koles, president of PIANY. “Our association has worked hard with New York state lawmakers to address the issue of coastal insurance availability and NYPIUA permanence. We commend both the legislature and the governor for their support of the insurance industry and consumers.”
The legislation, Senate Bill 8624, has been long-supported by PIANY, because NYPIUA ensures the availability and affordability of homeowners insurance, while promoting the stability of the market throughout the state. Prior to this legislation, the authorization for NYPIUA was subject to periodic expiration, requiring the legislature to reauthorize NYPIUA annually.
In addition to making it permanent, the bill requires NYPIUA to develop incentives to encourage insurers to write homeowners insurance policies in coastal areas and authorizes NYPIUA to offer more expansive coverage in coastal areas and in other areas of the state. The bill codifies provisions establishing the Coastal Market Assistance Program, which improves the availability of homeowners insurance in coastal areas, and reinstates the Special Advisory Panel on homeowners insurance/catastrophe coverage to examine and assess problems affecting the availability and affordability of homeowners insurance coverage in New York state.
The new law also addresses flex rating, allowing carriers to adjust auto insurance rates within a 5 percent flex band, without approval from the state’s superintendent of insurance. The superintendent still can reject rates if they are found to not be justified. Prior to the new law, New York state had a 7 percent flex-rating system in place, but it expired in 2001. The state then switched to a prior-approval system.
PIANY is a trade association representing professional, independent insurance agencies, brokerages and their employees throughout the state.