Insurers work with lawmakers on deal

Real Estate Weekly, July 25, 2007

Legislation that would improve homeowners insurance coverage difficult to obtain in some coastal markets passed the New York State Senate and was introduced to the Assembly prior to the Legislature's recent recess.

The Independent Insurance Agents & Brokers of New York, Inc. worked closely with insurance companies, legislators and regulators to develop the initiatives found in Senate bill S.6266. Increasing market capacity in the coastal areas of Westchester County, New York City and Long Island is a goal of the 125-year-old IIABNY.

Sen. Kenneth P. LaValle (R-Port Jefferson) and Assemblyman Robert K. Sweeney (D-Lindenhurst) were sponsors of the legislation in their respective houses.

The bill would provide incentives for companies to write additional supplemental coverage for the New York Property Insurance Underwriting Association. Currently, NYPIUA allows for basic homeowners coverage, but lacks replacement coverage and additional perils comparable to an HO-3 policy.

Established in 1968, NYPIUA is New York state's Fair Access to Insurance Requirements, or FAIR plan, which provides property coverage to those who cannot obtain it in the voluntary market. "Many homeowners in New York's so-called hurricane counties have been lacking proper insurance coverage and availability for quite some time," said IIABNY chair Stephen R. Zogby.

"IIABNY is committed to working with carriers, regulators and lawmakers to improve the market in the downstate region."

In addition, IIABNY continues its advocacy for a permanent NYPIUA. The Legislature extends NYPIUA's authority for only one year at a time. Besides lapsing in the past, financial markets do not view NYPIUA asa viable financial institution unless it becomes permanent.

Established in 1882, IIABNY has represented the common business interests of independent insurance professionals for 125 years. More than 1,900 agencies and their 18,000 employees currently rely on the DeWitt, New York not-for-profit trade association for legislative advocacy, continuing education and other means of industry support.