On Vacation?

Governor Cuomo has had a busy month while the rest of us have been…busy. It is a difficult time to be an independent business with the economy and so many other pressures pending so work we all must. We did build it and continue to… In any case, it is good news that the Governor has signed into law legislation that will allow producers to raise to $25.00 “gifts” that they and property casualty companies may provide during the insurance process (see chapter 291 of the laws of 2012). The new law lifts prior restrictions. While not going so far as to allowing illegal rebating, reducing commissions or other inducements, the law does show a little flexibility and a realistic approach for keepsakes. We salute the Governor for this action, as well as the legislators who made it happen. A little realism will go a long way. The Governor also acted on a homeowners matter. He called upon New York’s homeowners to take steps to protect their properties in the event New York is hit by any of the nine to 15 storms the National Oceanic and Atmospheric Administration (NOAA) predicts for the 2012 Atlantic hurricane season. As many as three of those storms are predicted by NOAA to strengthen to hurricane force with top winds of 111 miles per hour or higher. Hurricane season extends officially through November 30. Superintendent Lawsky cautioned, as well: “People should never take it for granted that they are covered against all possible losses. Insurance policies contain limitations and exclusions. It’s particularly important that homeowners understand how deductibles work. As we continue to study the homeowners’’ insurance market in New York’s coastal areas, the Department is committed to ensuring homeowners in these areas understand the terms of their policies and take every feasible step to protect their homes. Cuomo suggested homeowners consider a number of actions to protect themselves in the event of storm losses and make filing claims easier should losses occur: 1 Keep copies of all insurance policies, insurance cards and the contact information for your insurance agent, broker or company, in a safe place that is easily accessible in the event of an emergency. Remember to take the information with you if you need to evacuate your home, 1 Document the contents of your home by compiling a home inventory that lists information such as the cost and date of purchase of major items. A sample inventory form is available on the Department of Financial Services’ website, http://www.dfs.ny.gov/insurance/homeown/pdf/home_ invchklst.pdf, 1 Buy flood insurance if you do not already have this coverage. Typically, there’s a 30-day waiting period from date of purchase before your policy goes into effect, 1 Take practical steps to minimize potential loss and damage to your home from fire and theft – as well as windstorms – by doing such things as trimming dead or overhanging tree branches, installing storm shutters and dead holt locks, and equipping your home with a fire extinguisher. He noted that renters should consider how to protect their possessions because their personal property is not covered by their landlords’ insurance policies. In addition to providing protection for their possessions, many renters’ policies cover the cost of additional living expenses if there is damage to the property and the renter needs to live elsewhere while the property is being repaired…Connecticut has stepped ahead in the Captive insurance marketplace, launching its first captive, Thomson Reuter’s Captive. Announced on August 2nd this program marks the beginning of what seems to be a promising marketplace in the Nutmeg state. We followed Nick Pearson’s (Edwards Wildman) testimony before the Connecticut legislature to support the rationale for attracting captives to Connecticut. We note that this captive launch jump-starts Connecticut’s efforts to attract captives. International media and information company Thomson Reuters relocated its U.S. Insurance subsidiary from Delaware to Connecticut. The subsidiary, Thomson Reuters Risk Management, Inc. (TRRMI), is the state’s first captive insurance company, taking advantage of key changes in the Governor’s sweeping jobs reform legislation of 2011. TRRMI insures Thomson Reuters’ workers’ compensation, general liability, auto liability, property, terrorism, errors and omission and personal accident/travel risks in the U.S. “The Governor has made it clear from the start that Connecticut is serious about growing the industry,” Insurance Department Commissioner Thomas B. Leonardi said. “Through professional and consistent regulation, the Insurance Department will make certain that Connecticutbased captives will be noted for their quality and financial stability.” In October 2011, Governor Malloy convened a special legislative Jobs Session aimed at creating jobs and strengthening the state’s competitiveness. The result was a major jobs bill that included revisions to the state’s 2008 captive insurance law. The revisions expanded the types of insurance captives can transact in the state and established a special regulatory unit at the Insurance Department to focus on captives. Marsh Captive Solutions is Thomson Reuters’ captive manager… Coming back to New York, the Governor has announced that Tech Valley Communications, a leading provider of data and high speed internet services in Upstate New York, will consolidate and expand its operations into new corporate headquarters located in downtown Albany. The move will create more than 60 new full-time jobs, retain 62 existing jobs in the downtown area and infuse more than $36.5 million in payroll into the local economy over the next five years. Tech Valley Communications (TVC) owns and operates an extensive fiber optic network throughout Upstate New York’s “Tech Valley” and serves many of the region’s leading enterprises with it First- Light® fiber-to-the-premise service. The company explored several options for its expansion plans, including moving operations out of state, but ultimately chose to remain in downtown Albany. “This significant investment by Tech Valley Communications is a direct result of our efforts to ensure businesses have the tools and resources they need to be successful and create much-needed jobs for New Yorkers,” said Empire State Development President, CEO & Commissioner Kenneth Adams. “The fact that this growing, cuttingedge telecommunications company was founded in downtown Albany and will grow here is a huge win for the local workforce. It further demonstrates that New York’s Tech Valley has the critical mass of talent and infrastructure to attract the companies, investments and jobs that strengthen the regional economy.” In addition to the assistance from the State, the Company has been offered $100,000 from Albany County to incentivize the expansion and keep TVC headquartered in downtown. Tech Valley Communications has so far invested between $10 to $20 million on infrastructure to support FirstLight® for its customers in the Capital Region alone. As part of “The New New York Works for Business” campaign, the state has launched a new website – www.thenewNY.com – which provides quick access to information for all areas of business assistance available from New York State…The slogan for August might well be Cuomo works for N.Y. businesses.

Nice work.