Legislative Victories for Agents, Who Face Stormy Season

The lazy days of summer are here and I am enjoying hearing about how my friends and associates are spending their time. My own grandsons are out of school at camp and there’s nothing I love to hear more than childhood memories they are creating. Many of my colleagues are taking family vacations and I myself, am growing fantastic gardens at my home in the Berkshires, where and I get to see more of my friends with summer residences in this beautiful part of our region. Not far from my place, the New York State Legislature ended its session in Albany a few weeks ago, and lawmakers no doubt are taking time with their families and reconnecting with neighbors in their hometowns.

We all can reflect on some victories our industry achieved during this legislative session with satisfaction. First, both the Assembly and the Senate passed a bill (A.3107/S.5804), addressing problems associated with certificates of insurance, which have plagued agents for a long time. This is a true success story, which starts several years ago. I remember the Savino brothers, Rich and Keith; who during their respective presidencies of PIA in New York and New Jersey, took on this project as a priority. As experts in the building and construction field, they focused on the pressures put on agents by contractors and attorneys of their clients to modify or supply certificates that represented coverages that are not necessarily included in the terms of a policy. As this problem is has mushroomed over the past several years, the PIA board decided to address this issue from multiple angles. PIA’s crackerjack Government and Industry Affairs team got right on this situation, pulling together an all-industry coalition of trade associations, lawyers and representatives of multiple industries to deal with it. This group worked with agentfriendly lawmakers, the New York State Department of Financial Services and ACORD and is developing resolutions and tools that will help keep producers from being placed in the untenable situation of assisting their clients and alleviate the pressure to produce certificates that signify coverages that are not in place.

The bill is now headed to Gov. Cuomo, and I know our associations will urge him to pass it as soon as it is sent to him for signature. The governor wants to support New York businesses, and I can’t see a reason why this bill should not be signed.

Another legislative victory for agents was achieved this session as the Assembly passed the Hurricane Deductible Triggers proposal (A.2729/S.2032). PIA has long pushed to standardize the triggers for windstorm coverage and readers of this column know this is one of my own top priorities. Each carrier considers with storm damage in a different trigger, such as whether there is a “named-storm”; measurements of how fast the wind is and all sorts of other methods, some included in endorsements that indicate high deductibles. I hope the Senate follows suit and deals with this issue. Hurricane season started in June, and we haven’t even reached the worst part of the season. Who knows if the governor will not be able to protect citizens the way he did when Sandy hit? The disparate ways policyholders will face identifying the triggers for their coverage will cause major media hype, and it will be a headache for insureds; the industry; and policymakers alike.

As I write this column, residents of North and Central New York are dealing with flood damage following the week of July 4. It’s still raining in the Mohawk Valley, and I feel horrible for them. I watch the news and see Gov. Cuomo visit and pledge support even though, as he says, he is not optimistic federal officials will issue a disaster declaration for the area to receive aid. There are entire towns, already economically depressed, that may never return to prosperity after the damage they are experiencing right now.

The scenes associated with this bring to mind recent crises closer to home—one’s memory doesn’t have to stretch to remember Irene and Lee two years ago; and of course, my own neighbors here on Long Island still are grappling with the damage from Sandy. Nine months later, and many residents here still are not able to live in their homes on Long Island.

The governor has indicated he might call a special session to address the damage in the Mohawk Valley, and that he will not leave homeowners on their own. If this happens, perhaps lawmakers in the Senate will finally pass the deductible triggers bill, too. While they are considering how to assist the state’s policyholders, it would be nice if the Senate continued the Assembly’s positive momentum and pass the Insured’s Record of Claims bill (A.5526A), that would allow homeowners and other insureds to contact their agents about potential claims without having to worry about these conversations showing up in a report even when they opt not to file a claim. Passing this legislation would only help the state’s policyholders have better communication with their agents, and greater confidence in their coverages. Who wouldn’t want to pass this law?

In all, the legislative session was pretty successful this past season. I hope the skys stay clear here at home and on the legislative front as we face the upcoming storm season.