At the Intersection

Cannot resist using this space, in which insurance and its intersection with social trends comes to you fortnightly, to note that social civility and successful insuring are related, even interdependent on so many levels. When I read of an utter disgrace – such as the bills providing for late term, I mean late, late term abortions – I am compelled to descry the encroaching sense of existential meaninglessness that such a law augurs. Human life is now something of a matter of convenience. At the same time a bill to allow assisted suicide was introduced. I awakened expecting to hear that a new bill was introduced allowing abortions for kids in first grade who cannot pass a spelling test and thus burden their mothers’ competing right to comfort. It is a runaway social train and it will affect all of us in one form or another, as conscientious, sentient citizens and God fearing people. As professionals in insurance, our social fabric matters. We must insist that it is stable and worth something. Please share your thoughts.… A liberal (in the sense of legal interpretation) New York appellate court issued a significant decision for New York policyholders, making clear—for the first time—just what is the minimal standard needed to plead a bad faith claim. This is a real beauty. Reversing the Supreme Court’s decision in D.K Property, Inc. v. National Union Fire Insurance Company of Pittsburgh, Pa., which had dismissed D.K. Property’s claim for consequential damages for breach of the implied covenant of good faith and fair dealing, the First Department rejected AIG’s attempt to impose a heightened standard of pleading of bad faith claims—an argument often made by insurance companies and accepted by courts. Additionally, in what stands to be another significant and unheard of move by a New York court, the First Department rejected AIG’s attempt to dismiss D.K. Property’s claim for affirmative attorney fees through a backdoor “duplicative” argument on the grounds that AIG did not appeal that portion of the Supreme Court’s decision. Not such great news for insurers in the abortion capital of America.… Someone is rational, however. Michael Bloomberg called efforts to legalize marijuana “perhaps the stupidest thing anybody has ever done.” Speaking at the U.S. Naval Academy in Annapolis, Maryland recently, Bloomberg said on WBNG-TV: “We have a different kind of problem in America, for example. Last year, in 2017, 72,000 Americans [overdosed] on drugs. In 2018, more people than that are OD-ing on drugs, have OD’d on drugs. And today, incidentally, we are trying to legalize another addictive narcotic, which is perhaps the stupidest thing anybody has ever done. We’ve got to fight that, and that’s another thing that Bloomberg Philanthropies will work on it in public health.” The position from the billionaire politician would seem to be out of step with Democratic leaders in his state and liberal voters nationwide. Newly re-elected New York Governor Andrew Cuomo, for instance, has made legalization a priority in a December speech outlining the goals for his first 100 days of his new term.  Ten states have already legalized the recreational use of marijuana, including Michigan, which became the latest state to do so with an initiative on the ballot in the 2018 midterm election. Estimated to be worth tens of billions of dollars, Bloomberg is one of the richest people in the world and has long hinted at the possibility of presidential run. A close adviser last month hinted the former mayor would be willing to spend whatever was required should he run in 2020. Let’s see if he will and bring some sanity to the left wing.… Almost one-in-three New Yorkers would face higher costs under a proposed single-payer health plan, and half of the worse-off group would be low- or middle-income, according to a new report from the Empire Center. The report highlights little-noticed data from the RAND Corporation’s analysis of the New York Health Act, which estimated 31 percent of New Yorkers would pay more for health care under single-payer. Among those paying more would be almost half of the working poor – people below 200 percent of the poverty level – who already qualify for free or near-free coverage through Medicaid, Child Health Plus and the Essential Plan. Many beneficiaries of those programs have jobs, and if they pay even a small amount of payroll tax, they would see a net loss. For New Yorkers with employer-sponsored insurance, the report estimates the income “tipping points” at which single-payer taxes would exceed current premium costs. For single workers with no children, the tipping point would be income of about $78,000; above that amount, they would typically face higher costs than they do now. These are among the findings in “Do No Harm: The case against single-payer in New York,” an issue brief by Bill Hammond, the Empire Center’s director of health policy. The report summarizes how the New York Health Act would work and explores its likely consequences for the health-care system, the state budget, the broader economy and ordinary citizens.… And finally some good news – a real mandate for thirty years has proved successful. The Excess Line Association of New York (ELANY) has kicked off its year-long Thirty Years Serving New York celebration. Created by an Act of the New York State legislature in 1988 and commencing operations in 1989, ELANY is a nonprofit industry advisory association charged with assisting excess line brokers comply with the laws, rules and regulations of New York State with regard to excess line insurance. ELANY plays a key role in protecting consumers, facilitating the smooth operation of the excess line market in New York, ensuring that unauthorized insurers writing excess line business in New York are financially strong, and advocating with both policymakers and regulators to continuously improve the ability of the excess line marketplace to meet the emerging needs of consumers, brokers and insurers.  “ELANY has been serving New York’s excess line community with distinction for three decades, benefiting consumers as well as excess lines brokers and insurers,” said ELANY Chairman Lance Becker. “We want to celebrate with the entire excess line community while looking forward to the next thirty years of leadership, service and innovation.” Dan Maher, ELANY Executive Director, is a positive voice and a sharp presence on the insurance scene in New York for many years and had this perspective to offer: “Members and friends of ELANY should look for announcements throughout the year on how they can be part of what is truly a celebration of our joint success. We strive every day to help our members serve New Yorkers and our anniversary celebration would mean little without the people who make the New York excess line market such a vital part of the state’s economy. We are gratified that New York policymakers recognized ELANY’s value by recently enacting legislation, as they have done numerous times before, that extends ELANY’s mission, this time through 2024. CONGRATS to DAN, LANCE and the good people over at ELANY.