2024
2024 Issues - Click to View
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Big I: Nearly 70% of Americans Are Reviewing Their Insurance Policies
Insurance Advocate Cover Story
New Survey from Trusted Choice® Reveals Consumer Uncertainty
and Behavior on Insurance Coverage.SWAT-ing Wc Fraud
I’ve always liked Adam Friedlander and his dad and the way they do business: sharp, bright and always with reference to the buyer’s benefit – even when it takes a lot of effort and funds. In 2012, Friedlander introduced the Fraud Solutions (SWAT) team was introduced to combat escalating workers’ compensation fraud, achieving notable success this past year […]
Harper Elected Chair Of New York Insurance Association
Edward Harper of Statewide Underwriting Services has been elected chair of the New York Insurance Association (NYIA) and began serving a one-year term on Jan. 1, 2024. He has served on NYIA’s Board of Directors since 2018. “Eddie is a tenacious leader who never shies away from a challenge,” Ellen Melchionni, president of NYIA said. […]
Daniel F. Maher’s Career Celebrated
In honor of Daniel F. Maher’s 26+ years of leadership, the Board of ELANY has renamed its state-of-the-art conference center the Daniel F. Maher Conference Center. Dan’s dedication and passion to the needs of Excess Line members have helped the industry serve its clients faster and more efficiently for over a quarter century. ELANY is […]
PIANY Hails Hochul signing of its “bait-and-switch bill”
The Professional Insurance Agents of New York State Inc., applauded Gov. Kathy Hochul for signing legislation to require insurance companies to make a good-faith attempt to verify a drivers’ driving history prior to binding a personal automobile insurance policy. “The law, which was termed a top priority for PIANY during the 2023 legislative session, will ensure that consumers […]
Home Generator Safety
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Power outages can happen at any time, but they are especially dangerous during cold weather. In February of 2021, the entire state of Texas lost power, and some areas were out for an extended period. Home generators can literally be life savers, […]
Aon’s $ 13.4 billion acquisition of NFP is largest global brokerage deal
Aon’s acquisition of NFP, announced on 20th December 2023, will have a significant effect on the structure of the insurance broking sector, according to Insuramore and other sources in London. . According to its global rankings of insurance broking and MGA / MGU groups, which were last updated earlier in 2023 with data for 2022, […]
Risk Strategies Acquires Setnor Byer Insurance & Risk
Risk Strategies, a leading national specialty insurance brokerage and risk management firm, announced it has acquired Setnor, Byer, Boganoff, Inc., which does business as Setnor Byer Insurance & Risk, a Greater Fort Lauderdale brokerage and risk management firm with a specialization in developing innovative property, casualty and employee benefits solutions. Terms of the deal were not […]
Risk Strategies Acquires Robert Alan Agency
Risk Strategies announced it has acquired Robert Alan Agency, a New York-based full-service retail insurance agency. Terms of the deal were not disclosed.Established in 1980 by Bob Carlucci, the Robert Alan Agency is headquartered in New City, NY with several offices in the region. Its primary business focus is providing personal and commercial lines of insurance to […]
Five Financial Services Trends That We Are Going To See in 2024
1. DATA IS BACK BABY! And so is your Chief Data Officer “Data is the enabler for better experiences – be it on app or on websites. The issue? Getting it. It is currently scattered and inaccessible. But once you do access it, then you will really start seeing the difference. We’re therefore going to see […]
The World’s Largest P&C Insurers, 2023
State Farm Mutual Automobile Insurance Co. is the largest global property and casualty insurer with $77.59 billion of direct premiums written, according to a new ranking by S&P Global Market Intelligence. US companies dominated the top 50 nonlife insurers, taking 20 of the global spots and accounting for more than 40% of total premiums. China […]
New York State Workers’ Compensation Board Joins State Effort To Protect Undocumented Workers During Labor Investigation
WCB Will Partner with State, Federal Authorities to Gain Temporary Protection for Workers Exercising Their Right to File Workers’ Compensation Claims. Builds on Governor Kathy Hochul’s Commitment to Protecting Workers in New York State – Regardless of Immigration Status. The New York State Workers’ Compensation Board (Board) has joined a wider state effort in shielding […]
Insurance Litigation Never Easy
When Appraisers Fail to Agree on Umpire Court Must Appoint One When a claim for damages due to a hurricane was disputed the parties demanded appraisal and appointed their respective appraisers. However, the appraisers could not agree on an umpire for reasons unclear and bad faith litigation ensured. Because of the inability of the appraisers […]
Subrogation Must be Fair
Insurer May Never Subrogate Against its own Insured Zurich American Insurance et al sued their coinsurers – Appellant Certain Underwriters at Lloyd’s, London Subscribing to Policy Number B12630308616 (Lloyd’s) and Defendant Arch Insurance Company (Arch) – seeking a declaratory judgment that Lloyd’s is barred under New York law from bringing a common law indemnification or […]
Go to Jail, Do Not Pass Go
Fraudster Must Serve Time and Lose His Residence to Pay Restitution Armando Valdes appealed his 60-month sentence for health care fraud after he pleaded guilty. Valdes’s conviction and sentence arose out of his scheme to submit millions of dollars in fraudulent medical claims to United Healthcare and Blue Cross Blue Shield for intravenous infusions of […]
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S&P Global Analysis: US homeowners insurance rates jump by double digits in 2023
The nationwide calculated weighted average premium rate increase for owner-occupied homeowners insurance was 11.3% through Dec. 29, 2023, according to S&P Global Market Intelligence’s RateWatch application. Key highlights from the analysis include: • In total, 25 states saw an effective rate change of at least 10% in 2023, compared to only six states during the […]
AMAZING ETHICAL DILEMMA..OR IS IT?
A new nationwide research / digital consultancy company Customertimes has shown that the cost of living crisis has forced Americans to abandon some ethicl aspects that were once common,, with 1 in 5 admitting they’ve considered committing insurance fraud. Customertimes surveyed 2,000 adults in the US to see how the downturn, tech adoption and insurance […]
AmTrust Appoints James Thanasules as President of AmTrust Title
AmTrust Financial Services, Inc., (“AmTrust” or the “Company”), a global specialty property casualty insurer,announced the appointment of James Thanasules as President of AmTrust Title Insurance Company (“AmTrust Title”). In this role, he will oversee AmTrust Title’s operations providing title insurance for the commercial and residential real estate industries. “I’m excited to continue working with James […]
LIO Specialty Launches Revolutionary Online Portal for Life Science Insurance Solutions
Leading the Excess and Surplus Lines Market with Innovative Coverage for Cannabis and Nutraceutical Industries LIO Specialty Insurance Company proudly announces the launch of its state-of-the-art online portal. This innovative platform is set to transform the insurance process for wholesale brokers, offering the ability to quote, bind, and issue policies in a matter of minutes. […]
Risk Strategies Acquires Professional Risk Associates
Physician-focused agency adds to National Healthcare Practice Risk Strategies, a leading national specialty insurance brokerage and risk management firm, has announced that it has acquired Professional Risk Associates, Inc. (PRA), a Virginia-based specialty healthcare insurance agency helping medical professionals manage a wide range of risks and liabilities. Terms of the deal were not disclosed. Founded […]
Rhodian Group Partners with Renaissance Alliance
Rhodian Group Partners with Renaissance Alliance Rhodian Group — a provider of managed IT and cybersecurity services to the insurance, banking, healthcare, private equity, and other industries — has partnered with Renaissance Alliance to provide cybersecurity, managed IT, and compliance services to Renaissance member agencies. “This partnership is another indication of our commitment to the […]
Sands Point Risk Launches MGA Platform with FlagshipTransactionLiability Practice
An underwriting team that is widely recognized as leaders in the Transaction Liability Insurance (“TLI”) industry is pleased to announce the launch of Sands Point Risk (“Sands Point’’ or “the Company”). Sands Point is a managing general agent (“MGA”) focused on supporting expanded opportunities across financial and property and casualty insurance lines. With its flagship […]
Global Ransomware Attacks Reach Record High for 2023, according to Corvus Insurance Q4 Ransomware Report
Despite Law Enforcement Stopping Significant Q4 Activity, 2023 Ransomware Incidents Still Surpass 2022 by Nearly 70 Percent and Active Ransomware Gangs Grow by 34 Percent Corvus Insurance, the leading cyber underwriter powered by a proprietary AI-driven cyber risk platform, has released its Q4 2023 Ransomware Report. Featuring data collected from ransomware leak sites, the report […]
Coalition Announces New Miscellaneous Professional Liability Insurance Coverage
Active Insurance Provider to Expand Cyber Offering to Include MPL by Endorsement Coalition, the world’s first Active Insurance provider designed to prevent digital risk before it strikes, today announced it now offers Miscellaneous Professional Liability (MPL) Insurance. This coverage helps protect against the impact of a claim that a business committed errors and omissions in […]
Conning Survey: U.S. Insurers to Embrace More Portfolio Risk in 2024, Welcome AI Tools in Investment Process
Insurers outsourcing investment management reported lower levels of concern with key portfolio challenges 62% of U.S. P&C/life insurers expect to add investment risk in 2024 · 51% expect their allocations to private assets will be at least 20% in the next two years · Three in four insurers using or piloting AI in investment process […]
CFM Insurance Successfully Implements sureti Property Claim Payments
Simplifying and streamlining claims payments for an unparalleled customer and contractor experience CFM Insurance (CFM) has entered a new era in property claims payments with a successful implementation of sureti, a disbursement platform purpose-built for property claims. This strategic implementation positions CFM to offer its policyholders a completely paperless and lenderless settlement experience, setting a […]
A Incomplete Aircraft is Still an Aircraft
Injured by an Aircraft Fuselage Arose Out of Ownership of Aircraft A woman was severely injured while moving an inoperable airplane. She now seeks to recover from her husband’s homeowner’s insurance policy. The insurance policy excludes injuries “arising out of” the ownership, maintenance, use, loading or unloading of an aircraft. The policy further defines “aircraft” […]
Punitive Damages
How to Put Fear of Insolvency Into a Defendant For more than fifty six years working in and about the insurance industry I For more than fifty six years working in and about the insurance industry I have personally seen the fear in the faces of corporate executives faced with a suit claiming wrongful conduct […]
Pollution Exclusions
Total Pollution Exclusions The Pollution exclusion often found in policies that are the subject of dispute provides: It is agreed that this policy does not apply to liability for personal injury or property damage arising out of the discharge, dispersal, release, escape, or seepage of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or […]
Statutes of Limitations
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Insurance policies contain conditions for how and when claims must be submitted. There are also state requirements and timeframes for filing claims. Statutes of limitation determine the maximum time for bringing causes of action or lawsuits after an event. Some statutes, […]
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New Survey Reveals How Independent Insurance Agents Are Adapting to the Hard Market
Insurance Advocate Cover Story
Client communication, retention, technology and team morale are among agents’ top priorities, according to a Trusted Choice® report. How are independent insurance agents adapting to the hard market? Trusted Choice–the national consumer brand representing the members of the Independent Insurance Agents & Brokers of America (the Big “I”)–examines that question in-depth in its newly released report, […]
Public Sentiment is a Signal for Insurers
So sad to report that new nationwide research from a digital consultancy company Customertimes shows that the cost of living crisis has forced Americans to take unprecedented actions, with 1 in 5 admitting they’ve considered committing insurance fraud. Customertimes, using acute insurtech expertise, surveyed 2,000 adults to see how the economy downturn, tech adoption and […]
Certificates of Insurance – Issues to Consider
By Sue C. Quimby, CPCU, AU, CIC, CPIW, CLP, DAE – Senior Vice President Certificates of insurance (COI) are often a source of headaches for insurance agents and producers. Mishandling of certificate requests can lead to an errors and omissions exposure for the agent. Helping clients understand possible problems with certificates of insurance is another […]
Safe Driving Stats By States
In 2023, 44,986 motor vehicle fatalities happened in the United States averaging 3,749 deaths per month, or about 123 daily. A recent study by baderscott.com conducted a thorough analysis, identifying the safest and riskiest states for driving based on the car accident fatality rate. New York has emerged as the safest state for car driving, boasting […]
The Risk of Polarization
By Randy Lioz Shortly after the first Covid vaccines were introduced, a food solutions company in Idaho wrestled with the best course of action for its business and employees. While a vaccination mandate was a non-starter, they strongly encouraged vaccination among their employees, bringting in representatives of the local health department to support the push. […]
Underwriters to Target Credit and Political Risk Markets
Newly formed enterprise taps credit and political risk sector veteran, Bernie de Haldevang, as CEO Looking toward increased market demand for leadership-level resources in the intensifying areas of credit and political risk, United Risk has launched a new division, Applied Credit Underwriters, to be led by sector veteran Bernie de Haldevang as CEO. Applied Credit […]
Insurance Fraud is a Violent Crime
Insurance Fraud is a Violent Crime Jatiek Smith (also known as “Tiek”) a member of the Bloods Gang was charged with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), and one count of extortion conspiracy, in violation of 18 U.S.C. § 1951, arising out of allegations that Smith and his co-conspirators […]
No Alarm No Coverage
Protective Safeguards Endorsement is a Condition Precedent Kinsale Insurance Company (“Kinsale”) sought declaratory relief against Sea Brook Harbor and Marine, et al (collectively “Seabrook”) arguing that Seabrook failed to comply with a condition precedent in the insurance policy it issued to Seabrook and that consequently there was no coverage for a fire occurring at Seabrook’s […]
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ShelterPoint Announces Leadership Succession
As Richard White transitions to Executive Chairman of the Board, Leston Welsh steps up as CEO of ShelterPoint. Richard White, who has led ShelterPoint Life Insurance Company (ShelterPoint) as CEO since 2009, is moving into the role of Executive Chairman of the Board of Directors, with the company’s existing Chairman, Dr. Seth Goldberg, remaining on […]
GIMME SHELTERPOINT
Anytime, especially the way they do business over there led by careful and thoughtful executive thinking and planning. Richard White, who has led ShelterPoint as CEO since 2009, moves up to the role of Executive Chairman of the Board of Directors, with the company’s existing Chairman, Dr. Seth Goldberg, remaining on the Board as a […]
Finseca’s 2024 Hall of Fame Inductees Announced
Finseca has announced that Anthony T. Mazzei, Sr., Chairman and Founding Partner at National Financial Network, an agency of The Guardian Life Insurance Company of America (Guardian); first-ever female inductee, Deb White, District Manager at Farm Bureau Financial Services; and Howard Cowan (recognized in memoriam), formerly with MassMutual, were honored with the prestigious Finseca Hall […]
Distracted Driving Report: New Research
Road trip season is upon us, and with higher traffic levels comes more distracted driving. Auto insurance rates are now at the highest levels in 50 years, so the cost of repairs that may come from distracted driving is also up. Ahead of this year’s Distracted Driving Awareness Month (April), there is new research under […]
Tokio Marine Holdings Establishes New IR/SR Desk in NYC
Tokio Marine Holdings, Inc. (President and Group CEO: Satoru Komiya) has announced the establishment of an Investor Relations and Shareholder Relations (IR/SR) Desk in New York City as part of the IR/SR Group of the Global Communications Department. The new Desk will further strengthen Tokio Marine Holdings’ relationships with institutional investors, shareholders and equity analysts […]
Corvus Insurance Enhances Cyber Renewals
Corvus Insurance, the leading cyber underwriter powered by a proprietary AI-driven cyber risk platform, today announced updates to its policy renewal process, including the introduction of an application-free, click-and-bind option for select accounts. The updates drastically reduce the time brokers spend on cyber renewals by eliminating repetitive application questions and providing transparency with a customized […]
Applied Underwriters Names Gregg Holtmeier Vice President, Strategic Development, for Company’s Growing M&A and Partnership Alliances
Steve Menzies, Chairman of Applied Underwriters, has announced the naming of Gregg Holtmeier to the post of Vice President of Strategic Development, to collaborate with the company’s growing team in M&A, corporate alliances and partnership relationships. Applied Underwriters has announced several transactions recently, which follow a long list in the preceding years. According to Mr. […]
Risk Strategies Acquires LI Based Pace Professional Services, Ltd.
Risk Strategies, a leading national specialty insurance brokerage and risk management firm, has announced it has acquired Pace Professional Services, Ltd. (Pace), a Long Island-based firm specializing in professional liability coverages with a focus on certified public accountants and law firms. Terms of the deal were not disclosed. Based in Garden City, NY, Pace was […]
Amwins Program Underwriters Announces New Home Health Care HNOA Program
Amwins Program Underwriters (APU), part of the Amwins Underwriting division, has announced the launch of their new Home Health Care HNOA program designed to provide hired and non-owned auto liability coverage for home health care operations. This specialized HNOA program is designed to tackle the distinct hurdles faced by providers when delivering vital services to […]
$50 billion opportunity emerges for insurers worldwide from generative AI’s potential to boost revenues and take out costs
AI technology offers insurance businesses large-scale financial potential from productivity gains, optimizing sales channels and digital advice, and delivering enhanced, personalized customer experience υInsurance businesses worldwide have a $50 billion dollar financial opportunity from generative AI to harness the technology in ways that could boost their revenues by as much as 20% and cut their costs by […]
New York Ranks Worst Among States for Public Transport Safety
Recent data has highlighted the states where public transport users are most at risk of collisions, injuries, and fatalities, naming New York as the most dangerous state in the country. The worst states for fatalities, collisions and injuries occurring in or from public transport The data, compiled by Las Vegas personal injury lawyers H&P Law, […]
AND WHY…? New York named among the states with fewest young homeowners
A new study has revealed the states with the fewest young homeowners, with Hawaii taking the top spot. Real estate experts at Agent Advice analyzed data from The United States Census Bureau on mortgage status based on homeowners between the ages of 15 and 34 in 2022. Hawaii ranks at the top, with 1.49% of the population being […]
Battery Do’s and Don’ts
By Sue C. Quimby, CPCU, AU, CIC, CPIW, CLP, DAE – Senior Vice President Batteries are a ubiquitous part of everyday life – powering everything from flashlights to electronic devices and now even bicycles and cars. According to www.des.nh.gov, the average household in the United States has 20-60 batteries at any given time. The […]
Insurer Must Report Suspected Fraud
No Cause of Action for Libel, Slander or any Other Relevant Tort This is not a new case but it is important to everyone in the insurance business in California and any other state that has similar statutes. The principal issue raised is whether the insurer’s report to the Bureau of Fraudulent Claims (hereinafter Bureau) […]
Pollution Exclusions Deter Polluters
No Insurance Policy Covers Every Risk of Loss In the world of business, corporations obtain commercial insurance to protect their assets, and commercial insurers customarily include exclusion provisions in their policies. Exclusion provisions dispel the notion that insurance coverage is without limits and place the insured on notice about actions or omissions that will trigger […]
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Workers’ Compensation: 2024 Small Business Report
Hanover’s “2024 Small Business Risk Report: A Focus on Workers’ Compensation” includes fresh data on small business owners’ insurance-buying habits and risk exposures related to workers’ compensation
SAFE CITY
At a time when all you hear in the burbs is “The City is dangerous, unsafe, dirty, uncivil, a must avoid, especially at night, along comes a report that is surprising, even a bit dubious, perhaps. A new ranking has revealed the safest state for a night out in the town, with New York crowned […]
Risk Strategies Acquires Robert C. Williams Insurance Agency, Inc.
Risk Strategies, a leading national specialty insurance brokerage and risk management firm, has announced it has acquired Robert C. Williams Insurance Agency, Inc. (Williams Insurance), a property and casualty retail specialist based in Wilkes-Barre, Pennsylvania. Terms of the deal were not disclosed. Founded in 1958, Williams Insurance is led by siblings Rick and Barbara Williams, […]
Present-Day Risks of Asbestos Exposure in America
38% in High-Risk Jobs, 47% Vulnerable through Second-Hand Exposure A recent nationwide survey conducted on the risks of asbestos in America revealed that 38% of respondents have worked in high-risk industries where asbestos was present, while 47% have experienced indirect exposure through family members employed in these high-risk environments. The survey results reflect the fact […]
How the FCC’s recent decisions on AI robocalls and lead-generation will impact the insurance industry
Overview and intent of the new legislation By Mark Mckinney In January 2024, the Federal Communications Commission (FCC) passed a law designed to close the “lead generation loophole.” This new law is a significant change from previous practices. Organizations must now obtain explicit, individual one-to-one consent from each consumer before contacting them. It also states […]
Pet Insurance
By Sue C. Quimby, CPCU, AU, CIC, CPIW, CLP, DAE – Senior Vice President Pet ownership continues to grow, especially since the Covid-19 pandemic. During the pandemic, people were forced to spend more time at home, and many continue to work remotely. The American Pet Products Association (APPA) advises that pet ownership in the United […]
The Honest Real Estate Lawyer Tempted to Commit Fraudt
No Cause of Action for Libel, Slander or any Other Relevant Tort Career criminals are not the only people who perpetrate insurance fraud. The temptation has become so great that almost anyone who is given the opportunity, will try. Those who do not premeditate insurance fraud are called perpetrators of soft frauds. Most are small. […]
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Deloitte 2024 Financial Services Industry Predictions
AI Expected to Transform Retail Investing, Increase Banking Fraud and Drive New Insurance Market – Plus, Climate Change Expected to Further Increase Insurance Costs for Commercial Real Estate
Bad Behavior
New York’s simple assault had over 57,000 incidents A new study has revealed New York’s most violent crimes, with simple assault accounting for 57,641 incidents. The research, conducted by personal injury lawyers DeMayo Law Office, used data from the Federal Bureau of Investigation to find which violent crimes were most prevalent in each state. The […]
North to Receive Top Business Insurance Award
Dave North, executive chairman of Sedgwick Claims Management Services Inc., will receive the 2024 Business Insurance Lifetime Achievement Award for outstanding accomplishments in the claims, insurance and risk management sector. He will accept the award during the Business Insurance U.S. Insurance Awards on July 18 in New York. Mr. North began his career in the […]
NAILBA, a Finseca Community, Announces New Underwriting Certification
NAILBA, a Finseca community, and the leading insurance industry organization that advocates for consumer choice in the insurance and financial services marketplace through independent brokerage distribution, has released a new professional certification for underwriting. Two years ago, Finseca successfully launched NAILBA Case Manager Certification, a program that yielded increased placement, innovation, and efficiency, and was […]
Spataro Honored by New York Insurance Association
The New York Insurance Association, Inc. (NYIA) honored Thomas Spataro with the 2024 Chair’s Distinguished Service Award. Spataro is senior vice president, mutual company specialty practice at Guy Carpenter. He was presented with the award at the association’s annual conference held at The Saratoga Hilton in Saratoga Springs, N.Y. “NYIA is honored to award the […]
ICYMI: The Dangers of Government Coercion Over Speech
By KRISTIN STOUT The recent unanimous U.S. Supreme Court decision in NRA v. Vullo has been seen a direct victory for free speech, and an indirect victory for the rule of law in insurance regulation. At Truth on the Market, the International Center for Law & Economics’ (ICLE) speech expert (Senior Scholar Ben Sperry) and […]
How the Insurance Industry Responds to Weather
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Senior Vice President Weather impacts every homeowner and business owner and therefore their insurers. Insurance companies are in business to pay claims, but also to make money for their stakeholders. Insurers use a variety of methods to address weather risks, including policy conditions, underwriting guidelines, […]
Appeal Dismissed Even With Fraud Allegation
Appeal Lost Due to Failure to Provide an Adequate Record In an action to recover damages for personal injuries, the defendant Myrtle 6, LLC, appealed from an order of the Supreme Court, Kings County (Lawrence S. Knipel, J.). The order, insofar as appealed from, denied those branches of the motion of the defendant Myrtle 6, […]
2023
2023 Issues - Click to View
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Defenses to the Tort of Bad Faith
Barry Zalma
Cover Story, On My Radar
Insurers in states where the tort of bad faith exists (almost every state) who deny fraudulent insurance claims with fear and trembling. The specter of punitive damages has worked to make multi-millionaires of many insurance criminals who convince insurers to settle rather than take a chance on a trial of a suit alleging the insurer acted in bad faith.
Top Insurance Attorney Joins Arent Fox
One of the sharpest insurance attorneys in New York is now a Partner at Arent Fox, an emerging insurance powerhouse. Huhnsik Chung, has joined the firm’s Complex Litigation and Insurance & Reinsurance groups bringing more than three decades of experience advising clients nationally and internationally in the highly regulated financial and insurance sectors. To disclose, […]
NAIC Foundation Board Members Share Update at NAIC Meeting
During the National Association of Insurance Commissioners’ (NAIC) recent National Meeting, the board members of the New Avenues to Insurance Careers Foundation reported to state insurance regulators on their progress in setting up the Foundation. NAIC Past President and former South Carolina Insurance Director Ray Farmer, NAIC Past President and former Kentucky Insurance Commissioner George […]
Big ‘I’ Sees Win as Congress Passes Spending Bill
Government funding measure extends NFIP and includes key crop insurance provisions. The Big “I” applauded the U.S. Senate and House of Representatives for passing legislation that would extend the National Flood Insurance Program (NFIP) and support crop insurance agents, all as part of government funding legislation. “We are grateful that the passage of this government […]
NAIC Members Elect 2023 Officers
Members of the National Association of Insurance Commissioners (NAIC) elected officers for 2023 in December. The following officers were elected for 2023: • President: Missouri Insurance Director Chlora Lindley-Myers. Chlora Lindley-Myers was confirmed as the director of the Missouri Department of Commerce and Insurance on April 13, 2017. • President-Elect: Connecticut Insurance Commissioner Andrew N. Mais. Andrew N. Mais was nominated […]
NAIC Releases Homeowners Insurance Report
The National Association of Insurance Commissioners (NAIC) has released its Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2020, which provides validated data on market distribution and average cost by policy form and amount of insurance. The report compiles national and state-specific premium and exposure information for non-commercial […]
ACORD Names Top InsurTech Leaders 2022
ACORD & Alchemy Crew Recognize Women Leaders in Insurance Technology for Driving Change through Collaboration, Sustainability & Inclusion, and Global Ecosystem-Building ACORD, the global standards-setting body for the insurance industry, announced its annual InsurTech Leaders list developed in conjunction with Alchemy Crew, whose co-founder & CEO Sabine VanderLinden has herself been a perennial member of ACORD’s […]
Active Shooter
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor The number of active/mass shooter events has increased alarmingly in recent years. While there is no set definition of an active/mass shooting event, they are generally deemed to include four or more injuries or deaths and occur in a public setting, such […]
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A Look at Risk Tolerance
U.S. Insurers Expected to Increase Investment Risk Tolerance Amid Concerns of Higher Volatility and Inflation | A Conning Survey
US insurers are expected to increase their risk tolerance and grow portfolio allocations to private assets amid their concerns about higher market volatility and inflation, according to a new survey of U.S. life and property & casualty (P&C) insurers, sponsored by leading global insurance asset management firm Conning.State-ly
Governor Ron Santis of Florida offered an excellent example of what a state leader can do for insurance pricing and availability. The governor intervene to make it more difficult for trial lawyers and others to pillory the industry. He did this on the heels of what has been a volatile situation in the Sunshine State […]
Menzies Orchestrates Russian Rescue
As the plight of US citizen and Navy veteran Taylor Dudley, detained since April 2022 by Russian authorities, increased to a level of grave concern for all Americans, the Steve Menzies Global Foundation (www.boldthinkers.org) intervened and effected his rescue and safe return on Thursday, January 12th at the Bagrationovsk-Bezledy border crossing between Poland and Russia. News […]
New York Insurance Association Elects 2023 Officers and Board Directors
The New York Insurance Association (NYIA) has announced the election of its 2023 officers and board of directors. The following officers were elected for a term ending Dec. 31, 2023: Chair: Charles Makey, president, Merchants Insurance Group, Buffalo, N.Y. First vice chair: Edward Harper, president and chief executive officer, Statewide Underwriting Services, Schenectady, N.Y. Second […]
“Thank Goodness for Insurance” (TGFI) Launches Business Insurance Section
υOwning a business comes with unique challenges but protecting your business, employees and customers should not be one of them. That is where insurance comes in, a resource that provides peace of mind and security during unforeseen times. Thank Goodness for Insurance or TGFI, a campaign that aims to educate consumers about insurance, is an […]
Association of Professional Insurance Women to Honor Janet Jordan-Foster as Insurance Woman of the Year
APIW, Inc. has announced taht Janet Jordan-Foster, Executive Vice President, and Head of Primary Casualty Insurance at AXIS, has been selected as the 2023 recipient of the prestigious APIW Insurance Woman of the Year Award. Ms. Jordan-Foster will be recognized with this award on Thursday, May 11, 2023, from 6:00 – 8:00 p.m. at The […]
The New York State Department Launches New Electronic Notary License System to Provide Online Services to New Yorkers
Starting February 1st, Notaries Can Register the Capability to Offer Electronic Notary Services in New York. Existing Notaries Can Choose to Keep the Traditional License. The New York State Department of State today announced the availability of an online application and registration portal for notaries starting February 1st, 2023. Notaries can now register the capability to perform […]
The Home Invasions Threat
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor A home break in occurs every 30 seconds in the United States. Department of Justice statistics reveal that there are over 1.65 million home invasions per year, resulting in an average loss of nearly $3,000 per invasion(simplyinsurance.com). Helping clients prevent home invasions […]
Eleventh Circuit Allows Retrial of Esformes
Presidential Commutation Doesn’t Stop Retrial On Cases Where Jury was Hung In United States Of America v. Philip Esformes, Nos. 19-13838, 19-14874, United States Court of Appeals, Eleventh Circuit (January 6, 2023) Philip Esformes challenged his convictions of healthcare fraud, illegal kickbacks, and money laundering and the related restitution award and forfeiture judgment. After Esformes […]
Damar Hamlin Goes to a Game; Is Everything Fine Now?
by Jane M. Orient We are all grateful that Buffalo Bills player Damar Hamlin survived his encounters with sudden death (two encounters—his heart stopped twice). He has expressed gratitude for the thousands who prayed for him, and he was delighted to be able to attend a Buffalo Bills-Bengals playoff game just 20 days after his […]
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U.S. Gig Economy study
Gig Workers’ independent mindset opposes corporate team-think, adds to the growing cache of research from Legal & General on the U.S. Gig Economy, looking into questions such as: • Implications of 1 in 5 gig workers saying they could not work in a corporate setting • Why bills such as those in CA and NYS are likely to […]
Hold Fast
A few weeks back, I mounted the podium to give a presentation to a group of fellow business owners and found that the podium itself was unsteady. Quite an irritant and a bit unsettling after just being introduced. What went through my head in that flash of seconds was: “is this podium about to fall […]
NAIC Announces Resignation of Michael Consedine as CEO
υMichael (Mike) F. Consedine is stepping down as the organization’s Chief Executive Officer, effective April 30, 2023. Consedine has served as the CEO of the NAIC since January 2017. “On behalf of our members and the NAIC staff, we are grateful to Mike for all his good work over the past six-plus years and his commitment […]
IMUA Launches New Broker Membership Category
Marsh & Amwins First Brokers To Join New York, NY,– The Inland Marine Underwriters Association announced it has launched a new broker membership category. The latest broker category comes with a modest member assessment and entitles all interested brokerage firm employees to access the IMUA remote/virtual education curriculum at no additional fee. According to IMUA President & CEO […]
Big ‘I’ Testifies Before Congress on NFIP Funding, Potential Reforms
Big ‘I’ agent from Hurricane Ian-torn region urges Congress to consider flood policy changes. WASHINGTON, D.C., The Independent Insurance Agents & Brokers of America (the Big “I”) testified recently at a hearing before the U.S. House Financial Services Subcommittee on Housing and Insurance entitled “How Do We Encourage Greater Flood Insurance in America?” Chris Heidrick, […]
PCF Insurance Services Names Jenni Lee Crocker New President
LEHI, UT PCF Insurance Services (PCF), a top 20 U.S. insurance brokerage firm, announced the appointment of Jenni Lee Crocker as President of the company. In this role, Crocker will be responsible for fueling PCF’s agency partnership potential, organic growth, enterprise carrier relationships and strategic partner initiatives. Prior to her appointment, Crocker held the position of […]
Glomads and the Great Resignation
The COVID-19 pandemic dramatically impacted businesses and individuals. Virtually overnight, working remotely became a norm causing millions to rethink their life choices, including where they wanted to work and live. In response, employers chose to be more flexible, allowing employees the ability to earn a living from virtually anywhere in the world. Helping clients adapt […]
Chubb Launches First-Of-Its-Kind Personalized Genetics-Based Cancer Program
Brings Advanced Cancer Risk Identification to Mainstream America, Coupled with Treatment, Recovery and Insurance Protection WHITEHOUSE STATION, N.J. Chubb Workplace Benefits (CWB), a Chubb business that partners with benefits brokers and consultants to offer voluntary benefits to the employees of middle-market and large companies in the U.S., has announced the launch of Cancer Advocate Plus, a first-of-its-kind cancer-specific, […]
Financial Services Commission Appoints Michael Yaworsky as Insurance Commissioner
The Florida Financial Services Commission appointed Michael Yaworsky as the Insurance Commissioner for the Florida Office of Insurance Regulation (OIR). Michael Yaworsky has served as Interim Insurance Commissioner since being nominated by Governor DeSantis in February 2023.Commissioner Yaworsky has issued the statement below in response to his appointment as Insurance Commissioner: “I’m honored to have the opportunity […]
ACORD Releases Results of “Insurance 2040” Survey
Survey participants from across insurance industry reveal predictions, forecasts, and priorities for coming decades. ACORD, the global standards-setting body for the insurance industry has unveiled the results of an industry-wide survey on the future of insurance. ACORD CEO Bill Pieroni presented the findings of Insurance 2040: Prospects and Predicaments for Innovation & Value Creation at the DXC […]
NAIC Releases 2022 Market Share Data
Life/Fraternal and Property/Casualty Reports KANSAS CITY, Mo. The National Association of Insurance Commissioners (NAIC) released data on life/fraternal and property/casualty insurers. The reports provide market share information and identify leading insurance writers in several key lines of business. The reports reflect data filed by insurers as of March 1st. The 2022 market share data include […]
Protect Your Company From Digital Assassination
Six actions to make sure you’re ready when—not if—a cyberattack strikes. by Richard Torrenzano “Beginning today, all passwords must include sign language, thumb fingerprints, and animal noises,” read a sign in a corporate office I visited recently. Unfortunately, contemporary cyber challenges extend way beyond password protection. Among the most costly and troublesome matters facing boards […]
Homeowners Policy Never Covers Business Pursuits
In a declaratory judgment action to determine whether the plaintiffs were obligated to defend and indemnify the named defendant under certain insurance policies for damages awarded against the named defendant in a separate action, where the court denied the plaintiffs’ motion for summary judgment and granted the motion for summary judgment filed by the named […]
Vexatious Litigant Warned
Suing an Insurer & its Chairman as Racist for Denial of Claim is not Viable After a car accident, Nehemiah Rolle filed a claim with his insurer, Founders Insurance Company, a member company of the Utica National Insurance Group. Founders responded with a request for more information, and when none came, the company denied the […]
Agent’s License Removed for Fraud
Insurance Agent Who Kept Premium Money Loses License Vincent Alexander, appealed the trial court judgment which affirmed the March 23, 2021 decision of the Louisiana Division of Administrative Law that revoked his insurance agency license. He appealed and the Louisiana Court of appeal reviewed the appeal in Vincent Alexander v. Louisiana Department Of Insurance, No. […]
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NAIC TARGETS “NEW NORMAL” Regulators outline accomplishments in Report to the industry
NAIC RELEASES 2022 ANNUAL REPORT
National Association of Insurance Commissioners (NAIC) presented its 2022 Annual Report. “Conquering the New Normal Together,” to share how the NAIC successfully overcame pandemic-era challenges to further its state-based agenda. According to the report, in 2022 the NAIC enhanced connectivity among its staff and Members, leaned forward on emerging issues, accelerated investments in technology, and rallied its internal team. The NAIC achieved all of this while helping Members protect consumers and remain solvent. The report details accomplishments in these areas. Excerpts follow.Taking on Tort Reform… and Doing Something
The topic of Tort Reform never goes away, largely because so few states ever do anything to rein in the Trial Bar’s excesses and advantages…until Florida’s governor signed a bill that is a model for the other states. To curb legal system abuse and frivolous lawsuits by Gov. Ron DeSantis inked H.B. 837, which was […]
NAIC Names Acting Chief Executive Officer
The National Association of Insurance Commissioners (NAIC) Executive Committee named Andrew J. Beal as Acting Chief Executive Officer (CEO). The appointment was made during the 2023 Spring National Meeting in Louisville, Kentucky. Beal currently serves as the Chief Operating Officer and Chief Legal Officer of the NAIC. He joined the NAIC in 1999. Director Chlora Lindley-Myers, […]
IMUA Announces Updated Guide To State Rate, Rule & Forms Filing
New York, NY, March 21, 2023 – The Inland Marine Underwriters Association announced its Legislative & Regulatory Affairs Committee had updated its paper on the IMUA guide to state rate, rule, and forms filing. The updated version provides a digest of the rate, rule, and forms filing requirements for inland marine insurance in all fifty states, the […]
Finger Lakes Partners Insurance Services Joins World Insurance Associates
World Insurance Associates LLC (World), a Top 50 Insurance Brokerage, announced that it acquired the business of Finger Lakes Partners Insurance Services Inc. (“Finger Lakes Partners”) of Geneva, NY.. Terms of the transaction were not disclosed. Finger Lakes was formed in 2007 when two established agencies with histories dating back to 1900 combined – Chacchia […]
Risk Strategies Acquires Insurance Center of North Jersey
Commercial and professional liability expertise bolsters Metro New York region Risk Strategies, a leading national specialty insurance brokerage and risk management and consulting firm, has announced its acquisition of The Insurance Center of North Jersey (ICNJ). Terms of the deal were not disclosed. A leading provider of business, professional and personal insurance coverages for clients […]
Peer-to-Peer Loans and Insurance
Social Transactions Technology and the sharing economy have led to seismic changes in how people live – altering the face of social collaboration. Peer-to-peer (P2P) lending, or social lending, occurs when lenders and borrowers deal directly with one another through online services. P2P insurance involves a group of people with a common interest pooling their […]
New York has one of the lowest Home Ownership rates in the US
U.S. states with the highest / lowest home ownership rate: • Maine has the highest home ownership rate of the U.S. at 33% • West Virginia and Vermont are second and third • California , New York among the lowest home ownership rate Maine is the state with the highest home ownership in the […]
No Contract Compelling Arbitration Between Insurer and Insured No Arbitration
Non-Signatory to Agreement Can’t Compel Arbitration In Alex Weingarten v. Certain Underwriters At Lloyd’s, London Subscribing To Policy Number IML-0114N0-190029, B321148, California Court of Appeals, Second District, Fourth Division (March 23, 2023) Certain Underwriters at Lloyd’s, London (Lloyd’s Underwriters) appealed from the trial court’s order denying their motion to compel arbitration of plaintiff Alex Weingarten’s […]
Mortgagee has no Right to Insurance Proceeds After Debt Paid
Satisfaction of Mortgage Eliminates Right of Mortgagee to Recover from Homeowners Policy In Thomas P. Williams, Sr. v. Nationwide Insurance a/k/a Nationwide Mutual Insurance Company, Civil Action No. 22-1090, United States District Court, E.D. Pennsylvania (March 24, 2023) Nationwide denied the claim of its insured because they failed to comply with the Policy’s post-loss duties by […]
Wilfulact Exluded by California Statute
Satisfaction of Mortgage Eliminates Right of Mortgagee to Recover from Homeowners Policy Markel American Insurance Company (“Markel”) issued a management liability policy to United Talent Agency (“UTA”). UTA was sued by a competitor, Creative Artists Agency (“CAA”) for allegedly stealing its clients and employees. Markel declined coverage based on California Insurance Code § 533, which […]
Malicious Prosecution Not Insurable in California
California Insurance Code 533 Prohibits Insurance for Wilful Acts of the Insured Aspen Specialty Insurance Company appealed from the district court order dismissing its complaint against Miller Barondess, LLP, and several of its partners (collectively “MB”). Aspen appealed to the Ninth Circuit in Aspen Specialty Insurance Company v. Miller Barondess, LLP Louis R. Miller; James […]
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Leston Welsh Named President Of Shelterpoint
Mr. Leston Welsh has been named President of Shelterpoint, an important resource for agents and brokers.
Socialization – anew
It was back at NYU, late 60’s, in a required class called Introduction to Sociology that I first heard the word “socialization”. The field occupied itself in terminology that re captured common sense concepts and tried to make a science of it. Did not really work. As a major in Latin and Ancient Greek – […]
Jewelers Mutual® Group Launches Safety and Security Academy
The free online training program empowers jewelers and pawnbrokers to advance their security education and safeguard their businesses from crime. Jewelers Mutual® Group, the insurance and business solutions provider dedicated to the jewelry industry since 1913, recently announced its collaboration with Jewelers’ Security Alliance (JSA) and UL Solutions to develop the Safety and Security Academy, a free […]
Risk Strategies Acquires CT Agency
May, Bonee & Clark Insurance to “ add strength in Employee Benefits, Financial Services to New England Region” Risk Strategies, a leading national specialty insurance brokerage and risk management firm, tannounced it has acquired May, Bonee & Clark Insurance, a Connecticut-based firm providing insurance placement, financial services and risk management advice. Terms of the deal were not […]
Golf Cart Safety
Guest Author
Advertorial, MSO Inc.
The use of golf carts continues to grow. Worldwide, in 2022, the golf cart market surpassed $1.5 billion and is expected to grow 6% per year, reaching $2.55 billion by 2028. Golf carts are found in more and more places – from airports to hotels, resorts, theme parks, and residential communities – not just golf […]
Applied Underwriters Sets 2023 – 24 Plans for Nation’s Largest Amateur Golf Tournament
The Applied Underwriters Invitational, with Anticipated 11,000 Golfers Set to Compete to Benefit 65 National and Local Charities Top names in sports join Applied in drive to raise $10 million through the longest-running, most successful charity golf event. Applied Underwriters, a global risk services leader, has set the dates for the world’s most successful charity […]
Georgia State University Renames its Department of Risk Management & Insurance as the Maurice R. Greenberg School of Risk Science
Renaming Acknowledges Extraordinary $15 Million Gift from Top US Entrepreneur The University System of Georgia’s Board of Regents has approved renaming Georgia State University’s Department of Risk Management & Insurance as the Maurice R. Greenberg School of Risk Science. The name change recognizes a $15 million gift from The Starr Foundation that will dramatically expand […]
Fraudster Must Stay in Jail
Obesity, Diabetes, and Covid Not Basis for Compassionate Release The US Congress, feeling sorry for federal prisoners amended the law to create The First Step Act to allow a District Court to shorten a sentence when there exists extraordinary and compelling reasons to release the Prisoner. In United States Of America v. Earl Lee Planck, […]
Sue Promptly or Lose
Failure to Report, Acknowledge and Make Claim to Your Client’s Insurer is Legal Malpractice David Quaknine and several of his companies sued their former attorney and his law firm for alleged malpractice connected to a 2014 suit. The district court granted the defendants’ motion to dismiss. It ruled that the two-year limitations period, which at […]
No Right to Waive Subrogation
No Right to Waive Subrogation Following a vehicular accident, Martin Peteet entered into a release and settlement agreement with the driver of the other vehicle and her insurer. Peteet did not seek a waiver of subrogation or consent from his own automobile insurer, Mississippi Farm Bureau Casualty Insurance Company (Farm Bureau), prior to executing the […]
Chutzpah! Fraudster Sues Twice
Res Judicata Requires Fraudster to Lose Again After it Sues Again Integrated Pain Management, PLLC, sought $366.64 in no-fault insurance benefits for medical services it rendered to assignor Mikwan Murphy on August 16, 2018 although the insurer had already obtained a judgment that the claim was fraudulent. In Integrated Pain Management, PLLC, as assignee of Mikwam […]
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Hard Market Impacts 97% of Brokers | Cover Story
Amwins releases the 2023 Insurance Trends report, which showcases the challenges of the ongoing hard market as well as rising inflation.
Amwins surveyed 303 brokers and agents about the top insurance trends and found that 97% of respondents shared that hard market conditions are impacting their book of business.
Nordhaus
For anyone interested in the Insurance Agency business in the 80’s and 90’s the name George Nordhaus, marketing pioneer and great advocate of independent agents, will join us in mourning his passing at age 90 on April 24th. We were privileged to have “partnered” with George in the production of his agency newsletter directed at […]
The Excess Line Association Of New York (ELANY) is Pleased to Announce the AppointmentofJanetPane as Exec.Director
Pane comes to ELANY from Willis Towers Watson (WTW) where she is currently Managing Director and Head of Global Services & Solutions, Corporate Risk & Broking. She joined WTW in 1999 and has held a variety of leadership positions during her career. Pane has been a member of the ELANY Board of Directors since 2009, […]
MUA Announces Slate Of Officers & Board Members
Intact’s Anthony Falcone To Serve As New Chair Nearly 350 underwriters, brokers, claims personnel and key industry professionals gathered to participate in the 92nd Inland Marine Underwriters Association (IMUA) Annual Meeting. IMUA’s premier education symposium was held April 29-May 3, 2023, at the Loews Canyon Rest in Tucson, AZ. The first order of business was […]
Global Risk Consultants Partners with Archipelago to Deliver AI-Powered Property Risk Data Insight
Global Risk Consultants (GRC) and Archipelago announced a new partnership utilizing artificial intelligence (AI) to provide risk managers and owners of large commercial real estate portfolios actionable insights into their property risk data to improve efficiency, increase transparency, and drive improved financial outcomes. The partnership will increase efficiency and efficacy for clients by: • Navigating […]
NAIC Recommended Provisions Eyed: Federal Home Loan Bank Law Will Affect Insurers’ Approach To Liquidity
by Matthew Lerner Sen. Breslin sees critical aspects to the relationship of FHLA to its member insurers The New York State Senate has before it an opportunity to strengthen and streamline laws governing how insurers in the region approach liquidity and other financial issues with the aid of the Federal Home Loan Bank of New […]
Workforce Insurance Underwriters Implements Joshu to Power Products
Joshu, the platform to build, distribute, and grow digital insurance products, has announced that Workforce Insurance Underwriters (WIU), a managing general agent (MGA) and wholesale insurance broker with a specialized focus on independent trucking owner-operators and trucking line companies, has selected and implemented Joshu to power occupational accident, contingent liability, non-trucking liability, physical damage, and […]
Addressing Active Shooter Risk
Active shooter cases continue to be in the news. These events can happen anywhere, at any time. Exposures and losses usually extend beyond coverage provided by traditional insurance products. In response, insurers have introduced programs to help mitigate these vulnerabilities, both for prevention of attacks and support after an event. Helping clients understand and address […]
Percipience and Concirrus Partner to Expand Data Capabilities for Insurers
Percipience LLC, a leading insurance data and analytics platform provider has announced a new partnership with Concirrus, the leading artificial intelligence (AI) insurtech that is helping commercial insurance clients accelerate digital strategies. This partnership has already led to the integration of the two companies’ complimentary software products, combining Percipience’s comprehensive insurance data and analytics platform […]
Small cars falter in moderate overlap crash test
None of the five small cars IIHS tested earns a good rating in new crash test Most small cars don’t provide good protection for rear- seat passengers, the latest crash test ratings from the Insurance Institute for Highway Safety show. “These results highlight one of the key reasons that we updated our moderate overlap front […]
NAIC Warns “Get Ready for Tornadoes”
“Tornadoes can happen at any time. No matter where you live, now is the time to prepare and reduce your risks.” Advise your insureds. Stay informed. Monitor local media and alert systems. Know the difference between a tornado watch and a tornado warning. A tornado watch means weather conditions are favorable for a tornado. A […]
Mold Exclusion Applies
In Clay Buchholz; Lindsay Buchholz v. Crestbrook Insurance Company, doing business as Nationwide Private Client, No. 22-50265, United States Court of Appeals, Fifth Circuit (April 18, 2023) Clay and Lindsay Buchholz sued their insurer after recovering $745,778 for damage to their ten-thousand-square-foot house in Austin, Texas. The Buchhholz’ insured their home with Crestbrook Insurance Company. […]
New York Issues Proclamation to Highlight Post-Disaster Contractor Fraud
Proclamation Recognizes May 22-26, 2023 as Contractor Fraud Awareness Week New York is joined forces with the National Insurance Crime Bureau (NICB) during NICB’s Contractor Fraud Awareness Week to educate homeowners on how to avoid becoming a victim of deceptive contractors after a natural disaster. These catastrophic events can leave millions of Americans across the […]
Policy Words Overrule Unwritten Intent
INSURANCE POLICY MEANS WHAT IT SAYS The Eleventh Circuit Court of Appeal was asked to resolve what a court is to do when all the surest proof of contracting parties’ subjective intentions and expectations flatly contradict the clear words of the issued policies of insurance. In Shiloh Christian Center v. Aspen Specialty Insurance Company, No. […]
It’s Not Nice to Sell a Property You Don’t Own
In Lewis v. Fidelity National Title Insurance Company, No. A23A0030, Court of Appeals of Georgia, Fifth Division (April 26, 2023) Torriel Deyon Lewis appealed the grant of summary judgment to Fidelity National Title Insurance Company in Fidelity’s fraud action against him. FACTUAL BACKGROUND When a party moves for summary judgment and supports his or her […]
Judgment for Unjust Enrichment
Thomas Spoon and Maria Spoon appealed from the Pulaski County Circuit Court order granting summary judgment in favor of appellees Chester Lee Bolds and Linda Bolds in the Boldses’ civil suit for damages related to insurance proceeds. FACTS In Thomas Spoon And Maria Spoon v. Chester Lee Bolds And Linda Bolds, 2023 Ark.App. 244, No. […]
Millions for Defense: Not a Dime for Tribute
In a no-fault auto insurance matter brought in New York, State Farm Fire and Casualty Company, as the plaintiff insurer established prima facie entitlement to summary judgment by: 1. submitting the examination under oath transcript of defendant insured Lesie Merle, in which she testified that she primarily garaged the car involved in the accident in […]
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Insurance Industry Is Poised To Withstand Market Uncertainty
At the 39th Annual S&P Global Ratings Insurance Conference, the message from panelists was clear: the insurance industry remains well capitalized to withstand potential adverse market or economic developments.
Enter AI
Congratuations to Verisk. Insurers now have a new weapon in the battle against claims fraud: image forensics. Verisk, the familiar global data analytics and technology provider, is expanding its anti-fraud claims solution with artificial intelligence that will enable insurers to identify potential fraud in claims photos with lightning speed and laser precision. Drawing on millions […]
Up in Smoke: More People Deem Cigarettes Dangerous, More Addictive Than Vaping, Opioids, Technology and Alcohol
Americans widely agreed that cigarettes are unsafe (84%) and addictive (87%), and yet a fifth (21%) report smoking every day! The vast majority of people believe alcohol, opioids, and vapes are addictive, and about two-thirds said alcohol and opioids are unsafe in a recent survey , while more than three- fourths said vaping is unsafe. […]
InvestSM Awards 5 Academic Scholarships
Financial and insurance literacy program is key to attracting young talent to the insurance industry. InvestSM, the insurance industry’s premier insurance education program, has awarded $30,000 in scholarships to five students pursuing insurance- related degrees. A nonprofit organization, Invest works in high school and college classrooms across the U.S. to educate, train and attract the […]
AAIS Taps Werner E. Kruck as President and CEO
Experienced insurance leader assumed the leadership role effective June 26. The Board of Directors of American Association of Insurance Services (AAIS) has announced the selection of Werner E. Kruck as President and Chief Executive Officer, effective June 26, 2023. Mr. Kruck has spent his entire career in leading roles within the insurance industry and has […]
HomeZada Adds AI Chat Assistant
HomeZada, the cloud-based platform that integrates all home renovation, maintenance, finances, inventory and management functions into a single platform accessible from any personal device, has added an AI chat assistant with specific benefits for Insurance carriers, brokerages, agencies and related companies. The new “Zada” AI Assistant adds a crucial AI overlay to the HomeZada all-in-one […]
Paul J. Krump and Bronislaw E. Masojada named to Brown & Brown, board of directors
Brown & Brown, Inc. (NYSE: BRO) announces the addition of Paul J. Krump and Bronislaw (Bronek) E. Masojada to Brown & Brown’s board of directors. H. Palmer Proctor, Jr., Brown & Brown’s lead independent director and chair of the Nominating/ Corporate Governance Committee of Brown & Brown’s board of directors, said, “Paul and Bronek are […]
UPDATE: Bryant Asset Protection Joins World Insurance Associates LLC
World Insurance Associates LLC (“World”), a Top 50 Insurance Brokerage, announced that it acquired substantially all the insurance assets of Bryant Asset Protection, Inc. (“BAP”) of Slingerlands, NY on May 1, 2023. Terms of the transaction were not disclosed. BAP was founded in 1951 by Charles Bryant, and today the insurance agency provides a full […]
The 831(b) Institute Launches Advocating for Clarity from the IRS
Miami, Oklahoma – June 28, 2023 – On National Insurance Awareness Day, the 831(b) Institute is launching across the U.S. The 831(b) Institute was formed to bring the business community together and give them a voice around what true risk mitigation and insurance coverage means to small and medium-sized businesses. Insurance is an essential part […]
Pool Rental
Summertime brings thoughts of swim parties and barbecues. Pools are costly to maintain, and frequently underutilized. Advancements in technology have allowed owners to match up with potential renters, earning income from allowing others to use their pool. These arrangements are not without drawbacks. Helping clients understand exposures and possible risks of renting their pools and […]
Moving Season in New York
• July had the most new property listings with 89,976 in total. • Overall, the summer months saw 261,640 new property listings in New York. Moving home can depend on several factors but perhaps the most important is how many properties are available at the time. Moving experts at movingfeedback have used Zillow data to […]
The Uncertain Math of ‘Coverage for All’
by Bill Hammond State lawmakers are divided over proposal known as “Coverage for All,” which would allow low-income undocumented immigrants to obtain free health insurance through the state-run Essential Plan. The state Senate approved the measure on June 8, but the bill did not pass the Assembly. Advocates of the proposal insist that it would […]
Losing a Lawsuit is not Evidence of Discrimination
David Webb, proceeding pro se, appealed an order dismissing his complaint. Webb was involved in a car accident. He sued a law firm, firm employees, insurance companies, and other entities related to his legal representation, insurance coverage, and the sale of his vehicle after the accident. The District Court dismissed the complaint on the grounds […]
No Defense of False Advertising
Kona Coffee Must be From the Big Island of Hawaii L&K Coffee claimed its various insurance companies erroneously denied coverage to defend it against a Lanham Act false-advertising lawsuit brought by Hawaiian coffee growers. The district court concluded the applicable insurance policies did not obligate a defense and entered summary judgment in the insurance companies’ […]
Primary Insurer On First
Umbrella Policy Always Excess Over Primary Policy Two insurance companies argued who must indemnify an insured for a settlement involving their mutual insured. Great American Insurance Company paid subject to a reservation and sued the primary insurer, Allied World Assurance Company, alleging that because it was the umbrella insurer it only owed after Allied World […]
Life Insurance Can Be Hazardous to Your Health
A Story of Life Insurance Fraud This is a fictionalized True Crime Story of Insurance Fraud to explain why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is intended to help you to Understand How Insurance Fraud in America is Costing Everyone who Buys Insurance Thousands of Dollars […]
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Big ‘I’ 2023 Market Share Report: Growth in Independent Agencies
Slow but steady growth, includes increase in homeowners market share.
The independent agent is holding his own showing slow, steady gains in lines of business penetration, including homeowners, according to the Big “I” 2023 Market Share Report.
The annual Market Share Report compiles and analyzes property and casualty premium data from AM Best and provides insights for agencies and carriers on current market shares by distribution types.New York’s Economic Recovery – The $150 Billion Solution
This month I have invited a friend and colleague to submit an article about a sensational idea he is steering in New York. While it may appear in financial and other NY publications, we have it exclusively in Insurance Advocate. Enjoy the balance of Summer, SA New York’s economic recovery hinges on innovative solutions […]
U.S. Employers Budget for 3.8% Pay Increases in 2024– Payscale
• 78% of organizations in the United States and 81% in Canada say that their 2024 salary increase budget is the same or higher compared to last year • 2024 pay increases are predicted to be 3.8% on average in the United States • Pay increases were 4% on average in the United States in […]
DEMOTECH: Report Updates RRG Results
By Douglas A Powell, Sr Financial Analyst at Demotech A review of the reported financial results of risk retention groups (RRGs) reveals insurers that continue to collectively provide specialized coverage to their insureds while remaining financially stable. Based on reported financial information, RRGs have a great deal of financial stability and remain committed to maintaining […]
Drug Crisis Impact Increases
The United States is currently experiencing the worst drug crisis in its history, believed by many to have been exacerbated by pandemic lockdowns and increased trafficking at our borders (cfr.org). The crisis impacts individuals, families, and society as a whole. Helping clients understand the prevalence and dangers of drug overdoses is another value-added service of […]
Creative Pleading Does not Avoid Punishment for Sloth
In late 2018 or early 2019, plaintiff noticed that on two occasions an elderly neighbor stumbled and fell as she descended plaintiff’s outside staircase and learned that the pitch of the stairs had changed and that to make the stairs safe the staircase needed to be replaced. In late April 2019, plaintiff authorized the work […]
Man Bites Dog
State Farm Obtains Injunction Against Doctor to Stop Fraudulent No Fault Accident Claims State Farm alleged common law fraud and unjust enrichment, seeking damages for benefits paid under no-fault insurance policies to Kotkes. State Farm also sought a declaratory judgment establishing that, among other things, it is not obligated to pay unpaid, pending claims submitted […]
No Coverage After Expiration of Policy
Insurers Should Avoid Suing Each Oth The United StatesCourt of Appeals for the Ninth Circuit certified to the California Supreme Court, the following question for our review: “Under California’s Motor Carriers of Property Permit Act (Veh. Code, § 34600 et seq.; the Act), does a commercial automobile insurance policy continue in full force and effect […]
Is a Covid-19 Lawsuit Frivolous?
Ninth Circuit Is Exhausted by Covid Insurance Claims Suit Khatchik Hairabedian d/b/a Kris Mobil (“Khatchik”) appealed from the district court’s order granting Defendant Security National Insurance Company’s (“Security”) motion to dismiss this action for insurance coverage in Khatchik Hairabedian, Dba Kris Mobil v. Security National Insurance Company, a Texas Corporation, No. 22-55355, United States Court […]
No Sprinklers No Coverage
Negligent Broker Saved by Exclusion Boulevard RE Holdings, LLC, (Boulevard) sued Mixon Insurance Agency, Inc., (Mixon), alleging breach of contract and negligent procurement of insurance only to find that if the policy had been issued protecting Boulevard there would be no coverage because of a clear and unambiguous exclusion requiring operative fire sprinkler systems. In […]
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Charles Symington Becomes Big ‘I’ President & CEO
Symington heads the association after serving as its executive vice president.
ALEXANDRIA, VA, September 1, 2023—Charles Symington is the new president & CEO of the Independent Insurance Agents & Brokers of America (the Big “I”), effective, Sept. 1.Guest view/REGULATION: NCLA Brief seeks to topple FINRA
Alpine Securities Corporation v. Financial Industry Regulatory Authority, United States of America The Financial Industry Regulatory Authority (FINRA) investigates, prosecutes, and punishes hundreds of securities firms and brokers every year for alleged violations of federal securities laws and rules, despite operating outside the government and without answering to the President. In early September, the New […]
NAIC Now Accepting Applications for 2024 Consumer Representatives
The National Association of Insurance Commissioners (NAIC) announced it is accepting applications for the 2024 Consumer Participation Program, with a deadline of 5:00 p.m. CT, Oct. 31, 2023. Established in 1992, the Consumer Participation Program promotes consumer representation and interaction with NAIC Members by providing for qualified applicants to participate in NAIC meetings as individuals […]
Applied Surety Underwriters and Sirius Point Ink Exclusive Strategic Partnership for Major Market Expansion
Houston, Texas –August 2nd 2023 – Applied Surety Underwriters and SiriusPoint Ltd. have joined forces in an exclusive partnership aimed to maximize their joint impact in major markets across the world, starting with North America and advancing across borders to deliver a unique formula of underwriting expertise, capital resources and concerted marketing in the surety […]
Inflation and Insurance
Inflation affects all of us, including our insurance. Claim expenses and premiums rise, and costs to repair and replace property and vehicles also increase. Helping clients understand how inflation impacts their insurance, and provide ways to cope with the changes, is another value-added service of the professional insurance agent. The insurance industry is impacted by […]
S&P Global Analysis: US private auto insurance rates see double-digit jump in 2023
US private auto insurers are racing to increase premium rates as they seek to offset historically poor underwriting results. The year-to-date nationwide average increase for private auto insurance is 11.0% through Aug. 18, 2023, according to S&P Global Market Intelligence’s RateWatch application. Key highlights from the analysis include: • There is a wide variance in […]
AI Approaches
Establishing a code of conduct for the use of artificial intelligence (AI) will be vital to protect company brands and reputation. Today, AI stakes are colossal with its capability of fabricating any reality whatsoever. As the proliferation of AI continues to reshape efficiency, innovation and productivity, business leaders are recognizing this transformation and potential. Boards […]
Dodge muscle cars again top HLDI’s list of most-stolen
The Dodge Charger SRT Hellcat and Dodge Charger HEMI top a new list of the most-stolen vehicles for model years 2020-22. Four Kia vehicles make the top 20, thanks to a viral trend. Two Dodge muscle cars, the Dodge Charger SRT Hellcat and Dodge Charger HEMI, once again top the Highway Loss Data Institute’s list […]
Litigants Must Never Assume
Three sophisticated commercial parties in the insurance industry entered into what appears, in hindsight, to be a somewhat unsophisticated business arrangement. That arrangement led to complex litigation, which generally isn’t a good thing for a business arrangement to lead to. In American Builders Insurance Company v. Keystone Insurers Group and Ebensburg Insurance Agency, No. 4:19-CV-01497, […]
Liars Must Always Lose
This case arose out of an accident that occurred in 2019. Plaintiff was hit by a car at around 8:15 p.m. while riding a bicycle in Flint, Michigan. Plaintiff sustained serious injuries, including multiple broken bones and lacerations, blunt force trauma to the chest and abdomen, and a traumatic brain injury. However he submitted a […]
Insurance Fraud is a Violent Crime
After a multiple-count indictment against dozens of members of the Gangster Disciples five of them, Alonzo Walton, Kevin Clayton, Donald Glass, Antarious Caldwell, and Vancito Gumbs, appealed their convictions and sentences following a joint trial. Each raised several grounds for reversal contending they were overcharged and over-sentenced. Some argued that the Racketeer Influenced and Corrupt […]
Unambiguous Exclusion Effective
McCann Plumbing, Heating & Cooling, Inc.; Andrew R. McCann; and Wendy McCann, sued defendant, Pekin Insurance Company, for breach of an insurance contract and sought declaratory judgment because the demolition of an adjacent building damaged the McCann’s building. In McCann Plumbing, Heating & Cooling, Inc., an Illinois Corporation; Andrew R. McCann; and Wendy McCann v. […]
Hindsight Can’t Change Policy Limits
Steven and Nancy Taylor appealed the trial court’s granting defendant Lake Michigan Insurance Company’s motion for summary disposition and dismissing their case and the court’s denial of their motion for reconsideration. In Steven G S Taylor and Nancy Taylor v. Lake Michigan Insurance Company, No. 360974, Court of Appeals of Michigan (August 24, 2023) the […]
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Focus: the Energy Market
This summer’s news of extended production cuts by Saudi Arabia and Russia, as well as an attack on key Russian oil export hubs by Ukraine and ongoing sanctions against Russia, has kept oil prices high. Combined with a growing backlash against green energy and overall losses within the sector tied to costs of energy transition, it’s not surprising that U.S. pricing trends continue to push upward. Social inflation and the rise in claims across the sector have also resulted in a heightened level of underwriting scrutiny and the ongoing need for adequate valuations.
HEALTH CARE COSTS UNDER THE KNIFE
As in everything in today’s contentious culture and media mayhem, health care costs have come under scrutiny. The NY DFS has issued a statement and it has been countered by the Empire Center. Here we give the Center’s reply / opinion about the DFS press release. The release is also produced in toto as submitted. […]
AmTrust Introduces Admitted Lawyers Professional Liability Policy
Offers Protection for Mid-Sized Law Firms AmTrust Financial Services, Inc., a global specialty property casualty insurer, has introduced a new Admitted Lawyers Professional Liability (LPL) policy from AmTrust PRO that offers flexible, customizable protection for mid-sized law firms. “In today’s competitive and complex legal environment, even a small error or simple oversight by an individual […]
Ronda named as next CEO of Howden Tiger
by Matthew Lerner Howden Broking Group Ltd. said Wednesday that President Tim Ronda will take over as CEO on Jan. 1, 2024. Mr. Ronda will report to David Howden, CEO of parent company Howden Group Holdings. Rob Bredahl, now CEO of Howden Tiger, will share vice chairman duties with existing vice chair Elliot Richardson, while […]
Loss Assessment Coverage Tips
Properties with shared ownership, such as homeowner and residential and commercial condominium associations, pose special challenges for unit owners and their insurance companies. Damage to property in common areas in such an association may end up being the responsibility of the unit owner. Loss assessment coverage can help in these cases, but it has limitations. […]
Risk Strategies Initiates Captives Group Consolidation
Establishes Risk Management Advisors brand as lead for operations Risk Strategies, a leading national specialty insurance brokerage and risk management firm, has announced that it will consolidate its independent captives group under the Risk Management Advisors (RMA) brand. This move merges Atlas Insurance Management into the RMA brand and operations. The newly consolidated operations will […]
Workplaces in Financial Services & Insurance
J. Powell Brown, president and chief executive officer, and Julie Turpin, chief people officer, are pleased to announce that Great Place To Work and Fortune Media have named Brown & Brown, Inc. to the 2023 Best Workplaces in Financial Services and Insurance List. Chief People Officer Julie Turpin shares, “This incredible recognition is a testament […]
Margaret Bussiere to Commercial Lines Post
Risk Strategies, a leading national specialty insurance brokerage and risk management firm, has announced it has appointed Margaret Bussiere as Commercial Lines Leader, New York Region. In this role, Bussiere will be responsible for building and executing the regional strategy for the Commercial Property & Casualty business segment. She will be focused primarily on driving […]
InvestSM Adds New Members to Board
Three new board members bring first-hand Invest program and insurance experience. InvestSM, the insurance industry’s premier classroom-to-career education program administered by the Big “I,” is proud to announce the addition of three individuals to the Invest Board of Directors: Kathy Conley-Jones, Rob Townley and Daniel Holst. Conley-Jones is an insurance and finance strategist with three […]
NAIC Releases 2022 Insurance Department Resources Report
Two Volumes Contain Key Statistics on State Insurance Department Resources and Regulatory Activities The National Association of Insurance Commissioners (NAIC) released the 36th edition of the Insurance Department Resources Report (IDRR), which is developed primarily through an extensive survey of the NAIC Member states. Divided into two volumes, the report helps state insurance departments assess […]
Verisk’s ISO Businessowners Program Adds Nearly 160 New Classifications
Goal is to Help Insurers Keep Pace with Evolving Risks υ To help insurers keep pace with the changing nature of today’s business exposures, as well as increase profitability and expand into new markets, Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, has announced the launch of its latest update to the […]
Big ‘I’ Installs New Chairman
Michigan’s Mike McBride leads national association for 2023-24 term The Independent Insurance Agents & Brokers of America (the Big “I”) installed Michigan’s Mike McBride, president of Mason-McBride in Troy, as the 2023-2024 Big “I” chairman at the recent Big “I” Fall Leadership Conference in Grand Rapids, Michigan. With over 35 years of experience in insurance […]
Insurer Has Right to Control Defense
If Insurer Agrees to Defend Insured May Not Expect it to Pay Independent Counsel The Insureds sued Mid-Continent for failing to pay their attorneys’ fees in defense of the underlying lawsuit where the Insureds alleged several causes of action against Mid-Continent, including breach of contract, bad faith, and several Insurance Code violations. Mid-Continent filed a […]
Lies on Application & Insurance Never Existed
Rescission Results in Policy Void From its Inception Imperial Casualty and Lloyd’s Underwriters retained me in the 1980’s to advise concerning the fire claim presented by Levon Sogomonian and his wife as a result of a major arson fire and explosion that destroyed their home. The investigation took more than a year, multiple days of […]
Parties to Insurance Contract Alone Can Commit Bad Faith
Attorneys May Not Be Sued for the Tort of Bad Faith For many years lawyers for policyholders have sued insurer’s lawyers for the tort of bad faith to avoid federal court. I was sued dozens of times in spurious lawsuits claiming that drafting a denial letter was sufficient to sue me personally as the lawyer […]
Sexual Assault Excluded
Situs of Assault Does not Create Coverage A coverage dispute arose from the sexual assault of a special needs student aboard her school bus. National Liability and Fire Company sought a declaration that it had no duty to defend or indemnify the bus company or its school district client in a state court action brought […]
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Longevity Gets Longer
This report by Longevity Underwriting explores in detail the results of the TwentyFirst life settlement Actual-to- Expected data. Longevity Holdings is excited to report the details from TwentyFirst’s life settlement Actual-to-Expected report. In aggregate, the Actual-to-Expected ratio for the TwentyFirst (21st) LE business has been 103.5%, 103.8% and 100.8% for the 13-year, 10-year, and 5-year […]
ACLI BOARD
The American Council of Life Insurers (ACLI)has elected its new Chair, officers and Board of Directors during the 2023 ACLI Annual Conference. Their agenda is significant. Paul A. Quaranto, Jr., Chairman, CEO & President of Boston Mutual Life Insurance Company, was named ACLI Chair for 2024. He succeeds Andy Sullivan, Executive Vice President, Head of […]
Synatic and Certificial Partner to Empower Independent Agents
Synatic, a data integration and automation leader, has announceD a new technology partnership with Certificial, the creator of the patented Smart COI Network™ that is transforming insurance verification with real-time data, focused on continued insurance data modernization and mobilization. As the traditionally paper-based insurance industry moves away from manual processes, there is an increasing demand for organized digital data. […]
Applied Underwriters Unveils United Risk, Taps Industry Leader Dan Malloy as CEO
Newly consolidated top-level holding company harnesses billions in MGA premium, set to expand in select markets with elite veteran teams. Applied Underwriters announced the unveiling of United Risk and the naming of former SiriusPoint CEO and industry leader Dan Malloy to head the newly consolidated enterprise. Built up over the last three years within a […]
Big ‘I’ and Reagan Consulting Release 2023 Best Practices Study Update
Best Practices agencies continue exceptional organic growth and invest in young producer development. ALEXANDRIA, VA, As the independent agency channel continues to move past the historic economic disruptions of the coronavirus pandemic and into the challenges of a hard market, Best Practices agencies continue to display exceptional organic growth and profitability while heavily investing in […]
New YouTube channel announced by MSO
MSO, Inc. has launched a new phase in support of its mission to, “provide educational services to the property & casualty industry for the continued education of insureds, agents/brokers, and insurance carriers and their staffs.” The channel, provides information on timely, relevant insurance topics in an entertaining video format. Presently the channel contains: · Underwriters’ Corner – […]
Hot Tub Hazards
While hot tubs, saunas, spas, and whirlpool or jacuzzi baths can be fun and relaxing, there are also hazards. According to the Consumer Product Safety Commission (CPSC), hot tub accidents are the cause of over 300 deaths per year in the United States. More than one fifth of these involve children under the age of […]
Fighting Fraud: New Leader
The Coalition Against Insurance Fraud is thrilled to announce the recommendation for Michelle Rafeld to serve as our 3rd Executive Director. Michelle was the unanimous choice of the Search Committee which worked over the summer interviewing candidates. Her selection will require approval by the Executive Committee later this month and by the Coalition Board at […]
Want to Own a Social Network? Ownet.com is Giving 80% Stake to Users
Ownet Allows Users to Monetize Their Social Network NEW YORK, NY / ACCESSWIRE / September 14, 2023 / A new social network is making it possible for its social media users to own and monetize their digital footprint. Ownet.com enables its users to own 80% of the value of the network, making it the first […]
NYSIF Launches Innovative Mobile App to Assist Injured with Claims
The new app enables NYSIF claimants to easily access their claim number and status, case manager contact information, benefit payment dates and amounts, and a schedule of upcoming events important to their claim. The New York State Insurance Fund (NYSIF), the state’s largest workers’ compensation insurance provider, has launched a new Claim Mobile App to […]
Not Wise to Explain Scheme to Defraud to FBI Informants
Insurance Fraudster Tries Multiple Bases for Appeal & Still Goes to Jail Brian Higgins diverted for personal use funds he received from his mortgage servicer to repair damage to his home caused by a broken fish tank. He also filed a lawsuit against two witnesses for the prosecution, accusing them of misdirecting the funds instead […]
After Avoiding Prison Fraudster Appeals Unsuccessfully
False Lightning Strike Claim Results in Fraud Conviction Sara Weisbeck appealed her convictions for insurance fraud: false material information and identity theft over $1500 and under $10,000, both class “D” felonies. In State Of Iowa v. Sara Jo Weisbeck, No. 22-1068, Court of Appeals of Iowa (October 11, 2023) considered her pleas for mercy. FACTS In […]
Conviction by Plea Manifestly Just
Criminal Defendant Unable to Change Plea of Guilty Defendant Carlo Amato appealed from a March 24, 2022 order denying his motion to withdraw his guilty plea. In State Of New Jersey v. Carlo Amato, No. A-2788-21, Superior Court of New Jersey, Appellate Division (October 10, 2023) dealt with the intent to withdraw Amato’s guilty plea. […]
Only Fools Fail to Read Policy and Assume Coverage Exists
Courts May Never Assume They Must Deal in Facts Grange Insurance Company (“Grange”) issued two insurance policies for insureds called Roosters – a Business Owners’ Policy (“BOP”), and a Commercial Umbrella Policy (“CUP”). All agree the BOP provides coverage. The BOP specifically covered liquor liability the CUP specifically excluded liquor Liability. In Grange Insurance Company […]
The Amoral Public Adjuster
Fictionalized True Story of Insurance Fraud Unfortunately, like Every Profession, Some are not Honorable and This Story is Presented to Warn Insurers and Professional Public Adjusters How to Recognize the Amoral Members of the Profession Public adjusters, like personal injury lawyers, work on a contingency fee. For a percentage of the recovery, they present claims […]
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IFNY 2023 Free Enterprise Award Luncheon
The Insurance Federation of New York (IFNY) gathered in full force on November 16th for its Annual Free Enterprise Award Luncheon at New York’s Union League Club, whereupon Mr Alan Schnitzer, Chairman of Travelers’ received IFNY’s prestigious award. QBE received the Mary Lanning Public Service Award for its programmes in climate control and DFS Superintendent […]
ACLI ELECTS LEADERS
The American Council of Life Insurers (ACLI)has elected its new Chair, officers and Board of Directors during the 2023 ACLI Annual Conference. Their agenda is significant. Paul A. Quaranto, Jr., Chairman, CEO & President of Boston Mutual Life Insurance Company, was named ACLI Chair for 2024. He succeeds Andy Sullivan, Executive Vice President, Head of […]
Risk Strategies Acquires Prince Associates,Inc.
Risk Strategies, a leading national specialty insurance brokerage and risk management and consulting firm, HAS announced its acquisition of Prince Associates, Inc., a multi-line retail insurance agency based in Hicksville, NY. Terms of the deal were not disclosed. Led by Leith Baren and Craig Sherman, Prince Associates is primarily focused on helping clients in need of commercials lines […]
Applied Underwriters Invitational Golf Tournament Garners Over $10M for Charities
Ryder Cup Winner Luke Donald, Applied President Jamie Sahara Interviewed by Sportscaster Jim Kelly As the world’s largest annual charity golf event heads into its final rounds, Applied Underwriters, the sponsor of the Applied Underwriters Invitational tournament has announced that the effort has set a new record and raised more than 10 million dollars for […]
Avoiding Holiday Scams
The hustle and bustle of the holiday season is upon us. Unfortunately, con artists are also out in full force. The Federal Trade Commission (FTC) reports that consumers lost nearly $8.8 billion to scams in 2022. This represented a 30% increase over 2021 (ftc.gov). Some reports have the number as high as $10 billion. Scams […]
BIG I, PIANY applaud Gov. Hochul’s signing of auto inspection bill reform into law
Best Practices agencies continue exceptional organic growth and invest in young producer development. New York auto insurance policyholders and independent insurance agents expressed universal praise for Governor Kathy Hochul’s signing into law New York’s “Auto Insurance Consumer Relief Act,” a measure supported by both consumers and the insurance community. The bill allows insurance companies to […]
Jewelers Mutual® Expands Counseling Benefit Globally
Relieve counseling services have been extended across five countries through end of year to assist jewelers, their families and employees Mutual® Group, the insurance and business solutions provider dedicated to the jewelry industry since 1913, recently announced the expansion of its “Relieve” counseling service in response to heartbreak being felt in the US and across […]
Petrelli hits “Root Causes” of Cost Drivers in Washington Testimony
Testimony by Joseph Petrelli, ACAS, ASA, MAAA (MBA) President and Co-founder My name is Joseph Petrelli. I have been employed in the insurance industry since 1969, when I entered The College of Insurance on a work-study program. After graduation, I was employed by a regional insurer for four years, and then, a national insurer for […]
Conditions in First Party Property Insurance Policies
When used in contract law, the word condition refers to an event, the occurrence or non-concurrence of which alters the previously existing relations of the parties by creating or extinguishing a legal duty. A condition is different from a promise or warranty. When used in an insurance policy the condition imposes duties on the insured […]
Conditions in First Party Property Insurance # 2
What is a Condition? Subscribe to my Substack, Excellence in Claims Handling for $5 a month or $50 a year where you can read this and others here. In AIG Centennial v. Fraley-Landers, 450 F.3d 761 (8th Cir. 2006) the Eighth Circuit found that Arkansas law does not require any showing of prejudice to the […]
When Parties Agree to Appraisal Court has no Choice but to Agree
Appraisal Required to Resolve Extent of Loss υ In an insurance dispute stemming from Hurricane Ian The parties agreed that their case should go to appraisal to determine the extent of the loss. When an insurance policy contains an appraisal provision, “the right to appraisal is not permissive but is instead mandatory, so once a […]
Insurance Policy Warranties
Important Requirements to Make Insurance Policies Work Certain policies contain the term “warranty.” This is a word of great power. Generally, a warranty can be defined as follows: “warranty” in insurance law is a statement or condition forming part of a contract whereby insured agrees that certain acts have been or shall be done, and […]
It is Expensive to Lie to Your Insurer
Fraud in Inception Allows Insurer to Rescind Lamin Fatty appealed the trial court’s order granting summary disposition to Farm Bureau on the basis of finding Fatty’s fraud was grounds for contract rescission and reimbursement of benefits paid. In Lamin Fatty v. Farm Bureau Insurance Company Of Michigan, No. 363888, Court of Appeals of Michigan (November […]
Only Fools Fail to Read Policy and Assume Coverage Exists
Courts May Never Assume They Must Deal in Facts Team Industrial Services, Inc. (Team) found it had incurred a $222 million judgment against it in a wrongful-death lawsuit arising out of a steam-turbine failure in June 2018 at a Westar Energy, Inc. (Westar) power plant. Team sought indemnity for the judgment from Westar, Zurich American […]
2022
2022 Issues - Click to View
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Leaders Elected in Associations| IFNY Elects Howard Mills President
IFNY ELECTS HOWARD MILLS TO SUCCEED NICK PEARSON, ADDS JEFFREY SILVER, K.J. SINGH TO OFFICERS
LICONY ELECTS MIKE ZARCONE TO TOP POST
AND….MICHAEL CHANG IS IBANY PERSON OF THE YEARWork Works
Napoleon Bonaparte once said that to know a man you must understand the world he lived in a twenty years of age. In Eisenhower’s America and on and off since, work was ennobling, even if it was not glorious. There’s the story of a CEO visiting the Circus, passing the elephant’s cages only to come […]
Catalytic Converter Thefts on the Rise
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Catalytic converters are a prime target of thieves. According to the National Insurance Crime Bureau (NICB), more than 1200 catalytic converters per month were stolen in the United States during 2020. Thefts increased almost 300% in the period from July 2020 to […]
Fraudulent Claim Voids Policy
Making a Claim for Loss to Personal Property Not Damaged is Fraud To successfully commit arson-for-profit the perpetrator needs a modicum of intelligence and some knowledge of insurance. When the perpetrator is incompetent, makes claim for property removed from the subject of the insurance before setting it afire, he or she will be caught and […]
Workers Comp Execs Identify Major Concerns
As it has annually for nearly two decades, NCCI recently surveyed more than 100 workers compensation insurance executives to hear what topics are top of mind for the industry. The results are not surprising, but the list of top concerns contains a multitude of interconnected complexities, particularly as it relates to the topics of: Rate […]
Test, Jab, Boost, Repeat
Joe Biden introduced his “new” plan to save us from the dread coronavirus. He will provide 500 million “free” tests (paid for by taxpayers or with borrowed money); 1,000 National Guard troops to overstressed hospitals; and more pressure to get vaccinated and boosted. According to the Kaiser Family Foundation, we would need 2.3 billion tests […]
Never Rely on a Certificate of Insurance
A Certificate Conferred No Rights Upon the Holder The plaintiffs relied on a certificate of insurance advising that Chipotle was an additional insured of a policy issued to a vendor. The insurer, RLI, proved that Chipotle was not named as an additional insured nor was it an additional insured by reason of a contract with […]
Liars Never Prosper
No Coverage for Loss at Unidentified Property Dignity Housing West is a California nonprofit corporation that provides low-income housing. Describing itself as a housing developer and listing its only premises as 200 square feet of office space, it applied for and received a commercial general liability insurance policy from Atain Specialty Insurance In Atain Specialty […]
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Adrienne A. Harris Confirmed to Lead the New York State Department of Financial Services
“I thank Governor Hochul for my nomination. I thank the New York Senate for their confidence and support in my confirmation to serve the great people of New York.
“I am honored to serve as the Superintendent of the Department of Financial Services. As the first African American woman to lead DFS, I am personally committed to working with all stakeholders to build a robust, fair and sustainable financial system, creating a better economic future for all New Yorkers.” –Adrienne HarrisAdrienne Harris
Insurance Advocate and its readers welcome Adrienne Harris to the post of New York Superintendent of Financial Services. Ms. Harris, whose years might imply otherwise, is rather a seasoned executive with experience in Washington and elsewhere in and around government. We trust that her experience t will translate well into the role of NY DFS’s […]
Katherine Papa Elected To Board Of National Association Of Public Insurance Adjusters (Napia)
Katherine M. Papa has been recently elected to the Board of the National Association of Public Insurance Adjusters (NAPIA), which is in its 70th year. NAPIA is comprised of licensed Public Adjusting firms, from across the nation, who are dedicated to promoting the education, certification, ethics, legal and legislative representation, and promotion of the public […]
RV Popularity Surges
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor One result of the COVID-19 pandemic was a marked increase in the popularity of recreational vehicles (RVs). Especially in the early days, limited availability of public restroom and restaurant facilities, restrictions on airline flights, and a reluctance to go to hotels made […]
February 2022: The New Comprehensive Insurance Disclosure Act
There is an old English proverb that says: “You don’t know where you’re going until you know where you’ve been.” On the afternoon of December 31, 2021, New York Governor Hochul signed into law New York Senate Bill “7052.” Called the “Comprehensive Insurance Disclosure Act,” (“CIDA”), it amends the rules that apply to civil litigation […]
An Experienced Adjuster Would Have Recognized That a Jeweler’s Inventory Exists to be Sold
Diminution in Value of Stock of Jeweler is a Direct Physical Loss Personal Property Not Damaged is Fraud Before the court was a Motion for Partial Summary Judgment filed by defendant Great American Insurance Company of New York (“Great American”) seeking dismissal of plaintiff’s claims of insurance coverage for consequential loss. In Nederland Jewelers LLC v. […]
The Great Resignation’s Impact on Local Government
Scores of workers are quitting and governments are scrambling to adapt By Liz Farmer The summer of 2021 brought on the Great Resignation with scores of Americans quitting their jobs—including in local government. Driven by COVID-fatigue, a desire for better pay, and employee retirements, more people have left state and local government in the last […]
Public Policy & No Insurance Defeats Negligence Claim
Leodis Sledge appealed the trial court’s grant of summary judgment to the City of Pine Bluff, Arkansas, et al on his claims of negligence that he asserted were the proximate cause of Leach’s death on April 16, 2020. FACTS On April 12, 2020, a large line of severe thunderstorms containing straight-line winds and tornadoes passed […]
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IFNY Free Enterprise Award to Steve Menzies
The 107-year-old Insurance Federation of New York, Inc. will present its 2021 Free Enterprise Award to Steven M. Menzies, Chairman of Applied Underwriters, and its Mary Lanning Public Service Award to William Frazier, founder of American Veterans Group, Wall Street’s first public benefit corporation. Honored guest, New York’s new Superintendent of Insurance, Hon. Adrienne A. Harris, will participate in the program. The Annual event, postponed from November, 2021 owing to the uncertainties of the COVID pandemic, will be held March 31st at 12:00 noon at the Union League Club on Park Avenue at 37th Street in Manhattan.
As we go to Press…
Ukraine’s top government economic adviser Oleg Ustenko has issued a statement that Russian forces have so far destroyed at least $100 billion worth of infrastructure, buildings and other physical assets. Ustenko, chief economic adviser to Ukrainian President Volodymyr Zelenskiy, told an online conference on economics that the war has caused 50% of Ukrainian businesses to […]
The American College Of Financial Services Appoints New Officers, Members To Board Of Trustees
John Howard and Salene Hitchcock-Gear, JD, bring over 60 years of experience and service to The College King of Prussia, PAThe American College of Financial Services announced a pair of newly elected officers to its Board of Trustees, with John Howard selected as the Board’s new chair and Salene Hitchcock-Gear, JD, voted in as vice […]
Varney Insurance Opens New York Office and Appoints Patrick Yannotta as Senior Vice President
Varney, an insurance agency covering commercial and private clients, has announced the expansion of its US business into the New York property market with the opening of its real estate head office in Manhattan and the appointment of Patrick Yannotta as Senior Vice President in Commercial Real Estate. Varney is a family-owned real estate insurance […]
Don’t Let Frozen Pipes Dampen Your Day
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Winter cold and wind chill can lead to frozen pipes and water damage. These claims are fairly common and can be expensive. According to the Insurance Information Institute (III) each year water damage and freezing claims impact about one in 50 homeowners, […]
Actuaries: Some Estimates of Pandemic-Related Life Expectancy Changes Can Be Misleading
The American Academy of Actuaries has released a new public policy paper (reprinted below) and issue brief cautioning that clarification may be needed regarding estimated life expectancy showing significant decreases in light of the COVID-19 pandemic. “Reports of considerable decreases in life expectancy driven by COVID-19 may certainly garner attention, but they can potentially be […]
Help: My House is Falling Into the Sea
True Crime Story of Insurance Fraud Number 17 Career criminals are not the only people who perpetrate insurance fraud. The temptation has become so great that almost anyone who is given the opportunity, will try. Those who do not premeditate insurance fraud are called perpetrators of soft frauds. Most are small. Some are not. The […]
Go Directly to Jail, Do Not Pass Go
Chutzpah: Convicted of Insurance Fraud Appeals to Avoid Going to Jail Tarek Abou-Khatwa appealed his conviction of a complex, multi-year insurance fraud scheme. He previously asked the court to delay the start of his incarceration pending the outcome of that appeal. On January 31, 2022, the court denied his request, explaining that Defendant’s appeal did […]
How the Insurance Industry Can Solve our Nationwide Mold Problem
by Michael Rubino Most individuals are probably unaware of what insurance coverage they have for mold growth, and anything they do know is hazy at best. Unfortunately, by the time people start to consider what their mold coverage is, they’re facing a current colonization problem. It’s an unfortunate and generalized fact of modern-day life. While […]
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“Try It – You’ll Like It,”
say Consumers of All Ages When It Comes to Using Realtors, Insurance Agents, and Financial Advisors
Gen Zs May Be Harder to Convince, But Once They Work with Intermediaries, They’re Sold
It’s the age of the new and improved intermediary. Consumers of all ages are looking for more information and service, and they’re turning to realtors, insurance agents and financial advisors to get it, according to a new survey from Agentero, a digital insurance network. Of those who have used a realtor, insurance agent, or financial services professional, more than three- quarters say they would use them again.Fresh Thinking from the “Old Country”
Now and then, we come upon a straight set of thoughts are compelling clear and utterly awake – I do not mean “woke”. Here is an article that every agent in the country should read and pass along. It is written by Maria Rosa Alaggio, editor of the Italian insurance magazine, Societa e Rischio. SA […]
Benchmarking New York
Spending, Debt and Tax Levels for 2020 By BEN MOULTEN New York State residents pay some of the highest local taxes in the nation. To help New Yorkers compare certain basic fiscal measures for local governments, the Empire Center for Public Policy has calculated effective property tax rates and per-capita values for the spending, debt […]
National Ethics Awareness Month
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor March is designated as National Ethics Awareness Month – in the insurance industry and elsewhere. The value of a good reputation, for both businesses and individuals, cannot be overstated. It can take years to build a reputation and minutes to destroy it. […]
An Update on Changes to the New Comprehensive Insurance Disclosure Act and How Agencies and Brokerages Should Handle Requests for Information
On December 31, 2021, New York Governor Hochul signed into law Senate Bill 7052, called the “Comprehensive Insurance Disclosure Act”, (“CIDA”). It amends the rules that apply to civil litigation in New York as to the production by a party in a lawsuit of its insurance information. Although the Governor signed the Bill as drafted, […]
A Promise to Not Report a Crime is Unenforceable
υAfter he was convicted of workers’ compensation fraud, plaintiff Daniel Wilson filed a civil complaint alleging that representatives of his former employer, Southworth-Milton, Inc. (SMI), conspired to extort him while negotiating the settlement of his workers’ compensation claim. The defendants in the civil action included Attorney Teresa Brooks Benoit, who represented Wilson during settlement negotiations; […]
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Insurance Federation of New York Presents Free Enterprise Award to Steve Menzies
Mary Lanning Public Service Award to William H. Frazier
Hundreds applaud honorees and hear new head of DFS Hon. Adrienne A. HarrisNearly 300 insurance leaders convened at New York’s Union League Club on March 31st for the 107-year-old Insurance Federation of New York’s Annual Free Enterprise Award luncheon, considered by many to be the industry’s top award. This year’s honoree was Steve Menzies, Chairman of Applied Underwriters, who joins a long line of top US business leaders in receiving the accord. The very first annual Mary Lanning Public Service Award was given to to William Frazier, founder of American Veterans Group, Wall Street’s first public benefit corporation. Honored guest, New York’s new Superintendent of Insurance, Hon. Adrienne A. Harris, was interviewed during the program in a “fireside chat” format whereupon she viewed the DFS’s strengths and her own progress as a professional, among other topics.
Menzies Sees Bold Approach
Remarks by Steve Menzies at the Insurance Federation of New York Awards “I am deeply honored by this award, as its pedigree is exceptional. IFNY has cited leaders in insurance, banking, and finance, and then, has often gone, beyond the confines of these sectors into many fields of endeavor to find the exponents of free […]
IFNY: Stellar
Congratulations to the IFNY Board and its honorees for a beautiful, meaningful event as detailed on these pages. Steve Menzies’ remarks were eye openers, and gave attendees a sparkling reminder of the fact that the business is good and worthwhile. Bill Frazier got the Mary Lanning Public Service Award and the audience met new DFS […]
Big ‘I’ Names Chris Boggs New Vice President of Agent Development, Research and Education
The Big “I” is pleased to announce the promotion of Chris Boggs as the new vice president of agent development, research and education. Boggs succeeds Madelyn Flannagan, who will retire after 26 years of excellent service to the independent agency channel. Boggs joined the Big “I” team in November 2016. In his new role, Boggs […]
Applied Continues Niche Lines Expansion, Launches Applied Surety
Top surety executive, Joshua Betz, named to head Texas based global enterprise Applied Underwriters continues its niche sector expansion with the latest in its series of acquisitions and introductions, launching Applied Surety Underwriters to be based in Houston and serve a worldwide clientele. Since 2019, Applied has acquired companies and books of business in the […]
Insurance Fraud Report 2022: Real Time Data, A Crucial Asset In Fraud Fighting
A 2022 study by FRISS reveals the importance of real time insights from real time data to secure end to end protection from risks and fraud In a recent study by FRISS, the worlds most implemented AI powered fraud, risk and compliance solution provider for P&C insurance companies worldwide, the challenges and opportunities facing insurers […]
Safety Tips for Homeowners – Follow Your Nose
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor For homeowners, safety is of utmost importance. But many homeowners may not realize the warning signs in their homes, including the potential hazards indicated by foul smells. Helping clients understand hidden dangers, and the importance of proper home maintenance, is another value-added […]
New York State Economy Added 39,800 Private Sector Jobs in February 2022
New York State Economy Added 39,800 Private Sector Jobs in February 2022 According to preliminary seasonally adjusted figures released by the New York State Department of Labor, the number of private sector jobs in New York State increased over the month by 39,800, or 0.5%, to 7,888,300 in February 2022. By comparison, the number of […]
COVID Isn’t Over for You
by Jane T. Orient, MD Even if you have had COVID, and some restrictions in your area have been lifted at least temporarily, life is definitely not normal, especially in medicine. We live under an increasingly authoritarian regime, which falsely claims to “follow the science,” but is really based on fear. Warning: Much of what […]
It’s Not Nice to Claim One Fact to One Judge and Another to the Next
Inconsistent Pleadings and Argument Establish Coverage in One Case and Exclusion in Another The Delaware Supreme Court was called upon to determine whether a securities class action and a later follow-on action were related actions, such that the follow-on action was excluded from insurance coverage under later-issued policies. The Superior Court found that the follow-on […]
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Mary Lanning Honored
A beautiful tribute to Mary Lanning was held and atteended by scores of friends and associates – too many to identify but not to many to show! IFNY, ELANY, BOYS’ HOPE/GIRLS’ HOPE were the organizations. Funds were raised for the youngsters and a dedication to Mary, fittingly, proud and inspirational.
American Transit Insurance Company Resolves Significant Lawsuit Against Health Care Providers
American Transit announced that it has resolved a lawsuit filed against certain health care providers for what it alleged was fraudulent and other wrongful conduct those providers had engaged in concerning treatment and billing in the no-fault insurance coverage program. American Transit filed its lawsuit in December 2018 in the Supreme Court, New York County, […]
Of Signatures and Branding
The New York State Senate passed Auto Insurance Consumer Relief Act, a bill to make CARCO inspections optional at the discretion of insurance carriers. Communications from agents, meetings with lawmakers and a spate of calls and e-mails and petitions did it. Employer associations across NY helped the Big I and the PIA and the other […]
ELANY Holds 34th Annual Members’ Meeting; Panel Looks at Crypto and E&S Market
The Excess Line Association of New York (ELANY) held its 34th Annual Members’ Meeting on Wednesday, May 4, 2022. Executive Director Dan Maher opened the meeting by introducing ELANY’s 2021 Annual Report. New records were set in many areas of the Excess and Surplus Line (E&S) insurance market including mergers and acquisitions, premiums and transactions. […]
NCCI Announces 2021 Workers Compensation Performance Metrics
The National Council on Compensation Insurance (NCCI) released its performance metrics for the US workers compensation system for 2021. Private carrier plus state fund net written premium increased about 1% to $43 billion in 2021 (private carrier premium alone was $38B). Private carriers again posted a profitable Calendar Year 2021 combined ratio of 87. It […]
Hagerty launches Digital Labs initiative for the automotive enthusiast industry
Hagerty, Inc. (HGTY) has launched Digital Labs, a strategic initiative that allows the company to quickly pivot to new products and adopt new business models while fostering a mindset of innovation. “As a growth company focusing on many dimensions of the automotive world, innovation and digital product thinking are critical for our future,” said Hagerty […]
Finseca and NAILBA have Officially Merged
Per the overwhelming support of the NAILBA members, Finseca and NAILBA have officially voted to merge and create: NAILBA, a Finseca Community. On January 4, 2022, Finseca and NAILBA announced an intent to explore a merger after significant due diligence conducted by a joint task force that included NAILBA and Finseca members, staff, and leadership. […]
Big ‘I’ Names Whitnee Dillard New Invest™ Executive Director
The Big “I” has announced the appointment of Whitnee Dillard as the new executive director of Invest™ and diversity. Dillard succeeds Deborah Pickford, executive director of Invest, who will retire in May after six years of outstanding contributions to Invest, the insurance industry’s premier classroom-to-career education program administered by the Big “I.” In her new role, Dillard will […]
Slate Of Officers and Board Members Announced at IMUAs 91st Annual Meeting
More than 300 underwriters, brokers, claims personnel and key industry professionals gathered in-person for the first time in three years to participate in the 91st Inland Marine Underwriters Association (IMUA) Annual Meeting. IMUA’s premier education symposium was held April 24-27, 2022, at the Westin Savannah Harbor, Savannah, GA. The first order of business was the […]
The Benefits of Modern Building Codes
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor It has been 30 years since Hurricane Andrew devastated South Florida – destroying over 25,000 homes, killing 65 people, and resulting in more than $27 billion in damage. The magnitude of the devastation was due in large part to inadequate building codes, […]
HDI Global Leverages Verisk’s Mozart Form Composer® to Streamline Forms Management
Industrial insurer HDI Global Insurance Company (HDI) will be leveraging the cloud-based technology and advanced analytics of Verisk (Nasdaq: VRSK), a leading global data analytics provider, to help increase efficiency and develop innovative insurance products. Using Verisk’s Mozart Form Composer®, Verisk’s InsurTech platform for forms management and product development, HDI will be able to easily […]
Verisk Expands Weather Intelligence
Insurers, first responders and supply chain logistics operators can now analyze the impact of severe weather more effectively with Verisk’s newly enhanced web-based weather analytics data solution. Verisk (Nasdaq: VRSK) is a leading global data analytics provider. Verisk’s Respond® mapping and analytics platform, Respond MAP™, enables users to combine valuable weather data with locations of […]
Report: The effects of inflation on insurance companies
Besides the glitches in global supply chains, the post-pandemic world has been facing a surge in energy prices following the resumption of economic activities. Such a situation has been compounded by the geopolitical scenarios triggered by the war between Russia and Ukraine, which is fuelling inflationary pressure worldwide. Moody’s has produced an analysis detailing how […]
Who Defines Disinformation?
Just after Elon Musk bought Twitter, promising more freedom, the Biden administration announces a new government agency to “protect” Americans and the world from harmful disinformation, especially about the COVID pandemic. It is called the Disinformation Governance Board, although some would call it the Minitrue, short for Ministry of Truth, the ministry of propaganda in […]
Coverage for Special Events
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor The pandemic changed how people think about hosting and attending events. Many were cancelled. Some, such as weddings, were downsized or postponed. Others were impacted by government regulations. In such situations, special event coverage, in addition to a standard homeowners or […]
US life insurance premiums exceed $200B for 1st time ever in 2021
U.S. life insurers saw their yearly direct life insurance premiums surpass $200 billion for the first time in history in 2021, according to an S&P Global Market Intelligence analysis of annual statutory statements. U.S. life insurers saw their yearly direct life insurance premiums surpass $200 billion for the first time in history in 2021, according […]
Estoppel Cannot Create Insurance Coverage
Cambridge Mutual Fire Insurance Company (Cambridge) sued seeking a declaratory judgment that it did not owe Defendants Terry Gaca and Janet Waymen (collectively, “Defendants”) a duty to defend an underlying lawsuit under the terms of their insurance policy. Thomas J. Frederick sued in Illinois state court, alleging Defendants maintained a boarding house and a parking […]
Lawyer Appointed by Insurer had a Duty of Zealous Representation
The law of unintended consequences is not statutory. No state or federal government has enacted it into law. No executive has signed the law. It is, rather, a law of the nature of people. It is an adage or idiomatic warning that an intervention in a complex system always creates unanticipated and often undesirable outcomes. […]
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55% of Organizations Have Cyber Coverage
A new report has hit the cyber cover situation head on revealing that: just 55% of organizations currently have cyber insurance, and of those, most policies have limits far lower than the cost of the average attack.
La Plus ça change
Independent agents again shown to place the majority of all property-casualty insurance written in the U.S. Independent agents place 62% of all property-casualty insurance written in the U.S., according to the Big “I” 2022 Market Share Report. The annual Market Share Report compiles and analyzes property and casualty premium data and provides insights for agencies […]
Imua Now Offering Members All Access To Remote Education
Inland Marine Underwriters Association (IMUA) announced that the association is elevating its professional development commitment to members and will provide “all access” to remote education events at no additional cost. In making the announcement, Kevin O’Brien, IMUA President & CEO, said, “As announced at our recent 91st Annual Meeting in Savannah, the IMUA Board of Directors […]
NAIC Passes Pet Insurance Model Act
The National Association of Insurance Commissioners (NAIC) members passed a Pet Insurance Model Act to establish appropriate regulatory standards for the pet insurance industry, which has annual premiums of approximately $2.8 billion in total in-force premiums in 2021 (up over 30.5% from $2.175 billion in 2020) and over 4.41 million insured pets across North America, […]
Hagerty Acquires Broad Arrow Group
Hagerty (HGTY), an automotive lifestyle brand and a leading specialty insurance provider focused on the global automotive enthusiast market, has announced that it has entered into a definitive agreement to acquire all outstanding shares of Broad Arrow Group, which specializes in the transactional segments of the collector car market. Earlier this year, Hagerty acquired approximately […]
Insuring Your Online Business
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Lockdowns of the pandemic resulted in a significant and rapid increase in business being done online. Ibisworld.com estimates that 30% of business is now done over the internet. Selling online has risks and insurance considerations just as a brick and mortar store […]
No Bad Faith
Effective, Professional Arson Investigation Defeats Claims of Bad Faith Plaintiffs Donald Lemon and Candice Lemon (the Lemons) sued State Farm Fire & Casualty Company (State Farm) because it alleged it breached an insurance contract, that State Farm acted in bad faith and that the Lemons are entitled to an award of punitive damages. In Donald Lemon […]
Small Fraud Defeats Claim
Withdrawal of fraudulent portion of claim does not eliminate fraud Star Casualty Insurance Company appealed a summary final judgment and attorney fee award entered in favor of Gables Insurance Recovery, Inc., as assignee of Star Casualty’s insured, Ana Maria Correa. Star Casualty alleges that the trial court erred by granting summary judgment due to genuine […]
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Top Airports Identified
Air travel is a solid economic indicator, as global passenger volume ticks back up to 91% of pre-pandemic levels and labor shortages have caused a record number of flight cancellations, those sky-high satisfaction scores have once again fallen down to Earth. According to the J.D. Power 2022 North America Airport Satisfaction Study, overall satisfaction is […]
Independent Agents’ Market Share Highlights: 2022 United States P&C Marketplace
Members and partners of the Independent Insurance Agents & Brokers of America (The Big “I”) receive the annual Market Share Report free as a member or partner benefit. Information contained in this report is based on data through 2021.
This report graphically and numerically presents the United States property and casualty (P&C) insurance industry data from the independent agent’s perspective. We present key insights and charts from the report.
Hagerty to Acquire Broad Arrow Group
Hagerty (HGTY), an automotive lifestyle brand and a leading specialty insurance provider focused on the global automotive enthusiast market, has announced that it has entered into a definitive agreement to acquire all outstanding shares of Broad Arrow Group, which specializes in the transactional segments of the collector car market. Earlier this year, Hagerty acquired approximately […]
Risk Strategies Acquires Dickstein Associates Agency
Risk Strategies, a leading national specialty insurance brokerage and risk management firm, today announced it has acquired Dickstein Associates Agency, a full-service retail insurance agency. Terms of the deal were not announced. Located in Tinton Falls, New Jersey and founded in 1965, Dickstein Associates provides comprehensive risk management solutions, including property and casualty insurance coverages […]
IABA Announces Recipients Of Lifetime Achievement Awards
The International Association of Black Actuaries (IABA) have selected Roosevelt Mosley Jr., FCAS, MAAA, CSPA and John Robinson, FSA, MAAA, FCA as their 2022 Lifetime Achievement Award Winners. As the International Association of Black Actuaries (IABA) ushers in its 30th year, it remains committed to increasing the number of successful Black Actuaries through strong leadership […]
Planet Governance | Chris Clark interviews Trevor Fetter
Chris Clark conducts interviews with leading corporate directors and subject matter experts for Stuart Levine & Associates, a global consulting and leadership development company. The Planet Governance™ interview series features the views of corporate directors and chief executives on critical issues from ESG and cyber-resiliency to succession planning and board composition. I was lucky enough […]
How to Recognize an Ambitious Insurer
by Rory Yates Since its earliest days, insurers have built their businesses around products designed to help people, businesses, and societies do more by reducing the burden of risk. Today an insurer can still win by offering good products. Tomorrow, however, insurers will only win by offering insurance experiences. Holistic experiences that include assistance, prevention […]
Chutzpah: Murder for Insurance Money Life Sentences Affirmed
Insurance Felon Fails to Get Early Release Because of Covid Courts across the United States have provided unvaccinated and ill prisoners compassionate release from jail ignoring the fact that the prisoner, if infected, might pass the disease to the public. Brian Stone, proceeding pro se, moved for compassionate release claiming he suffers from long Covid. […]
Small Fraud Defeats Claim
WITHDRAWAL OF FRAUDULENT PORTION OF CLAIM DOES NOT ELIMINATE FRAUD Small Fraud Defeats Claim WITHDRAWAL OF FRAUDULENT PORTION OF CLAIM DOES NOT ELIMINATE FRAUD Star Casualty Insurance Company appealed a summary final judgment and attorney fee award entered in favor of Gables Insurance Recovery, Inc., as assignee of Star Casualty’s insured, Ana Maria Correa. Star […]
2021
2021 Issues - Click to View
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Three Little Words
Objective Technical Expertise As so many in business today strive for social relevance and for a place in the sun that shines through social media, we must applaud The American Academy of Actuaries, the people who are the brunt of jokes about personality and senses of humor – not true by the way. The AAA […]
NAPIA Elects New President
Jodie A. Papa, the Manager of National Fire Adjustment Co., Inc. headquarters office located in Buffalo, New York has been elected as National President o the National Association of Public Insurance Adjusters (NAPIA) which was established in 1951 to promote a higher standard for policyholder advocacy. Ms. Papa worked her way up the ladder with […]
The Post Covid Consumer: Buyers Unmask New Plans To Shave Costs And Shred Cares
37,000 high income insurance clients of 150 high income agents Want “Fresh” when the Refresh Comes: Results of a survey by the Private Risk Management Association
Hall of Shame Unmasks Winners for 2020
$80-billion pandemic of insurance fraud Here are the headlines: Homeless New Yorkers are targeted in a $31.7 million slip-and-fall ring … A crime ring burns and floods dozens of homes. … A sober-home mogul trades sex for drugs. Meet the “winners” in the Insurance Fraud Hall of Shame, the nation’s most brazen convicted insurance scammers […]
MSO Announces Partnership with Optima Siu
Glen Rock, NJ/December 2020 – MSO, Inc. (The Mutual Service Office, Inc.), is pleased to announce their Vendor Partnership with Optima SIU. Established in 2002, Optima is a global company handling insurance fraud cases in the United States and Europe. In addition to fraud investigations, Optima offers a full range of fraud compliance services. Based […]
PIANY CIC and CISR Programs Online
PIANY’s Certified Insurance Counselor and Certified Insurance Service Representative designation programs continue to be available online. These continuing-education credit-approved, nationally recognized designation programs take a practical, hands-on approach to learning. These designations are recognized nationwide as important credentials—ones that benefit individuals, their agencies, and their customers. To earn the CIC or CISR designation, participants must […]
Big ‘I’ Leaders Among Top D.C. Lobbyists
The Hill, a prominent political newspaper, has once again named Bob Rusbuldt, Big “I” president & CEO, and Charles Symington, Big “I” senior vice president of external, industry and government affairs, among the top trade association lobbyists in Washington, D.C. this year. As in previous years, the Big “I” was the only insurance agent/broker group […]
Portable and Supplemental Heater Safety
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE As temperatures fall, the demand for and use of supplemental heating sources rises. Portable heaters are commonly used when the main heating system is inadequate, or when just an area of the building needs to be heated. During the COVID-19 pandemic, supplemental heaters became essential equipment […]
The Oft Unheard Skill: Listening
Seven Simple Ways to Turn Up the Volume on Leadership and Client Service By Richard Torrenzano Listening has been a problem since mankind developed ears. Sometimes, the results have been dire, particularly in military and risk management history. October 25, 1854, in the Crimean War, the British Light Brigade was ordered to attack from the […]
A Fable of Fraud
ZIFL publishes this Story at Holiday Time Every Year. I Hope You like it Again The story that follows is fiction based, in part, on a true case worked on by me. Any similarity to real people is unintentional. It is meant only to educate fraud professionals about how some unscrupulous people use the crime […]
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Is Artificial Intelligence the Answer to Insurance Fraud?
By Nigel Cannings
Ongoing investment suggests that the perception amongst insurance professionals is yes. According to a 2021 survey, approximately 31% of insurance CIOs reported that they had already deployed AI and an additional 23% will deploy in the next 12 months. Focusing on Fraud and a recent survey by the Coalition Against Insurance Fraud showed that 21% of respondents are planning on investing in AI for fraud detection over the next 2 years. Yet against this backdrop of adoption, we see that most insurance companies process only 10-15% of the data they hold.
Big ‘I’ Presents Bill Harrison with Woodworth Memorial Award
The Big “I” presented William “Bill” E. Harrison Jr., chairman of the Big “I” Reinsurance Company, with the Woodworth Memorial Award at the Big “I” virtual Board of Directors meeting on Jan. 28. The Woodworth Memorial Award recognizes individuals who serve the insurance industry and the Big “I” with uncommon dedication. It is the association’s […]
Business Tips for Winter Months
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Colder temperatures can present challenges for business owners and their employees. With the COVID pandemic and the switch to more people working remotely, the challenges were increased. Employee and client safety are as important as profits to the conscientious business owner. […]
Deloitte: More Risks On More Fronts: Credit Risk, ESG and Cybersecurity Top Concerns for Financial Institutions
With economies contracting and unemployment rising, credit risk has moved to the top of the risk management agenda, according to Deloitte’s biennial survey on the state of risk management in the financial services industry globally. Twenty percent of the chief risk officers at financial institutions surveyed identified it as the No. 1 risk they see […]
Litigation Funding Dispute Gets Costly
The fight between prominent plaintiffs’ attorney Thomas Girardi and a litigation funder that claims he and his firm haven’t paid back a $15 million loan has been routed to arbitration. However, a significant, potentially public fight remains over whether Mill Valley-based funder Law Finance Group LLC will be able to go after Girardi’s personal assets […]
Bank’s Standing In Foreclosure Actions Just Got Easier
Attorneys who defend foreclosure actions often employ a defense called “produce the note.” Because mortgage notes often change hands (i.e., are sold) between the time the mortgage is taken out and the time of foreclosure, the foreclosing bank sometimes doesn’t have the actual note — and this may defeat the foreclosure action. But New York’s […]
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The rise of the exponential underwriter
Leveraging a convergence of data, technology, and human capital to transform underwriting in insurance: As the insurance industry adapts to shifting market conditions, some roles will likely need to be transformed as well. Learn how insurers could multiply value creation by modernizing the underwriting function now
Tax Hikes Will Hit Hard
The New York State Legislature should avoid major tax hikes in this year’s state budget, including a three-year surcharge on multimillion-dollar incomes proposed by Governor Cuomo. The Empire Center’s senior fellow, E.J. McMahon, made a cogent case against the hikes in testimony offered recently in Albany. “Raising taxes on the highest incomes to raise revenues […]
Big ‘I’ Praises Reintroduction of Main Street Tax Certainty Act
The Independent Insurance Agents & Brokers of America (the Big “I”) is grateful for the reintroduction of the “Main Street Tax Certainty Act” in the U.S. House of Representatives by Reps. Jason Smith (R-Missouri) and Henry Cuellar (D-Texas) and in the U.S. Senate by Sen. Steve Daines (R-Montana). The legislation would make permanent a 20% […]
Big I Presents Selective’s Greg Murphy with Jeff Yates Lifetime Achievement Award
The Big “I” presented Greg Murphy, executive chairman of the board of directors for Selective Insurance Group, Inc., with the Jeff Yates Lifetime Achievement Award. The Jeff Yates Lifetime Achievement Award, named in honor of former Big “I” CEO Jeff Yates, recognizes individuals beyond the agent community who contribute to the vitality and strength of […]
Protect Property from Weather-Related Damage
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Winter weather takes a toll on houses, commercial buildings and other outdoor property, including fences, patios, pools and sheds. According to the Insurance Information Institute (III), winter storm damages exceeded $2.1 billion in 2019, down from $3 billion the year before. […]
Susan Preston Promoted to Vice President, Director of Program Development for Specialty Program Group, LLC
Summit, New Jersey–Specialty Program Group LLC (SPG), a leading operator of specialty insurance brokerages and underwriting facilities, announced the promotion of Susan Preston to Vice President, Director of Program Development for SPG. Susan has been President of Professional Program Insurance Brokerage in Novato California since 1993. She has put more than 15 programs together over […]
Specialty Insurer and Reinsurer SiriusPoint Launches with Over $3bn in Capital
SiriusPoint Ltd. (NYSE: SPNT) (“SiriusPoint” or the “Company”), an international specialty insurance and reinsurance company, has launched with over $3 billion in initial capital. The Bermuda-based Company has been formed as the result of the previously announced merger between Third Point Reinsurance Ltd. (NYSE: TPRE) (“Third Point Re”), a specialty reinsurer, and Sirius International Insurance […]
COVID-19: The 2021 Landscape for Surgeons
By Max Schloemann According to reports, this year is looking to be one of changes and big possibilities for surgeons. While 2020 brought declines in surgical revenue and drops in patient intake, the COVID-19 pandemic caused a paradigm shift. Adaptations and innovations designed to cope with the pandemic could be a boon for the surgical […]
Famous Lawyer’s Assets Frozen by Federal Court
Thomas Girardi, a prominent Los Angeles attorney faced a federal judge in Chicago who froze the assets of his firm after finding that he misappropriated at least $2 million in client funds that were due to the families of those killed in the crash of a Boeing jet in Indonesia. Girardi is one of the […]
NY PIP: Post-Claim Policy Exhaustion Appears To Be Revived As a Defenset
For nearly four years now, New York auto insurers have awaited with trepidation a decision from New York’s Appellate Division, Second Department, on a question of great urgency: is “policy exhaustion” a complete defense to a PIP lawsuit (or arbitration) if the policy became exhausted after the claim was denied? The general rule of policy […]
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Client/Agent: THE NEW “SPECIAL RELATIONSHIP” DECISION
Guest Author
Cover Story, Guest Article
By Howard S. Kronberg, Esq.
On February 10, 2021 the Appellate Division First Department[1], affirmed the dismissal of a failure to procure action against a broker in the case of Trimasa Restaurant Partners[2]. This case is a significant decision in that it narrows, limits and thus clarifies the application of the special relationship doctrine, which has been used by plaintiff’s attorneys in E&O lawsuits since 1997 to attempt to hold insurance agents and brokers liable for things that they never agreed to do for their customers, like procuring coverage not specifically requested. Here, we will review the special relationship doctrine and the court’s decision in the Trimasa case.
Mary, this time it’s about you
When I first learned that Mary Lanning had passed away, it took a while for it to sink in. Later that day, I went to the internet to find her CV and photo for this column. Her bio, her “story”, was hidden among the pages describing her projects and her great works of charity. “Selflessness” […]
FOX’s Bill Hemmer to Address Big ‘I’ Members
The Independent Insurance Agents & Brokers of America (the Big “I”) has announced that Bill Hemmer, co-anchor of FOX News Channel’s “America’s Newsroom,” will be a featured speaker at the annual Big “I” Virtual Legislative Conference. Hemmer will chat with Big “I” President & CEO Bob Rusbuldt on Friday, April 16 in the closing segment […]
Agents Council for Technology Announces Online Agency CX Self-Assessment
The Big “I” Agents Council for Technology has updated its Customer Experience (CX) Journey webpage to debut a free online independent agency CX self-assessment. Agencies can now use the self-assessment tool to gain insights on ways to improve digital interactions with customers. The self-assessment asks a series of questions regarding technology touchpoints across consumers’ insurance […]
Risk Strategies Launches Brand Refresh as Acquisition Count Tops 100
Risk Strategies, a national specialty insurance brokerage and risk management firm, announced a new brand strategy designed to harness the full power of all the business entities within the Risk Strategies family. “This will allow each division to come together as one holistic brand and highlight the company’s specialist approach to partnering with clients”, they […]
AMWINS Chalks Up Number 52
Amwins, a global distributor of specialty insurance products and services, announced its acquisition of Worldwide Facilities, the fourth-largest wholesale broker in the U.S to expand its offerings to provide a wider variety of unique, specialty insurance solutions to its retail clients. With a flurry of mergers and acquisitions in the specialty insurance space, Amwins states […]
COVID-19 Vaccine & Employee Safety
Guest Author
Covid-19, Guest Article
By Sunz Holdings Across the country states are slowly but steadily looking to make the COVID-19 vaccine available to all age groups. While many celebrate this development in the ongoing fight against COVID-19, the vaccine poses interesting questions for employers and staffing companies. Can we mandate the vaccine for all employees? According to the EEOC which […]
Court’s Preclusion of Plaintiff’s Expert Leads to Reversal of Defense Verdict
Robins v City of Long Beach, 2021 NY Slip Op 01277 (App. Div., 2d Dept, 3/03/21) When Wendy Robins was walking past a condominium building under construction in the seaside community of Long Beach, New York, she stepped onto a curb adjacent to an unfinished driveway apron, and fell. She sued the owner of the […]
Insurance executives form Jersey City-based trade association, Hudson Insurance Federation
The Hudson Insurance Federation of New Jersey, Inc., (HIF) has formally announced its establishment as the newest New Jersey-based trade association. HIF consists of members across all segments of the insurance industry including property-casualty, life-health, brokers and agents, regulators, and compliance professionals. HIF’s co-founders include James M. Burns, a partner at Genova Burns LLC, and […]
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The Changing Insurance Landscape and Advisory Role of the Broker
Guest Author
Cover Story, Covid-19
RESPONDING TO CUSTOMER NEEDS IN LIGHT OF COVID-19 AND GROWING CYBER DISRUPTIONS
By Tom Laughran and Liz Wilder
Businesses across the world have faced great headwinds over the past year. From the myriad ramifications the global pandemic has –and continues –to present, to the rising threat of cyberattacks, business leaders and owners are tasked with defending against a broader range of threats than ever before.Worn Out Words
Worn out words..and the people who use them! Have you taken stock recently? How is your English? Will language ever recover from COVID Era usage and cliches The Zoom Age has given us an overwhelming vocabulary of useless, vapid verbiage that has created put-you–to– sleep-white -noise that rivals Sominex …and radio preachers. You have probably […]
Agency Revolution is the Newest Company Partner of ACT
Agency Revolution provides independent insurance agencies with technology-driven marketing solutions. “ACT is excited to welcome Agency Revolution as a supporting partner,” says Ron Berg, ACT executive director. “Now more than ever, an agency’s digital presence is their new storefront—whether that’s on social media, their website or in email interactions with clients. We’re looking forward to […]
Peter Milnes Honored for Forty Years of Leadership and Service
The Society of Certified Insurance Counselors (CIC) recently honored Peter R. Milnes, CIC, CPCU, Chief Executive Officer of Optisure Risk Partners, LLC for 40 years of committed professional leadership and service. He joins an elite group of CIC designees who have reached this 40-year milestone. Peter earned the designation through a series of rigorous examinations […]
Getting Charged About Electric Vehicles – Residential Charging Stations
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor, MSO Electric vehicles are becoming more and more popular. They are less expensive to operate, better for the environment, and cheaper to repair than traditional gas-powered vehicles. One factor that may deter potential buyers is the lack of readily available charging stations. […]
Major Trade Associations Announce Partnership to Stem Towing & Staged Accident Fraud
The American Trucking Association (ATA), American Property Casualty Insurance Association (APCIA), and the Coalition Against Insurance Fraud pledged to leverage the power of their combined resources and influence to secure passage of needed legislation to tackle the scourge of towing fraud and staged vehicle accidents across the country. These issues and many more are driving […]
Applied Underwriters’ Exceptional Care for Injured Workers Featured in Fall TV Series on Discovery Life
“Back from the Brink” highlights heroic recoveries and the people who realized them Officially recognized for its extraordinary care for injured workers as a leading US workers’ compensation insurer, Applied Underwriters will be featured in episodes of an upcoming TV series called Back from the Brink. The series, set for the fourth quarter of 2021 […]
New York Life Donates $200,000 for Asian Americans
New York Life announced that it has donated $100,000 to Asian Americans Advancing Justice/AAJC and $100,000 to Stop AAPI Hate in response to the recent violence against the Asian American and Pacific Islander communities. As part of the donation to Advancing Justice/AAJC, $50,000 is directed to a special fund supporting victims and their families impacted […]
Appeals court reverses, orders fall injury compensable
by Louise Esola The injuries suffered by a call center employee who slipped and fell backward on an icy curb leading from the parking lot to the building where she worked in Salem, Oregon, are compensable, an appeals court in Oregon ruled Wednesday. The latest ruling in In the Matter of the Compensation of Ashley […]
Mask-Wearing Represents Fear & Blind Obedience, Not Science
Guest Author
Covid-19, Guest Opinion
By Dennis Prager When I see people walking outside, often alone with no one anywhere near them, wearing a mask, my primary reactions are disappointment and sadness. I am disappointed because I expected better from my fellow Americans. I never thought most Americans would be governed by irrational fears and unquestioning obedience to authority. I […]
Three Case Studies: Arson, a Jail Sentence and Fraud
Arson for Profit Conviction Affirmed in Pennsylvania υ John M. Sekerak appealed from the January 16, 2020 judgment of sentence entered in the Court of Common Pleas of Berks County (“trial court”), following his jury convictions for two counts of arson, recklessly endangering another person (“REAP”), and insurance fraud. In Commonwealth of Pennsylvania v. John […]
Insurance Leaders Need to Do These Three Things for Digital Transformation Success
The global pandemic has uprooted many industries from healthcare to travel to dining. Historically, the insurance industry is one that can survive change because it is a critical need for businesses and individuals. However, this fact alone is no longer enough to drive sustained growth for insurance companies, especially in the face of global events […]
Hudson Insurance Federation Formed by Industry Executives
On March 29, the Hudson Insurance Federation of New Jersey, Inc., (HIF) www.hifnj.org, formally announced its establishment as the newest New Jersey-based trade association. HIF consists of members across all segments of the insurance industry including property-casualty, life-health, brokers and agents, regulators, and compliance professionals. HIF’s co-founders include James M. Burns, a partner at Genova […]
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Reg 187: Big “I” Victorious In Key Legal Battle
Court sides with BIG “I” in Win for Agents and Brokers
Onerous and Confusing Regulation 187’s Controversial “Best Interest” Standard Called “Unconstitutionally Vague”The New York Supreme Court handed a big win to the BIG “I” and to agents and brokers in the state as it reversed a 2019 ruling that the DFS was within its authority when it issued Regulation 187. Regulation 187, went into effect on August 1, 2019.
Seven Minute Meeting: Liberty Mutual Targeted to Stop Insuring Fossil Fuel Expansion and Respect Indigenous Rights
This press release hit our desk and sent us into Zillow New Zealand. The politicization of everything now by passes shareholders and policyholders. It is the work of a pressure group that seems established to bring Liberty Mutual into the fold of the “woke”. We present it exactly as received for the edification of industry […]
Promotions Announced at MSO
MSO, Inc. (The Mutual Service Office, Inc.), is pleased to announce the promotion of two longtime employees to Vice President: Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE and Laura “Pepper” Treuvey, AU. Both are licensed property casualty producers. In addition, Mary Beegle has been promoted to Senior Product Development Analyst. Ms. Treuvey joined MSO […]
Applied Underwriters Receives UK OK
Mr. Steve Menzies, Chairman, Applied Underwriters, announced that the Company has received definitive regulatory approval from the Financial Conduct Authority (FCA), the United Kingdom’s governing body for insurance, banking and investment transactions, for the completion of Applied’s acquisition of Concept Special Risks (CSR), effective April 12, 2021. The acquisition, announced in February, will enable the […]
Matthew Hudnall Joins Preferred Mutual as Senior Vice President, Underwriting
Matthew (Matt) Hudnall has joined Preferred Mutual Insurance Company (“Preferred Mutual”) as Senior Vice President, Underwriting. Hudnall will be responsible for providing leadership and strategic vision to the underwriting function, to product development initiatives, as well as agency partnership development. Hudnall brings to Preferred Mutual over 20 years of underwriting service experience, and operational and […]
How Do I Optimize My Instagram Business Profile For Better SEO?
by Sarah Smith Instagram has become the major revenue generator for the B2C business. People are checking the Instagram pages of brands to gain knowledge before making a purchase. Thus, the way you present yourself on Instagram will play a significant role in building your brand image. So, optimizing your Instagram business page according to […]
New High, New Low
Insurance and Cannabis Meet in the Middle More and more states across the country are opening up to the idea of allowing cannabis-related businesses to operate, and with business comes risk, and with risk comes insurance. But insuring cannabis-based businesses introduces some tricky areas to navigate, especially as this market is quickly evolving. Getting the […]
The Biden Administration’s Health Insurance Priorities
by Patrick McGovern The Biden Administration wasted no time in implementing some of the new President’s campaign promises relating to health insurance and the Affordable Care Act (“ACA”). First, on February 10 the Department of Justice filed a letter with the Supreme Court reversing the position it took under the Trump Administration asking the Court […]
There Can Never be a Fraud Too Small to Void a Policy
Material Misrepresentation Concerning the Extent of Loss Voids Policy After the district court ruled for the defendant insurance company on cross-motions for summary judgment, ending the action, the plaintiff appealed that summary-judgment ruling. In Meat Town Inc. v. Sentinel Insurance Company, Case No. 19-2351, United States Court of Appeals for The Sixth Circuit (March 30, […]
IMA Financial Group Acquires Bolton & Company
Largest-ever partnership adds California to IMA’s expanding footprint, continues rapid growth trajectory IMA Financial Group, a North American insurance brokerage firm specializing in risk management, insurance, wholesale brokerage and wealth management, announced that it will partner with California-based Bolton & Company to expand its brokerage services to California. The transaction is effective May 1, 2021. […]
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Small Commercial Insureds: Expectations for New Buyers Quantified in Key Survey
Generational trends point to inherent differences and new business approaches
The market for small business insurance is evolving in many ways. With the number of small businesses on the rise, emerging risks and new products to cover those risks, and even shifting business models due to the pandemic, there are many opportunities for new small commercial sales.Preferred Policies
Maurice “Hank” Greenberg, Chairman and CEO of C. V. Starr & Co., Inc., initiated an advocacy campaign by 16 top business leaders calling upon President Biden to “demonstrate decisive U.S. leadership now” to combat increasingly deadly Covid-19 outbreaks in Latin America, Europe and Asia. The campaign started with a letter signed by: Greenberg, Ken Langone, […]
Garamendi Introduces Bill to Bolster Oversight of Nation’s Financial System
Congressman John Garamendi (D-CA) has introduced the “Primary Regulators of Insurance Act” with Congressman Barry Loudermilk (R-GA). Congressman Garamendi served as California’s first-ever elected State Insurance Commissioner from 1991 to 1995, and again from 2003 to 2007. Congressman Loudermilk is a senior member of the House Committee on Financial Services. The “Primary Regulators of Insurance […]
Insurance Industry Responses to Weather
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Weather impacts every homeowner and business owner and therefore their insurer. Insurance companies are in business to pay claims but also to make money for their members and/or stockholders. Insurers use a variety of methods to address weather, including policy conditions, underwriting […]
Driving distracted? Probably.
Consider what you would do if you were driving down the road at 45 mph and lost visibility for six seconds-barreling forward, no breaking, no slowing down, no ability to see. This is essentially what happens 13 times a day for the average driver according to new data released by Nationwide1. “What kind of damage […]
Slip, Fall and then some…
Alexander Goldinsky staged a ham-fisted slip-and-fall on ice in a company cafeteria, then tried to wriggle out by seeking pre-trial intervention that could’ve led to the insurance fraud charges being dropped. No go, the New Jersey court ruled. Goldinsky was sentenced to two years of probation plus community service for insurance fraud. The Randolph man […]
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E&S Role in New York Homeowner’s Market | Report
This study of New York’s $3.7 billion dollar homeowners insurance market was underwritten by the Excess Line Association of New York. It was initiated to determine if the excess line market competes with the admitted market for homeowners insurance business in New York State. All analysis, findings and conclusions are solely those of NovaStance Analytics.
City Coming Back… On Foot?
Taxi And Van Underwriting Issues Threatens New York City’s “Return To Normal” A looming crisis could slow the comeback of New York City – removing wheels from the equation. An actuarial report has hit at American Transit Insurance Company’s reserves, putting the main underwriter of critical transportation classes into a dubious spot. ATIC has long […]
ELANY Holds 33rd Annual Members’ Meeting; Breslin Delivers Keynote
The Excess Line Association of New York (ELANY) held its 33rd Annual Members’ Meeting on Thursday, May 27, 2021. New York State Senator Neil Breslin delivered the keynote address in his usual candor touching on topics such as industry innovation, ELANY’s diligent effort and affidavit reform legislation, as well as the challenges New York is […]
TigerRisk appoints former A.M. Best CRO Jack Snyder as Head of Insurtech Origination and Head of Financial Advisory
Rod Fox, Chief Executive Officer of TigerRisk, said: “I’ve known Jack for 20+ years, and I am thrilled to have him join us. No one knows the ratings agencies as well as Jack and his wealth of experience helping hundreds of companies over the years navigate the ratings process will be a tremendous help to […]
Wearable Technology – Changing How We Work
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Wearable technology, including fitness apps trackers and other wireless communication, gives everyone the ability to do things more efficiently. In 2020, 22.6 million smartwatches, the most popular wearable technology, were sold in the United States alone. Total sales of all wearables as […]
New IMUA Officers & Board Members Elected
More than 475 underwriters, brokers, claims personnel and key industry personnel clicked on to participate in the 90th Inland Marine Underwriters Association (IMUA) Virtual Annual Meeting. The two half-day virtual meetings were held on May 25th & 26th. The first order of business was the announcement of the approval of the election results for the […]
Igniting the Tech Change in a Post-Pandemic Workplace
How Companies Are Shifting Focus to Health and Safety as Turnover Accelerates By R.J. Frasca Current employees are leaving behind the uncertainty and burnout of the pandemic and setting their sights on new jobs now that COVID-19 cases in America are on a steady decline. Healthcare workers who put their lives in jeopardy caring for […]
It’s All About Your Bottom-Line and Our Servicing
By Glenn Femminella The insurance climate today, as in years past, is all about servicing clients and their needs. Working in a collaborative environment, where ALL team members filter their thoughts on how to effectuate change to YOUR bottom-line. American Global has adopted this philosophy and it has become our culture, illustrated by our results. […]
The impact of COVID-19 on diseases of despair
By Nico van Zyl and Paul Edwards Hannover Re Understandably, there has been a focus in medicine and among governments on dealing with the devastating impact of the pandemic. However, there is less comment about the psychological effects of social isolation, the tsunami of grief as people cope with losses – all dovetailing with financial […]
Do Insurers Get Their Money’s Worth from Fighting Fraud?
The simple answer is “yes” and “no.” The more difficult question to answer is how to quantify the savings, if any. A report from the Insurance Services Office (ISO) commented: 1. Insurers consider fraud a serious problem but their companies’ Anti-fraud efforts are only moderately effective; 2. Sixty-eight percent say their companies’ anti-fraud programs address […]
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Home Buying After the Pandemic — Don’t Skip the Inspection
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor The pandemic has impacted the home buying process in numerous ways. Social distancing protocols and a super-hot home real estate market have created new challenges for residential buyers. Inspections have long been an important part of the home buying process, from both […]
Consumer Groups Call on FIO to Dig Deep into “Unfairness” in Auto Market
A group of consumer organizations urged the Department of Treasury’s Federal Insurance Office (FIO) to update a 2017 study on the affordability of auto insurance in historically underserved communities and to conduct a “deep and thorough investigation of unfair discrimination in auto insurance markets”. While state laws in all states but New Hampshire require drivers to purchase auto insurance, the group holds that it is often unaffordable for lower-income drivers and that industry pricing practices that rely on non-driving, socio-economic characteristics of customers disproportionately penalize people of color with higher premiums and fewer choices in the market.
Did Covid Change That?
Some indicators really do point to to where the market is heading … long term. With housing affordability a major problem in the U.S., millennials who are trying to find their first entry into home ownership are stumbling, seeking exurban homes, living smaller or renting … or all of the above. Top 10 global asset […]
Aflac Global Investments Announces $2.1 Billion Strategic Partnership with Denham Capital to Accelerate Denham Sustainable Infrastructure’s Platform
Aflac Global Investments, the asset management subsidiary of Aflac Incorporated, announced a new partnership with Denham Capital — a global sustainable infrastructure, energy and resources investment firm — to expand the Denham Sustainable Infrastructure business. Aflac Global Investments has made a $2 billion commitment to Denham Sustainable Infrastructure to launch a new debt platform, which […]
Insurance Leader Will Head International Foundation To Address “Human Ecology”
Marking the sixth Anniversary of his landmark encyclical, Laudato, Si, Pope Francis expressed his keen interest in seeing his encyclical’s focus, “human ecology” translated into action over the years ahead. During a May 26th meeting in Rome, the St. Francis Day Foundation, a non-profit organization to serve mankind through a series of mandates was born, […]
New Policies will Help Transgender People Obtain Appropriate Treatment for Gender Dysphori
NYS Office of Mental Health and Department of Financial Services Announce NY Insurance Carriers Complying with State Requirements to Provide Coverage for All Gender-Affirming Treatments The NYS Office of Mental Health (OMH) and Department of Financial Services (DFS) has announced that insurance carriers in New York are complying with new State requirements to provide coverage […]
AI: Digitization, Automation, AI Define Role of Human Agents in Insurance Industry
The digitization of the insurance industry is inevitable but human interaction is still an essential part of the process. Paul Ford, CEO of insurance platform Traffk, explains how the companies that will succeed are those that use data and automation to develop better products and help their agents become advisors. Artificial Intelligence (AI) and automation […]
“Unfair Trade Practices” Exclusion Does Not Extend to Consumer Protection Claims
By Mary McCutcheon and Shanti Eagle Two phrases combined in a single exclusion — “alleging, arising out of, based upon or attributable to any violation of any law…” and “as respects… unfair trade practices” could inspire carriers to make trouble for policyholders seeking coverage for consumer protection claims. Fortunately, a recent federal decision recognizes that […]
The Four Corners Rule Strikes Again
It is axiomatic that the duty to defend is broader than the duty to indemnify. However, every liability policy excludes coverage for the intentional act of shooting a plaintiff in the stomach with a gun. However, in Pennsylvania, where the four corners rule of policy interpretation applies, when a plaintiff alleges both intentional and negligent […]
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Fiduciary Professions: Legal Challenges and Solutions for Trustees of Trust-Owned Life Insurance
Active and careful management is required
By Grace Bronstein & Ian Weinstock
Many trustees mistakenly believe that life insurance is a static financial instrument. However, trust-owned life insurance (TOLI) requires active and careful management. Recent case law provides a roadmap for how trustees can adequately manage TOLI pursuant to the Uniform Prudent Investor Act (UPIA). Trustees should be aware of their exposure to liability, as there’s been an increasing trend towards lawsuits filed against trustees for policy mismanagement.
Remembering Fmr. Ny Supt of Insurance, Albert Lewis
An exemplary public servant, gentleman and friend Many in the insurance industry have communicated great sadness together with enduring admiration for former New York State Superintendent of Insurance, Albert Lewis, who died on August 7th at 95 years of age. The cause was complications from Alzheimer’s disease. Insurance regulation was itself improved by Al Lewis […]
Adrienne Harris Named Superintendent of the Department Of Financial Services
Adrienne Harris has been nominated to lead the New York State Department of Financial Services as its next Superintendent by Governor Hochul. Formerly a top economic advisor to President Obama, Ms. Harris will become the state’s top financial regulator tasked with overseeing the banking and insurance industries and their compliance with state laws as New […]
New York Insurance Scholarship Foundation Selects Delgado And Fitzpatrick As 2021–2022 Scholars
The New York Insurance Scholarship Foundation, Inc. (NYISF) has named Diego Delgado from Minoa, N.Y. and Lily Fitzpatrick from Whitestone, N.Y. as the foundation’s 2021–2022 New York Insurance Scholars. Delgado is a junior at Le Moyne College majoring in risk management and insurance, finance, and information systems. Fitzpatrick is a senior at St. John’s University […]
Invest™ Appoints Juan Padron as Board Chair
Invest™, the insurance industry’s premier classroom-to-career education program, has appointed Juan Padron, partner at SafeGuard Insurance Agency in McAllen, Texas, as the new chair of the national Invest board. Padron has been part of the insurance industry since 2002. He has served on the Invest board since 2019 as an agent member and currently serves […]
Auto and Property Insurance Shopping Continue to Diverge; Both Younger and Riskier Consumers Increase Auto Shopping
TransUnion report reveals the personal lines insurance marketplace shows signs of returning to pre-pandemic levels Auto and property insurance shopping continued to diverge in Q2 2021 as factors such as low mortgage rates, pandemic-driven nesting and supply chain disruptions impacted these industries differently. TransUnion’s (NYSE: TRU) latest Personal Lines Insurance Shopping Report also found a resurgence in […]
Motorized Bikes- A New Cycling Trend
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor Electric bikes or e-bikes are becoming increasingly popular. Although at first glance they may look like a traditional bicycle, they have a battery-operated motor to assist the rider in travel. E-bikes are not all the same, and their usage varies. Use […]
Americans Deemed “Too Risky” to Acquire Life Insurance are Getting a Second Look
By Paul Ford Life insurance ownership across the nation has dropped by 9% in the last decade.(1) As of 2018, it was estimated that 27% of non-elderly adults in the United States had at least one pre-existing condition that would disqualify them from getting life insurance—that’s 53.8 million people.(2) According to NerdWallet, the average minimum […]
Praedicat Launches Company Risk Score to Underwrite Liability Emerging Risk
Praedicat, the liability emerging risk analytics company, has launched a new Company Risk Score designed to vastly simplify the underwriting of complex emerging risks for liability insurance The Company Risk Score, available in Praedicat’s emerging risk software product CoMeta™, applies machine learning and artificial intelligence technologies to identify emerging risks in scientific literatures. Once new […]
A Theft is a Taking of Property
A Decision Finding Theft Can Be a Taking of More than Money Costs National Union $22,114,883 Plus Interest Cargill, Inc.’s (Cargill) moved for judgment on the pleadings. Cargill seeks judgment in its favor as to the one disputed claim between the parties on the extent of theft coverage and as to the issue of prejudgment interest. […]
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Turns for the Better… And Worse
How Insurance Premiums Have Changed in Each State since 2010
by Mike Brown
Using data from the NAIC & US Census Bureau, I analyzed how insurance premiums have changed in each state (and nationwide) from 2010 to 2020.Personalities and Personnel
In this issue, we welcome Cyber Security expert Pete Sfoglia, Chief Information Security Officer and Cofounder, Insurun Advisory Services. Pete has 26 years Big-x consulting experience in IT Security, Business Process Re-engineering and Governance, Risk and Compliance management, 13 as a Partner at EY, Accenture, and Wipro. He brings a wealth of experience in ensuring […]
Consumer Reports Investigates Auto Insurance Telematics
What’s Known And Unknown About Consumer Data Collected And Used By Insurers An investigation of telematics, or usage-based, auto insurance programs by Consumer Reports (CR) reveals that auto insurers collect substantial amounts of information to calculate insurance premiums for participants as well as data that may be used for other purposes. This scale of data […]
In Surfside Ruins, Stark Reminders of Board Duties
By Stuart R. Levine The tragic collapse of a 13-story condominium in the Surfside neighborhood of Miami that claimed the lives of at least 98 people underscores the need for board members to be both reflective and proactive. Bearing witness to tragedy is part of the human experience yet memory dissipates quickly unless, of course, […]
Flood – Tips On Recovery and Prevention
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor 2020 was not just the year of the pandemic. It also brought record climate and weather-related disasters to the United States. In all, 22 such events caused at least $1 billion in damage each, with the Midwest derecho in August resulting in […]
Digital Safety Basics
How to secure your cyber identity Here we go again, same evil, same demons: trojan horses, bots & botnets, spyware, worms, scams, and phishing. Then there’s ransomware, a set of malware programs that hackers install on your network that blocks access to data or publicizes confidential data unless a ransom is paid, has become big […]
Judge Properly Questioned Witness at Trial to Clarify Insurance Fraud Allegations
Plus A Second Case Review Regarding Water Damage Melbourne Reid appealed from a judgment of the Supreme Court, Queens County (Ira H. Margulis, J.), rendered April 20, 2018, convicting him of falsifying business records in the first degree, offering a false instrument for filing in the first degree, making a punishable false written statement (two […]
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Supply Chain Problems Plague Construction Firms
Shortages lead to skyrocketing prices for wide range of building materials, adding to insured values across sector
by Matthew LernerConstruction and building materials are in short supply and have seen double-digit price spikes since the COVID-19 pandemic took hold last year, driving up project and rebuilding costs and affecting companies ranging from contractors to insurers.
Fmr DFS Head, Maria Vullo Looks to AG Post
Maria Vullo, former superintendent of the New York Department of Financial Services, has been rumored and reported to have plans to enter next year’s race for state attorney general, not too surprising to those who know her and marvel at her strengths and determination. The AG’s job will be vacant starting in 2023 because the […]
Maryellen Coggins Becomes President of the American Academy of Actuaries
Coggins Succeeds 2020–21 President Tom Campbell Maryellen Coggins of Boston, Mass.,has just begun a one-year term as president of the American Academy of Actuaries, succeeding 2020–21 Academy President Thomas Campbell to lead the national professional association of more than 19,500 members. During the Academy’s presidential transition ceremony at the Academy’s 2021 Annual Meeting and Public […]
Academy Officers and Regular Directors Begin Terms
The American Academy of Actuaries is pleased to announce that, in addition to Maryellen Coggins taking office today as 2021–22 Academy president, five officers and three regular directors began their terms on its Board of Directors at the conclusion of the Academy’s Annual Meeting of Members. Kenneth A. Kent of Mclean, Va., who previously served […]
NYS DFS Promulgates CE Law Changes
I, Adrienne A. Harris, Acting Superintendent of Financial Services, pursuant to the authority granted by Sections 202 and 302 of the Financial Services Law and Sections 301, 2108(r), and 2132 of the Insurance Law, do hereby promulgate the following Sixth Amendment to Part 20 of Title 11 of the Official Compilation of Codes, Rules and […]
Hub International Launches Complex Risk Practice
Hub International Limited (HUB), a leading global insurance brokerage and financial services firm, announced the launch of its North American Complex Risk Practice and the addition of Mary-Beth Hahn, one of the industry’s top risk experts, to lead the practice. Bringing together and accelerating HUB’s already extensive network of specialists from its industry practices, placement, […]
Rinehart To Assume Greater Role At Preferred Mutual
Jenifer Rinehart currently serves as Preferred Mutual’s Executive Vice President and Chief Human Resources Officer, responsible for the development and execution of human resource strategy including talent acquisition, retention, development and succession planning, compensation, and performance management. Rinehart’s title has been updated to also reflect Preferred Mutual’s Diversity, Equity and Inclusion objectives. “I am excited […]
The Gig Economy
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor The rise of the Internet, and the economic challenges of 2008/2009 brought a shift in how people work. People started offering goods and services directly to consumers via websites and apps. Advances in technology have given rise to accessibility and connectivity that […]
World Insurance Associates Acquires Robert Wilkens Insurance Agency
World Insurance Associates LLC (“WIA”), a Top 100 Insurance Brokerage, has acquired Robert Wilkens Insurance Agency (“Wilkens Agency”) of Bogota, NJ . Terms of the transaction were not disclosed. For 31 years, the Wilkens Agency has provided insurance coverage custom tailored to meet individual, family and business needs. They are a full-service agency offering all […]
Applied on Boards Former Partner Re Pros in New Aerospace Launch
World Insurance Associates LLC (“WIA”), a Top 100 Insurance Brokerage, has acquired Robert Wilkens Insurance Agency (“Wilkens Agency”) of Bogota, NJ . Terms of the transaction were not disclosed. For 31 years, the Wilkens Agency has provided insurance coverage custom tailored to meet individual, family and business needs. They are a full-service agency offering all […]
Catalyit’s Tech Impact
Independent insurance agencies have long struggled with the adoption and implementation of technology in today’s digital world. Far from recognizing tech as an I.T. function of backroom servers and computer systems, a successful tech strategy is the sign of a future-focused agency. But, what does a digital strategy look like for independent insurance agencies? How […]
The Insured has the Duty to Prove Coverage for Defense
Insured Obligated to Prove Exception to an Exclusion In Zurich American Insurance Company v. Ironshore Specialty Insurance Company, 137 Nev.Adv.Op. 66, No. 81428, Supreme Court of Nevada, En Banc (October 28, 2021) the Supreme Court was asked to answer inquiries from the Ninth Circuit because two federal district courts issued conflicting decisions regarding whether, in […]
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U.S. P/C Insurers See Solid Performance in First Half of 2021
By Neil Spector, President, ISO and Robert Gordon, Senior Vice President, Policy, Research and International, APCIA
COVID-19 has visibly impacted the underwriting results, especially for the second quarter of 2020, suppressing premiums and losses and prompting extraordinary policyholder dividends.
It ain’t over… ‘til someone says it is
That’s not much of a Yogi-ism, but it is true. The pandemic’s spread has been an anvil chorus of spikes that has nailed down every decision made about everything, non stop, for many months, but now, after all of this, who can declare that it is over when in fact it is over? Fauci? Biden? […]
Commoditizing Insurance – Quo Vadis?
by Joseph Petrelli Let’s define three terms. According to Investopedia, commoditization is defined as the process by which goods that have economic value and are distinguishable in terms of unique attributes or brand end up becoming simple commodities in the eyes of the market or consumers. When products and services are commoditized, the lower the […]
Online Shopping Tips and Hazards
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor The holidays are a time of increased spending and celebrating. The COVID-19 pandemic and improved technology have led to a sharp increase in online shopping. The digital world is not without risks, however. Alerting clients to possible scams and dangers of online […]
Court Finally Stopped an Unconscionable Level of Overlitigation
Criminal Caused Suit on Policy to Drag on for More than Six Years OVERLITIGATING HAS CONSEQUENCES AND SHOULD United States District Judge Gary R. Brown was faced with a legal dispute that, perhaps because the defendant was a criminal, went on for years without a final disposition. In Principal Life Insurance Company v. Jason P. […]
A Review Of Two Recent New York Court Decisions
by Howard S. Kronberg, Esq. We close out the year with an update on two recent New York insurance related court decisions that might have significant impact. One that affects you directly: a special relationship/proximate cause insurance agent E&O decision. The other indirectly, but important to your insureds, and thus to you: the interplay of […]
2020
2020 Issues - Click to View
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What Happens When Disability Laws Conflict with Company Policy?
Winter brings us to peak flu season. Employee absenteeism, whether for the employee’s own illness or that of a family member, becomes a regular issue for many employers. Fortunately, for most employers the absences caused by the flu and other common ailments are of short duration and covered by the employer’s sick leave policy. Operations […]
2020 Insurance Regulatory Outlook From Deloitte: Status Quo Not An Option For Insurers
The Deloitte Center for Regulatory Strategy, Americas’ prepares a cross-industry series on the forthcoming year’s top regulatory trends, eyeing some of the issues that will have a significant impact on businesses. We excerpt liberally from the text…
“…but i wouldn’t want to live there”
New York has lost nearly 1.4 million residents to the rest of the country since 2010—and largely as a result of this outflow, the Empire State’s total population barely budged during the decade, according to the U.S. Census Bureau’s latest annual update of population estimates. Recent Census Bureau estimates show: • 180,649 more residents had […]
Starting From Scratch
Recently the question came up whether it was possible to successfully start an agency from scratch. I believe the answer is it is possible just not highly probable. The chances of someone with no previous experience successfully creating a viable insurance agency from scratch are miniscule and fraught with many roadblocks and issues. Having some […]
Five Ways Employers Get Themselves Sued
There are several practices that get insurance industry employers into legal trouble when disciplining employees. In no particular order, they are: Not Treating Your “Similarly Situated” Employees Equally For the most part, the anti-discrimination laws require you to be consistent with raises, disciplinary action, application of your policies, and all other “terms and conditions” of […]
DFS Issues Cybersecurity Risk Alert
On January 4, 2020, the New York State Department of Financial Services, issued a “Cybersecurity Risk Alert” (“Cyber Alert”) to all DFS regulated entities. The Cyber Alert arose in response to media reports of a heightened risk of Iranian cyber attacks given rising tensions between the U.S. and Iran. In its Cyber Alert, DFS referred […]
Time for a Coverage Checkup?
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Most people try to take care to have regular health checkups. But when was the last time your clients had a checkup on their insurance coverage? Over time, needs change, and, more importantly, there may be penalties for being underinsured. Improper […]
Prechtl Elected Chair of New York Insurance Association
The Insurance Brokers’ Association of the State of New York (IBANY) honored Rubin Alspector of Marsh and McLennan Agency, LLC as its Insurance Person of the Year at its annual Holiday Breakfast on Thursday, December 12 at the Down Town Association in New York City. Alspector was recognized for level of engagement within the industry, […]
Sari Gabay Named Insurance Regulatory Lawyer of the Year
Sari Gabay, Esq., of Gabay Bowler, received the Insurance Regulatory Lawyer of the Year Award. Gabay is a frequent columnist for this publication, contributing to the Legal Update series. The award was given by the Institute of Jewish Humanities, and the receipient’s longtime former colleague, John Gross of Proskauer, presented the award at an event […]
Geraldine DelPrete Named President of Programs at Sterling Risk
SterlingRisk Insurance, one of the nation’s top independently owned insurance brokerages, today announced the promotion of Geraldine DelPrete to President of Programs. According to SterlingRisk CEO David Sterling, DelPrete’s extensive background in reinsurance/underwriting and deep understanding of programs has directly contributed to the significant growth of the firm’s specialty market business. “Soon after joining SterlingRisk […]
As Evil as They Can Be, a Racoon Can Never Be a Vandal
Court Refuses to Allow Pro Se Plaintiff to Annoy Court Lawyers are creative people. They will try almost anything to get money out of an insurance company. Sometimes, however, their creativity approaches stupidity and a waste of the time of a court and lawyers. In Capital Flip, LLC v. American Modern Select Insurance Company, Civil […]
NY Courts Have Jurisdiction Over North Carolina Driver and Insurer
Matter of Geico v Escoto and Farm Bureau Ins. Co., 2019 NYSlip Op 09265 (App Div. 2d Dept 2019) υThis was an appeal from an order of NY Supreme Court which stayed a UM arbitration and added a North Carolina resident and his auto insurer to the action for a framed issue hearing. On December 28, […]
Medicare for All— No Care for You
By Marilyn M. Singleton, M.D., J.D. Democrat presidential candidates are sparring over how much to expand Medicare. Should it be Medicare for all, for people over 50 and children, or for “all who want it”? Does “all” include veterans, Native Americans, and military dependents, who now have their own government program? Does it include everybody […]
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Insurance Industry Can Set Standards on Cyber Security as World Digitizes, Impacting Society
“One mantra often heard in cyber circles is that cyber risk should be a business issue, not an IT issue. I can confidently say without reservation, it is a business issue at the highest levels of the world’s largest corporations.” – Pascal Millaire, CEO, CyberCube
First minority-led tier-one insurance and reinsurance broker launches in the U.S.
“Protecdiv, the first tier-one minority-led insurance and reinsurance broker in the U.S.”, has launched The new Philadelphia-based company is led by experienced insurance industry professionals Kael Coleman and Paul Little. As a specialty U.S. Property and Casualty (P&C) brokerage with process, technology, and diversity at the very center of its business model, the broker has […]
Small Commercial Insurance: Bigger, More Varied and More Specialized
Changes Driven by New Technology and Increased Carrier Appetite While most insurance agents and carriers are well aware of the opportunity for growth in the small commercial market, not everyone is focused on the rapidly developing trends that have the power to accelerate that growth: small commercial is getting bigger, more varied and more specialized, […]
“Needlessy expensive and restrictive”
The Empire Center has launched “DeregulateNY,” a web-based contest inviting users to identify the most needlessly expensive and restrictive rules imposed on people offering goods and services in New York State. Contestants submit entries online and compete to win a cash prize …..and a trip to Albany. New York businesses contend with more than 300,000 […]
Lockton Affinity – NJDOBI Consent Order Highlights Affinity Marketing Risk
Analysis by Genevra Burns Law Offices, New Jersey Affinity Brokerage relationship can present regulatory risk. On September 5, 2019, the State of New Jersey, Department of Banking and Insurance entered a Consent Order in the Matter of Proceedings by the Commissioner of Banking and Insurance, State of New Jersey, to fine Lockton Affinity, LLC, Reference […]
Expanded Role for Big ‘I’ Virtual University Director
Chris Boggs has been named the executive director of risk management and education for the IIABA. Boggs’s new role combines his current position of Big “I” Virtual University executive director, in which he leads the university in delivering education and research to member agencies, subscribers and the industry, with directorship in Big I Advantage®. In […]
Big ‘I’ Names New President of Big I Advantage®
Big I Advantage® has announced the appointment of Mark Steven Wolf, CPCU as new leader of Big I Advantage®, replacing Paul Buse who is moving on after more than 21 years of dedication and contributions to the company. Wolf is now president of Big I Advantage®, Inc., IIAA Agency Administrative Services, Inc. (AAS), IIAA Membership Services, […]
NYIA Elects 2020 Officers
The New York Insurance Association (NYIA) announces the election of its 2020 officers and board of directors. The following officers were elected for a one-year term ending Dec. 31, 2020: Chair: Mark Prechtl, executive vice president/chief executive officer, Chautauqua Patrons Insurance Company, Jamestown, N.Y. First vice chair: Charles Makey, senior vice president, insurance operations, Merchants […]
Fifth Amendment Doesn’t Apply to a Plaintiff’s Suit
Fear of Arson Arrest Not Basis for Refusing to Testify When a person obtains insurance under false pretenses and then, as soon as the policy goes into effect, causes it to be set afire to defraud the insurer, he cannot then refuse to testify in a suit he filed pursuant to the Fifth Amendment of […]
NAIC Names 2020 Committee Leaders
The National Association of Insurance Commissioners (NAIC) has named its 2020 committee chairs and vice chairs. The association also assigned members to the organization’s standing committees based on preferences, experience and requirements established by the NAIC Bylaws. “Our 2020 NAIC committee leadership aligns talent and expertise and reflects a strong commitment to service; as we […]
Kevin H. Kelley to receive the Business Insurance Lifetime Achievement Award
Kevin H. Kelley, retired vice chairman of Liberty Mutual Insurance Co.’s Global Risk Solutions business, has been named the recipient of the 2020 Business Insurance Lifetime Achievement award for outstanding accomplishments in the insurance and risk management sector. He will receive the award at the Business Insurance U.S. Insurance Awards on March 12 in New […]
NY Court Orders Disclosure Of Ethics Probe against Mayor DiBlasio
New York Times v City of New York Office of the Mayor, 2020 NY Slip Op 50035(U) (Supreme Court, N.Y. County, 01/15/2020) Ruling against Mayor DiBlasio in his attempt to keep secret the findings of an ethics panel that looked into his fundraising, the New York State Supreme Court ruled that the Mayor must turn over […]
Giving Medicare for All a Facelift: the Ugly Is Still There
By Marilyn M. Singleton, M.D., J.D. Medicare for All (M4A) retained its prominent place on the stage at the latest Democratic debate. In its purest Bernie Sanders form, concurrent with abolishing private health insurance, U.S. residents would be enrolled in “Medicare.” The program would pay for unlimited “medically necessary” health expenses, including pharmaceuticals, mental health […]
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Digital Transformation in P&C Insurance
Current Benchmark and Future Roadmap
The latest Aite Group report finds that improving the customer experience is the top digital transformation objective for P&C insurance firmsInsurance Companies and the Federal Home Loan Bank of New York: A Sensible Proposal
Legislation has been introduced in the New York State Assembly (Bill 8040) that will significantly increase funding opportunities for insurance company members of the Federal Home Loan Bank of New York (“FHLBNY”). Under the proposed bill, which is already law in 19 states, provisions of the insurance insolvency law will be amended to clarify the […]
The Necessary Boldness of the Entrepreneur
From time to time, you hear a speech or a presentation or read a letter that is worth repeating or reprinting. What follows is one such presentation. Recently on these pages, we presented remarks made by Steve Menzies, Chairman of Applied Underwriters, upon his receipt of Man of the Year of the State of Israel […]
“Risk Thinking” in an Unstable World
Businesses are being asked to measure their financial risk of climate-related change. But no one seems to know how In October 2018, Ron Dembo was driving through an area of burned forest in Northern California.The CEO and founder of Toronto-based Riskthinking.ai, Dembo had been invited to give a keynote speech at the conference of the […]
Big ‘I’ Member Reappointed to Federal Advisory Committee on Insurance
The Independent Insurance Agents & Brokers of America (the Big “I”) congratulates Quincy L. Branch, president and CEO of Branch Benefits Consultants in Las Vegas, who has now been officially reappointed to the Federal Advisory Committee on Insurance (FACI). FACI is a committee composed of various state government officials, insurance professionals and consumer advocates that […]
PIANY Applauds Gov. Murphy
The Professional Insurance Agents of New Jersey applauded Gov. Phil Murphy for signing A-1924/S-2930. The new law, which has been a legislative priority for PIANJ, requires the commissioner of the Department of Banking and Insurance to waive the initial insurance producer licensing fee for any New Jersey resident veteran who has received an honorable discharge […]
S&P Market Intelligence releases its annual 2020 Insurance M&A Outlook Analysis
S & P projects a relatively stable level of aggregate deal volume for insurance carrier transactions involving buyers or targets in the US and/or Bermuda. The second-strongest fourth quarter in the last 13 years provides momentum for 2020, but the outlook does not assume a repeat of the $6.3bn New York Life/Cigna group protection transaction […]
SterlingRisk Names Alternative Market Leader
SterlingRisk Insurance, one of the nation’s top independently owned insurance brokerages, has hired Kaitlin Friedman as Alternative Market Leader. A Licensed Property & Casualty Insurance Broker, Friedman also provides wholesale support to the SterlingRisk Programs Department. “It’s a pleasure to welcome Kaitlin to SterlingRisk,” remarked SterlingRisk CEO David Sterling. “She is a solutions-driven commercial lines […]
Largest insurance convention in Connecticut features a brand new format
Professional Insurance Agents of Connecticut’s Annual Convention, the largest industry networking and education event in the state of Connecticut, will be held at Foxwoods Resort Casino Mashantucket, March 5-6. “The PIACT Annual Convention is the must-attend event of the year for all industry professionals throughout the region,” said PIACT President Mark Connelly, CIC. “The convention […]
The Coming Impact of ESG on M&A
Recent months have seen institutional investors and other stakeholders, notably BlackRock and State Street, stressing the importance of comparable and decision-useful ESG disclosures by their portfolio companies. Such calls follow in the wake of growing interest among investors and other stakeholders in understanding and assessing the performance of companies based on ESG metrics. While the […]
The Insured Signs the Proof of Loss not the Public Adjuster – Beware!
Fraud by Public Adjuster Imputed to Insured People who are busy with their lives hire a public insurance adjuster to assist them with a property claim. Most trust the public adjuster as a professional. Even when, as did one of the parties in Chubb & Son Inc. et al. v. Pio Consoli et al., Defendants, […]
Faulty Blood Test Results Do Not Make Doctor Liable For Patient’s ER Bill
Topiel v Caremount Med., P.C., 2020 NY Slip Op 50151(U) (Appellate Term, Second Department 2020) Your doctor takes your blood for testing. When the results come back he tells you to go to an Emergency Room because you have a potentially fatal condition. But it turns out the blood test result was wrong. Is the doctor […]
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Coronavirus could affect medical malpractice rates, say experts
Guest Author
Cover Story, Covid-19
The coronavirus pandemic could lead to increased medical malpractice claims, but much remains uncertain at this point, including the possibility of federal and state governments acting to relieve health care provider liability, say observers.
Deregulate New York: Winners Reveal Albany Obstacles
Some weeks back in this space we hailed the advent of a new contest calling upon New Yorkers to identify obstacles that the State places in the path of businesses. Response was robust. The Empire Center has just announced the winners. Chris Kendall of Madison County and Jacob Rieper of Columbia County are the DeregulateNY […]
Stop the World (Please!) I Want to Get Off!
Virtual Mediation and Virtual Arbitration Stop the World: I Want to Get Off was a musical with Anthony Newley. It originally opened in London in 1961 and made it to Broadway in 1962. It was followed by a film in 1966 and a revival in 1978. In the play, whenever something unsatisfactory happened to the […]
Surge in working from home raises cyber exposure issues
Guest Author
Covid-19, Guest Article
By Judy Greenwald Companies directing large numbers of employees to work from home for the first time because of the coronavirus pandemic face a host of cybersecurity issues, including concerns over tthe security of workers’ personal computers and vulnerability to phishing attacks.In addition, data lines may be strained as the number of staffing corporate systems […]
PIANY Leader meets with Southern Tier lawmakers to discuss legislative priorities
Professional Insurance Agents of New York Government Affairs Committee Vice Chairperson Steven Stork, CIC, met with local lawmakers to discuss legislative issues affecting the state’s insurance industry, as part of the association’s District Office Visits program. Stork met with Sen. Thomas F. O’Mara, R-58, and Assemblyman Philip A. Palmesano, R-132, on Dec. 16, 2019. “The […]
Digital Asset Management
Advances in technology have created a new class of property: digital assets. More and more parts of our lives, including photos, documents and financial information, are now accessed and stored online and in the cloud. These assets may not necessarily be bought or sold, but they represent value to the owner. Just like tangible property, […]
Independent Insurance Channel Growth Remains Stable
Reagan Consulting Urges Agents, Brokers to Continue Improving Efficiency ATLANTA (February 17, 2020) — Optimism remains high in the independent insurance channel, despite a slight drop in year-end 2019 growth rates and profitability. Agents and brokers predict that 2020 will be a stronger year with 7.0% organic growth, according to the latest Organic Growth […]
Considerations for the COVID-19 Crisis
Daniel Morris
Covid-19, HR Update
Unprecedented. Surreal. I have been using those terms with clients over and over as we respond to issues that arise out of the COVID-19 coronavirus. There is literally no road map for what we have gone through in this past week and what we will likely go through over the coming weeks and months. As […]
Why a Policyholder Must Fulfill all Conditions before Filing Suit
Failure to Submit to EUO Abates Lawsuit Almost every first party policy contains a provision requiring the insured to produce relevant documents and submit to an examination under oath (EUO) and to do so before filing suit. Similar conditions have been enforced since the early Nineteenth Century. In AXO Staff Leasing, LLC v. Zurich American […]
SUM Coverage Is Offset By Recovery From Tortfeasor
New York’s Appellate Division, Second Department, cleared up a question which apparently needed clarification: when an injured party receives a SUM award from an arbitrator, that award gets offset by whatever recovery the claimant made from the tortfeasor. In Matter of Merchant v State Farm Ins. Company, 2020 NY Slip Op 01917 (Decided on March 18, 2020) […]
IME No-Show Voids NY Auto Policy, Even in PIP Arbitration
Matter of Global Liberty Ins. Co. of N.Y. v Capital Chiropractic, P.C., 2020 NY Slip Op 01466 (Appellate Division, First Department) υIn New York PIP arbitration, arbitrators are given fairly wide latitude, and as a general rule, mere mistakes of law or fact in an arbitrator’s decision are not reversible by the courts. In 2011, the […]
AI and Insurance: What’s in That Black Box?
Excerpted from the Cromwell Moring Regulatory Forecast 2020: What Corporate Counsel Need to Know for the Coming Year, Co-edited by Dan Wolff and David Stepp Artificial intelligence business solutions and other “cognitive” systems have the power to transform insurance. Here’s a sci-fi scenario for 2030, courtesy of the McKinsey consultancy: You’re using your mapping app […]
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Potential Implications of COVID-19 for the Insurance Sector
How the Coronavirus Outbreak May Impact Insurers Operationally and Economically: COVID-19 is impacting the insurance industry in multiple ways—from employee and business continuity issues to client service considerations to the financial outlook. Here are some key issues insurers face and potential action steps they could take.
S & P P/C Least Impacted
Steve Acunto
Covid-19, Foreword
S&P Global Market Intelligence found that property and casualty insurance is the least impacted from the COVID-19 health situation, based on market signals. S&P Global Market Intelligence conducted this analysis for the month of March generating industry medians from its Credit Analytics Probability of Default (PD) Market Signal model which uses stock price and assets […]
Olympics Delay, Not Cancellation, Provides Reprieve for Insurers
Delaying the Olympics is likely to cost insurers much less than canceling the Tokyo Games altogether, with a chance that some of those involved may not have policies specifically covering a postponement, industry sources say. The Tokyo Olympics on Tuesday were postponed to 2021, the first such delay in the modern Games’ 124-year history, as the coronavirus crisis forced […]
Thoughts For Leaders
BY RICHARD TORRENZANO “Leaders are made, they are not born. They are made by hard effort. It is the price which we must pay to achieve any goal that is worthwhile.” –Vince Lombardi In crisis, leadership is far more important than management. People follow leaders. People work for managers completing plans and tasks against budgets. […]
Attorney Has No Liability For Talking Client Into Filing Meritless Lawsuit
Bill Birds Inc. v Stein Law Firm, 2020 NY Slip Op 02125 (NY Court of Appeals, 3/31/2020) New York’s top court ruled today that an attorney faces no liability or penalty of any kind for giving a client bad advice that induces him to file a lawsuit that has no legal merit. Plaintiffs, a New […]
DFS Circular Letters Encourage Leniency on Insureds and Extend Continuing Education Licensing Deadlines
The New York State Department of Financial Services (“DFS”) has issued several Circular Letters and industry guidance over the past month due to COVID-19. While considerable information is geared towards health insurances and telemedicine, two Circular Letters in particular are relevant to all insurance producers. Circular Letter No. 7 (2020) dated, March 19, 2020, […]
Avalanche of Legislation Passed in Response to COVID 19
Daniel Morris
Covid-19, HR Update
I wrote my last column in the shadow of the coronavirus shutting down wide swaths of the northeast and California and Washington State doing the same. Since then, nearly all of the country has followed suit. Hundreds of thousands have now been diagnosed with COVID 19 in the United States and tens of thousands have […]
Advising an Insurer of a Claim When Insurance Obtained by Fraud is a Crime
Conviction Affirmed Against the best Wishes of the Appellate Court In Commonwealth of Pennsylvania v. Renee M. Bruder, J-S40005-19, No. 1282 WDA 2018, Superior Court of Pennsylvania (September 30, 2019) Renee M. Bruder, appealed from a sentence of 3 years’ probation, imposed after a jury convicted her of insurance fraud. Bruder was charged with insurance […]
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Paperwork Pandemic
Guest Author
Cover Story, Covid-19
COVID-19: Lawmakers Should Protect Businesses Filing Business Interruption Claims. Pre-emptive legislation could stem the tide of a massive amount of COVID-19 related paperwork that is about to flood the insurance sector, having no discernible purpose and many bad implications for business clients. The 130 year-old Insurance Advocate has called it the “Interruption Eruption.”
Backstops
Seven senators have spurred their peers in an effort to convince President Trump to protect the insurance industry from proposals in state legislatures that would require insurance companies to cover small-business losses due to the coronavirus pandemic retroactively, using BI and WC formats extended for the purpose. At the same time, state lawmakers in New […]
Remembering a Friend…
Gerard (Jerry) Visco was a great friend to the independent, professional agent and to the betterment of the image of the local agent. As we go to press, the insurance industry is under duress to help pay. Regardless of the letter of the policy language and commitment. The agent’s role in advising clients will come […]
Pandemic and Infectious Disease Preparedness and Response
Guest Author
Covid-19, MSO Inc.
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor The coronavirus pandemic of 2020 changed how many companies do business. Forced social distancing and closing or revamping of operations had many companies scrambling to adapt. These changes may lead to insurance coverage gaps. Disaster preparedness can sometimes be an overlooked […]
Insurers Step Up, Despite Some Officials’ Proposed Solutions
American Insurers, despite the threats to their balance sheets that some ambitious legislators have been proposing ( to extend the BI coverage, to use workers’ comp as a back stop for the effects visited upon society by COVID 19 and other “creative” ides) several have stepped up to help. As we go to press, the […]
Attorney Has No Liability For Talking Client Into Filing Meritless Lawsuit
New York’s top court ruled today that an attorney faces no liability or penalty of any kind for giving a client bad advice that induces him to file a lawsuit that has no legal merit. Plaintiffs, a New York corporation that manufacturers and distributes decorative metal automotive parts for antique autos, alleged that defendants, their former […]
Teleworking as the “New Normal” Presents Challenges for Employers
As we navigate the COVID 19 pandemic, nearly every employer that is still able to operate is doing so with at least some combination of teleworking. Many employers are operating exclusively through teleworking. While teleworking allows companies to continue to operate, it presents several important employment law and HR considerations. Usually, teleworking was offered to […]
Fraud Steals estimated $87 Billion from Insurers
Real Cases Underline Duplicity Insurance fraud continually takes more money each year than it did the last from the insurance buying public. There is no certain number. Most attempts at insurance fraud succeed. Estimates of the extent of insurance fraud in the United States range from $87 billion to more than $300 billion every year. […]
Cash Value Life Insurance Provides a Safe Harbor in Today’s Economic Storm
Guest Author
Covid-19, Guest Opinion
By Mark Schecter In light of recent market challenges that have impacted the diversified investment portfolios we manage for our clients, many have asked how the cash values in their investment-oriented life insurance policies are weathering the storm. Whole Life, Universal Life, and Indexed Universal Life have traditionally maintained their values through tough economic times […]
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Stress Inside and Outside the Workplace
Part I of III: Excerpted from the forthcoming book Stress in the American Workplace
by Don DeCarlo and Deborah H. Gruenfeld
In the opening chapter, Dr. Hans Selye first defined stress as the “non-specific” response of the body to any demand made upon it. With the passage of time, Dr. Selye came to define stress as “the rate of wear and tear on the body. Still later in his career, Dr. Selye was again asked to define stress and responded, “Everyone knows what stress is, but nobody really knows.” These words sound vaguely familiar to the comment of “I know it when I see it” first used by United State Chief Justice Potter Stewart in 1964 to describe his threshold test or obscenity in Jacobellis v. Ohio.
Mitch Gets the Hitch As Next Stimulus Package Is Unwrapped
U.S. Senate majority leader Mitch McConnell has called for stronger Federal measures to protect front-line health workers and business in general from what he said could become the “biggest trial lawyer bonanza in history”, as suits mount to pursue damages claims caused by the Covid-19 pandemic. During a time when opportunism (“never let a crisis […]
Insurers’ donation provides relief to Big ‘I’ members
The Independent Insurance Agents & Brokers of America (the Big “I”) has announced that Foremost® Insurance and Bristol West® Insurance have donated $500,000 to the Trusted Choice® COVID-19 Relief Fund in response to the economic and operational challenges the coronavirus crisis has presented to independent agencies. The grant will be dispersed directly to independent agencies […]
Telemedicine
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor The use of telecommunications during a pandemic or other disaster offers opportunities for many businesses to continue their operations, and even expand the services they provide. However, proper attention to security is essential when utilizing telecommunications. The healthcare industry is especially […]
Axa XL launches commercial umbrella program
by Matthew Lerner XL’s global risk management and North America excess casualty business units now offer Multipass, aimed at helping U.S.-domiciled multinational businesses efficiently address their tax/compliance regulations and contractual obligations, Axa XL, a division of Axa SA, said in a statement Thursday. The coverage combines an international controlled master program with an umbrella liability […]
How New Technology Will Shake Up the Future of the Insurance Industry
By David Lundgren The insurance industry is starting to embrace modernization, shifting from hands-on manual efforts to an automated digital approach with the potential to unlock millions in value. We’re on the cusp of a technological revolution where new insurtech advancements are starting to transform and disrupt this traditional industry, becoming the standard for productivity […]
SUM Coverage Is Offset By Recovery From Tortfeasor
New York’s Appellate Division, Second Department, cleared up a question which apparently needed clarification: when an injured party receives a SUM award from an arbitrator, that award gets offset by whatever recovery the claimant made from the tortfeasor.In Matter of Merchant v State Farm Ins. Company, 2020 NY Slip Op 01917 (Decided on March 18, […]
I’m Not a Carjacker – I was Only Helping an Insurance Fraud
Positing one of the most ridiculous defenses and ground for appeal, Dajuan D. Bowie (the “Defendant”) after he was convicted of car jacking and armed robbery, claimed he was not truly a criminal because he was fooled into believing that he was helping commit insurance fraud, forgetting that insurance fraud is also a felony. In […]
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Big I, Namic, Apcia Unveil “Customer Focused” Federal Pandemic Protection Plan
The National Association of Mutual Insurance Companies (NAMIC), the American Property Casualty Insurance Association (APCIA), and the Independent Insurance Agents & Brokers of America, Inc. (Big “I”) unveiled a new customer-focused proposal for a federal program tailored specifically to help businesses meet the financial challenges from future pandemics. The industry-backed Business Continuity Protection Program (BCPP) would provide revenue replacement assistance for payroll, employee benefits, and operating expenses following a presidential viral emergency declaration.
The Next Pandemic Has Begun to be “Courted”
Whether or not a particular policy contains an explicit exclusion for pandemics or some similar condition, misses the point: there is no federal pandemic backstop, as there is for Terrorism. And, by the way, if you follow the early line from the White House, it may have been purposefully motivated, i.e. terroristic in nature.. This […]
Zurich N. America brings Apprenticeship Program to NYC
Zurich North America is expanding its professional apprenticeship program from its Chicagoland headquarters to its downtown New York City office, with the Borough of Manhattan Community College as the education provider. Zurich’s earn-while-you-learn apprenticeship program, launched at its Schaumburg headquarters in 2016, is designed to attract diverse talent to the insurance industry while providing a […]
MSO Advances Megan Townley
MSO, Inc. (The Mutual Service Office, Inc.), continues to grow in a strong manner, promoting from within its talented ranks. Megan Townley has been named to the position of Assistant Vice President Operations and Program Management. Ms. Townley joined MSO, Inc. in 1998 as Network Administrator and has held various positions including Director of Operations […]
Risk Retention Groups Report Surplus Growth Despite Underwriting Losses
By Douglas A. Powell A review of the reported financial results of risk retention groups (RRGs) reveals insurers that continue to collectively provide specialized coverage to their insureds while remaining financially stable. Based on reported financial information, RRGs have a great deal of financial stability and remain committed to maintaining adequate capital to handle losses. […]
PIANJ Elects Leadership for Coming Year
The Professional Insurance Agents of New Jersey elected five independent insurance agents from around the state to its board of directors, at the association’s annual business meeting. The following individuals were re-elected to serve for a three-year term, expiring in 2023: Michael Beckerman, CPCU, of Millington, N.J. Beckerman is president of Beckerman & Co./Acrisure in […]
A Victory For American Transit Insurance Company As It Defeats Motion to Dismiss Filed by Health Care Providers on $28 Million Lawsuit
American Transit defeated a motion to dismiss filed by various health care providers in a lawsuit seeking a declaration that American Transit has no obligation to pay claims and to recover the payments that it has made relating to fraudulent and abusive claims made under New York automobile no-fault coverage. The lawsuit was filed in […]
PartnerRe Appoints Head of U.S. Casualty
PartnerRe has just announced the appointment of Gareth Stanley as Head of U.S. Casualty. Mr. Stanley assumes responsibility to lead Partner Re’s strategic effort to r grow and develop its U.S. Casualty business by providing clients with relevant and impactful casualty reinsurance solutions, the announcement states. He will be based in PartnerRe’s Stamford office and […]
How COVID-19 is Impacting the Home Insurance Industry
Guest Author
Covid-19, Guest Opinion
By Bill Martin Accidents at home don’t disappear in a pandemic, but they do require home insurers to make some critical adjustments. The auto insurance industry has been busy developing relief plans to return unexposed premiums and support their customers financially through COVID-19. Home insurers have a different opportunity to help. Homeowners are taking this […]
Prior DJ Action Entitles PIP Insurer To Dismissal of NY PIP Suit
Wave Med. Servs., P.C. v Farmers New Century Ins. Co., 2020 NY Slip Op 50555(U) (Appellate Term, Second Department) In this action by a medical provider to recover assigned first-party no-fault benefits, plaintiff Wave Medical Services, P.C. moved for summary judgment and defendant Farmers New Century Insurance Co. cross-moved for summary judgment dismissing the complaint. In […]
Why the Feds Need to Set Up Business Interruption Insurance
Guest Author
Covid-19, Guest Opinion
By Ray Kegnabb About once a generation, the U.S. insurance market encounters a crisis that demands a federal response. In the 1960s, it was severe uninsured flooding. In more recent memory, it was the catastrophic terrorism of September 11th. Yet another protection gap has been revealed in recent weeks, as the COVID-19 pandemic shutters thousands […]
Insurance Fraud Is Epidemic
Insurance fraud continually takes more money each year than it did the last from the insurance buying public. There is no certain number. Most attempts at insurance fraud succeed. Estimates of the extent of insurance fraud in the United States range from $87 billion to more than $300 billion every year. Insurers and government backed […]
How to Help Employees Return From Working From Home
By Carol Barkes Remember change is hard on our brains. By now many people have somewhat settled into working from home and will have a fight or flight response to “being released back into the wild.” Have a plan that you allow your team to help create, and that you clearly think out and share […]
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4 Reasons Insurers Should Adopt Artificial Intelligence in 2020
According to Price Waterhouse and Coopers & Lybrand (PwC), Artificial Intelligence has the potential to contribute $15.7 trillion to the global economy by 2030. While AI impacts nearly every industry, the insurance market is rife with the opportunity to leverage AI in business operations. Advanced technology such as this not only grants insurers a competitive […]
The Next Pandemic Has Begun to be “Courted”
Commendably, New York Department of Financial Services Superintendent Linda A. Lacewell announced the New York State Department of Financial Services (DFS) has launched DFS FastForward, a new program to support innovators seeking to deliver new solutions in financial services, FinTech, InsurTech, and HealthTech for New Yorkers in the COVID-19 era. “As New York begins re-opening, […]
AmTrust Exec: New Commercial Crime Product
AmTrust Exec, a division of AmTrust Financial Services, Inc. offering a full suite of management liability products, announced that it has introduced a new Commercial Crime product to provide coverage for a wide range of medium- and large-sized businesses. Melissa Schwartz joined AmTrust in January 2020 from Euclid Exec to lead their Commercial Crime product […]
DFS News – Re: Property Damage Due to Riots or Civil Commotion
In June, amidst the rioting, the Superintendent of Financial Services (“Superintendent”) promulgated an emergency 17th amendment to 11 NYCRR 216 (Insurance Regulation 64). This amendment applies to any claim filed on or after May 30, 2020 for loss of or damage to real property, loss of or damage to personal property, or other liabilities for […]
Big ‘I’ Offers New Online Learning Program with IRMI and WebCE
The Independent Insurance Agents & Brokers of America (the Big “I”), along with International Risk Management Institute (IRMI) and WebCE® have partnered to offer EXCEED, a new online learning program designed to reinforce and build upon agents’ training through interactive modules on property-casualty insurance topics and scenarios. Written by top property-casualty industry experts, EXCEED is […]
PIANJ elects officers for 2020-21
Officers of the Professional Insurance Agents of New Jersey for 2018-19 were elected during the association’s annual business meeting. Steven C. Radespiel of Hillsdale, N.J., was elected president. Radespiel is president of Insurance Center of North Jersey in Maywood, N.J. Michael DeStasio Jr., TRIP, of Iselin, N.J., was elected president-elect. DeStasio is senior vice president […]
Independent Agents Divided on Digital Experience
The annual survey of independent insurance agents from Channel Harvest Research shows insurance at a crossroads when it comes to ease of doing business and a divergence between agents who value the personal touch and those who promote self-service. Nearly 2,000 agency staff — from principals to producers to CSRs — participated in the survey […]
SterlingRisk Programs Partners With Elpha Secure To Launch Sterling New Age Cyber
The need for robust cybersecurity coverage has never been greater as businesses of all sizes find themselves increasingly dependent on technology and the vulnerabilities of a remote workforce. To help meet the challenge, SterlingRisk Programs, a division of SterlingRisk Insurance, has partnered with the cybersecurity insurance company Elpha Secure to launch Sterling New Age Cyber. […]
The Benefits of Insurance
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor The insurance industry has long had an image problem. Even though insurance is essential to life as we know it, too often the negative stories, such as claims being denied or delayed, make the headlines. Insurance providers are not always […]
4 in 10 Agents Say They’ll Continue Working from Home Post-Pandemic
A Channel Harvest Research survey of U.S. independent insurance agencies reveals about half expect to make no permanent transition to working at home when the pandemic is over, and all staff would return to the office. However, 27% said at least some staff would continue to work from home, and 10% said that all employees […]
When Does an Insurtech Need a Producer’s License?
By Joe Chvasta, JD, CPCU The Insurtech market’s global revenue reached $5.5 billion in 2019 and is projected to double by 2025. (1) Insurtech products are mainly being purchased by individual consumers. Life insurance represents the largest segment with nearly one-half of all 2019 global written premiums for Insurtech, followed by accident and health at […]
Expert Witness Disclosure of Peer Review Doctor Can Be Made at the Last Minute
Brand Medical Supply v. Unitrin Advantage Ins. Co., 2020 NY Slip Op 50687 (App Term 2d Dept) Many kinds of lawsuits require, or at least employ, expert witnesses on a wide variety of topics, and indeed it seems that for every topic there is an expert somewhere who is willing to testify (and another one […]
False Statement on Life Insurance Application Voids Coverage
Lie on Application Causes Beneficiary One Million In Erin Peterson v. USAA Life Insurance Company, No. 18-1447, United States Court of Appeals Tenth Circuit (May 22, 2020) Ms. Peterson appealed from the district court’s grant of summary judgment to USAA Life Insurance Company (“USAA”). The district court granted USAA’s motion for summary judgment on the […]
COVID Hype and Hope
By Jane M. Orient, M.D. The dictionary definition of “hype” is a deception or put-on, or promotional publicity of an extravagant or contrived kind. But regarding medical advances, it might be used to refer to hope. Hope, or “false hope,” is something doctors are not supposed to give patients regarding a non-established treatment for a […]
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Insurability Issues Detour Truckers
By Doug Voss The trucking industry is faced with a crisis of insurability in the commercial automobile liability market. To a great degree, this crisis results from nuclear verdicts coupled with fewer insurance underwriters. Furthermore, while the trucking industry pursues various remedies to address nuclear verdicts, Congress is seriously considering an increase in truck liability […]
Asia Insurance Review and Middle East Insurance Review Join Beacon International Group, Global Insurance Media Leader
Asia Insurance Review and Middle East Insurance Review have joined a pre-eminent global risk and insurance media and publishing house, Beacon International Group, Ltd, a US-based enterprise that is expanding dramatically to serve risk management, risk transfer and risk financing leaders across the world, with a deep concentration in insurance, reinsurance, and all related fields […]
ACT Releases Agency Cyber Guide 3.0
The Big “I” Agents Council for Technology (ACT) has released an updated version of the free Agency Cyber Guide. Agency Cyber Guide 3.0 includes a complete redesign of navigation and user experience and an updated cybersecurity provider guide while continuing to provide crucial insights to the independent agency channel on cyber and technology issues. ACT […]
IMUA Announces 2020 Board Election Results
The Inland Marine Underwriters Association (IMUA) announced the election results for the association’s 2020 slate of officers and board members. Bruce Jervis, Chubb, was re-elected the association’s Chairman, Jessica Frankovich, Deputy Chair and Anthony Falcone, One Beacon, Vice-Chair. Commenting on this re-election Bruce Jervis said, “As we continue to face the challenges presented by the […]
Amend and Extend
National Flood Insurance Program Reauthorization as an Opportunity for Reform August typically marks not only the start of the peak of hurricane season but is also the time during which Congress recesses for its monthlong district/state work period. When Congress reconvenes in September, it will immediately face whether and how to reauthorize the National Flood […]
PIANY opposes business interruption bill
Sen. Andrew S. Gounardes, D-22, introduced S.8853—a companion bill to A.10837, introduced at the request of Assemblyman Robert Carroll, D-44, a few weeks ago. The bill would require business interruption insurance to cover disease outbreaks, and would apply to all business interruption claims filed by insureds, and all policies or contracts that were issued, modified, […]
Jacques Bonneau Appointed President and Ceo of Partner Re
PartnerRe Ltd. has announced the appointment of Jacques Bonneau as its President and Chief Executive Officer (CEO). Mr. Bonneau has been a member of the PartnerRe Board of Directors since February 2019, having served on the Company’s Audit Committee and as the Chairman of its Underwriting and Risk Committee, and has been former CEO of […]
Howard Mills Appointed to Ensight Board
Ensight, the leading life and annuity digital sales platform, today announced that Howard Mills, former Superintendent of the New York State Insurance Department and Senior Advisor at the Deloitte Center for Regulatory Strategies, has been appointed to its Board of Directors. The appointment will bring Mills’ insurance regulatory leadership to the Ensight Board of Directors […]
Restrictive Covenants for Insurance Producers
By Harris S. Freier, James W. Sukharev As States continue to diverge in their interpretation and enforcement of restrictive covenant agreements, it is now more important than ever to ensure those agreements are drafted to conform with jurisdiction-specific laws. MAIN TYPES OF RESTRICTIVE COVENANTS There are generally four main categories of restrictive covenants to consider […]
Priority of Liens in Personal Injury Settlement
Motor Vehicle Accident Indem. Corp. v Bader & Yakaitis LLP et al., 2020 NY Slip Op 50798(U) Supreme Court, New York County, Index No. 450314/2019. Decided 08 July 2020 This lawsuit arose out of a motor vehicle accident where a claimant was injured by an uninsured motorist. When a settlement was reached with the tortfeasor, […]
SQrBlock Offers Supply Chain Management for the Cannabis Industry
SQrBlock Solutions consultancy focused on enterprise blockchain deployment, has expanded its offerings to provide a range of business services to the cannabis industry and state regulators. SQrBlock offers unique supply chain management and digital certification capabilities for cannabis products at a time when the industry is rapidly expanding. Much of the U.S. cannabis sector and […]
Arsonist Did the Crime and Must Serve the Time
Arson-For-Profit That Caused Death of Firefighter Results In 360 Months in Federal Prison As I have said many times, arson-for-profit is the most evil form of insurance fraud and one where people are injured or die. Arson-for-profit fraud is highly profitable and is engaged in by people who have no concern for the lives or […]
What’s new with AI (Artificial Intelligence) in Workers Compensation Claims Processing?
By Kevin Ross It used to be that certain parts of the processing of a Workers Compensation Claim were 100% manual. The gathering, organization, and analysis of files – the first step in processing any new claim – was an unavoidably time-intensive task. A human got boxes of paper files or electronic pdfs (or other […]
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Independent Agencies Hit Hard by COVID-19
Agencies report decreased revenue and loss of commercial lines clients A national survey of Big “I” leadership agencies by the Independent Insurance Agents & Brokers of America (the Big “I”) has revealed that the COVID-19 pandemic continues to have a significant impact on the day-to-day operations of independent insurance agencies as the crisis lingers. Top […]
Science
Steve Acunto
Covid-19, Foreword
With a touch of real sadness, we present the effects of COVID -19 in this issue in a set of articles that we believe will prove useful and interesting. The art and science of underwriting relies upon levels of predictability that often include an irrational “gut” sense on the part of the professionals assessing risk. […]
Maryland’s Angela Ripley Elected to Big ‘I’ Executive Committee
The Independent Insurance Agents & Brokers of America (the Big “I”) has announced that Maryland’s Angela Ripley has been elected as the new at-large Executive Committee member at the recent Big “I” Board of Directors meeting in Alexandria, Virginia. Ripley has held numerous positions at the national level for the Big “I,” including Big “I” […]
Corvus Continues Rapid Acceleration with New Clients and 380% Gross Written Premium Growth
Corvus Insurance, a leading provider of smart commercial insurance products powered by AI-driven risk data, has had a surge of growth with sharply increased revenues. On the heels of this accelerated growth, Corvus has made notable senior hires in order to properly scale to meet market demands. The appointment of Sam Kramer as VP of […]
Understanding Reverse Mortgages
Guest Author
Advertorial, MSO Inc.
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor More and more baby boomers are reaching retirement age. At the same time, the coronavirus pandemic may have put a wrench in their investments and income stream. For some, a reverse mortgage can be an attractive option, as they may have […]
Amid Uncertainty, Insurance Brokerage Firms Remain Resilient, Optimistic
While the U.S. economy contracted in the second quarter of 2020 (Q2) at a rate not seen in 70 years, the insurance brokerage industry is a “shining star” with median organic growth of 4.4%, according to Reagan Consulting. This is the rate of growth for the six-month period that ended on June 30, compared with […]
Etra forms Bridge Benefits Group
Bridge Benefits Group is the brainchild of Paul Etra, formed after Etra left PRB Wealth Management. The new firm will be dedicated to workplace benefits. Etra’s entire team will be joining him at Bridge Benefits Group. Additionally, Dan Baker (former VP of Business Development at PRB Wealth Management) will be joining the team as Senior […]
Navigating financial services sector performance post-COVID-19
Impact on personal and commercial auto insurance With people generally driving a lot less due to the pandemic, personal and commercial auto insurance carriers should expect to see a steady decline in premiums written for the next several quarters, and perhaps even for years. But given the lower traffic density, profitability could get a boost […]
Consumers Increase Shopping for Auto Insurance Despite COVID-19 Challenges
Newly released TransUnion Insurance Shopping Annual Report uncovers impacts of COVID-19 on personal auto insurance Even with the ongoing economic impacts of the COVID-19 pandemic, overall personal auto insurance shopping rates in the first half of 2020 surpassed 2019 levels. The 2020 Insurance Shopping Annual Report from TransUnion (NYSE: TRU) found overall shopping rates were […]
Pandemic or Not, Serious Insurance Fraud Criminal Must Serve the Sentence
Barry Zalma
Covid-19, On My Radar
Attempt to Avoid Sentence Because Of Pandemic by Insurance Criminal Fails Mikhail Zemlyansky is serving a 15-year sentence of imprisonment which was imposed in January 2016. He is currently incarcerated at the Federal Correctional Institution at Fairton, New Jersey. Defendant has moved for compassionate release under the First Step Act in light of the COVID-19 […]
Colorado Supreme Court Says: No Duty To Retreat in Self-Defense Case
In People v Monroe (18SC708, decided 29 June 2020), the Colorado Supreme Court held that “in light of Colorado’s long-standing no-duty-to-retreat rule which permits non-aggressors to stand their ground when acting in self-defense,” a prosecutor may not argue that a defendant’s failure to retreat undermines the reasonableness of her self-defense argument.” As a result, a defendant’s conviction […]
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Primer: Rescission of Insurance
Barry Zalma
Cover Story, On My Radar
An insurance policy is nothing more than a contract. It is a special type of contract because – by law – it contains an implied covenant of good faith and fair dealing. What that means is that neither party to the contract must do nothing to prevent the other from obtaining the benefits of the contract. When a prospective insured violates the covenant of good faith and fair dealing by misrepresenting or concealing a material fact that deceives an insurer to take on a risk that would not have been taken had the truth been known the law allows the insurer – upon a presentation of sufficient admissible evidence – to rescind the policy and treat it as if it never came into existence.
Andrew J. McMahon Named Guardian Chief Executive Officer
The Guardian Life Insurance Company of America’s Board of Directors announced that Andrew J. McMahon became Chief Executive Officer and President on October 1 and has joined the Board. He succeeds Deanna M. Mulligan, who will serve as Board Chair through year-end, when she will retire after leading the company for a decade. The appointments […]
Brightway Insurance opens new Agencies in FL, NY and TX
While the country’s response to the Coronavirus has caused many business operations to pause, Brightway Insurance remains committed to customers and to people who want to build their own Brightway business with the holistic support the company offers. More consumers in Florida, New York and Texas now have access to more choice and expert counsel […]
Forbes Advisor Unveils First-Ever Best Life Insurance Companies Awards
Pacific Life was named top life insurance company of 2020, followed by Northwestern Mutual and Penn Mutual Life Insurance Co. Forbes Advisor, a trusted destination for money news and reviews, and a financial product marketplace, announced Pacific Life as the winner of its 2020 Best Life Insurance Companies Awards. Northwestern Mutual and Penn Mutual were […]
Public Wi-Fi – Panacea or Peril?
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Today’s technology allows for virtually instant 24/7/365 access to information, entertainment, friends and family. Wi-Fi access is everywhere – from the donut shop to the mall to hotels and restaurants. As convenient as it may be to check your e-mail at […]
Cuomo Announces $18 Million Initiative for Entrepreneurs in NY State
Training for Workers and Support Entrepreneurs During and After the COVID-19 Pandemic Federal Grant Will Be Used to Fund Educational Opportunities that Train New Yorkers for In-Demand Jobs, Support Entrepreneurs, and Help Small Businesses Recover New York Was One of Only Eight States in the Nation to Receive a Grant and Was Awarded the Most […]
Restrictive Covenants For Insurance Producers: A Primer On Legal Enforceability
As States continue to diverge in their interpretation and enforcement of restrictive covenant agreements, it is now more important than ever to ensure those agreements are drafted to conform with jurisdiction-specific laws. By Harris S. Freier, Esq MAIN TYPES OF RESTRICTIVE COVENANTS There are generally four main categories of restrictive covenants to consider in employment […]
New Amendments to Delaware General Corporation Law Will Make It Easier for Companies to Become Public Benefit Corporations
Elizabeth K. Lange & Elizabeth A. Diffley On July 16, 2020, Delaware adopted new amendments to its public benefit corporation statute, continuing a trend to make this relatively new corporate form more accessible. The amendments, among other things, (i) reduce impediments to use of the public benefit corporation form by eliminating supermajority voting requirements and […]
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Moral Markets: New Concerns Carry Ethics to Next Level
Review
Do Markets Corrupt Our Morals?
By Virgil Henry Storr and Ginny Seung Choi
296 pp.; Palgrave Macmillan, 2019Fitting Accords
Homie, a fast-growing full-service real estate technology company has announced the expansion of its affiliated company Homie Insurance to Southern Nevada, “saving homebuyers time and money in securing home insurance”. Point is, as they state in a press release, “Homie continues to reinvent the homebuying experience and now, its affiliate Homie Insurance has launched in […]
Artificial Intelligence Review of Insurance Contracts – Are we there yet?
Guest Author
Artificial Intelligence
by Joe Chvasta, JD, MBA, CPCU The use of Artificial Intelligence to review insurance contracts is growing as AI tools can rapidly compare a high volume of contract clauses and make human reviewers faster and more effective. First implemented in 2011, the technology automating the review of contracts has progressed dramatically, leading to the question […]
Vouch Insurance Expands Coverage to New York
Vouch Insurance, the business insurance platform for startups, announced the expansion of its coverage into New York, one of the largest and most resilient hubs for innovation in the world. The expansion will bring risk mitigation to local startups as they scale their technologies within one of the leading U.S. technology markets. In a tumultuous […]
Willis Towers Watson Launches Partnership with the Wharton School’s Mack Institute
Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, announced it is joining the Mack Institute for Innovation Management at the Wharton School, University of Pennsylvania, as a corporate partner. Through the Mack Institute’s renowned events and workshops and its global network of corporate partners, the Willis Research Network anticipates gaining […]
Applied Underwriters Announces Formation of Applied Specialty Underwriters, Names Christopher Day President of the New Company
Steve Menzies, CEO of Applied Underwriters, today announced the creation of Applied Specialty Underwriters, LLC to focus on select Casualty E&S risks across the country, with an initial focus on large construction in New York. Christopher Day, CPCU, has been named President of the new company and will be joined by 11 veteran underwriters in […]
Unlicensed Doctor Convicted of Insurance Fraud and Other Crimes
After Patrick E. Usanga (Usanga) was convicted for many crimes of fraud he appealed his convictions unsuccessfully and then filed Post Conviction Relief Act motion to set aside the conviction in Commonwealth of Pennsylvania v. Patrick E. Usanga, J-S29031-20, No. 1946 EDA 2019, Superior Court of Pennsylvania (July 13, 2020).Usanga appealed pro se (proving the […]
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Risk Retention Groups Report Financially Stable Third Quarter 2020 Results
By Douglas Powell
A review of the reported financial results of risk retention groups (RRGs) reveals insurers that continue to collectively provide specialized coverage to their insureds while remaining financially stable. Based on reported financial information, RRGs have a great deal of financial stability and remain committed to maintaining adequate capital to handle losses. It is important to note that ownership of RRGs is restricted to the policyholders of the RRG. This unique ownership structure required of RRGs may be a driving force in their strengthened capital position.
Really, Hot …and Cool
I had to read it twice. Hard to believe it. See if you get it the first time. In a motion made by Park Insurance to have the NY State Supreme Court vacate its order placing Park into Liquidation, the initial text reads as follows: Respondent Park Insurance Company (“Respondent” or “Park”) respectfully submits this […]
Applied Underwriters Forms Applied Specialty Underwriters
Christopher Day Named President of the New Company ASU will concentrate on Casualty E&S markets nationwide, initially focusing on New York construction risks Steve Menzies, CEO of Applied Underwriters, has announced the creation of Applied Specialty Underwriters, LLC to focus on select Casualty E&S risks across the country, with an initial focus on large construction […]
Avoiding COVID Scams
By Sue Quimby The fears and uncertainties of the pandemic of 2020 have brought with them a whole new arena for scammers. As is often the case, scammers prey upon the most vulnerable: the elderly, or those with underlying medical conditions, such as diabetes, who are also the most vulnerable to the infection. Some of […]
Vast majority of Insurance Customers Prefer Conversational AI and Messaging Experiences
LivePerson, Inc. (Nasdaq: LPSN), a global leader in conversational AI, has announced the findings of its 2020 Survey of Consumer Preferences Around Insurance examining consumer attitudes and behavior around interactions with insurers, messaging, and conversational AI and commerce. The 2020 survey of more than 2,500 U.S., U.K., and Australian respondents reveals that the vast majority […]
Leadership Is Doing: Axioms That Prompt “Doing” As A Leadership Style and Edge
Leadership Is Doing is the title of Pamela Newman’s entertaining and useful new tome that presents a series of axioms that characterize – or should – the approaches leaders take personally. I enjoyed it, especially as it comes from a former “Top Gun” at AON, responsible for a major book of their business. Her CV […]
From the Files, Some Fraudulent “Beauties”
Owner of Durable Medical Equipment Companies Admits Role In $16 Million Dollar Kickback Scheme Albert Davydov, 28, of Rego Park, New York, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with conspiring to violate the Anti-Kickback statute. Davydov, the owner of a group of related durable medical equipment […]
FLAMES: AAIS Data-Driven Fire Risk Model Sparks Approval
Fire Loss and Mitigation Evaluation Score (FLAMES) helps insurers predict expected fire severity more accurately AAIS (American Association of Insurance Services) has received approval from the Florida Office of Insurance Regulation for its new predictive model. The AAIS Fire Loss and Mitigation Evaluation Score (FLAMES) is a significant improvement on existing methods of quantifying expected […]
2019
2019 Issues - Click to View
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Northeast PIA Launches ‘Work with an Agent’
The Professional Insurance Agents of Connecticut, New Hampshire, New Jersey, New York and Vermont launched “Work with a Professional Insurance Agent/Local is Better” local marketing campaign. This resource offers PIA members in the five states access to informative pieces to promoting their agencies, capitalizing on their local community-centered strengths, with consumer focused materials and consumer content for use in a variety of media. It also illustrates to the insurance-buying public the benefits of an independent agent (i.e., working with someone who can offer insurance choices; who has a unique understanding of his or her clients’ and communities’ needs; and who often can offer the most affordable rate).
Straight Laced
Linda Lacewell has been nominated Superintendent of the New York State Department of Financial Services. She would succeed Maria Vullo in the role. Ms. Lacewell most recently served as Chief of Staff and Counselor to the Governor. In that role, she oversaw Executive Chamber operations, as well as ethics and law enforcement matters. Ms. Lacewell […]
Not to be Ignored: The New I-9 “Smart” Form
Just as employers and HR professionals were beginning to get comfortable with the parameters of the old Form I-9, U.S. Citizenship and Immigration Services (USCIS) rolled out a new I-9, which must now be used. The new Form I-9 Employment Eligibility Verification is in two versions a “smart” PDF version (which is called “Form I-9”) and a […]
How I See It – 2019 & Forward
Our business is changing. Unless you have been living under a rock you know that already. Change in and of itself is not good or bad. Instead, good or bad is determined by the results of that change. Insurance consumers want speed and simplicity in purchasing and handling their insurance needs. They also want to […]
So What if ACA is Unconstitutional?
By Jane M. Orient, M.D. Stocks of hospital and Medicaid-contracted managed-care companies plunged on the announcement of Judge Reed O’Connor’s ruling that the Affordable Care Act (ACA) is unconstitutional. Some advisors consider this a “buying opportunity,” expecting that the ruling will be reversed on appeal. This shows who the important stakeholders are. Medicaid managed-care contractors […]
DFS’ Cybersecurity Regulation and the Compliance Deadline
The Department of Financial Services’ (“DFS”) cybersecurity regulation, 23 NYCRR 500 (referred to in this article as the “Cyber Regulation”), became effective on March 1, 2017 with a two-year implementation deadline approaching on March 1, 2019. In a nutshell, the Cyber Regulation is designed to protect consumer data and to defend against security attacks. To […]
Contra Proferentum Does Not Apply to a Clear and Unambiguous Policy
No Coverage Before Policy In Effect People who sue insurance companies seem to forget that an insurance policy is a contract – not an entitlement provided by a government. Insurance contracts must be read as a whole document and all clear and unambiguous terms must be applied as written. In Atlantic Specialty Insurance Company v. […]
ISO Looks at New Risks Posed by Societal Trends
• Nanotech • Cannabis • Opioids
MSO Elects Fulton, Makes Staff Changes
MSO, Inc. (The Mutual Service Office, Inc.) is pleased to announce the addition of Karen S. Fulton (pictured right) to its board. Ms. Fulton is the retired President and CEO of ARI Insurance Company (an Amtrust Caompany), and its predecessor, ARI Mutual Insurance Company. She previously served as Vice President and Controller of American Reliance […]
Insurance Legion of Shame
Welcome to the Insurance Fraud Legion of Shame. The year’s convicted extreme schemers were chosen by the New York Alliance Against Insurance Fraud. Driven to deceive. Michael Danilovich (NYC) masterminded a massive fraud ring that stole $279 million in false injury claims from bogus and setup car wrecks. It was one of the largest such […]
When Provider Bills Under a “By Report” Code, Insurer Must Demand Supporting Documents if it Wants Them
Pavlova a/a/o Cosby Reavis v Allstate Ins. Co. In this no-fault suit, plaintiff medical provider billed for services under CPT code 20999, which is a “by report” code. The insurer denied the claim on the grounds that the provider did not supply documentation backing up the need for the services. The Appellate Term held that […]
The Healthcare Revolution: More Choices, Not More Taxes
By Marilyn M. Singleton, M.D., J.D. Paris is in flames over a fuel tax increase that would pile 30 cents onto the $7.06 per gallon price paid by citizens whose average monthly salary is $2,753.This burdensome “carbon tax” on the middle class is intended to help meet Europe’s commitment to reduce carbon dioxide emissions and thereby […]
PIP Insurers Must Pay More Than Policy Limit When Denied Claims are Lost After Policy Exhaustion
First Am. Alliance, Inc. v Ameriprise Ins. Co. In this no-fault suit, plaintiff medical provider billed for services under CPT code 20999, which is a “by report” code. The insurer denied the claim on the grounds that the provider did not supply documentation backing up the need for the services. The Appellate Term held that […]
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Eager for Their Inheritance
We are surrounded by stuff that will outlast us. The house and the furniture will go to someone else when you’re gone, and because common ceramics are the man-made thing lasting the longest, that coffee mug that says “Grumpy Old Fart” will still be around in thousands of years. Chances are your vintage vehicle has already outlived at least one or two owners, and if those former caretakers of your slick machine could see the snot-nosed kid that has the keys now, do you think they would approve?
Hear and There
Happy to hear from Dan Palmieri, John Di Forte, Joe Coughlin and so many friends over the holidays. Had a lovely dinner with friends and their spouse in Palm Beach: Jim Wrynn, Vince Laurenzano, Marty Carus, and Marsha Cohen. There is life in Palm Beach…up to about 9:00PM.… Am I missing something or is the […]
Offer Letters and Employment Agreements: Is There a Difference?
A common question that often arises when hiring new employees is whether to use an offer letter or an employment agreement. Both the offer letter and employment agreement serve the same basic purpose – to memorialize in writing the terms and conditions of employment. But each also serves additional purposes and understanding the differences will […]
Tips for Safer Winter Travel
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Winter weather means potentially hazardous travel conditions, leading to injuries and property damage. The winter driving hazard impacts all types of clients, from individuals to major corporations, including lost wages, reduced productivity and out of service personal and business vehicles due […]
NAIC Names 2019 Committee Leadership
WASHINGTON—The National Association of Insurance Commissioners (NAIC) has named its 2019 committee chairs and vice chairs. The association also assigned members to the organization’s standing committees based on preferences, experience and requirements established by the NAIC’s Bylaws. “The 2019 NAIC committee leadership reflects deep expertise and a strong commitment to service across all our committees,” […]
Senator Breslin Introduces ELANY Supported Bill Favoring Brokers
Senator Breslin has filed Bill # S-769, supported by the Excess Line Association of New York that implies simplified requirements for agents and brokers placing business in the state’s E & S lines marketplace. The bill would “excuse retail insurance brokers and any unaffiliated wholesale excess line insurance brokers from making a diligent effort when […]
NAIC Names 2019 Consumer Liaison Representatives
WASHINGTON—NAIC recently named 34 consumer liaison representatives for 2019. The 20 funded and 14 unfunded consumer representatives began their terms Jan. 1. Seventeen of the funded consumer representatives participated in the program in 2018. Established in 1992, the Consumer Liaison Program promotes consumer interaction with the NAIC’s members, the insurance industry and interested parties through […]
AmTrust Names Execs, Launches AmTrust Forward to Position for Long-Term
NEW YORK– AmTrust Financial Services, Inc. (“AmTrust” or the “Company”) has stepped up its strategy and plans with the launch of AmTrust Forward and with the naming of several executives. “Our vision for AmTrust is to be a leading specialty commercial P&C insurer. We believe we can achieve this by focusing on local markets and […]
Preferred Mutual Announces Executive Team Appointments
NEW BERLIN, NY – Preferred Mutual (“Preferred Mutual”) Insurance Company President and Chief Executive Officer, Christopher P. Taft, recently announced several key promotions within the company’s management team. “As we look to our future,” Taft commented, “we have identified the opportunity to capitalize on enterprise perspectives in order to drive our strategic initiatives by building […]
Millennials: A Generation Receptive to Financial Guidance
By Joseph B. Fitzgerald While any advisor would be excited to acquire his or her next high net-worth client, too often the search for high-earners means an advisor might miss out on an opportunity to cultivate relationships and work with younger generations. Advisors should keep millennials, ages 22 to 37, top of mind as they acquire […]
PIANY Commends Legislation Proposed by ELANY
GLENMONT, N.Y.—The Professional Insurance Agents of New York State is pleased to be the first to support the Excess Line Association of New York’s introduction of a bill that would simplify requirements of agents and brokers placing business in the state’s excess & surplus lines marketplace. The bill, S-769, filed in the New York Senate, […]
NYIA Elects 2019 Officers and Board of Directors
Albany, N.Y.—The New York Insurance Association (NYIA) announces the election of its 2019 officers and board of directors. The following officers were elected for a one-year term ending Dec. 31, 2019: Chair: Elizabeth Heck, president and chief executive officer, Greater New York Mutual Insurance Company, New York, N.Y. First vice chair: Mark Prechtl, executive vice […]
A Clear and Unambiguous Exclusion Can’t Beat a Great Lawyer
Bar Negligent for not Seeking Arrest of Drunk & Disorderly Customer ?It is axiomatic among plaintiffs’ personal injury lawyers that the more serious the injury the less the need for legal niceties. In a case of the wrongful death of a young woman at the hands of a violent, intoxicated and unlicensed driver a clear […]
Court Orders Sanctions Inquiry Against Attorneys Who Sued Wrong Insurer
Natural Therapy Acupuncture, P.C. v Omni Indem. Co. Plaintiff medical provider brought suit against Omni Indemnity. Omni was granted summary judgment after it proved that it did not issue a policy for the subject accident, but that a different insurer did. Plaintiff appealed. The Appellate Term affirmed the dismissal of the suit, and ordered both […]
New Years Wish: No More Morally Superior Phonies
By Marilyn M. Singleton, M.D., J.D. My new year’s resolution is to expose the hypocrisy of the morally superior politicians whose election strategy was to pretend they cared about crafting policies in the country’s best interest. Take “the wall” on our southern border. Ignoring the opinion of the border patrol agents (51 percent of whom […]
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Regulation Acceleration
With the 2018 mid-term elections over, the Democratic Party leadership has indicated that the House Financial Services Committee will broadly focus its legislative agenda toward protecting consumers and investors, preserving financial sector stability, and encouraging responsible innovation in financial technology. Meanwhile, we expect that the Republican-controlled Senate will continue to focus its legislative agenda on remaining refinements not already addressed in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) passed in 2018. Beyond the divided Congress, we note that the regulatory agencies are now all led by President Trump appointees who have discretion, subject to Congressional oversight, to calibrate their supervisory policies and programs.
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 […]
New Year Update on New York State and New York City Employment Laws
Recently, both New York State (“NYS”) and New York City (“NYC”) have enacted a significant number of new employment and labor laws. The update summarizes the key laws insurance industry employers should be following and the penalties for violations. While NY is a leader in this area of progressive employment practices, neighboring states have similar […]
PIANJ Supports Producer Duty-of-Care Bill
Trenton, N.J.—The Professional Insurance Agents of New Jersey submitted written testimony to support S-2475, which would prohibit application of a fiduciary standard to insurance producers, before the state Senate Commerce Committee on Jan. 17. The bill is sponsored by Senate President Stephen M. Sweeney, D-3, and Senate Commerce Committee Chair Nellie Pou, D-35. The bill […]
The Human Touch
There are plenty of people ready to write off the independent agent as a dinosaur headed for extinction but nothing can be further from the truth. If forced to admit it all these naysayers know that independent agents have one overpowering secret and that is the human touch they provide. It’s no secret that the […]
Ready for Spring?
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor – MSO, Inc. Whether the groundhog does or doesn’t see his shadow, spring will arrive before long. With warming temperatures come potential hazards to your insureds. Helping clients navigate and prepare for the issues that come with the spring thaw is […]
SterlingRisk Hires Guthart as President, CMO
Woodbury, NY—Sterling-Risk Insurance, one of the nation’s top independently owned insurance brokerages, has hired Steven Guthart (pictured right) as President and Chief Marketing Officer. Guthart brings more than 30 years of industry experience and technical expertise to SterlingRisk, having built robust senior carrier relationships during his tenure as President, Brooklyn Operations, with HUB International Northeast […]
Physicians Ask Senate Finance to Address Kickbacks, Other Factors Driving Up Drug Costs
Citing unaffordable costs of common, essential drugs such as insulin, the Association of American Physicians and Surgeons (AAPS) provided testimony for the Jan 29 Senate Finance Committee hearing on high drug prices. The answer is not a government-run pharmaceutical industry, but rather unleashing the “competitive market forces that provide abundant options and push prices down […]
Insurance Professionals Honored with PIANY Scholarships
GLENMONT, N.Y.—The Professional Insurance Agents of New York announced Kevin O’Neil and Timothy McGrath each received the prestigious Bernard I. Kozel Memorial Scholarship, Jan. 31, 2019, at the Metropolitan Regional Awareness Program at the Roosevelt Hotel in New York. O’Neil is an account executive and McGrath is a producer for Marian Farese Insurance in West […]
If You Do the Crime You Must Do the Time
Guilty Of Disability Fraud ?Insurance criminals today define the Yiddish word “Chutzpah!” Their unmitigated gall to challenge a conviction for fraud is without bound. They appeal and waste the time of courts of appeal. More often than not the attempt fails, even in the very liberal Ninth Circuit Court of Appeal. In United States Of […]
NAIC on… Cannabis and Insurance
NAIC – The Center for Insurance Policy and Research Demand for cannabis is increasing dramatically. More than half of U.S. states have legalized some form of medical or recreational marijuana, and the demand for cannabis is increasing dramatically. The division between state and federal status makes it difficult for businesses to receive inclusive, affordable coverage […]
NYDFS Issues Numerous Disciplinary Actions
Crackdown on Health Plans’ Non-Compliance with Contraceptive Coverage The New York State Department of Financial Services (“DFS”) closed out the last quarter of 2018 issuing numerous disciplinary actions, with failing to disclose information on an original or renewal application, as the most common violation, with nominal fines. DFS issued heftier fines, however, where licenses expired […]
ShelterPoint Life Receives Insurance Team of the Year
Insurance Advocate Magazine Recognizes ShelterPoint Life’s Achievements in Proactive Educational Outreach and Preparation for Paid Family Leave ShelterPoint Life Insurance Company (“ShelterPoint Life”), New York’s largest statutory disability (DBL) insurance carrier1 received the Insurance Advocate magazine’s “Insurance Team of the Year” award on Thursday, January 25th, 2018 in recognition of ShelterPoint Life’s extraordinary preparation, education, […]
Tax Reform
A look at Trump Tax Reforms offers mixed benefits to U.S. life insurers, according to Fitch Ratings. The cut in the corporate income tax rate to 21% from 35% could boost life insurers’ cash flows and earnings, depending on how much of the tax saving insurers pass to customers through higher crediting rates or lower […]
“Fast & Convenient” vs. “Real Value”
I spent some time over the holidays thinking about our business and how it is changing. It’s true that technology is having a major impact on how effectively and efficiently an agency can work with their clients and prospects. Consumers are definitely interested in getting things done quickly and easily. That is a challenge that […]
Is the Sexual Harassment Debacle a Good Thing or a Bad Thing?
by Marianne Clyde At first glance the answer might seem simple. But as we look deeper into the issue, we can see that it is both: good and bad…and neither. One problem that becomes apparent as issues such as these arise, is that most people jump on the bandwagon of one opinion or the other. […]
How Will Artificial Intelligence and the Changing Nature of Work Effect the Ethical Paradigm?
What follows is a thoughtful perspective on issues implicit in the advent of A.I. in insurance. We applaud Mr. Di Forte for his willingness to raise hard philosophical questions, worthy of all our time. Ed. by John R. DiForte Ethics and Morals For the purpose of this discussion morals are the personal truths that allow […]
NJIUA Relocates
New Jersey Insurance Underwriting Association (NJIUA) has leased 7,500 square feet of Class A office space at 570 Broad Street in downtown Newark, N.J., which is owned by The Berger Organization. NJIUA, which had been at 744 Broad Street for over 30 years, signed a seven-year lease with options in the 15-story office building. According […]
Insurance Policy Exclusion Must Be Enforced
Public Policy Only Applies if it Injuriously Affects a Material and Substantial Part of the Public Insurance exclusions, and all provisions of an insurance policy, must be enforced as long as they are clear and unambiguous unless the exclusion is in violation of the state’s public policy. Arguing that an exclusion of a policy is […]
In Loss Transfer, Joint and Several Liability Does Not Apply; Each Defendant Pays Only His Own Percent of Fault
In the Matter of the Arbitration of Certain Controversies between TECHNOLOGY INSURANCE COMPANY against PROGRESSIVE MAX INSURANCE COMPANY Edited by Lawrence N. Rogak This action to vacate an intercompany arbitration award arose from a collision between a school bus and a private car. A passenger on the school bus was an employee of the bus […]
Mental Health and Kim Jong Un’s Nuclear Button
By Jane M. Orient, M.D. The media is going berserk over an exchange between North Korean dictator Kim Jong Un and President Trump about their respective nation’s nuclear arsenals. Yale assistant clinical professor Bandy X. Lee, M.D., M.Div., is invoking an “emergency” to justify her long-distance opinionating on President Trump’s mental health. Congressmen are inviting […]
Service Line Coverage Pros and Cons
Guest Author
Advertorial, MSO Inc.
STANDARD INSURANCE POLICIES exclude coverage for underground property including pipes and other service lines, such as utility, phone and internet wiring. However, the homeowner may be surprised to learn that damage to these lines is their responsibility. The cost to dig up and repair service lines can be significant – in some cases $15,000 . […]
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When Brand Loyalty Gets Palpable
Some Facts:
– It costs 9 to 11 times more to recruit a new customer than to keep an existing one.
– An increase in loyalty of only 7% can lift lifetime profits per customer by as much as 85%.
– Often, an increase in loyalty of just 3% is equivalent to a 10% across-the-board cost reduction program.
– Brand Keys’ 2019 Customer Loyalty Engagement Index Notes “Lasting Loyalties”Brand Keys 24th annual Customer Loyalty Engagement Index (CLEI), conducted by the New York-based brand engagement and customer loyalty research consultancy has identified “loyalty” as a profit-generator for brands that know how to create it and market it.Agency M&A Breaking Records at Breakneck Speed
Mergers and acquisitions of insurance agents and brokers last year broke several records in 2018, according to OPTIS Partners’ annual report. OPTIS logged a record 626 deals in the United States and Canada in 2018, including 330 transactions in the second half of the year and 148 transactions during the fourth quarter. There were 611 […]
Top Nine Mistakes Employers Make in Employment Applications
Employment applications – almost every employer in the country uses them. They don’t seem as if they would be a basis for liability, but they do contain a number of minefields of which employers should be aware. A general theme of federal and state laws, regulations, and guidance is that employers should avoid asking an […]
AGENTS and CARRIERS: JD Power Survey Identifies Level of Satisfaction
J.D. Power has just issued its 2019 U.S. Independent Insurance Agent Satisfaction Study. The second annual study, developed in alliance with the Independent Insurance Agents & Brokers of America (IIABA), evaluates the independent P&C insurance agent’s business outlook, management strategy, and overall satisfaction with personal lines and commercial lines insurers in the United States. According […]
Actuarial Foundation Receives One of its Largest Grants from the New York Life Foundation
The Actuarial Foundation has announced that it has received a $300,000 grant, one of its largest, from the New York Life Foundation. With a 25-year legacy of enhancing math education and financial literacy, The Actuarial Foundation will use these funds to support two education initiatives: The Hardest Math Problem, a new math competition, and the […]
Largest Insurance Convention in CT on the Horizon
HARTFORD, Conn.—Professional Insurance Agents of Connecticut’s Annual Convention, the largest industry networking and education event in the state of Connecticut, will be held at Foxwoods Resort Casino Mashantucket, March 7-8. “The PIACT Annual Convention is the must-attend event of the year for all industry professionals throughout the region,” said PIACT President Ken Distel. “The convention […]
MSO Honored by Emmanuel Cancer Foundation
MSO, Inc. (The Mutual Service Office, Inc.) will be honored by the Emmanuel Cancer Foundation for MSO’s efforts in support of families battling pediatric cancer. For over 28 years, MSO has held a bi-weekly food collection for the Emmanuel Cancer Foundation (ECF) and their food pantry. In addition, MSO’s annual golf outing has raised over […]
Burns & Wilcox Partners With Golfers Expanding Philanthropic Initiative
Burns & Wilcox, one of North America’s leading wholesale insurance broker and underwriting manager, announced the launch of its signature philanthropic initiative called Champions & Charities with brand ambassadors Webb Simpson and Jimmy Walker. Through the program and in partnership with the Burns & Wilcox brand ambassadors, the company will give a minimum of $50,000 […]
N.Y. Bill Round Up
Standards For Equitable Payments of Insurance Commissions, Insurance for Historical Motor Vehicles and more By PIANY Multiple bills have been introduced in the state Legislature that may affect you, your agency and your clients. Three of the bills were introduced by the Chair of the Senate Insurance Committee, Neil Breslin, D-44. The fourth bill was […]
The IMUA Rises Against Hunger
The Inland Marine Underwriters Association (IMUA) announced that this year’s 89th Annual Meeting will include an afternoon devoted to The Rise Against Hunger project. IMUA’s 2019 Annual Meeting will be held in Leesburg, VA at the Lansdowne Resort & Spa, May 19-22, 2019. It includes two days of educational opportunities for both seasoned and newer […]
LICONY Celebrates 51st Anniversary
On February 7, the Life Insurance Council of New York (LICONY) staff and member companies came together at MetLife for a full day of activities and to celebrate LICONY’s 51st Anniversary. The day included a full briefing to the membership on LICONY’s Legislative program and Regulatory agenda for 2019. Assembly Insurance Committee chair Kevin A. […]
Jumping Into Medicare For All With Eyes Wide Shut
By Marilyn M. Singleton, M.D., J.D. The unveiling of the ballyhooed House of Representatives Medicare for All Act of 2019 bill will be met with chants of “equal healthcare for all!” While the country will be forced into a government-run program, the limousine liberals and champagne socialists will keep their array of medical care choices […]
Question Exists as to Whether Snow Tubing Park’s Negligence Increased the Dangers
Jamjyan v West Mtn. Ski Club, Inc. Edited by Lawrence N. Rogak In this personal injury suit, plaintiff alleged she was injured while snow tubing. The facility moved for summary judgment under the “assumption of risk” doctrine. The Court held that an issue of fact exists at to whether the facility’s personnel increased the ordinary […]
iCAS Announces Board of Directors with Experts from Data Science, Analytics
The CAS Institute (iCAS), a subsidiary of the Casualty Actuarial Society (CAS) offering specialty credentials to quantitative professionals in data-intensive sectors, recently announced its first board of directors. Previously governed by the board of the CAS, iCAS will now be led by a dedicated six-member board that reports to the CAS Board. The iCAS Board […]
Aquiline Announces Agreement to Acquire Relation Insurance Services
Aquiline Capital Partners LLC, a New York and London-based private equity firm investing in financial services and technology, has entered into a definitive agreement to acquire Relation Insurance Services, one of the largest independent insurance brokers in the United States, from private equityfirms Parthenon Capital and Century Equity Partners. Since its founding in 2007, Relation […]
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HOLD STILL: This Won’t Hurt a Bit!
116th Congress Tries Healthcare Cures as Rhetorical Fever Soars
The 116th Congress has rolled out new health care legislation. The Republicans squandered their chance to repeal the ACA or otherwise bring medical care back into the hands of patients and physicians. One could look at the push for Medicare for All as an acknowledgement that the ACA was not a success. The House Medicare for All caucus is in the process of revising the prior Medicare for All bill that had been floating around since 2003. Apparently, the new bill will track Bernie Sanders’ Senate bill, S. 1804 which is more fleshed out.Remembering ARIAS Founder, Insurance Law Leader, T. Richard Kennedy
A great friend and a true catalyst in the insurance and reinsurance communities, Dick Kennedy was a leader in the field of insurance law and in reinsurance dispute arbitration. Thomas Richard Kennedy (1935-2019), founder of the ARIAS, the national reinsurance and insurance arbitration society, passed away peacefully at the Avow Hospice House, in Naples, Florida […]
Nine Simple Steps to Avoid Employment Lawsuits
You’re striving to operate as efficiently as possible to increase your company’s profit margin. But then someone in the company steps on a legal landmine and you spend $50,000.00 to win a lawsuit. If you fight and win or lose, you could spend $150,000.00 or more, even on a weak case. You CAN take steps […]
PIANJ Applauds State Senate, Assembly for Passage of Producer Duty-of-Care Bill
Trenton, N.J.—The Professional Insurance Agents of New Jersey applauds the state Senate and the state Assembly for passing its top-priority bills S-2475/A-2034, unanimously on Feb. 21 and Feb. 25, respectively. The bills, which would prohibit application of a fiduciary standard to insurance producers, will be sent to Gov. Phil Murphy for his consideration. The bills […]
Insurance Saves
Seems like a weird title, doesn’t it? But when you really explore what insurance is all about it makes sense. Insurance protection saves lives and businesses. Helps families and businesses continue to function after serious and sometimes tragic events. Brings people healing and hope when things look desperate. Allows every facet of life and business […]
How Smart is Your Home?
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor The Internet of Things (IoT) is a term used to describe everyday objects that are connected to the Internet. Gone are the days when “high tech” meant a remote control for your tv or garage door. “Smart” technology offers convenience, energy, […]
Applied Underwriters Petitions NJ Regulators for Confirmation of Captive Reinsurance and its Use in its Widely Accepted Workers’ Compensation Format
The action holds that regulators have misinterpreted the longstanding, essential role that reinsurance plays in a widely used workers’ compensation insuring format and has attempted to restrict the program in direct violation of section 531 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which precludes state insurance regulators from rewriting the terms of an out-of-state reinsurance contract. The Petition requests confirmation that Applied’s program is a valid captive reinsurance arrangement under New Jersey law and should be affirmed at a time when the format’s desirability among businesses is growing as a preferred risk transfer vehicle among Applied’s many New Jersey based clients and their employees. The Petition protects the clients of independent agents who have implemented the Applied programs as a sound, wise choice, an alternative to “off the shelf” policies in which the buyer has little influence on costs and little benefit from favorable outcomes.
Fall from Cherry on Top But No Cake
Business Exclusion Clear and Enforceable When a farmer allows individuals access to the farm so they can pick cherries off trees in the orchard and buy the cherries at a lesser price than pre-picked cherries it is doing the business of farming. That is a reason why most farmers will buy a business liability policy […]
Exterior Public Stairways are “Sidewalks” and Require Prior Written Notice of Defects
Hinton v Village of Pulaski The Court of Appeals rules here that an exterior public stairway which connects a sidewalk with a municipal parking lot is the equivalent of a sidewalk, and therefore the municipality that owns it must have prior written notice of a defect as a condition precedent to liability for injuries.—LNR The […]
Summary Suspension of a DFS License
Typically, when an insurance agent, broker, or other licensee is investigated by the New York State Department of Financial Services (“DFS”), even if there is a violation of applicable insurance laws or regulations but the conduct does not rise to the level of “untrustworthiness” and/or “incompetence,” DFS may offer a compromise, by way of a […]
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Puff, The Magic Drag-On Insurers
The cannabis business continues to expand throughout the United States with 33 states that allow some use of medical cannabis, 10 states that allow adult use of cannabis and most others that allow for limited medical use of CBD (cannabidiol). In fact, only four states bar the use of all cannabis products. While the federal Controlled Substances Act (CSA) continues to identify cannabis as a Schedule I drug, the Obama and Trump administrations have ushered in an era that provides some assurance to the cannabis industry that personal use of marijuana and operation of state-regulated cannabis businesses will not be the targets of federal prosecution. In turn, the expansion of the legal cannabis industry requires that it be able to manage risk through insurance for property and liability losses.
AT ISSUE: NJDOBI and Businesses’ Use of Captives, Reinsurance
When Applied Underwriters filed a petition against the New Jersey Department of Banking and Insurance (NJDOBI) on March 5th, the company placed the ability for businesses in the state to choose captives for risk retention squarely on the table. At its core, the issue is about the limiting of choices available to New Jersey business […]
The Reasonable Accommodation Trap
Many employers mishandle workplace disability issues and, acting out of what they believe to be “common sense,” become victims of savvy employment lawyers who exploit the nuances of disability law. Here are common mistakes to avoid. Failure to recognize that an accommodation request was made. A best practice is to have a policy that requires […]
Thought Police (Oops, Medicare) For All
by Marilyn M. Singleton, M.D., J.D. The new Medicare for All bill (H.R. 1384) has come and hopefully will go the way of the pet rock. Everybody now knows the basics: the government will take care of all medical, dental, vision, pharmacy, and long-term care services with no out-of-pocket expenses. The bill prohibits parallel private […]
Connelly Elected President of PIACT
HARTFORD, Conn.—Mark R. Connelly, CIC, of Fairfield, Conn. (pictured right), was elected president of the Professional Insurance Agents of Connecticut, at the association’s Annual Convention, March 7-8, at Foxwoods Resort Casino in Mashantucket, Conn. Connelly is president and CEO of Fairfield County Bank Insurance Services LLC, in Ridgefield, Conn. An active member of PIACT, Connelly […]
Prast Elected President-Elect of PIACT
HARTFORD, Conn.—Gerard Prast, of Wallingford, Conn. was elected president-elect of the Professional Insurance Agents of Connecticut Inc., at the association’s Annual Convention, March 7-8, at Foxwoods Resort Casino in Mashantucket, Conn. Prast is vice president for XS Brokers, which has offices in Quincy and Worcester, Mass., West Hartford, Conn., Philadelphia and Orlando, Fl. An active […]
PIACT Names Officers for 2019-20
HARTFORD, Conn.—The Professional Insurance Agents of Connecticut Inc., elected officers today during the association’s Annual Business Meeting held at the Foxwoods Resort Casino in Mashantucket, Conn. Following are the new officers who will lead PIACT in 2019-20: President: Mark R. Connelly, CIC, of Fairfield, Conn. Connelly is president and CEO of Fairfield County Bank Insurance […]
PIACT Re-elects Six to Board of Directors
HARTFORD, Conn.—Six Connecticut independent insurance agents were re-elected to serve on the board of directors of the Professional Insurance Agents of Connecticut today at the association’s Annual Convention held at the Foxwoods Resort Casino in Mashantucket, Conn. The following individuals were re-elected to serve for a three-year term: Marissa Barbera, of Westport, Conn. Barbera is […]
PIACT Young Insurance Professionals Elect O&D’s
HARTFORD, Conn.—Officers of the Professional Insurance Agents of Connecticut Inc. Young Insurance Professionals were elected today during PIACT’s Annual Convention, at Foxwoods Resort Casino in Mashantucket, Conn. Kathleen Bailey, CPIA, ACSR, CLCS, of The Russell Agency, in Southport, Conn., will serve as president; Anthony DeSalva, of Georgetown Financial Group, in Georgetown, Conn., will serve as […]
Consider the Alternative: Why Alternative Investments Have a Place in Your Portfolio
By Aaron Hodari, CFP®, CIMA® Think about the characteristics that make a strong portfolio: diverse, cost-efficient, tax-efficient, risk-managed. These qualities should be true of every portfolio, no matter the size or an individual’s risk profile. The clients we meet with all want a portfolio that checks these boxes, but doing so is easier said than […]
Arbitration Awards Need Abuse to Be Overturned
Arbitrators have Substantial Discretion to Determine the Scope of Their Contractual Authority to Fashion Remedies Arbitration is controlled by strong public policies favoring arbitration as a speedy and relatively inexpensive means of dispute resolution. For that reason arbitration awards are almost never overturned unless the aggrieved party can prove the arbitrators exceeded their powers, acted […]
Insurer Need Not Provide Rationale for Provider EUO Demand
Dynamic Balance Acupuncture, P.C. v State Farm Ins. In this no-fault suit, State Farm moved for summary judgment on the grounds of the provider’s failure to respond to two EUO requests. Civil Court denied the motion, finding an issue of fact as to the reasonableness of the EUO requests. The Appellate Term reversed, holding that […]
Workers’ Comp Schedule Rating Plans Can Be Used to Increase or Reduce Premiums
By Donald T. Decarlo and Roger Thompson In 2017, of the 38 states where the National Council on Compensation Insurance (NCCI) -the insurance rating and data collection bureau specializing in workers’ compensation for the majority of states- made rate filings, 36 of those filings were for decreases; many of which were double digit decreases. […]
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Giving Forth: Insurers Lead National Effort for Social Well-Being
Insurance Industry Charitable Foundation Releases Millennial Ideas Summit White Paper. We prefer “Giving Forth” to “Giving back,” although they mean the same thing, charitable contribution by insurers to our society’s well-being in this case.
White and Griffin Honored
Charity is the topic of this issue and comes to our cover just as we receive notice that scholarships and financial aid awards, providing students the best academic opportunities available regardless of financial means, will be the subject of a dinner honoring two outstanding friends. The College of Mount Saint Vincent, long an organization that has […]
Court Rules that Insurance Agents Can Be Independent Contractors Instead of Employees
A United States federal court recently found that insurance agents working under independent contractor agreements for a major insurance company were employees for purposes of pursuing pension and other benefits under the Employee Retirement Income Security Act (“ERISA”). The court found that the insurance agents were properly classified as independent contractors. It recognized that the […]
The Advantages of Storytelling
Recently I have been taking a writing course and in the course they make the point that storytelling has been the most effective method of communication, forever. I believe the art of storytelling is extremely important in getting people to see and understand the need for insurance protection. Most people want to protect themselves, their […]
Getting the Hybrids on the Road
By Tony Laudato, Vice President, Partnership Solutions Hannover Re The continued decline of standalone long-term care policies seems inevitable, and the life insurance gap among Americans continues to widen. Hybrid policies offer an obvious solution, and are becoming increasingly popular – but the right approach will be needed for insurers to fully cast off their […]
Annuity Basics
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor υAs the baby boomer generation retires, and life expectancies increase, many have questions about whether they will have enough money to last throughout their golden years. Health care and nursing home costs can be substantial. In many cases, gone are the […]
Starr Insurance Companies’ Construction Team Wins Insurance Underwriting Team of the Year Award
New York, N.Y.—Starr Insurance Companies today announced that Starr’s construction experts received the Insurance Underwriting Team of the Year Award at Business Insurance’s U.S. Insurance Awards on March 21. Starr received the award for its September 2018 launch of Starr CIP Enterprise, a mono-line general liability construction wrap-up insurance policy sold through a small and […]
Court Grants PIANY and Big I NY Request in NYDFS Regulation 187 challenge
ALBANY, N.Y.—The New York State Supreme Court in Albany ruled in favor of a consolidation motion filed by the Professional Insurance Agents of New York State and Big I New York in the ongoing lawsuit over amendments to New York State Department of Financial Services (DFS) Insurance Regulation 187. The court granted a motion to […]
The New Normal in Claims Management
Random No Longer Rules: Premonition Analytics and the New Normal in Claims Management In just a few short years, big data and analytics have fundamentally shifted the way claims departments litigate claims. How are these technologies changing how experts assess risk in the courtroom? In the movies, plucky heroes are forever setting off to solicit […]
Liability Insurance and Gun Control
Imagine if gun owners in New York are legally required to carry liability insurance? Well, the New York State Senate seeks to impose this requirement by way of Senate Bill S2857A. In fact, if implemented into law, gun owners would be required to purchase one million dollars of liability insurance, and to continuously maintain such […]
Ignoring an Administrative Order is Expensive
1011 Fake Claims Results in more than $500,000 Penalty When a chiropractor is caught billing insurers for services not performed he should never fail to appear to defend himself at an administrative hearing. Of course, if he or she has no defense delay is possible but dangerous. In The Matter Of Proceedings By The Commissioner […]
Plaintiff’s 2001 Judgment Gets Paid with Compound Interest Despite 14 Year Delay in Enforcement
B.Z. Chiropractic, P.C. v Allstate Ins. Co. In this declaratory judgment action arising out of a No-Fault suit, the Court rules that plaintiff’s delay of 14 years in enforcing a judgment it obtained in 2001 does not toll the accumulation of interest at 2% per month, compounded, as per the Insurance Department regulations in effect […]
Doctor Robot for You, Real Doctor for Me
By Marilyn M. Singleton, M.D., J.D. A couple of years ago, computer programs, algorithms, and glorified Google searches were touted as the replacements for a physician’s analysis of a patient’s medical condition. Compressed medical research is quite useful for clinicians who are presented with novel situations and have no readily available colleagues with whom to […]
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60% of Drivers Who Use Marijuana in Legal States, Drive Under the Influence
Based on a survey of 811 drivers who use recreational marijuana in 10 recreational states and Washington D.C.
More drivers than ever are grappling with decisions about when it is — and isn’t — OK to drive after consuming marijuana, which is now legal for adults to use recreationally in 10 states and Washington, D.C.Laws and best practices for drivers who drink alcohol have been established by decades of science, but research on the effects of marijuana on driving is far more limited.
No Demographic Study, Thank You
If my guess is correct, most of our readers are late middle-aged or a bit younger, predominantly descendants of white European men and women, reasonably affluent, owners of agencies, other insurance-related enterprises, insurance attorneys or holders of important jobs in the field. In short, a great readership: at nearly 130 years of continuous publishing, the […]
How to Comply with the New Sexual Harassment Laws
Both New York State and New York City, in response to the #MeToo movement, have passed a series of complicated laws which have made it difficult for insurance industry executives to follow. Neighboring states have, or will soon have, similar laws. This article addresses what needs to be done to comply with BOTH New York […]
Letter From Martin Carus, former DFS Life Bureau Chief
Guest Author
Letter To The Editor
Dear Steve: Looking over the 3/11/19 issue, I came upon page 27 where Looking Back features the LICONY award to Bill Flynn. Brings back memories. I had just taken over the Life Bureau and Sal Curiale, the Superintendent at the time, lest we forget, called me and asked if I had a tux. I did […]
Understanding the Difference Between Extended and Manufacturer Warranties
By Tom Scott, Vice President of Business Development, Consumer Products at Fortegra Generally defined, a warranty is a contract between a company and a consumer in which it’s agreed that the company will replace or repair a consumer’s purchase if it breaks within a specific time period. Structured as such, all warranties basically point toward […]
Deloitte Study: Only 19 Percent of Business Leaders Say They are Ready to Lead the Social Enterprise – Despite Increased Importance
Organizations leading the social enterprise are moving beyond mission statements to help bring meaning back to the workplace and human identity back to the worker NEW YORK, N.Y.— Amid rapid technological, economic and social change, it is important for organizations to move beyond mission statements and social impact programs to put humans at the center […]
Insurance Brokers’ Association of NY Elects Justin Foa President
NEW YORK, NY—Justin Foa, CPCU, President and CEO of Foa & Son International Insurance Brokers (pictured right), has been elected to serve as president of the Insurance Brokers’ Association of the State of New York. Mr. Foa was elected to the Board of Directors in 2010, appointed to the Executive Committee in 2015 and sworn […]
Insurance Policies Must Be Read as They are Written
“Arise out of ” or “Relate in Any Way” People who write contracts with conditions requiring that one party provides insurance protection for another must be able to read and understand all of the terms, conditions and limitations of a policy of insurance. Failure to do so will usually result in litigation that is, more […]
Plaintiff’s 20-Year Delay in Enforcing Judgment Does Not Toll Interest
Berenblit v Aetna Cas. & Sur. Co. In this no-fault suit, plaintiff obtained a judgment on default in 1998. But it was not until 2017 that plaintiff sent the judgment to the marshal for enforcement. When defendant was served by the marshal, it moved to vacate the judgment. Civil Court did not vacate the judgment […]
No-Fault Insurer Need Not Justify its Demand for EUO
Bronx Chiropractic Care, P.C. v State Farm Ins. Appeal from an order of the Civil Court of the City of New York, Kings County (Devin P. Cohen, J.), entered December 16, 2016. The order granted defendant’s motion for summary judgment dismissing the complaint. Affirmed. In this action by a provider to recover assigned first-party no-fault […]
Hoaxes, Scams, and Your Medical Care
By Marilyn M. Singleton, M.D., J.D. Hoaxes and scams have been dominating the news lately. We have a marginally known actor faking a hate crime supposedly to raise his Hollywood profile. His attempt to claw his way to the middle could have resulted in race riots, injury, and death. His punishment? All charges dropped. The […]
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M&A is Hotter Than Ever Among Agencies
The Numbers Tell The Story
An eye-opening OPTIS Data announcement reports 151 announced insurance agency mergers and acquisitions during the first quarter of 2019, i.e. one more deal than was announced in Q1 2018.The data covers U.S. and Canadian agencies selling primarily property-and-casualty insurance, agencies selling both P&C and employee benefits, and those selling only employee benefits. The report breaks down buyers into four groups: private equity-backed/hybrid brokers, privately held brokers, publicly held brokers, and all others.
FinTech Draws High Achievers
Former Superintendent of the New York State Department of Financial Services (DFS), Maria T Vullo (pictured below), has joined the FinTech Innovation Lab New York as a Regulator-in-Residence. FinTech Innovation helps early—and growth—stage enterprise tech companies accelerate product and business development through engagement with top financial services and venture capital executives. In her three years […]
Higgins’ Initiative Takes Hold
AGENTS: LET’S GET IT “OUT THERE” NOW Ed Higgins of the Thousand Islands Agency has worn a lot of hats, almost all as a leader and advocate for independent agents, past President of Big I New York, an instructor and author of bright ideas for agents seeking to sustain their businesses, grow them and prosper […]
Saving the Insurance Consumer
Insurance consumers desperately need to be saved… Saved by those of us who care about their engagement with our industry. As the world has changed, more direct advertising to consumers is occurring in multiple media forums. Self-service engagement has been touted as having the advantage of an investment of “15 minutes or less.” Price is […]
Road Rage
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Aggressive driving, also known as road rage, is becoming an increasingly more common occurrence, and too often leads to accidents, injuries and even death. Most people probably do not realize that road rage accidents are often excluded from coverage under a […]
PIANY Presents Distinguished Insurance Service Award to Miret, Posthumously
GLENMONT, N.Y.—The Professional Insurance Agents of New York State, awarded Emilio Miret its Distinguished Insurance Service award, posthumously, at the association’s Long Island Regional Awareness Program, held May 1 at the Crest Hollow Country Club, Woodbury, N.Y. This award recognizes an individual who has established a history of service, dedicated leadership and attention to the […]
Thomas Named PIANY’s Long Island RAP Industry Professional of the Year
GLENMONT, N.Y.—The Professional Insurance Agents of New York State presented Maria Thomas with its Industry Professional of the Year award at the annual Long Island Regional Awareness Program. Thomas is vice president of Brokerage Sales & Client Relations for Friedlander Group. Thomas has worked in the insurance industry for 35 years, including both brokerage and […]
Ohio National Life Insurance Company’s Termination of Trail Commissions
The issue of termination of trail commissions has been a popular topic in insurance industry news since Ohio National Life Insurance Company terminated trail commissions. More specifically, by letter dated September 21, 2018, Ohio National wrote to various agents and broker-dealers “to provide notice of termination of any and all selling agreements” [effective December 12, […]
No Good Deed by an Insurer Goes Unpunished
Recommendation of Contractor by Insurer not Employment of Contractor I’ve been involved in insurance claims for more than 51 years and it is invariable that even when an insurer does everything required of it by a policy of insurance the person insured is seldom totally pleased, the person insured wants more than the policy promises, […]
Doctor’s Refusal to Disclose His Interest in Other Facilities Leads to Dismissal of Lawsuit
Queens-Roosevelt Med. Rehabilitation, P.C. v Response Ins. Co. In this no-fault lawsuit, the doctor who owned the plaintiff medical facility appeared for two EUOs, but refused to answer questions about other professional corporations he owned. The Appellate Term held that the insurer’s questions were valid, and based on the doctor’s non-cooperation, his lawsuit was dismissed.—LNR […]
Congress Should Prioritize Healing, Not Hypocrisy
By Marilyn M. Singleton, M.D., J.D. May is Mental Health Month and it should inspire us to think about family, community relationships, and our growing disconnectedness. It is not an invitation for Congress and other troublemakers to lose their collective minds. While folks of all colors and lifestyles are quietly living and working together and […]
Creating the Educated Consumer
What makes purchasing protection from an independent agent the best? Trust, choice and professional advice. Responsible insurance buyers want to work with someone they trust – who has their best interest at heart. That’s something you can’t get from a faceless, no personality online insurance provider and certainly not from artificial intelligence because trust is […]
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IMPACT: Life Insurance Bolsters State, Residents, Businesses
“The report we received today illustrates that New York’s life insurance companies are an economic pillar of New York,” said Mary A. Griffin, President and CEO of LICONY. “The state’s life industry offers valuable protections, invests in infrastructure and is a major employer. Despite these contributions, some of the data shows a lack of growth in the industry in the last 15 years. We urge policymakers to work with New York’s life industry to foster new growth and help us offer valuable life products in ways that appeal to the modern consumer.”
White, Griffin Honored at CMSV Gala
The College of Mount Saint Vincent hosted its Scholarship Tribute Dinner at Cipriani 25 Broadway on May 1—and in doing so, raised a record $580K, providing academic scholarship opportunities for students, regardless of economic background. This year, the College honored two individuals for their strength of character, leadership, business acumen, and devotion to the common […]
Is Your Employee Handbook Up-to-Date?
New York State insurance industry executives need to ensure that your Employee Handbooks and other policies are up-to-date with recent legislation mandating new requirements for New York employers. Are Your Anti-harassment Policies Up to Date? Both New York State and New York City enacted more stringent requirements related to sexual harassment prevention and training. While […]
2nd Annual Surplus Lines and Reinsurance Forum Returns to the ULC; Draws 100
The 2nd Annual Surplus Lines and Reinsurance Forum was held on Wednesday, May 22, 2019, at the historic Union League Club in New York City. This year’s event was cosponsored by ELANY, IFNY and Stroock & Stroock & Lavan. The event’s co-chairs, Francine L. Semaya, Esq., Board member of the Insurance Federation of New York, […]
The Four Corners Rule Strikes Again to Require Defense Not Owed
Careful Pleading Requires Defense When Evidence Does Not Courts like those in Florida that apply the four corners rule of insurance contract interpretation of the duty to defend allow a plaintiff’s lawyer to skillfully draw a complaint that will require the defendant’s insurer to defend even when it is clear from existing evidence that there […]
Playing Political Games Does Not Improve Patient Care
By Marilyn M. Singleton, M.D., J.D. Now that it is the political season where divisiveness rules the day, the bevy of President wannabes’ interest in maternal health is suspect. After all, none of them have joined the many maternal health advocates who praised the President for signing into law the Preventing Maternal Deaths Act which gives grants to […]
Denial’s Use of Non-Statutory Language Does Not Make it Invalid
Denial’s Use of Non-Statutory Language Does Not Make it Invalid Insurance Law 5106(c) pemits a de novo review of a No-Fault master arbitrator’s award over $5,000. In this case, Allstate appealed from an arbitration award to a medical provider on both medical necessity and fee schedule issues. Supreme Court ruled in favor of the provider […]
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Big I Confab Targets Five Key “Takeaways” for New York Agents
Big I New York brought together the independent agency community at Go Big 2019. This sold out event featured sessions on agency valuation and cybersecurity, a panel of carrier leaders, and an industry marketplace. Five key takeaways were pulled to share from this insightful day.
Mills Appointed; Lacewell Ties in New Staff
Congratulations to hard hitting Howard Mills as The Doctors Company, the nation’s largest physician-owned medical malpractice insurer, announces his appointment to its Board of Governors. Howard is the former global insurance regulatory leader of Deloitte, who served as superintendent of the New York State Insurance Department (now known as the Department of Financial Services) and […]
Why Belong?
As I celebrate 20 years with Big I New York I have been reflecting on who we are and our mission. Although the name has changed several times over the years we were always known as the Big I and it is great to see that is now how we are officially known. Regardless of […]
NYIA Navigates New York Regulations, “Waters” Ahead at Lake George Annual Conference
The New York Insurance Association was joined by over 200 insurance industry professionals in Bolton Landing, New York, for the group’s 2019 NYIA Annual Conference: Navigating New York Waters. The conference featured educational sessions on a variety of timely topics and included networking opportunities with industry experts, representatives from the New York State Department of […]
PIANJ Honors Capone as Company Person of the Year
ATLANTIC CITY.—Gary J. Capone, CPCU, ARM, vice president of field services for Franklin Mutual Insurance Co. in Branchville, N.J., was awarded the New Jersey Professional Insurance Agents Company Person of the Year at its Annual Conference held at Harrah’s Resort and Casino in Atlantic City, June 9-11. Nominated by PIA member agents, this award is […]
Harris to Receive Professional Agent of the Year from PIANJ
TRENTON, N.J.—Andrew Harris Jr., CIC, AAI, of Jackson Township, N.J., received the Professional Insurance Agents of New Jersey’s Professional Agent of the Year during the association’s annual business meeting on June 9 at Harrah’s in Atlantic City. Harris is president of Liberty Insurance Associates Inc., in Millstone Township, N.J. Active in PIANJ, Harris was elected […]
PIANJ to Give Starr Community Service Award
TRENTON, N.J.—Beth Starr received the Community Service Award from the Professional Insurance Agents of New Jersey at the association’s annual conference held June 9-11, at the Harrah’s Resort and Casino in Atlantic City. She is the Director of Corporate Partnerships for Special Olympics New Jersey in Lawrenceville, N.J. This citation is given in appreciation for […]
Why is it not Obvious that a Motocross Raceway is Not a Home?
Liability Policy Limited to Insured Residence Premises Houses are often homes. Not all houses are homes. Not all properties with a house are residences or residence premises. Insurance policies never cover every conceivable potential exposure the insured faces. By their terms the policy limits its exposure based on the requirements and needs of the insured […]
In de novo Proceeding, Attorney Fees are Fixed by Court, Not Regulation 68
Matter of Country-Wide Ins. Co. v TC Acupuncture P.C. Master arbitration awards in NY PIP may be reviewed de novo by a court. In such cases, the claimant’s attorney fees are not based on the limits in Regulation 68, but instead are determined by the court based on a “reasonableness” standard.— LNR Order, Supreme Court, […]
Free Medical Care: A Deal With the Devil?
by Marilyn M. Singleton, M.D., J.D. Listening to the campaign promises spewed out by the bevy of folks running for president brings the old but enduring story of Faust to mind. Despite being successful, Faust wanted more knowledge and possessions. To that end, he made a deal with Mephistopheles (aka the Devil) who promised to […]
Commingling of Funds
υAs recent New York State Department of Financial Services’ disciplinary actions show, several brokers have been the subject of disciplinary action for commingling funds insurance premium funds with business operating expense funds and/or using premium funds for personal expenses. Other related actions have involved insurance agents collecting premium payments and failing to timely remit such […]
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PIANJ/PIANY Take Over Atlantic City 80’s Style!
Agents, insurance professionals, and industry experts from New Jersey and New York came together for the PIANJ/PIANY Annual Conference June 9-11, 2019, at Harrah’s Casino Resort in Atlantic City, N.J. The event—a jam-packed two days—brought networking opportunities, a premier trade show and education sessions providing continuing-education credits—as well as a lot of fun for attendees while celebrating PIANJ/PIANY’s 80th anniversary.
And Now For the Good News…
But first…a neat coincidence on June 27th, the morning between the two Democrat candidates’ debates. Newly ensconced Supt. of the Department of Financial Services, Linda Lacewell, spoke before members of the Insurance Federation of New York (IFNY), presenting her agenda in some key areas. She was well received. The new Superintendent was straight forward about […]
Are Credit Checks Illegal?
Even seemingly neutral hiring criteria may inadvertently have an adverse effect on a protected group of people. Using credit histories when evaluating applicants for employment has come under the watchful eye of government agencies, because, among other things, it may have a disparate impact on certain minority job applicants. Insurance industry human resources executives should […]
Three Honored at IMUA 89th Annual Meeting
Tutera Receives IMUA Lifetime Achievement Award James Tutera (pictured left), known as the Dean of Builders Risk Insurance, was presented with IMUA’s Lifetime Achievement Award at the Association’s 89th Annual Meeting. John was one of three individuals recognized by the Inland Marine Underwriters Association (IMUA) at this year’s Annual Meeting. The others included Steve […]
Judge Richard Brown: Insurance Crime Fighter
By Gregory V. Serio When one thinks of a district attorney from New York City, the scene goes to any one of a number of celebrated crime stories from the City That Never Sleeps: murder, mayhem, and madness, it seems, trump virtually everything else. For anyone who ever tried to gain the attention of prosecutors […]
The Sharing Economy’s Impact on the Hospitality Industry
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor The sharing economy has a significant impact on many industries, including traditional hotels. A Morgan Stanley report estimated that cannibalization of the hotel industry by such services as Airbnb was about 54% in 2018. Of particular concern is the popularity of […]
Robusto Honored by UJA
UJA-Federation of New York honored Dino E. Robusto, chairman and chief executive officer of CNA Financial Corporation, and John J. Haley, chief executive officer of Willis Towers Watson, at its General Insurance Annual Event on June 11, 2019 at The Pierre in New York City. Event chairs Carl Hess of Willis Towers Watson and Douglas […]
Money Can’t Buy You Health
by Jane M. Orient, M.D. “Healthcare” is supposed to be the big election issue, and politicians promise to give people universal and equal “healthcare,” or prevent the bad guys from taking it away. Everyone of course wants to be healthy, and a $3 trillion industry wants to keep the money flowing. So, I have a […]
Court of Appeals Holds that Control of Medical PC by Non-Physicians is Fraud in Itself
Non-Party Witness Pleading the Fifth May Be Used Against PC in Civil Trial Andrew Carothers, M.D., P.C. v Progressive Insurance Co. In this appeal from a jury verdict holding that a physician’s professional corporation was controlled by non-physicians, the Court of Appeals holds that (1) a finding that non-physicians were the real controllers of the […]
No Damage, No Case or Controversy, No Right to Sue in Federal Court
Assignee has no more Right to Sue than Assignor No fault insurance was designed to save insurers and insureds money by removing automobile accident damages from the tort law system. Like all seemingly good ideas the no fault insurance systems, like Florida’s PIP system, were victims of the law of unintended consequences. One of those […]
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AI Aims at Fraud
The Complete Guide to AI in Insurance Fraud Detection
By Kumar Patel, Founder and CEO of Omnidya.
The insurance industry is rapidly evolving. Emerging technologies are breathing new life into daily operations; and artificial intelligence (AI) has the singular potential to pervade every facet of insurance processes with advanced analytics, powerful predictions, and more robust risk management strategies.
Cuomo Call to Investigate Advertisers Use of Facebook Platform Points in Right Directions
Reasoning that Facebook’s advertising platform enables its advertisers to use personal data such as race, color, religion and a host of other characteristics to discriminate, New York Governor Andrew M. Cuomo called on the Department of Financial Services to investigate reports that state-regulated advertisers are using Facebook, Inc.’s advertising platform to discriminate against protected classes. […]
Failure to Comply with Wage Notice Provisions of New York Law Brings Steep Penalties
With the recent flurry of litigation surrounding the technicalities of complying with wage statement requirements, many insurance industry executives are taking the opportunity to review their compliance with wage statement and wage notification laws. The New York law is part of a growing trend to ensure greater wage transparency. Neighboring states are developing similar laws […]
Are SMB Independent Agencies Dead?
Will small to medium sized independent agencies suffer the same fate as dinosaurs – extinction? There are a number of folks out there predicting their demise. I’m not so sure they are accurate. The opportunity still exists for SMB agencies to be viable but it requires a serious change in structure and operation. Those agencies […]
Workplace Stress in a Nutshell
By Donald T. DeCarlo, Esq. Stress is commonly cited as the cause of an increasing number of workers compensation claims. What is stress? The word “stress” should be defined and the types of stress claims described before we focus on this workers compensation claims trend. Stress means response behavior that is unique and personal, with […]
The Morality of Life and Death and Doctors
By Marilyn M. Singleton, M.D., J.D. June has been a month of reflection on life, death, our values, and the greater good. We commemorated the 75th anniversary of the 1944 Normandy invasion (D-Day), which began the liberation of France from German occupation and turned the tide of World War II. In what must have been […]
Drivers with Poor Credit Pay Twice as Much for Car Insurance — Even With a Spotless Driving Record
How does your credit score affect the price of your car insurance rates? How does that vary by state? Based On A National Analysis Of 61 Million Car Insurance Rates Most consumers know that credit plays a big role in their finances, whether they’re applying for a credit card or considering a car or home […]
A Binder is an Insurance Contract
Once Coverage is Bound Cancellation Requires Compliance with Statutory Requirements Insurance agents and brokers like to write insurance business. They will often bend over backwards to collect a premium and place a policy. When an insured is offered coverage, accepts the coverage, even without payment, a binder (evidence of insurance to be issued in the […]
Storm In Progress Rule – Premises Liability
In this personal injury suit, plaintiff slipped on ice a few steps away from the entrance to a subway station. She sued the Transit Authority and an adjacent delicatessen. Both defendants moved for summary judgment based on the “storm in progress” rule as it was snowing at the time of the accident. Supreme Court denied […]
Title Agents: Bill S.2929A Revisits Regulation 208
Regulations implemented by the New York State Department of Financial Services (“DFS”) last year affecting the title insurance industry regarding “acceptable marketing expenses” are being challenged by proposed legislation in the New York State Senate. By way of background, Regulation 208 was implemented by DFS to combat the alleged “unscrupulous” behavior of title agents in […]
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MIDDLE MARKET: Chubb Identifies Clients’ Top Concerns
Together with the National Center for the Middle Market (NCMM), which is housed at The Ohio State University Fisher College of Business, Chubb has published a summary of findings from the Middle Market Indicator (MMI) report. The latest poll was conducted in the second quarter of 2019, and explores macro trends – both current and emerging – plus business risks within the middle market. The summary measures past and predicted revenue growth, employment growth, economic confidence levels and business investment.
“Cadillac Cash”
Way back when I did some boxing—I was a welterweight then—I learned the expression “Cadillac Cash.” It referred to the monies a new contender or champ would spend from his first real earnings on a new Cadillac. This was well before Mercedes invaded the US luxury market. The monies usually wound up being largely wasted, […]
Failure to Post Notices: Inflation Penalties Coming Your Way
υCongress has found another way to harass insurance industry employers by passing a new law called the “Federal Civil Penalties Inflation Adjustment Act.” It directs federal agencies to increase civil penalties for failure to post required notices of various discrimination laws in places where they are reasonably accessible by employees. As a result, fines have […]
Making Connections in a Connected World
The core principals of selling insurance protection haven’t really changed that much. The tools and speed with which it happens have changed as have the number and aggressiveness of competitors in the marketplace. What has changed for both young (and old) producers is prospecting for new clients. Today’s world of social media and the internet […]
Fire Prevention Starts in the Kitchen
Berkshire Hathaway GUARD Insurance Companies Announces Partnership with Auto-Out Automatic Stovetop Fire Suppressors WILKES-BARRE, PA—Kitchen fires are a common occurrence fueled by the combination of everyday distractions, hot kitchen stove burners, and the grease laden environment of the kitchen. According to the National Fire Protection Association, a home fire occurs every 88 seconds and cooking […]
Elany Congratulates Past Chairwoman Janet Pane on Insurance Business America Honor
ELANY Immediate Past Chairwoman Janet Pane has been named to Insurance Business America’s 2019 Elite Women list. Janet is Managing Director and Head of Global Services & Solutions for Willis Towers Watson. ELANY has benefitted from Janet’s extraordinary vision and energy since she joined its Board of Directors in 2009. Under Janet’s leadership, ELANY instituted […]
The Extended Impact of Opioid Abuse
Guest Author
Advertorial, MSO Inc.
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Every day more than 130 people in the United States die from drug overdoses (www.drugabuse.gov). The opioid abuse problem is not limited to the abuser and their family. Opioid abuse impacts all of us, with estimated costs to the United States […]
Excess of Loss or Quota Share Reinsurance When Excess of Loss is the Better Bet
By Joe Chvasta, JD, CPCU Recently, I had the opportunity to compare claims scenarios of an excess of loss proposal with a quota share proposal for the liability coverage of our captive risk association. The results surprised me. Excess of loss is a form of non-proportional reinsurance in which the reinsurer indemnifies the ceding company […]
Maine Superintendent Cioppa Outlines NAIC Concerns
NAIC President Sets Agenda As the NAIC meeting opened in early August, Commissioner Eric Cioppa of Maine keynoted the important regulatory gathering. Here are his remarks. Kurt Vonnegut labeled New York City “Skyscaper National Park” in his novel Slapstick. New York is known for its many unique and beautiful tall buildings. It is also home […]
Insurer’s Actions So Wrong Court Finds Bad Faith as a Matter of Law
Summary Judgment Entered for Insured finding Insurer’s Conduct Tortious Bad Faith It is almost impossible to obtain a summary judgment finding an insurer acted in bad faith allowing an insured to recover tort damages. However, it is not impossible, and the facts stated by the court in Shawnee Tabernacle Church And Az Learning Day Care v. […]
The Latest Court Decision Striking Down Regulation 208 Is A For Title Insurers
On August 2, 2019, Honorable Eileen A. Rakower of the Supreme Court of the State of New York, New York County, resolved certain remaining causes of action concerning the title insurance industry’s challenge to the Department of Financial Services’ (“DFS”) Insurance Regulation 208 which affected marketing and advertising practices and certain premium rate cuts. By […]
Propaganda, Pandering, and Politics
By Marilyn M. Singleton, M.D., J.D. For the next one and a half years we will have to endure the hyperbole, apocalyptic predictions, fake outrage, half-truths, and frank lies of politicians. Some kind soul should take pity on us and pass out beans to put in our ears. Of course, we should expose ourselves to […]
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2019 U.S. Small Commercial Insurance Market: SMALL BUSINESSES “SATISFIED”
Small Business Commercial Insurance Customer Satisfaction Reaches All-Time High Thanks to Investments in Digital, Servicing and Product Expansion, J.D. Power Finds COSTA MESA, Calif.— Small business owners have never been more satisfied with their insurance providers, according to the J.D. Power 2019 U.S. Small Commercial Insurance StudySM released today. The all-time high satisfaction score of […]
Safest Cities in New York, 2019
Overall, New York fares very well in terms of safety compared to the rest of the nation: its violent crime rate is 24th lowest in the country, but the state is just 5th in property crime. New York’s individual cities fare very well on our Safety Index, which is a combination of FBI crime statistics […]
How Not to Get Sued by Your Employees in 2019
Train Your Managers It’s great to have an up to date employee handbook that puts your workforce on notice of your company’s policies and procedures, but training your management personnel is also essential. Managers must be trained on how to address employee absences and inquiries under the Family and Medical Leave Act, Americans with Disabilities […]
Telling the Real Story
There is so much misleading and incorrect information circulating in today’s world. You would think that wouldn’t be the case as the general population has gotten better educated and society has progressed from the days of the snake oil salesman. The truth is, the people who choose to manipulate and deceive have become much smarter […]
Sinkholes – Are They Covered?
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Twenty percent of the land in the United States is susceptible to sinkholes, according to the United States Geological Survey (USGS). Sinkholes appear around the world, often without warning, causing nearly $300 million in damages each year. Helping clients understand the […]
DFS Addresses Insurers’ Discriminatory Practices With Respect to Certain Prescription Drug Use
The public health crisis in the United States in connection with opioids and drug overdoses has led to the New York State Department of Financial Services’ (“DFS”) issuance of Circular Letter No. 9 on September 6, 2019, directed at New York State life insurance and accident and health insures in regards to overdose reversal drugs […]
Next-Generation Solutions for Next-Generation Security Risks
By Kumar Patel, Founder and CEO of Omnidya In an increasingly digital age, the greatest risks to consumers are digital – with data breaches topping the list. Cyberattacks are launched on financial service companies 300 times more than companies in any other sector. In 2017, KPMG reported that at least 81% of healthcare and health […]
Intentional Acts, Domestic Abuse and False Imprisonment Excluded
No Excuse, No Coverage, for Intentional and Criminal Abusive Conduct Bad people do bad things. Forcing a woman to have an abortion; beating that woman, and imprisoning her while threatening to kill her mother, cut off her fingers and force her to act against her doctor’s recommendations are all intentional and abusive conduct that is […]
New York’s Timely Disclaimer Statute Does Not Apply to Foreign Risk Retention Groups, Holds Court of Appeals
Nadkos, Inc. v Preferred Contrs. Ins. Co. Risk Retention Group LLC The Court of Appeals holds that a foreign Risk Retention Group’s failure to timely disclaim coverage is not an “unfair business practice,” while its failure to timely disclose the details of its coverage, is. The Federal Risk Retention Group Act of 1986 pre-empts State […]
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AUW founder, Steve Menzies, Acquires Insurance Companies from Berkshire Hathaway in $920MM Transaction
Applied Underwriters, Inc. and its subsidiary North American Casualty Co. (“A” rated, A.M. Best), a group of diversified, national financial services companies, has been acquired by Applied’s founder, Steve Menzies, joined by the Quasha Group led by Quadrant Management. The transaction, valued at $920MM, included the buyout of all other shareholders including the 81% of the 25 year old Company’s stock held by Berkshire Hathaway Inc.
“The combination of strengths that our experience and our enterprises bring to Applied will foster robust organic growth, as has long been Steve Menzies’ approach in making Applied a national leader…”Vaping: A look at the health effects and insurance implications of Vaping
A look at the health effects and insurance implications of Vaping
The rise in vaping-related deaths and illnesses has ushered in a new awareness of the negative effects of electronic cigarettes or “e-cigarettes.”
Entering the market in the early 2000s, e-cigarettes gained global traction in 2014 and have steadily risen in popularity. Earlier this year, several people were hospitalized with a mysterious lung illness attributed to vaping and e-cigarettes. Since then, the numbers have risen steadily with the CDC reporting 805 confirmed cases of lung injury related to vaping. At the time of this article, 17 people have died due to vape-related illness. As a result of this, President Trump has pushed for a ban on certain flavored e-cigarette pods and cartridges. States have followed suit, calling for a temporary ban on these products. Although commonly viewed as a safer alternative to traditional cigarettes, we are now seeing some of the health consequences, and as more is understood about e-cigarettes, vaping, and Juul-ing”, we can expect changes in the health and life insurance industry.Letter from the Publisher
Dear Colleagues, Friends, As the new owners of Business Insurance (BI), we are pleased to communicate Beacon International Group Inc.’s commitment to sustain BI’s uncompromising standards in journalism and service to its readers. Our commitment is born of a deep respect for this critical business sector, one in which I have been involved personally for […]
In Memoriam: Art Marchiselli
It is with great sadness that we mourn the loss of a great friend and insurance advocate, Art Marchiselli (1935-2019). Artie was one of the founding members of NYACT and without his leadership NYACT would not be the organization it is today. His unwavering pursuit of uncovering insurance fraud and addressing auto theft has been […]
The Top Five Don’ts of Employee Handbooks
Haven’t updated that employee handbook in a while? Need to review it to make sure it is accurate? What policies actually need to be in a handbook? These are some of the questions that insurance industry executives regularly face – or at least should face – concerning their handbooks. In this day and age of […]
PIRP Online Programs’ Effectiveness is Disputed; Remedy Urged
Aspiring drivers who have never climbed behind the wheel no longer have to endure a classroom-based class before taking to the roads in New York because of a new pilot program signed into law Friday by Gov. Andrew Cuomo. But critics question the effectiveness of on-line substitutions for drivers education and point reduction programs, and […]
Weddings and Insurance
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Engagements and weddings mark significant changes in someone’s life, making it an ideal time for a review of your client’s insurance coverage. Approximately two million weddings occur in the United States each year. The average cost in 2018 was $24,723. Wedding […]
Despite Underwriting Loss, RRGs Report Financially Stable Results in Second Quarter 2019
A review of the reported financial results of risk retention groups (RRGs) reveals insurers that continue to collectively provide specialized coverage to their insureds while remaining financially stable. Based on reported financial information, RRGs have a great deal of financial stability and remain committed to maintaining adequate capital to handle losses. It is important to […]
PIANY Names Tomassi President
GLENMONT, N.Y.—John R. Tomassi, CPCU, of Clifton Park, N.Y., was named president of the Professional Insurance Agents of New York, at a meeting of the association’s board of directors today, at PIANY headquarters in Glenmont, N.Y. Tomassi is a partner in CLG Insurance in Clifton Park, N.Y. An active member of PIANY, Tomassi served as […]
Berkshire Offering Commercial Coverage in NJ
Berkshire Hathaway GUARD Insurance Companies recently added their Commercial Package product in New Jersey. This offering includes: Commercial Property with limits up to $120 million per location with an enhanced causes of loss form which includes built-in equipment breakdown and inland marine coverages as well as crime coverage; General Liability with base limits of $1 […]
Failure to Advise Insurer of Potential Claim Defeats Coverage
Lawyer Must Report All “Potential” Claims of Malpractice When Applying for E&O Insurance Almost all legal malpractice insurance policies issued in the last 40 years have been claims-made policies that only respond to claims made during the effective dates of the policy. As a result, insurers demand that when a lawyer applies for insurance he […]
Ramos a/a/o Benavides v The Hertz Corporation
U.S. District Court, D. Colorado, 2018 WL 4635972 (Notice of Appeal filed) This lawsuit arises out of a collision between an ordinary passenger car and a Hertz rental car. The Hertz car was being operated by a person with a revoked license, who had borrowed it from the named renter. The renter had declined […]
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Israel Bonds’ Insurance & Financial Services Division Honors Two Influential Industry Professionals
Development Corporation for Israel/Israel Bonds, the underwriter of debt securities issued by the State of Israel in the United States, held its annual Insurance and Financial Services Division Luncheon on Monday, October 28, 2019. Spanning over several decades, the annual event drew more than 200 industry professionals to the St. Regis Hotel in New York, […]
Richard Stewart Remembered
News that legendary former NYS Superintendent of Insurance Richard E. Stewart died at age 85 on October 13 was received with sadness across the industry. He was the Superintendent of the New York State Insurance Department from 1967 to 1971, and became a leader in insurance in the United States and recognized internationally. He initiated […]
Is Knowledge Really Power?
Sir Francis Bacon said “knowledge is power” and in the fast paced and constantly evolving world of insurance it is both a blessing and a curse. It’s a blessing because a knowledgeable and well-rounded independent agent can provide their client with excellent advice and counsel on how to properly protect themselves, their family and their […]
The Meaning of “Intent” in Insurance Law
by Gene Killian If you’re involved in the legal business for any length of time, every once in a while, you’ll come across a case in which the facts are so horrible, and the result so seemingly wrongheaded, that you can’t help but feel that our entire system has failed. A recent decision from the […]
Honoree Calls for Rejection of Cynicism Menzies Calls for “Advocacy Plus Personal Engagement to Make Financial Commitment Meaningful” in Address to Israel Bonds Luncheon
Mr Menzies Remarks: “Before I communicate my thoughts about the mission we are serving today, may I take a moment of personal indulgence to thank the many friends and colleagues here today and back in your offices, who poured out congratulations and best wishes to me over the past 10 days, since I acquired Applied […]
Protecting Children in Cyberspace
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor The internet, or cyberspace, has changed our lives – offering real time access to information, education and entertainment. There are also potential dangers in cyberspace, especially for children, including cyberbullying and cyber predators. Helping clients assess the risks of cyberspace, as […]
The Life Insurance Council of New York Concludes Annual Meeting & Planning Conference
LICONY concluded the organization’s long-running Annual Meeting & Planning Conference on October 11th at The Otesaga Hotel and Resort in Cooperstown, NY. The three-day event from Oct. 2-4 was attended by over 130 participants including senior level executives, general counsels and governmental affairs professionals of the life insurance companies of New York. Participants attended content-rich […]
Larry Schiffer Named Dick Kennedy Award Recipient
MCLEAN, VA.—ARIAS•U.S. is proud to announce that Larry Schiffer, Partner, Squire Patton Boggs (US) LLP was named recipient of the newly named Dick Kennedy Award (previously the ARIAS-U.S. Award) for his service, hard work and commitment to ARIAS-U.S. Schiffer was recognized at the 2019 ARIAS-U.S. Fall Conference reception on October 3, 2019. Chairman Emeritus Dick […]
Assault & Battery Exclusion Prohibits Coverage for Defense
Shooting in Bar Injuring Eight Excluded Battery One summer night in 2015, gunshot blasts pulverized the sociable hum of a nightclub in Louisville, Kentucky. Somebody had brought a firearm into the bar, and the ensuing discharge of bullets struck eight people. Six of those people sued the nightclub’s owner, Cole’s Place, Inc. (“Cole’s Place”), in […]
NY Court of Appeals Holds Landlords Cannot Avoid Liability for Snow and Ice on Sidewalks
Xiang Fu He v Troon Mgt., Inc. 2019 NY Slip Op 07643 New York’s Court of Appeals reversed the Appellate Division and held that in New York City, out-of-possession landlords cannot avoid liability to persons injured on snowy or icy sidewalks by delegating responsibility to a tenant or snow removal company. Section 7-210 of the […]
Medical Costs Transparency: As Clear as Peanut Butter
by Marilyn M. Singleton, M.D., J.D. What if purchasing medical products and services were like buying peanut butter? Grocery stores have several brands and varieties: smooth, chunky, old-fashioned, natural, organic, no added sugar, reduced fat, no-stir, and pre-mixed with jelly with clearly marked prices ranging from $1.75 for the store’s generic brand to $7 for […]
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Piany Sets Metro Rap; Supt. Gets Gfin to NY; Big I Applauds Action
The Professional Insurance Agents of New York State (PIANY) will host its first Regional Awareness Program of 2020 on January 30th from 8 a.m.to 5:00 p.m in Manhattan called MetroRAP. More than 400 agents, company representatives, exhibitors and other insurance industry professionals from the greater New York metropolitan region and downstate New York are expected […]
Why NonProfits Need D&O Coverage
Guest Author
Advertorial, MSO Inc.
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Directors’ and Officers’ coverage should be included in the insurance portfolio for most businesses. The coverage is sometimes overlooked for nonprofits. The nonprofit sector has undergone increased scrutiny in recent years, in part due to their favored tax status and for […]
Social Security No-Match Letters Are Back!
The Social Security Administration (SSA) has just resumed issuance of Employer Correction Request Notices, commonly referred to as “Social Security NoMatch Letters.” These letters are not as benign as they seem. The NoMatch Letters are being sent to businesses throughout the country that are identified as having a name and Social Security Number (SSN) combination […]
Affinity Insurance Brokerage: A Primer on Compensation to Unlicensed Parties
Guest Author
Attorneys' Notebook, Guest Article
By Bill Megna and Jim Burns of Genova, Burns, llc Affinity insurance brokerage, a sales model whereby an insurance producer gains access to potential insureds through a sponsoring organization, typically an unlicensed entity, is nothing new. Trade associations, fraternal societies and clubs of all sorts have for decades entered into arrangements with licensed insurance producers […]
IFNY Names Rebecca McLean Executive Director
Ms. Rebecca McLean (pictured) of Old Greenwich, Connecticut, has been named Executive Director of The Insurance Federation of New York, a 106-year-old nonprofit organization that serves the insurance field. She assumes the office on January 1, 2020. Since its inception in 1913, the Insurance Federation of New York, Inc. (IFNY) has earned broad-based distinction as […]
Insurance Criminals are Relentless Even After They are Jailed
Court Refuses to Allow Pro Se Plaintiff to Annoy Court Insurance criminals who are arrested and convicted of the crime of insurance fraud – a very rare occurrence – can’t believe that they must serve time in jail. As a result of the conviction they insist on filing multiple lawsuits – usually with no merit […]
“Great Wall” Breached: NY PIP Acupuncturist Fee Schedule Thrown Into Doubt
In New York PIP practice, health care providers are paid according to the Workers Compensation Fee Schedule. But not all kinds of treatment are covered by the Fee Schedule; one of those is acupuncture treatment performed by a licensed acupuncturist. The Fee Schedule has acupuncture rates for physicians and chiropractors (with the chiro rate being […]
Data Mining, Artificial Intelligence, and Angels of Death
By Marilyn M. Singleton, M.D., J.D. Google is universally well known as a search and advertising company. Now Google is tapping into the $3.5 trillion healthcare market. To compete with the Apple Watch, Google acquired FitBit, the wearable exercise, heart rate, and sleep tracking device. Data is king. Voluntarily worn fitness tracking devices are one […]
IICF Raises $1.14M at Benefit Dinner Honoring Markel Corp
The Insurance Industry Charitable Foundation (IICF), the insurance industry’s nonprofit organization dedicated to charity, raised $1.14 million at its 13th Annual Northeast Benefit Dinner, held in mid December in New York City. The event gathered more than 700 insurance professionals for an evening of networking and philanthropy designed to “give back” to the community by supporting nonprofits that serve the New York tri-state region. More than $9 million has been granted to local nonprofit and charitable organizations since 2007.
Starting From Scratch
Recently the question came up whether it was possible to successfully start an agency from scratch. I believe the answer is it is possible just not highly probable. The chances of someone with no previous experience successfully creating a viable insurance agency from scratch are miniscule and fraught with many roadblocks and issues. Having some […]
2018
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Digital is Disrupting Insurance
Transform Your Infrastructure to Win in the Digital World Customer obsession is the driving force for digital transformation in every industry. However, some industries, such as finance/insurance, have decades of legacy technology they must evolve to become more agile and customer-engaged. Third parties can assist these efforts with significant experience and expertise. In 2017, Ensono […]
Hello…I Must Be Going
So Aetna is NOT moving to New York after all. Wonder why. Couldn’t be taxes, unusual level of regulation, city’s grinding gridlock grids of congestion, the new degree of filth in the streets, homeless getting aggressive, taxes, high costs of doing business, over the top regulation, and did I mention taxes? No, they are staying […]
LICONY Celebrates 50 Years
The Life Insurance Council of New York (LICONY) celebrated the Association’s 50th anniversary with a dinner at Mutual of America’s headquarters in Manhattan. LICONY members were joined at the event by Department of Financial Services (DFS) Superintendent Maria T. Vullo, Assembly Majority Leader Joseph Morelle, Chair of the Senate Insurance Committee James Seward, Chair of […]
The Times, They Are a Changin’
We live in interesting times. While I have been thinking about this column, I’ve noted a dramatic story on the news: The recent shooting at Parkland High School in Florida. Pundits, politicians and even corporate entities have weighed in on the issue of gun control, school safety and mental health. These voices aren’t surprising, as […]
PIANY’s MetroRAP
Agents Gather in Manhattan for ‘18 RAP Hundreds of insurance professionals filled the grand rooms of the Roosevelt Hotel, in Manhattan, for PIANY’s Metropolitan Regional Awareness Program on Jan. 25. With a schedule full of valuable continuing-education sessions, networking opportunities and a packed trade show, it was the place to be for all greater New […]
Proof of Mailing Sufficient to Effect Cancellation
Court Trusts the United States Postal Service For an insurance contract to exist consideration – premium – must be paid. When an insured fails to pay the premium as required by the policy the insurer had the unquestioned right to cancel the policy it had issued. State legislatures, like that of the state of New […]
Peer Report Defeats Pip Pain Cream Charges
Value Care Pharmacy, Inc and Allstate Insurance Company AAA Case No. 17-17-1053-2955 (Eileen Casey, arbitrator) Award date: 02/28/2018 The issue in this PIP arbitration was: Whether Applicant is entitled to no-fault reimbursement for compound pain cream denied based on a peer review? The original amount claimed was $2,077.47 for compound pain cream provided on October […]
“Coverage” Isn’t “Care”
By Dr. G. Keith Smith If you are following health-related topics on social media you have likely encountered “coverage is not care,” as a theme or #hashtag. This phrase/quip should be viewed as an opportunity and lens through which the dysfunction of the crony-dominated “healthcare system” in this country can be viewed. Not only is […]
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Cyber Security: Payroll Phishing Threat Grows
Beazley’s 2018 Breach Briefing Reveals the Rapidly-Changing Cyber Risk Landscape Cyber extortion, payroll diversion phishing attacks and fraudulent wire instruction are among the growing threats to business highlighted in the 2018 Breach Briefing, a report published today by specialist insurer Beazley. The trends described in the report draw on information deriving from the 2,500 data […]
Milestones Marked
Paul Robert Olshen (pictured right), former leader of the CIBGNY and scion of an insurance family that included his father Henry, also a past leader of CIBGNY, passed away on March 1st. A native of Brooklyn and a graduate of Erasmus Hall High School and NYU “in the heights,” he was a proud member of […]
PIACT Names Shippee Committee Chairperson of the Year for Second Consecutive Year
HARTFORD, Conn.—The Pro-fessional Insurance Agents of New Connecticut Inc. has named Nathan L. Shippee, Committee Chairperson of the Year for the second consecutive year on March 8, during its annual business meeting at the PIACT Annual Convention at Foxwoods Resort Casino in Mashantucket, Conn. Shippee is vice president of sales & marketing of Workers’ Compensation […]
It’s Finally Here!
It seemed like it never might happen, at least during my working life. Maybe for personal insurance but not for small commercial prospects including start-ups. There were just too many players unwilling to give up their proprietary information to agree on a simplified underwriting platform that would allow for a multi-line quote from multiple companies […]
Physicians Sue Over Monopolistic MOC®
By Alieta Eck, M.D. The Back Story Before 1990, American physicians who had completed three years or more of rigorous training in a specialty and passed an examination were awarded lifetime “board certification.” The only exception was the family practice board, which has always issued only time-limited certificates. After 1990, all member boards of the […]
Failure to Sue Promptly Destroys Bad Faith Suit
Failure to Sue Within Policy’s Limitation Provision Fatal to Suit As I have said multiple times: “insurance is nothing more than a contract.” It is, also, a contract of the utmost good faith that devolves equally on the insurer and the insured. In that regard the insured is required to fulfill the conditions of the […]
Claimant Must Inform Insurer It Does Not Have Requested Verification Items, or Face Denial of Claim
Medex Pharmacy v State Farm Mutual Automobile Insurance Company Edited by Lawrence N. Rogak ?The crucial issue in this PIP arbitration is whether a claimant must respond to an insurer’s request for verification, when the items requested are not in the claimant’s possession. The Applicant seeks $1,350.67 for a compound cream dispensed to the injured claimant. According […]
Insurance Industry Responses to Weather
Guest Author
Advertorial, MSO Inc.
There is an old saying that you cannot change the weather. However, the insurance industry can and does change how it responds to weather-related events. These responses include modifications of policy conditions, such as exclusions and special deductibles, and use of new technology including drones, storm tracking and measurement tools. In addition to deductibles and […]
Big I Legislative Position Paper Aims at Serious Change
New York’s Big I has issued its annual position paper. Here are highlights. WORKERS’ COMPENSATION IIAA Supports Increasing the Payroll Threshold for Employers Subject to the Workplace Safety and Loss Prevention Program υThe Workplace Safety and Loss Prevention Program was created in 1997 by statute to reduce workplace injuries and lower Workers’ Compensation costs for […]
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Ladies Who Lunch: IBANY Packs the House at Inaugural Women Executives’ Event
Nearly 100 people braved the latest winter storm on Thursday, March 22nd, to attend “Breaking Through & Moving Up: A Panel Discussion Featuring Women Executives” presented by the Insurance Brokers’ Association of the State of New York (IBANY) at The Down Town Association in New York City. Panelists at IBANY’s debut women’s luncheon – a […]
What Do Home Run Hitters Hit? Homers.
In a season that will have a 21st Century Murderers’ Row coming off the Yankee bench (Stanton, Judge, Sanchez and the rest), Hank Greenberg has managed to make his way onto the line up card. Starr Companies, a his global insurance and investment organization, has entered into a multi-year sponsorship agreement with the New York […]
Why Labor Must Be Depreciated to Find ACV
The Supreme Court concluded that the term “ACV” is unambiguous and that depreciation of labor does not lead to underindemnification and failure to depreciate labor would result in overindemnification.
Burden of Proof is On Insurer to Show That Provider Failed to Respond to Verification Requests
In this no-fault suit, the Appellate Term holds that where the insurer’s defense is that the plaintiff failed to respond to verification requests, the burden of proof at trial is on the insurer to show that the verification remains outstanding.—LNR
PIANY Legislative Agenda Gets Boost From Senate Action
The Professional Insurance Agents of New York State has focused upon several issues in its Position Paper – in play now as the Budget appears completed and the session turns to other legislation. As we go to press, PIANY is thanking Sen. James L. Seward, R-51, and the state Senate for passing S.3960/A.7012, a bill […]
CyberCube Analytics Provides the First Inside-Out View of Risk Exposure for the Cyber Insurers
“Cyber is one of the most important risks facing society in the 21st century and therefore it is one of the most important risks facing the insurance industry.”
– Pascal Millaire, CEO of CyberCubeNew York Extends Time to File Malpractice Claim
By David E. Richman and Ada Kozicz Governor Andrew Cuomo has signed a new law, known as “Lavern’s Law,” that extends the amount of time a patient has to file a medical malpractice claim for a missed cancer or malignant tumor diagnosis. Patients now have 2 1/2 years to file a claim from the date the misdiagnosis […]
Diagnosis: Dereliction of Duty is the Disease
Physicians have a legal and ethical duty to carryout a proper diagnostic evaluation of their patients, and only then recommend treatment.
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2017/ November 13/ Past Issues
IFNY Honors Case, McRaith
275 Gather at New York’s Historic Union League Club to Honor Aon Leader and Former FIO Director Cecilia Norat recognized; IFNY interns applauded More than 250 insurance leaders joined in the Insurance Federation of New York’s (IFNY) 103nd Annual Award Luncheon honoring Gregory Case, President and CEO, Aon, as he received the Federation’s 2017 Free […]
2017/ November 13/ Past Issues
Some Might Call It Frivolous
It is a case that offered Applied Underwriters (AUW), a kind of “proof of concept” as a U.S. District Court Judge, Eastern District, California, tossed out allegations in a suit that had argued that the company, a leading, national workers’ compensation insurer, acted to defraud clients who purchased workers’ comp coverage using the Company’s widely […]
2017/ November 13/ Past Issues
PIANY President on Industry Challenges, Perpetuation
During his address at PIANY’s Hudson Valley Regional Awareness Program in Fishkill, N.Y., on Oct. 26, PIANY President Fred Holender CPCU, CLU, ChFC, MSFS, discussed the unchanging challenges of the industry: “We have experienced quite an evolution in our business. Although the tools we use to conduct business have changed dramatically, the challenges we face […]
2017/ November 13/ Past Issues
Israel Bonds’ Annual Insurance Division Luncheon Results in $55.5 Million in Investments
Development Corporation for Israel/Israel Bonds, the underwriter of debt securities issued by the State of Israel in the United States, held its Insurance Division Luncheon this month. The annual event drew more than 250 industry professionals to the St. Regis Hotel in New York, and brought in $55.5 million in Israel bond investments and indications […]
2017/ November 13/ Past Issues
Viaña Receives Distinguished Insurance Service award from PIANY
GLENMONT, N.Y.—J. Carlos “Shawn” Viaña of Latham received Professional Insurance Agents of New York’s Distinguished Insurance Service award at the association’s Hudson Valley Regional Awareness Program. This award is presented to an individual with a history of service to the American independent agency system and to PIANY. Viaña is senior vice president of Marshall & […]
2017/ November 13/ Past Issues
Time for Digital
By Giuliano Altamura, Financial Services Business Unit Manager, Fincons Group It is becoming increasingly evident that the insurance industry has fallen behind when it comes to adoption of digital services. This fact is widely recognised by most executives in the insurance ecosystem, with out-of-date front-end interfaces and inflexible back-end and legacy systems already having a […]
2017/ November 13/ Past Issues
Duty to Disclose Disciplinary Actions and Criminal Prosecutions
Numerous recent New York State Department of Financial Services (“DFS”) penalties against licensees involve a failure to disclose on DFS applications actions taken in other jurisdictions or failures to timely report administrative actions or criminal prosecutions by other agencies. By way of background, New York Insurance Law § 2110(i) requires a licensee to “report to […]
2017/ November 13/ Past Issues
Cloud 101 for Insurance Agencies: Lingo You Need to Know
By Adam Stern Underwriting insurance is tough enough; most agencies would prefer not to wade into the fog of IT, especially given just how obtuse the tech world has become. For those insurance brokers making the shift from an in-house solution to the cloud, getting the language right is Job #1. Familiarizing yourself with some […]
2017/ November 13/ Past Issues
The Temptation of Fraud
Innocent Young Lawyer Falls into Fraud Trap In California, a person can pass the Bar Exam and practice law even if he or she does not attend law school or attends a non-ABA accredited law school. Finding employment with a law firm is almost impossible for young lawyers who did not attend a prestigious law […]
2017/ November 13/ Past Issues
No-Fault Arbitrator Finds No Right to Privacy in Claimant’s Medical Records
In the Matter of the Arbitration between Kingsway Orthopedic PC and Liberty Mutual Insurance Co. AAA Case No. 412009003445, AAA Assessment No. 17 991 04024 09 (Claim File No. LA2030097816970) (Laura A. Yantsos, Esq., arbitrator) Edited by Lawrence N. Rogak [Continuing] on the theme of whether HIPAA authorizations should be required in no-fault claims, this particular arbitration […]
2017/ November 13/ Past Issues
Platitudes and Glittering Generalities
By Marilyn M. Singleton, M.D., J.D. We are living in strange times. Virtual money, virtual friends, virtual reality. And regrettably, we are currently burdened with virtual leaders and virtual health insurance coverage. Last month’s Gallup poll revealed that by a huge margin the “most important problem facing the country today” was dissatisfaction with the government. […]
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Worrisome: Eight in Ten Worry About Financial Safeguards
Another day, another data breach. Recent news about cybercriminals obtaining more than 5 million credit card numbers from high-end U.S. retailers joined a series of major hacks and online data breaches. In 2017 alone, roughly 143 million U.S. adults, were hit by some form of malware, virus, spyware or phishing scam. Unfortunately, the frequency of […]
Distracted from Distraction by Distraction
If National Distracted Driving Awareness Month—April—wasn’t already enough to get the attention of drivers who habitually text, mess with the radio, or eat while driving, maybe some stats will get the message across. Just this morning on the East Side in heavy traffic a woman was getting made up, talking to some one on a […]
PIANY’s 2018 Long Island RAP
Hundreds of industry pros flocked to Long Island for PIANY’s 43rd annual Long Island RAP, April 25, 2018, at Crest Hollow Country Club in Woodbury, Long Island. The event has built a reputation as the highest caliber event in the area for networking; recognizing the industry’s best professionals; and for unparalleled continuing education. An expansive […]
Are You Ready to Take on the NAIC’s New Rules?
Guest Author
regulatory update
By Sam Abadir, Lockpath For security and compliance professionals, the announcement of new regulatory standards can be a stark reminder that the to-do list is long and the day is short. But organizations that employ careful preparation and concerted, coordinated efforts through mature governance, risk management, and compliance (GRC) processes face new rules and standards […]
MetLife’s Esther Lee to be Inducted into American Marketing Association NY’s Marketing Hall of Fame®
“Future of Marketing” to be the subject of inductee presentations at May 17, 2018 induction ceremony at offices of R/GA in New York. The American Marketing Association New York announced that Esther Lee, executive vice president, global chief marketing officer, MetLife, Inc., is one of three business leaders responsible for outstanding contributions to the field of […]
Sham Affidavit Fails to Defeat Summary Judgment
Insured May Not Lie to Avoid Summary Judgment No one likes to have an insurance claim denied even if the insurer has a good reason for denying the claim. In litigation, as in every aspect of insurance, both parties to the insurance contract owe an obligation to deal fairly and in good faith with each […]
Interest Will Not Be Tolled for Delay Without Proof That Plaintiff Caused the Delay
Eagle Surgical Supply, Inc. v Country-Wide Ins. Co. Edited by Lawrence N. Rogak At the conclusion of trial in 2015 in this PIP suit filed in 2007, Defendant requested that interest be tolled because of the long delay in bringing the case to trial. The Appellate Term held that interest does not get tolled in […]
Sterling Risk Insurance CEO David Sterling Named to Long Island Press Power List
Annual recognition celebrates the 50 most influential Long Islanders; Sterling was Insurance Advocate’s Agency of the Year 2014 Woodbury, N.Y.—David Sterling, CEO of SterlingRisk Insurance, one of the nation’s leading independently owned insurance brokerage firms, has been named to the Long Island Press Power List. An annual recognition of the “50 most influential Long Islanders” […]
Patients and Physicians Unite: You Have Nothing to Lose but Your Chains
By Marilyn M Singer, M.D., J.D. In an entertainment venue called the “Escape Room,” participants are locked inside a themed adventure room, and they must figure out how to escape. Themes include prisons, KGB interrogation, and hostage situations. Perhaps a new theme could be ObamaCare. Despite a large majority of Americans reporting healthcare as their […]
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Cmsv’s Top Award to Applied’s Steve Menzies
Today, Applied Underwriters remains the only US Workers’ Compensation insurer—ever—to hold an A+ rating for performance, security and stability…and the capacity to provide real care. The College of Mount Saint Vincent continued its tradition of honoring leading financial services executives as the 171 year old Bronx, NY based College presented its top award to Steve […]
Bright and Good
Brightway Insurance has opened five new stores this month. While they are down South for now, this enterprise bears attention. Brightway President Talman Howard claims: “We offer a turnkey business solution that helps Franchise Owners realize their dream of business ownership with the support of a national brand.” Brightway Agency Owners receive comprehensive business support […]
Big I New York Honors Industry Role Models
Awards presented at insurance producer organization’s annual meeting Insurance producer organization Big I New York spotlighted excellent performances over the past twelve months by insurers, a local trade group, volunteers and associates during an annual awards ceremony held. Acting for the final time in his capacity as Big I New York chair of the board, Richard […]
The Sky Isn’t Falling, We are Merely Evolving
So much of what you read today is about the impending demise of the independent agent and their long standing system of providing individuals, families and businesses appropriate and effective insurance protection. Disrupters are entering the marketplace who are leveraging technology to significantly speed up the process and replace many of today’s insurance workers with […]
Atti Elected Big I New York Chair of the Board
Top elected officer chosen at group’s Annual Business Meeting Insurance producer trade organization Big I New York elected Louis Atti, CPCU, as its chair of the board for the 2018-19 term. Atti was sworn in during a ceremony following Big I New York’s Annual Business Meeting, held at The Westin Buffalo. Atti is vice-president of […]
Mandates: the Other Side of the ‘Right to Healthcare’
υA “right to healthcare” is a seductive idea that many Americans accept without thinking. But we need to take a closer look at what this means. The total program being pushed by “right-to-healthcare” cheerleaders—primarily Democrats—is full of mandates. A mandate means you have NO right to opt out, except possibly through some limited exemptions. It […]
Court of Appeals Rules That PIP Statute of Limitations is Three Years for All Self Insurers
Contact Chiropractic, P.C. v New York City Tr. Auth. Edited by Lawrence N. Rogak Resolving a long-standing split between the First and Second Departments, the Court of Appeals holds that the statute of limitations on a No-Fault claim against a self-insured entity is three years from the date of loss. This decision is a boon […]
Sham Affidavit Fails to Defeat Summary Judgment
Insured May Not Lie to Avoid Summary Judgment No one likes to have an insurance claim denied even if the insurer has a good reason for denying the claim. In litigation, as in every aspect of insurance, both parties to the insurance contract owe an obligation to deal fairly and in good faith with each […]
Insurance Issues For Child Day Care
Guest Author
Advertorial, MSO Inc.
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Children are our most important resource. They are also our most vulnerable citizens, needing and deserving the best care possible. When parents work, quality, affordable child care is extremely important. Day care is a growing industry. Insuring day care centers requires […]
Spotting the Spoofers
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor, MSO, Inc. There probably is nothing much more annoying than having dinner interrupted by a telemarketer trying to sell you a “free” vacation. Even worse, they may purport to be from a government or law enforcement agency, and tell you that […]
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MANE CONCERN: Horse Sense Averts Exposures, Disasters
By Rebecca Hunt, Senior Risk Manager, AIG Private Client Group Recent weather catastrophes in the US have had devastating impacts on horses and horse properties. Hurricane Harvey affected hundreds of horses in the Houston area due to the storm itself and subsequent flooding. In December 2017, twenty-five racehorses were killed when a wildfire engulfed […]
New Heights, but Some of the Same Lows
New York’s infrastructure is, well, losing its structure. The $13 billion Gateway rail tunnel project under the Hudson River has lost some of its steam. Taxpayers will pay millions unless the outdated “scaffold law” is repealed. While New York and New Jersey struggle to arrive at a formula for funding, Gateway is stymied by a […]
PIANY Meets with State Lawmakers
ALBANY, N.Y.—The Professional Insurance Agents of New York State met with lawmakers at their Albany offices during the association’s Albany Lobby Day, May 15, 2018. PIANY President Fred Holender, CLU, CPCU, ChFC, MSFS, of Williamsville; President-elect Jamie Ferris, CIC, AAI, CPIA, of Lansing; Vice President John Tomassi, CPCU, of Clifton Park; and PIA National Director […]
PIANJ to Honor Iannello as Company Person of the Year
ATLANTIC CITY.—John J. Iannello, CPCU, regional underwriting manager for Merchants Insurance Group will be awarded the New Jersey Professional Insurance Agents Company Person of the Year at its Annual Conference held at Harrah’s Resort and Casino in Atlantic City, June 10-12. Nominated by PIA member agents, this award is presented to an individual who fosters […]
Smart Communications Making Customer Conversations Smarter
Spring 2018 Release Includes Launch of Conversation History, User Experience Enhancements, the Next Evolution of Smart Components and More Smart CommunicationsTM, the only independent company focused solely on enterprise customer conversations, has released the latest version of its customer communications management solutions. Many of the enhancements support the company’s new Conversation Cloud framework, which is […]
Chubb Adds Dental Malpractice to its Small Commercial® Platform
Chubb and The Doctors Company are now offering dental malpractice insurance to dental professionals through Chubb’s Small Commercial Marketplace®. Specifically designed for general dentists, endodontists, oral and maxillofacial surgeons, orthodontists, periodontists, prosthodontists and other dental specialists, the Doctors Company policy provides dental malpractice coverage that also insures against cyberattacks and data breaches, HIPAA violations, and […]
Scott M. Purviance Appointed CEO of AmWINS Group, Inc.
AmWINS Group, Inc. (“AmWINS”) announced that Scott M. Purviance (pictured right) has succeeded M. Steven DeCarlo as the company’s Chief Executive Officer. As CEO, Purviance will focus on continuing to build upon the firm’s foundation focused on growth, diversification and technology. Prior to taking on his role as Chief Operating Officer, Purviance served as Chief […]
New York Auto Insurance Now Automatically Includes Supplementary Uninsured/Underinsured Motorists Coverage, Per New Law
by Anthony D. Dodge Last September, a drunk driver in Syracuse collided with a sedan carrying a 49 year-old man and his adult stepson. The father died at the scene; the son died a few hours later. The drunk driver carried Bodily Injury (BI) Liability insurance coverage with the state minimum limits of $50,000 for […]
Does Your Medical Licensure Board Protect You?
By Jane D. Orient, M.D. A bill that would give doctors the right to defend themselves if brought before the state licensure board, the Louisiana State Board of Medical Examiners (LSBME), was heard in the Louisiana state House of Representatives on May 2. If it passes, doctors could find out exactly what they’re accused of, […]
No Good Deed Goes Unpunished
Fourth Circuit Stops Asbestos Bleeding After Aggregate Limit is Exhausted υAsbestos litigation has destroyed multiple businesses who dealt with the product. Insurers of those entities have spent billions of dollars defending and indemnifying those insureds who dealt with asbestos. Some insurers who insured the asbestos producers were made insolvent. Many asbestos claims were established to […]
Address Error on IME Letter to Claimant Doesn’t Matter if Letters Also Went to Claimant’s Lawyer
In the Matter of the Arbitration between: Right Choice Supply, Inc. and Unitrin Advantage Insurance Company Edited by Lawrence N. Rogak This case stems from a motor vehicle collision which occurred on November 14, 2015 wherein the EIP, (hereinafter referred to as “TC”), allegedly sustained injuries. Applicant seeks compensation for the provision of a CPM and CTU, from February […]
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HEAD ON: How Guy Carpenter and CyberCube Partnered to Tackle Cyber Insurance
By CyberCube CEO Pascal Millaire and Co-Founder Ashwin Kashyap The fear surrounding cyber-attacks has never been more warranted. In 2017, there was a 46% increase in new ransomware variants, a 54% increase in mobile malware variants and a staggering 600% increase in Internet of Things (IoT) attacks, according to data from Symantec. Notably, hackers […]
Unmask the Disruptors
Pick up any publication, read any email advertisement or any blog and everything is about the market disruptors sucking up millions of dollars in venture capital and ready to completely change the insurance marketplace. They profess that younger consumers prefer to buy through them because they are comfortable buying online and insist on convenience and […]
NYIA 2018 Annual Conference…Working Together Toward Tomorrow
There is something special to be said about Saratoga Springs, New York. The amulet of the historical city of Saratoga Springs is deeply rooted in “health, history and horses” and has been a curious tourist’s destination for over 200 years. The pivotal travelers that stayed and shaped this city so many years ago can be […]
Allocating Damages to Pro Rata Time-on-the-Risk
Is it Fair to Require an Insurer to Pay for Periods for which it Received no Premium? Some events causing pollution damage can occur over many decades, even more than a century. Existence of coverage for risks of loss by pollution did not exist, was unavailable to certain industries or was not purchased by the […]
NJ Auto Policy Does Not Cover PIP for Insured as a Pedestrian Struck in New York
In the Matter of the Arbitration between: St. Lukes Roosevelt Hospital Center and New Jersey Manufacturers Insurance Co Edited by Lawrence N. Rogak The claimant had a New Jersey auto policy in which he elected to have his own health insurance be primary for his medical expenses. The claimant was a pedestrian in New York and was struck […]
PIANJ to honor Catranis with Distinguished Insurance Service Award
TRENTON, N.J.—Steve Catranis, senior vice president of Cumberland Insurance Group, will receive the PIANJ 2018 Distinguished Insurance Service award at the Professional Insurance Agents of New Jersey and New York’s Annual Conference, June 10-12 at Harrah’s Resort and Casino in Atlantic City. This award is presented to an individual with a history of service to […]
Franklin Mutual Insurance Group to Receive Community Service Award
TRENTON, N.J.—The Professional Insurance Agents of New Jersey will award Franklin Mutual Insurance Group, of Branchville, N.J., with the association’s Community Service award today during the association’s Annual Conference at Harrah’s Resort in Atlantic City. Lisa Glesias will accept the award on behalf of Franklin Mutual Insurance Group. Franklin Mutual Insurance Group is being awarded […]
‘Big I Tri-County’ Installs Officers and Directors for the 2018 – 2019 Term
Awards and scholarship announcements accompanied the evening’s activities Albertson, N.Y.—New officers and directors took the helm on May 22 during the Long Island-based Big I Tri-County association’s annual installation dinner and awards ceremony. The gathering, held at Chateau Briand in Carle Place, NY, set the leadership for the 2018 through 2019 term. More than 150 agents […]
Green Building Basics
Guest Author
Advertorial, MSO Inc.
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor The green building industry is changing the footprint of the construction trades. Green buildings are less costly to operate, saving money for individual building owners as well as taxpayers. Added advantages of green buildings are that they are designed to be […]
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PIA Stars in A.C. Agent Gala
Some 2,000 agents and insurance industry professionals took to Atlantic City at the PIANJ/PIANY Annual Conference Harrah’s Casino Resort in Atlantic City, N.J., June 10 – 12. The event, an ever-evolving industry tradition, brought a flood of insurance professionals to the shore, to network and be seen at exciting and fun events; packing an expansive […]
Hello, but I Must Be Going.
IFNY wound up hosting a beautiful breakfast meeting with Scott Fisher (pictured) which turned out to be his very last appearance as Executive Deputy Superintendent of the NYDFS. Scott resigned a few days prior. Not saying yet where he will be going, but he is a bright man who did nicely at the DFS in […]
How President Trump Can Turbo-Charge Patient Freedom and Lower Medical Costs
By Elizabeth Lee Vliet, M.D. Free markets in medicine are not “broken;” they have not been allowed to work since 1944 when wartime federal policies began disturbing market forces. Federal control of prices and service delivery further expanded following the Medicare Act of 1965. In 2010, Obamacare crushed medical insurance plans, doctors, hospitals, pharmaceutical companies, […]
The Schinnerer Group to Rebrand as Victor
LONDON—The Schinnerer Group announced that it is rebranding as Victor, a name reflective of the firm’s history and its new global operating model. Victor is the world’s largest managing general underwriter (MGU), currently servicing greater than $1 billion in premium. The Schinnerer Group’s businesses will take up the Victor brand over the next year, and […]
Is Your Offer Letter State-of-the-Art?
by Alfred T. Demaria A letter detailing an offer of employment to a candidate—an offer letter—is an important legal document and should be carefully drafted. A modern offer letter designed to reflect all of the numerous developments in employment law should include the following: • A clear description of what the job entails, to whom […]
A Contract of Insurance is a Binding Contract
Appellate Court May Not Rewrite Insurance Policy Construction contracts are risk transfer devices. They often require each subcontractor to name the general contractor and the owner as an additional insured. The requirement can include multiple additional insured. Insurance policies, even though they are written in easy-to-read language are the least read contracts in business. They […]
Florida Insurers May Rescind Auto Policies in NY Accidents, but Proof Must Comply with NY Law
T & S Med. Supply Corp. v Ocean Harbor Cas. Ins. Co. Edited by Lawrence N. Rogak In this suit for NY no-fault benefits against a Florida insurer, the insurer moved for summary judgment based upon its retroactive voiding of the policy due to material misrepresentation. Reversing Civil Court’s grant of summary judgment, the Appellate […]
Why Do We Need a Right-to-Try Bill in America?
by Jane M. Orient, M.D. Congress recently passed, and President Trump signed, the “Right to Try” bill that gives dying patients limited access to drugs that have not yet been approved by the Food and Drug Administration (FDA). Our Founders would be astonished that we need such a bill. Nowhere does the U.S. Constitution give […]
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Independent Agents’ Digital Tech Use Growing, Yet Big Gaps Remain
Independent insurance agents have made important advances in awareness and use of digital technologies to improve the customer acquisition and service experience in the last two years, according to the Insurance Digital Revolution’s second Insurance Digital Transformation Survey. Today, the majority of agents, 95 percent, say that digital technologies are important or very important to […]
Coming Soon…
“Coming soon to a theater near you….” California Governor Jerry Brown signed into law the strongest online privacy law in the country, the California Consumer Privacy Act of 2018. It may alter the way Silicon Valley does business. The law ensures the following rights: • The right to know the categories and specific pieces of […]
Retaining Your Agency’s Most Important Asset
υThe U.S. Labor Department issued a press release this month that’s getting a lot of attention: It said the Bureau of Labor statistics recorded a leveling off of hires and separations for the month of June, 2018. While employment openings seemed to have slowed down, unemployment is up slightly. The reason for this, experts say, […]
Blast Communication Can Backfire
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Advancements in technology have changed the way companies communicate with their clients and potential clients. Blast communication—via fax, phone call or text message—enables a company to get their message to many people or companies at the same time. However, sending communication […]
Five Benefits of Private Placement Life Insurance & Why it’s a Hot Commodity for the Ultra-Rich
By Jon Corrigan Private Placement Life Insurance & Annuity programs, commonly referred to as PPLI, have quickly become a favorite strategy among ultra-wealthy investors seeking greater tax efficiency within investment vehicles. It allows policy holders to combine the strength of premium investment products, like hedge funds or other alternatives, with the tax-free benefits of life […]
When Employees Have to be Paid for Off-The-Clock Cell Phone Use
It is almost universal that mobile device habits bleed into work. More and more, answering a quick email, text or phone call outside of the workplace by nonexempt employees has blurred the lines of what is and what is not considered “compensable hours worked.” Many employers are reluctant to face this thorny issue of work […]
PIA: What if the NFIP is Not Renewed?
by Bradford J. Lachut, Esq., PIA Management Services’ Director of Government & Industry Affairs The U.S. Senate successfully passed an extension of the National Flood Insurance Program on June 29. The extension, which was passed as an amendment attached to larger farming bill, would extend the program for six months. While this may seem like […]
Spousal Abuse Can Never Be an Accident
There is no Right to Beat Your Girlfriend and Get Defense from your Insurer People are known to do stupid things. Insurance is designed to protect the insured against his or her negligence or stupid conduct. People who drink alcohol to excess and intentionally get drunk almost certainly do stupid things because of the intentional […]
Insurer Must Prove not Only that Insured Lied About her Address, but Also that it Would not Have Written the Policy
Maxford, Inc. v Erie Ins. Co. of N.Y. Edited by Lawrence N. Rogak In this No-Fault suit, the insurer moved for summary judgment on the grounds that plaintiff misrepresented her true home address on the insurance application. Civil Court denied the motion. The Appellate Term held that the insurer’s burden is not only to prove […]
Create Your Own Healthcare “System”
by Marilyn M. Singleton, M.D., J.D. Kudos to the folks in D.C. who are advancing alternatives to the Affordable Care Act’s over-regulated and expensive health insurance policies. Small business association health plans and expanding health savings accounts (HSAs) are among several tools to increase health care choices. However, one element in the medical care cost […]
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Premium Financing: The Small Business Savior
by Sean Jagroop There are more than 27.9 million small businesses in the United States, and each face a slew of financial responsibilities – anything from payroll and accounts receivable requirements to handling taxes. And stacked on top of these various financial responsibilities are the numerous insurance policies needed to keep a business’s property and people protected. […]
Formulae For the Future
Republican legislators in Washington have been floating the idea of using Social Security to provide paid family leave for the birth or adoption of a child. The proposal would allow a new parent to essentially borrow from their Social Security retirement to take leave for 12 weeks and 45 percent of their pay. While a […]
Student Food Safety
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Days are getting shorter and students are returning to school. Whether students are bringing their lunch to school each day, or preparing meals on their own for the first time in college, they must take care to ensure that the food […]
Are Your I-9 Immigration Forms In Order?
The insurance industry is in no way immune from the reach of scrutiny by the government with respect to its immigration practices. Homeland Security has recently issued a press release stating: “Employers need to understand that the integrity of their employment records is just as important to the federal government as the integrity of their […]
Inter Insurance Launches Universal Casualty, New York’s First Independent Automobile Dealers Association RRG
Recently, at the New York Athletic Club in New York City, Tim Derham and his professional team launched a new resource for the auto insuring market and it has begun to take off quickly. Derham, President of Inter Insurance Agency, Ltd., along with Paula Frendel, Executive Director, and Fred Donnelly, President of the New York […]
The Courage to Trust Medical Care to Patients and Physicians
by Marilyn M. Singleton, M.D., J.D. The days of trusting your legislators to have your best interests at heart are in the rear view mirror. Apparently, their main interest is parroting the buzzwords of the moment to get elected and then being too busy banking lobbying money to listen to the voters. Our legislators have […]
New Jersey Supreme Court Denies Insurance Industry Bid to Allocate Losses to Policyholders
As appeared in Anderson Kill Policyholder – July 2018 by Robert D. Chesler On June 27, the New Jersey Supreme Court rejected an insurance industry bid to burden policyholders with a portion of their covered asbestos losses, ruling on an issue of utmost importance to companies facing environmental, asbestos or other claims where the injury […]
The Changing Role of Being a Producer
Being a producer has changed dramatically and I believe for the good. In years past when competition was limited the preferred method for getting clients was cold calling, either by phone or in person. The key was to find out when the prospect’s policy renewed and getting some agreement to review their protection for issues […]
Property/Casualty Net Income Doubles to $17.1 Billion in Q1 2018
Private U.S. property/casualty insurers saw their net income after taxes more than double to $17.1 billion in first-quarter 2018 from $7.9 billion in first-quarter 2017, helped by lower catastrophe losses and increased reserve releases, according to ISO, a Verisk (Nasdaq: VRSK) business, and the Property Casualty Insurers Association of America (PCI). Losses and loss adjustment […]
NYISF Selects Mora-Amaya as 2018–2019 Recipient
ALBANY, N.Y.—The New York Insurance Scholarship Foundation, Inc. (NYISF) awarded its 2018–2019 scholarship to Jennifer Mora-Amaya, a junior at St. John’s University studying actuarial science from Paterson, N.J. “The New York Insurance Scholarship Foundation is pleased to recognize a student as passionate as Jennifer,” Ellen Melchionni, president of NYISF said. “Her untiring drive to succeed […]
Insurance Lenders Launch Websites with Enhanced Interfaces
Oak Street Funding and First Franchise Capital, First Financial Bank Companies, have launched six enhanced proprietary websites. “These sites are not only more visually appealing but they also deliver on the companies’ value proposition by providing information to clients that will help them to evolve their businesses”, the Companies argue. “We have seen strong growth […]
OnRisk and AFL Insurance Brokers Form Insurtech Partnership
AFL Insurance Brokers (AFL) and OnRisk, the US-based insurtech startup, have formed a strategic partnership to advance new technology for structuring and placing high value property & casualty (P&C) risk. Under the partnership, AFL Insurance Brokers will become an early adopter of the OnRisk structuring platform, which delivers a CAD-style, graphical software toolset enabling risk […]
No-Fault Dme Rental Rate is Same as General Public, If it Has No Medicaid Fee Schedule
Matter of Global Liberty Ins. Co. v ISurply, LLC Edited by Lawrence N. Rogak A No-Fault arbitrator ruled that this auto insurer, Global Liberty, must reimburse a medical provider for rental of a CPM and a Cold Therapy Unit at the monthly rental charge to the general public. The Master Arbitrator affirmed. Global Liberty moved […]
SmarterSafer Welcomes Short Term Extension of National Flood Insurance Program
Urges Congress to Advance Comprehensive Reforms to Save Taxpayers Billions WASHINGTON, D.C.—SmarterSafer, a national coalition of environmental groups, taxpayer advocates, insurance stakeholders, housing organizations and mitigation advocates, released the following statement in response to Congress enacting a critical short-term extension to the National Flood Insurance Program (NFIP) through November, preventing a lapse during peak hurricane […]
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2018/ Past Issues/ September 10
Single-Payer Health Care System in New York “Unsustainable”
RAND Corp. report shows the proposal is unworkable The battle lines are being drawn as the election nears. Some have observed that the leading Democratic candidates running for Governor are tripping over themselves to move to the left and to offer every freebie available, from healthcare to college education to home pizza delivery. “Single payer” […]
2018/ Past Issues/ September 10
Tom Moran, RIP; Tech Trends to Follow
Sad news: Thomas J. Moran, a successful and caring insurance leader and philanthropist, passed away August 12th at the age of 65. Tom spent more than four decades with the Mutual of America Life Insurance Company, contributing significantly to its success. As Chairman, President, and Chief Executive Officer, he led with a style, strength, and […]
2018/ Past Issues/ September 10
Establishing and Reviewing a Nonexempt Employee Timekeeping System
Federal and state laws require that employers pay employees for all hours worked. They define “hours worked” broadly to include (a) all time during which an employee is required to be on duty, on the employer’s premises, or at a prescribed workplace; and (b) all time during which an employee is permitted to work, in either express […]
2018/ Past Issues/ September 10
Workers’ Compensation Basics
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor A safe workplace is a basic right of every employee. Protecting employees against injury, and ensuring that they have proper medical coverage in the event of an accident, is a primary responsibility of every business owner, from the small contractor to […]
2018/ Past Issues/ September 10
How Attractive is Your Website?
I visit many agency websites as part of my daily routine. Candidly I would have to say there are very few that are inviting to the consumer looking for information and possibly an agent to help them with their insurance protection. The worst are those that say very little and many times haven’t been updated […]
2018/ Past Issues/ September 10
Hidden Factors that Could Cost Your Client Money
The Importance of a Life Insurance Policy Review Are there hidden factors that your clients are not aware of in their financial plans that could cost them and those they care about drastic amounts of money? How frequently should you be reviewing their life insurance policy with them? Although life insurance is sometimes erroneously portrayed […]
2018/ Past Issues/ September 10
Small Commercial Insurance Customers Valued, Yet Underserved, J.D. Power Finds
Overall customer satisfaction remains stagnant in 2018 from 2017 (825 on a 1,000-point scale), showing that despite small businesses comprising the vast majority of businesses operating in the U.S., insurers have room to nurture this profitable market, according to the J.D. Power 2018 U.S. Small Commercial Insurance Study.SM “To remain competitive, insurers must accelerate their […]
2018/ Past Issues/ September 10
Socialism, Corporatism, and Destruction of Patient-Centered Medical Care
by Elizabeth Lee Vliet, M.D. “Medicare-for-all” medicine is the ultimate goal of progressives or “liberals,” fully embraced by Democrat candidates in the midterms. Candidates claim “single-payer” government-run medicine will “solve” all the problems of Obamacare and our “broken,” purportedly free-market system. Liberal proposals ignore or deny the massive cost burden to taxpayers of “free healthcare,” […]
2018/ Past Issues/ September 10
Insurance Fraud to Gain Thousands of Free Cell Phones
Creative Criminal Gets 57 Months in Prison If criminals would put in the effort and skill they use to defraud insurers they would own a multi-million dollar business. Rather, they get short term profits and then find themselves is an 8 foot by 12 foot cell in a federal prison. In United States Of America […]
2018/ Past Issues/ September 10
Passenger Opens Door Of Parked Car And Knocks Down Pedestrian On Sidewalk: Held Not “Use And Operation”
In the Matter of the Arbitration between: Nu Age Medical Solutions, Inc. and American Transit Insurance Company Edited by Lawrence N. Rogak In this No-Fault arbitration, the claimant was a pedestrian standing on the sidewalk saying goodbye to the occupant of a car. When the occupant opened the car door to step out to speak […]
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2018/ Past Issues/ September 24
PIANY Taps Top Talent for Year
GLENMONT, N.Y.—Jamie A. Ferris, AAI, CIC, CPIA, of Lansing, N.Y., was elected president of the Professional Insurance Agents of New York, at a meeting of the association’s board of directors today, at PIANY Headquarters in Glenmont, N.Y. Ferris is president of P.W. Wood & Son Inc., in Ithaca, N.Y. An active member of PIANY, Ferris […]
2018/ Past Issues/ September 24
Barry Bares All
Our popular columnist, Barry Zalma, has just put pen to paper and has produced claims books that are worth the money – really. His premise is that it is the insurance claims person – the adjuster – who works to keep the promises made by the insurance policy. The adjuster cannot, however, help the insurer […]
2018/ Past Issues/ September 24
When you’re finished changing, you’re finished. – Ben Franklin
There’s an abundance of quotes about the inevitability of change; against resisting change; and most appropriately about the value of change. The place I’ve heard most of them are at PIA. The organization is always at the forefront of our industry, and the visionaries who have led the organization call repeatedly for agents to be […]
2018/ Past Issues/ September 24
Expanded and Improved Medicare for All: Beware of Greeks Bearing Broccoli
by Marilyn M. Singleton, M.D., J.D. During the Supreme Court oral arguments in the challenge to the Affordable Care Act’s mandate to purchase health insurance, people laughed when the late Justice Scalia asked whether the government could make you buy broccoli. Never happen? The laughable has become reality. A California bill awaiting the governor’s signature […]
2018/ Past Issues/ September 24
Legal Analytics: ‘Must-Have’ Tool Assists Carriers in Data-Driven Legal Decisions and Success in Litigation
by Ronald C. Porter The insurance industry relies heavily on analytics to understand and predict risk when writing policies. But what happens when a disputed claim becomes a legal matter? Shouldn’t insurers apply those same kinds of analytics to understand and predict their legal exposure? Until recently, insurance litigation relied heavily on legal research, anecdotal […]
2018/ Past Issues/ September 24
The De-sciencing of American Medicine and What it Means to You
With all the talk about “evidence-based medicine,” you might think that doctors were becoming much more focused on rigorous science. But like the names attached to bills in Congress—such as the Affordable Care Act, which outlaws affordable insurance, the language used in the movement to fundamentally transform America and American medicine usually means the opposite […]
2018/ Past Issues/ September 24
Failure to Exceed SIR Releases the Excess Insurers
No Cover Available from Excess and Umbrella Policies Insurers use a self-insured-retention (SIR) to avoid the expense of dealing with small claims and avoid the expense of defending or indemnifying an insured until the SIR or underlying insurance is exhausted. As a result the excess insurer can charge a small premium because its exposure is […]
2012/ 2018/ Past Issues/ September 24
WAHVE “Hello”
Work At Home Vintage Employees LLC (WAHVE) is an interesting concept. Essentially, it is a domestic remote staffing service for insurance firms. There are some firms which provide for staffing and for services outside of the U.S. In this case, WAHVE employs the services of retired, semi-retired, or outside consultants to assist organizations with the […]
2012/ 2018/ Past Issues/ September 24
Immunity For [All] Some!
Peter Bickford
Cover Story, Insight
Let’s have a little chat about immunity. No, not immunity from retribution for squealing on Aunt Bea and her high stakes Saturday night poker game, or for giving state’s evidence against the mob before disappearing into witness protection. And no, not immunity for blowing the whistle on your employer, or for acting badly as a […]
2012/ 2018/ Past Issues/ September 24
Doing The Right Thing
Readers of this column may recall my affinity for locally owned book stores. I love shopping at and spending time in them; of course I love the products and the service and it makes me very happy to know that I am supporting a local merchant. Even as I’ve become a reader of digital books […]
2012/ 2018/ Past Issues/ September 24
When a Hundred Percent is Just Not Good Enough
So all your life you have been striving to do everything you can to ultimately achieve the 100% level, correct? Well that’s certainly an admirable goal…unless you’re an insurance company! Years ago when interest rates were at record highs, and carriers could invest in funds that brought double digit returns, being at a 100% combined […]
2012/ 2018/ Past Issues/ September 24
Disability Carriers Launch “Defend Your Income”
Effort Focuses on Educating Working Americans on Need to Protect Their Income PORTLAND, M.E.—In an effort to make the often- overlooked subject of disability income planning more visible, the Council for Disability Awareness (CDA) and its member companies announced the launch of the Defend Your Income movement. This educational program seeks to unite consumers, advisors, […]
2012/ 2018/ Past Issues/ September 24
Go Know: a Chupah is a "Structure" For Purposes of Labor Law
McCoy v Kirsch Note: A “chupah” is a canopy, usually made of fabric supported by wooden posts, under which a bride and groom perform a traditional Jewish wedding ceremony. — LNR APPEAL by the defendants, in an action to recover damages for personal injuries, as limited by their brief, from so much an order of […]
2012/ 2018/ Past Issues/ September 24
Top 25 Writers Prop Up Premium for New York Commercial Automobile
For the year ending December 31, 2011, Direct Premium Written (DPW) for New York commercial automobile writers remained relatively flat compared to the year ending December 31, 2010, decreasing less than one percent. This decrease to New York commercial automobile DPW represents an approximately $10 million change from the prior year. In fact, DPW has […]
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Licony Leaders and Members “Cruise” Through Leg / Reg Agenda
LICONY concluded the organization’s long-running Annual Meeting & Planning Conference at The Sagamore Hotel on Lake George. The three-day event from Oct. 3-5 was attended by over 130 participants including senior level executives, general counsels and governmental affairs professionals of the life insurance industry.
Participants were attracted to the opportunity to attend content-rich panels that offered the latest updates on legislative and regulatory changes in the industry. Much of the information came right from the source, as members of the Department of Financial Services and the NYS Legislature were featured throughout the event.
Homeowners’ Customer Satisfaction Measured
“Home insurers’ investments in improved digital interaction channels and bundled product offerings that combine multiple policies under one account are paying off in the form of the highest levels of customer satisfaction in the history of our study,” according to the J.D. Power 2018 U.S. Home Insurance StudySM. However, the ability of insurers to maintain […]
Cheap & Fast – A Recipe for Disaster
I can’t think of a more important advertising campaign for all independent agents to share in than informing consumers of the dangers of choosing insurance protection on what is cheap and fast. I believe that we owe a duty to the public to bring to their attention the serious possibility they will be uninsured or […]
Insurance Law for Common Interest Communities: Condominiums, Cooperatives And Homeowners Associations
Important New Book on the Market Francine L. Semaya and Douglas Scott MacGregor have done a lot of thinking on a topic that affects the insuring community substantially. The result is a highly accurate, readable and useful 1,100 page to me: Insurance Law for Common Interest Communities. It is a winner and should be in […]
Ergonomics – Increasing Safety and Efficiency
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Increasing efficiency and safety should be key components of any business plan. Ergonomics, the science of fitting the job to the worker, helps lessen muscle fatigue, increases productivity and reduces the number and severity of work-related injuries. While most often associated […]
Enlightening Exchange at NYIA’s New York Regulatory Symposium
The New York Insurance Association’s recent New York Regulatory Symposium in Albany underlined important property and casualty issues with representatives from the New York State Department of Financial Services (DFS). In attendance from DFS were Laura Evangelista, Executive Deputy Superintendent, Insurance Division; Marshal Bozzo, Assistant Deputy Superintendent, Property Bureau; Gerald Scattaglia, Assistant Chief Insurance Examiner, […]
Emilio Miret (1937 – 2018)
A Personal Tribute As David Louie e-mailed the news, I thought to myself “please, not another heartbreaking obituary, please…and certainly not one with the name Emilio Miret in the title.” These successive months of grave losses from the “golden age” of the independent agent, as many friends have termed it, have set off a sense […]
The Workers’ Compensation State: Caterpillar or Butterfly?
By Jess Dantice, CEO, Zenjuries Funny how things change, isn’t it? One day you’re making sure your horses have newly shod hoofs for the two-day carriage ride to the neighboring town, and the next you’re online bidding for a chance to become the first civilian to ride a rocket ship around the moon and back. Today’s […]
Mother, Don’t Let Your Child Become an Adjuster in Washington State
Statute Makes Individual Adjuster Liable for Tort of Bad Faith The state of Washington, in an attempt to protect consumers, has acted in a way to drive insurers and their employed adjusters out of the state. This case makes it financially dangerous to be an insurance adjuster in Washington state. I have railed against the […]
Transit Employee’s Statement That He Cleaned Stairway on Morning of Accident Defeat’s Plaintiff’s Injury Suit
Williams v New York City Tr. Auth. Plaintiff alleged that he slipped on a greasy substance on the stairs of a subway entrance. Three years into the suit, the Transit Authority moved for summary judgment and included an affidavit from an employee who cleaned those stairs every morning. Plaintiff argued that he needed more discovery […]
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Insurance Regulation at a Crossroads: Lessons Learned from the Last Ten Years
by Bill Marcoux (Partner) and Nicholas Kourides (Senior Counsel), DLA Piper
Reprinted with permission.Insurance regulation is at a crossroads. Faced with an increasingly globalized and dynamic industry, the painful lessons of the financial crisis, dramatic and disruptive advancements in the use of technology, creeping protectionism and nationalism in many markets, competing regulatory agendas and good faith differences in regulatory approaches, insurance regulators are at an important juncture and have the chance to chart their course for the near to mid-term. The choices they make could lead to greater regulatory effectiveness and efficiencies, or result in further Balkanization of regulation and an ever heavier, costlier and at times conflicting set of regulatory rules for insurers. The potential impacts on the insurance industry and those consumers who rely on it are significant.
“I Can’t Get No…” or Can I?
Just to pass along some new data on small business employee satisfaction, the category of most agencies, it appears that the triumphs and challenges of small businesses can augur the mega trends of the American economy. Aflac just conducted its 2018 Small Business Happiness Survey with 1,000 small business employees across the U.S. to determine […]
Final Thoughts
About 15 years ago, the Professional Insurance Agents of New York State received a call from Phil Gusman, who at that time was the editor of the Insurance Advocate, requesting I write a column for the publication. I was eager to do it. Some people told me this wouldn’t last two months … And here […]
Israel Bonds’ Insurance Division Holds Annual Luncheon, Honors Two Influential Industry Professionals
Development Corporation for Israel/Israel Bonds, the underwriter of debt securities issued by the State of Israel in the United States, held its Insurance Division Luncheon on October 17, 2018. Spanning over several decades, the annual event drew more than 255 industry professionals to the St. Regis Hotel in New York, and honored Keith J. Wolfe, […]
Termination Check List To Bullet Proof Legal Challenge
Because of the proliferation of lawsuits among white collar employers challenging employee terminations, even those that appear to be completely valid on their face, it is important for insurance industry executives to make sure that each termination, no matter how justified it appears, is thoroughly vetted prior to termination. Here is a modern checklist that […]
What The Election Means To Your Medical Care
by Jane M. Orient, M.D. People are marching with “Health Care Voter” signs, and this is generally believed to be one of the most important issues in the 2018 midterm elections. Republicans who got elected on the promise to repeal ObamaCare, and reneged, may now get unelected. Voters who supported them are dissatisfied, and Democrats […]
Hiscox Study: More Than One-Third of US Workers Feel They’ve Experienced Harassment in the Workplace
Sexual Harassment Tops List as Most Common Form of Employee Misconduct A recent study released by Hiscox, the international specialist insurer, revealed that more than one-third (35%) of employees feel they’ve experienced workplace harassment, 50% of whom said it was on account of their gender or sex. These findings are according to the 2018 Hiscox […]
Forge a Certificate of Insurance – Guilty of Crime
Certificate of Insurance Has Legal Efficacy Although issued by insurance agents with alacrity, Certificates of Insurance (COA) are important documents relied upon by those who receive them to provide comfort that the person they are dealing with is appropriately insured. When someone fails to obtain an accurate COA or alters a legitimate COA and forges […]
Claims File Content Subject to Discovery, Even Those Parts Created During Litigation
Rickard v New York Cent. Mut. Fire Ins. Co. Breaking with precedent, the Appellate Division holds here that an insurer’s SUM claims file is subject to discovery by plaintiff—even those portions created after litigation was commenced—limited only by a court’s in-camera inspection of those portions claimed to be privileged.—LNR υFollowing a motor vehicle accident in […]
What Happens When a Life Insurance Policy Designates an Ex-Spouse as the Beneficiary
While married couples may create Last Will & Testaments and forget to change them following a divorce, numerous states have “revocation on divorce” statutes that typically treat a divorce as voiding a testamentary bequest to a former spouse. These revocation on divorce statutes were initially aimed at Last Wills & Testaments and rest on an […]
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2018/ November 12/ Past Issues
RAP Wrap-Up PIANY Hudson Valley Conference Hails “Heroes”
PIANY’s HVRAP returns to Suffern; Event hones in on participation and communication Professional, independent insurance agents experienced déjà vu as they came back to Suffern at the Crowne Plaza for the Professional Insurance Agents of New York State, Inc.’s 15th Hudson Valley Regional Awareness Program on Oct. 24. Continuing-education courses; a sold-out trade show; and an […]
2018/ November 12/ Past Issues
Thanks, Steve
Bob Wallach, rumors have it, is in the process of reorganizing the Robert Plan 2.0 for a different market and under a different structure. The “wiz kid” as he was known told us to “watch and see”…and we will…just as we watched his legendary Dad, Bill Wallach, amaze and astound an entire industry.… Speaking of […]
2018/ November 12/ Past Issues
PCI Elects New Officers to the Board of Governors
The Property Casualty Insurers Association of America (PCI) elected new officers to its Board of Governors today during the association’s annual meeting. Pete McPartland, chairman of the board, president, and CEO of Sentry Insurance Group was elected as PCI’s chair; Jim Brannen, CEO of FBL Financial Group was elected first vice chair, and Greg Crabb, […]
2018/ November 12/ Past Issues
When Employees Have to Be Paid For OfftheClock Cell Phone Use
It is almost universal that mobile device habits bleed into work, particularly in the insurance industry which does not run on a 9:00 to 5:00 basis More and more, answering a quick email, text or phone call outside of the workplace by nonexempt employees has blurred the lines of what is and what is not […]
2018/ November 12/ Past Issues
Holiday Loss Control Tips for Business
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor With the hustle and bustle of the holiday season, loss control and risk management may be relegated to the back burner for small business owners. However, this is exactly the time when such practices are most needed. Helping clients understand and […]
2018/ November 12/ Past Issues
Why Are So Many Universal Life Insurance Policies Failing?
Neglect and Lack of Attention Deserve Most of the Blame by Jordan Smith, J.D., LLM Traditional, non-guaranteed universal life insurance (often described in the insurance industry as “Current Assumption UL”) has been subjected to rather brutal criticism over the last few years, most recently in a September 2018 Wall Street Journal article1 that blamed the […]
2018/ November 12/ Past Issues
Do Not Be Deceived! Medicare For All Will Crash the System
by Kristin S. Held, M.D. Deceptively, pollsters report that “Medicare For All” is popular with Americans, as the media proclaims healthcare a top concern on voters’ minds a mere two weeks before the midterm election. While many candidates are indeed running on a “Medicare For All” platform, few Americans realize that a Medicare for All […]
2018/ November 12/ Past Issues
TransUnion’s National Driving Record Solution Provides More Comprehensive View of Policyholders
TransUnion has announced the launch of its new National Driving Record solution for the personal, commercial and life insurance industries. This one-stop solution combines DriverRiskSM court records with state Motor Vehicle Reports (MVRs) for a more comprehensive view of a person’s driving record at a reduced cost. This is accomplished by bringing together TransUnion’s extensive […]
2018/ November 12/ Past Issues
No “Occurrence” in Ohio for Contractor’s or Sub-Contractor’s Defective Work
An “Occurrence” Must Be Fortuitous Ohio, bucking the majority of court opinions, has interpreted the standard Commercial General Liability (CGL) policy to require for coverage to exist that a loss is fortuitous. An “occurrence” to Ohio courts require that the damage is accidental, fortuitous, and not a normal business risk of a person in the […]
2018/ November 12/ Past Issues
Religious Abuse Liability Institutions – Child Sex
Monaghan v Roman Catholic Diocese of Rockville Ctr. This lawsuit arose out of the alleged sexual abuse of a child by a Catholic priest. The Diocese moved to dismiss some of the causes of action, and Supreme Court denied the motion. But the Appellate Division reversed, and held that there is no legal duty for […]
2018/ November 12/ Past Issues
Understanding the Difference Between Surety Bonds and Insurance
by Eric Weisbrot Businesses large and small have two main options for protection – surety bonds and insurance coverage. While some use the terms interchangeably, there are differences between the two that should be understood. Both insurance and surety bonds have unique features that fit specific protection needs, either for the business itself or for […]
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2018/ November 26/ Past Issues
IFNY Honors Beale, Lanning
300 Gather at New York’s Historic Union League Club to Honor Inga Beale, former CEO of Lloyd’s and Mary Lanning, Public Service Leader; Supt.Vullo address audience; IFNY interns present accomplishments Nearly 300 insurance leaders joined in the Insurance Federation of New York’s (IFNY) 104th Annual Award Luncheon honoring Dame Inga Beale, former CEO of Lloyd’s […]
2018/ November 26/ Past Issues
IFNY Awardees’ New “Club” and a Look at Corporate Citizenship
The recent IFNY Luncheon was a 10-rounder for the “Old Boys Club,” as the industry used to be called, as women won all of IFNY’s awards for 2018. Now, how to compliment the winners and not run amok of accepted politically correct guidelines – most of which I do find properly correct. Inga Beale, former […]
2018/ November 26/ Past Issues
What Is Your Distracted Driving Policy?
With the pervasiveness of cell phones, distracted driving now clearly includes entering phone numbers or talking on a cell phone (even hands-free), texting, e-mailing, etc. Yet, most insurance industry employers do not have a “distracted driving” policy, but rather, have just a hands-free mobile device use policy, if they have a policy at all. As […]
2018/ November 26/ Past Issues
Trends in the Marketing and Distribution of Life Insurance
by Jeff Root InsureTech has been around for years with 100’s of millions of dollars being pumped into these technology companies and there hasn’t been a dent in life insurance distribution. Life insurance companies are so focused on short term sales targets, that it’s stunting long term innovation. They’re are not adopting technology as fast […]
2018/ November 26/ Past Issues
Insurance Agents Can Weather Radical Change by Becoming ‘Discussion Partners’ to Their Clients
By Today the insurance industry is going through a revolution and too many carriers, brokers, agents and team members are failing to keep up with the rapid pace of change. Customers have grown accustomed to convenience, a plethora of information and unending choices in whatever they buy, and this applies to the purchase of insurance […]
2018/ November 26/ Past Issues
Big Gains & Big Bets in the Independent Insurance Channel
Sustained Growth Pushes Acquisitions & Insuretech Investments Independent insurance agents and brokers can celebrate a four-year growth trend. So reports Reagan Consulting upon releasing its third-quarter Organic Growth and Profitability (OGP) study. The industry organic growth rate in Q3 was 6.1% — tied for the highest growth rate in the last 15 quarters. […]
2018/ November 26/ Past Issues
Agent Who Kept Premium Owed to Zurich, Loses at Ninth Circuit
Agent Defrauds Insurer by Not Remitting Premium Collected Insurance agents, by contract with insurers they represent, must place all premium collected on behalf of the insurer and place the funds in a separate trust account. Depending on the terms of the contract the agent then deducts the agreed commission and remits the remainder to the […]
2018/ November 26/ Past Issues
If Named Insured Dies, Coverage is Limited to Spouse and Estate Representative
Sunrise Acupuncture, P.C. a/a/o Sharise Davis v Kemper Independence Ins. Co. Both named insureds under an auto policy died in June 2007. Raquel Davis was named as executor of the estate. In May 2008, Raquel’s daughter, Sharise, got into an accident while driving the insured vehicle and applied for no fault benefits, which were denied […]
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Reg 187 Battle Lines…Written
Article 78 proceeding started, as agents see harmful “vague standard” and worse. Not sure how the seemingly nonexistent balance of power in Albany will affect an insurance agents petition to stymie proposed Regulation 78 initiated by the PIANY and the Big I together, but the consent of an insurer segment won’t help much. It looks to us as if DFS Supt. Maria Vullo may well have the last word on the controversial Regulation.
On White Noise
This is a holiday letter as 2018 closes, but I cannot wax too poetically about the season or the past year, given the great insurance professionals we lost and given this past year’s growing factionalism in seemingly everything. I mean everything. The incessant white noise, the insane bickering on TV, whether its Fox or MSNBC […]
Friendly Fraud and Chargeback Fraud
Guest Author
Advertorial, MSO Inc.
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Any client who does business with the public, especially online, is exposed to various types of fraud. It is interesting to note that not all fraud is planned or intended. No matter the type of fraud, it has a significant impact […]
Should Companies Screen Their Job Applications’ Social Media?
This has become an increasingly important question since surveys reveal that more than half of employers inquire into a prospective employee’s online social media activity during the hiring process. The insurance industry is no exception. However, there are a number of pitfalls involved in such screening. The major ones are: Pitfall No. 1: Only Performing […]
Dear Producer – No Insurtech is No Excuse
What is insurtech? It’s a recently created name for a growing class of apps, software and insurance startups that use cutting edge technology to quickly and efficiently provide insurance, customer service and customer engagement. If you think insurtech is the answer to writing insurance you’re sadly mistaken. Insurtech is merely a tool to make the […]
What Does the Future Hold for Workers’ Compensation Insurance Rates
By Donald D. DeCarlo and Roger Thompson The National Council on Compensation Insurance (NCCI) reports that workers’ compensation insurance rates will again dip in most states in 2018. The report attributes this continuing decrease to two factors; (1) declines in the frequency of claims; and (2) improvement in the area of workplace safety on the […]
NYIA Provides Industry Roadmap at New York Auto Forum
The New York Insurance Association hosted the New York Auto Forum—A Look at the Road Ahead on Wednesday, November 14, 2018. Auto insurance writers and insurance professionals heard from industry experts on a variety of trending topics. Skip Short, member, Short & Billy and Barry Levy, partner, Rivkin Radler shared colorful anecdotes from their many […]
Private Limitations of Action Provision Enforced
Ninth Circuit Affirms Summary Judgment Because Suit Was Filed Too Late Every first party property insurance policy contain a special provision that limits the time available for an insured to sue the insurer in the event a claim is rejected. The private limitations provision is usually less than the state’s statute of limitations and protects […]
IBANY Announces 2018 Insurance Person of the Year
The Insurance Brokers’ Association of the State of New York (IBANY) has announced that Elizabeth Heck, President and CEO of Greater New York Insurance Companies, is the 2018 Insurance Person of the Year. Each year, insurance professionals are asked to submit nominations for the Insurance Person of the Year. Nominees are individuals known for their […]
When Medical Provider Bills Under a “By Report” Code, Insurer Must Demand Supporting Documents if it Wants Them
Pavlova a/a/o Cosby Reavis v Allstate Ins. Co. In this no-fault suit, plaintiff medical provider billed for services under CPT code 20999, which is a “by report” code. The insurer denied the claim on the grounds that the provider did not supply documentation backing up the need for the services. The Appellate Term held that […]
Epidemics, Fear and Denial: How Every American Is Threatened
By Jane M. Orient, M.D. This is the one hundredth anniversary of the great influenza pandemic of 1918. In his book The Great Influenza, John M. Barry described it as the deadliest plague in history. It killed more people in a year than the Black Death of the Middle Ages killed in a century. The […]
2017
2017 Issues - Click to View
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DFS Sets Out Cybersecurity Regulations
The New York State Department of Financial Services (DFS) has updated its proposed first-in-the-nation cybersecurity regulation to protect New York State from the growing threat of cyber-attacks. The proposed regulation, presented by Superintendent Maria T. Vullo will be effective as of March 1, 2017, and will require banks, insurance companies, and other financial services institutions […]
Orrino to get a top PIANY Award
Congratulations are in order. PIANY will present Gino A. Orrino, CPIA, with its Industry Professional of the Year award at the annual Metropolitan Regional Awareness Program. Orrino is principal of Orrino Capital Services LLC in Corona, N.Y. MetroRAP will be held at The Roosevelt Hotel on Thursday, Jan. 26. According to the PIANY standard, “the […]
Take the Challenge
I’m astounded by the lack of response by independent agents to the significant increase in competition for their clients. Not responding is a mistake. The competition is growing daily and it is no longer isolated to personal auto insurance or even just personal lines. This new competition is after small-to-medium commercial accounts as well as […]
Five Reasons Every Agency Should Be On Instagram
Chris Paradiso
The Social Notebook
Yes, you read that title properly. Every independent insurance agency should be making the most of Instagram as a part of their digital marketing plan. I’ll give you three reasons right off the bat that should help convince you: it allows you to connect with your customers and clients, visually promote your agency’s brand, and […]
You’re Old, You’re Sick, Get Over It
One day in the hospital costs Medicare about $708. One day in hospice costs $183. One hundred twenty morphine tablets cost $20.88 retail. Health Savings Account money in the bank creates real options. But if you leave the choice up to the government, with a roll of the dice you could figuratively be in Jail […]
Set-Up of Injured Plaintiff Fails; Clear and Unambiguous Exclusion Must be Applied
When a liability insurer is presented with a claim seeking defense and indemnity and the facts appear to exclude all coverage, it will provide a defense under a reservation of rights so that it can take the time needed to determine whether coverage applies or not. If the insured refuses the defense, fires the defense […]
John Roberts to ShelterPoint’s Board of Directors
Richard White, CEO of ShelterPoint Life has announced the election of John Roberts to the Company’s Board of Directors. Mr. Roberts is a senior-level insurance executive with 37 years of experience in disability, life, dental, and special risk businesses. He held leadership roles in group insurance, as well as operational management positions in underwriting and […]
New York Insurance Association Elects 2017 Officers and Board of Directors
Albany, N.Y., Jan. 5, 2017—The New York Insurance Association (NYIA) announces the election of its 2017 officers and board of directors. The following officers were elected for a one-year term ending Dec. 31, 2017: Chair: Steven Coffey, president and chief executive officer, Broome Co-operative Insurance Company, Vestal, N.Y. First vice chair: Elizabeth Heck, president and […]
Intercompany Arbitration: Though Award Exceeds Policy Limits, Court Will Not Vacate
Nationwide Mut. Ins. Co. v. Geico Cas. Edited by Lawrence N. Rogak In this property damage loss transfer arbitration, Geico contended that the amounts sought by Nationwide exceeded Geico’s policy limits. Despite this, the arbitrator made an award in excess of those limits. Nationwide moved to confirm the award, which was granted by District Court. The Appellate […]
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Bad Laws/Bad Actors–Part I
New York’s new Superintendent of Financial Services, Maria Vullo, was confirmed less than a year ago, but has already put her own mark on the position. She was on the job adding staff and implementing policy even before confirmation—an unprecedented move in the annals of the DFS and its predecessor Insurance Department. She has appeared […]
Banning “Bad Actors”: Cuomo Calls It Curtains For Crooks On Financial Stage
Governor Andrew M. Cuomo has advanced a new proposal to further protect consumers from egregious and deceptive behavior in the financial services industry by pushing to empower the state Superintendent of Financial Services to ban certain “bad actors” from the banking and insurance industries for misconduct like that seen in the Wells Fargo scandal. “New […]
Market Shear
New York lost another 191,367 residents to other states during the year ending last July 1, and its population declined for the first time in a decade, according to the U.S. Census Bureau’s annual population estimates. The latest estimated annual “net domestic migration” loss—equivalent to nearly the entire population of Yonkers, New York’s fourth-largest city—is […]
Claims-Made Trap; ISO Filing New Designated Premises Endorsement—Watch Out; FEMA Buying $1 Billion Flood Reinsurance; DFS Rules Against Troublesome Crime Exclusion; Lower A.M. Best Rating Linked to Increased Risk of Impairment
Jerry Trupin
Exposures and Coverages
Claims-Made Trap Claims-made policies are different animals and they can viciously bite the unwary. An example: a Pittsburgh University claim under a Lexington Insurance Company policy. This claim arose out of a professional liability dispute between University of Pittsburgh and Ballinger and Company, the architects on a building renovation of Salk Hall at the University. […]
What Keeps Me Up At Night
Over the years, I’ve written a lot about how independent agents are burdened more and more by business expenses we just didn’t used to have. Some of these costs can be attributed directly to insurance company cost-transferring: things like reductions in commission and profit sharing; front-line underwriting; loss control and even printing policies ourselves, rather […]
Paint The Town Red
Michael Loguercio
Face to Face
For those of us who write personal lines, and especially automobile insurance, we are all well aware of the fact that there are quite a few factors that contribute to the price of an auto insurance policy. For instance, we have age, gender, marital status, territory, type of vehicle, tickets, accidents, consumer credit, color, and […]
Is Your Agency’s Reporting Making You Crazy?
How do you feel about running reports in your agency management system? Does it make you crazy? Or do you just stay away from it altogether because you know it’s inaccurate? Maybe it’s a combination of both. The reality is you cannot manage your agency by your bank account and P&L; you must lead and […]
And Now Donald Trump
The views of an expert on leadership and corporate governance By Richard Torrenzano, edited for the Insurance Advocate Let me share with you, first hand, what is happening in America…and try to explain a presidential election that I know baffles many of you. In short: What happened?…How did it happen?…Why did it happen?… What […]
Insurance Companies Have the Right to Limit Coverage in any Manner Desired
Duty to Defend Limited to Time on Risk in Louisiana When a defendant is uninsured for a particular risk and plaintiffs sue for injuries and illness allegedly incurred in periods of time when the defendant was uninsured and some where it was insured, insured sought defense for the entire period while insurer claimed it was […]
Insurer Might Not Have Waived Late Notice Defense Even Though Not Mentioned in Disclaimer Letter
Estee Lauder Inc. v OneBeacon Ins. Group, LLC Edited by Lawrence N. Rogak In a brief decision with a minimum of details, the Court of Appeals holds that an insurance company’s disclaimer which did not cite late notice as a defense, did not automatically waive that defense, because late notice had been cited by the […]
Florida Supreme Court Rules: As Long As Policy Covers Any Cause, Homeowners Insurer Must Cover Loss With Concurrent Causes
American Home Assurance Co. v Sebo, Case number 2D11-4063 The Florida Supreme Court ruled on 12/01/2016 that insurance companies should not deny coverage for property damage just because it had more than one concurrent cause, as long as the policy covers one of the causes. John Sebo sued AHAC after it denied his claim for […]
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2017/ February 13/ Past Issues
Insurance Agency Mergers and Acquisitions in 2016 Second-Highest Recorded, OPTIS Partners’ Report Reveals
Strong sellers’ market continues in United States and Canada CHICAGO—Jan. 30, 2017—Mergers and acquisitions of insurance agencies last year were the second-highest ever in 2016, according to OPTIS Partners’ annual report. The OPTIS database recorded 449 deals in the United States and Canada in 2016, a slight dip from the all-time record of 456 in […]
2017/ February 13/ Past Issues
Increased Fines Against Insurance Producers – Another Bad Idea for New York’s Main Street Businesses
Gov. Andrew Cuomo’s proposed New York State budget includes a plainly misguided addition that must be expunged, if small businesses – thousands of them across the State – are to sustain their viability and continue to serve other local businesses, homeowners and drivers. We refer to a newly minted set of penalty levels that independent […]
2017/ February 13/ Past Issues
The Time is NOW!
The independent agency system is under attack. New competitors fueled by technology and oblivious to the protection needs of the consumer are trying to take over the personal and small-to-medium business market. We see it happening, we’re concerned, but we just aren’t moving quick enough to deal with the threat. Both independent agents and the […]
2017/ February 13/ Past Issues
When Bad Hacks Happen to Good Insurance People
By Chris Moschovitis It started with a friend’s request for help: “Advice please: One of my email accounts has been hacked five times in the last week. I keep changing the password using the complicated passwords that are computer generated and now it seems like I’m getting hacked even more. What can I do to […]
2017/ February 13/ Past Issues
Clear & Unambiguous Policy Language Must Be Enforced
Insurer May Decide What It Wants to Insure This case involves an insurance coverage dispute arising from a wrongful death and products liability claim. Lindsey King (“King”), individually and on behalf of her deceased minor child Peyton Wilt (“Wilt”), appealed the June 26, 2015 judgment of the district court granting summary judgment in favor of […]
2017/ February 13/ Past Issues
Appellate Division Rejects Argument That Driver Was Too Drunk to “Knowingly” Refuse Breathalyzer
Matter of Hickey v New York State Dept. of Motor Vehs. Edited by Lawrence N. Rogak Appealing the revocation of her driver’s license, plaintiff argued that although she refused a Breathalyzer test when police offered it at the hospital, she was in too much of an “altered state” to knowingly refuse. In addition, she argued […]
2017/ February 13/ Past Issues
Why Republicans Should Let ObamaCare Self-Destruct
Suppose you are a surgeon who is called to see a patient who is bleeding from something in his abdomen. You are to consider an exploratory operation to try to find the bleeding point and stop the hemorrhage. The problem is that the patient has widely-metastatic cancer. He has already mostly depleted the blood bank’s […]
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2017/ February 27/ Past Issues
Predictive Analytics: Added Insurance for Insurers in a Volatile Economy
By Jessica Dolezal, Sr., Data Scientist, Prevedere Despite the promise of big data to provide insurance companies with revolutionary insights that will drive business forward, the benefits of such data have proven elusive. In fact, less than 20% of insurers had leveraged or were planning to leverage big data as of 2015. But there is […]
2017/ February 27/ Past Issues
Pretty Huge
One of the early actions taken by the Trump Administration calls for the Department of Labor (DOL) to halt implementation of the Obama Administration’s ridiculous fiduciary rule and to implement a complete re-review of the rule. Trade associations were quick to hail the halt and credit themselves—properly—for getting this in the crosshairs of the President. […]
2017/ February 27/ Past Issues
Murder, Examination Under Oath & the 5th Amendment; Lead Paint Claims and the Pollution Exclusion; Landlords’ Additional Insured Coverage Primary; Small Businesses Need Fiduciary Liability Insurance; Short Takes
Jerry Trupin
Exposures and Coverages
Murder, Examination Under Oath & The 5th Amendment The headline read “Ohio Homeowner Charged With Murder, Arson Declined EUO” (“EUO” is insurance shorthand for “examination under oath”). The story: Lester Parker, co-owner with his wife of a home in Hamilton Ohio, was accused of torching their house and causing the death of a firefighter who […]
2017/ February 27/ Past Issues
Give Your Agency Facebook a Boost
Chris Paradiso
The Social Notebook
When we discuss marketing in today’s world, the first thing that hits my mind is our agency’s efforts to successfully market our products and services in the digital world. Marketing has taken a shift, and a large one, because everyone now has access to the web, whether it’s on their desktop computers or their mobile […]
2017/ February 27/ Past Issues
Does Your Agency Have Employees or Brand Ambassadors?
Insurance is a fantastically fabulous industry. Agents sell a product that everyone must purchase, and there is a defined date to purchase by. For us in the insurance industry, we may feel that what we do is boring, we aren’t valued and all anyone cares about is price. In order to thrive we need to […]
2017/ February 27/ Past Issues
Are You Awake?
Michael Loguercio
Face to Face
So many times, we hear about disasters on the road in the form of motor vehicle accidents. Now although they may truly be “an accident,” they may also have been avoided if someone was paying just a little more attention! Sleepy driving, or “Driving While Drowsy,” has become a tremendous problem in our society. Although […]
2017/ February 27/ Past Issues
IIABNY Denounces Proposal For Increased Fines Against Insurance Producers
1000 percent increase is ‘substantial and unwarranted’ Dewitt, New York, Feb. 9, 2017—A measure in Gov. Andrew Cuomo’s New York State budget proposal could put small insurance agencies out of business, an insurance producer’s trade group said today. The Independent Insurance Agents & Brokers of New York (IIABNY) criticized the proposal as “unwarranted.” The governor’s […]
2017/ February 27/ Past Issues
PIANY Praises Legislation to Protect Coastal Homeowners
Professional Insurance Agents applaud Sen. LaValle for introducing bill January 18, 2017, GLENMONT, N.Y.—The Professional Insurance Agents of New York State commends Sen. Kenneth P. LaValle, R-1, for introducing a bill (S.2062) in the Senate last week to standardize the windstorm triggers for homeowners’ hurricane deductibles throughout the state. PIANY has long sought to address […]
2017/ February 27/ Past Issues
IVANS Enables Distribution, Automated Servicing Via Independent Agencies, MGAs and Insurers
IVANS, a division of Applied Systems, has announced new, innovative capabilities to expand digital distribution and servicing of insurance products throughout the insurance lifecycle. Leveraging its network of more than 30,000 agencies and 380 MGAs and insurers, IVANS’s latest enhancements enable agencies, MGAs and insurers to identify new business opportunities and markets, as well as […]
2017/ February 27/ Past Issues
Impact of PFL on New York’s Small Businesses
By Richard A. White New regulations often inspire focus on the small business community—and for good reason. It’s estimated that as much as one-half of the nation’s private sector labor force is employed by small businesses—those that employ less than 500 people and earn less than $7.5 million in annual revenue.1 As the backbone of […]
2017/ February 27/ Past Issues
HHS Secretary Tom Price and the AAPS
by Alieta Eck, MD Dr. Tom Price, our new Secretary of Health and Human Services, has been accused of belonging to a “conservative, fringe medical group” that “holds positions that are at wide variance with the basics of federal health policy.” Thus says Amy Goldstein of the Washington Post. For example, Dr. Price was heard […]
2017/ February 27/ Past Issues
Clear & Unambiguous Language Not Enough
Latent Ambiguity Trumps Policy Wording Although the law allows an insurer to enter into any contract terms it desires that is agreeable to the insured, seriously injured people and a court’s desire to help the injured person raise a public policy guise to rewrite the language of the policy even after the court found the language […]
2017/ February 27/ Past Issues
Auto Exclusion Applies to Trucker Injured While Unloading Trailer
Country-Wide Ins. Co. v Excelsior Ins. Co. Edited by Lawrence N. Rogak A truck driver was injured while unloading a trailer, when the trailer’s lift gate collapsed. The truck’s owner had a “Trucker’s Policy” from Country-Wide and a general liability policy from Excelsior which had an auto exclusion. Country-Wide defended the truck’s owner, settled the […]
2017/ February 27/ Past Issues
Travel Ban Is Revealing—But Does Not Threaten American Medicine Jane M. Orient, M.D. A 90-day ban on travel from seven countries has sparked tremendous outpourings of “worry” or outright opposition by some 33 medical organizations. “The community is reeling over the order, fearing that it will have devastating repercussions for research and advances in science and medicine,” states an article in Modern Healthcare. Certainly the order is disrupting the lives of individual physicians who have won coveted positions in American medical institutions and were not already in the U.S. when the order was issued. Also their employers have a gap in the work schedule to fill. War tears people’s lives apart, however innocent they may be. And countries that sponsor terrorism have effectively declared war on the U.S. But is American medicine so fragile that it can’t survive a 90-day delay in the arrival of physicians, most of them trainees, from Iran, Iraq, Libya, Syria, Yemen, Somalia, and Sudan? After all, every year more than a thousand seniors in U.S. medical schools do not land a position in a post-graduate training program through the annual computerized “Match” of graduates with internships. After another chance through the Supplemental Offer and Acceptance Program, or SOAP, hundreds of seniors are still without a job. This means that they cannot get a license to practice in the U.S., however desperate rural communities or inner-city hospitals are to find a physician, and their four years of rigorous, costly post-college education are wasted. Yet James Madara, CEO of the American Medical Association (AMA), is worried about vacant residency slots, according to a Feb. 3 article in MedScape by Robert Lowes. Entry to medical school is highly competitive, so presumably all the students are well-qualified. Can it be that graduates from Sudan are better trained? Does the U.S. have so few young people capable of and interested in a medical career that we have to depend on a brain drain from countries that are themselves desperately short of physicians? For all the emphasis on “cultural competence” in American medical schools, and onerous regulations regarding interpreters for non-English speakers, what about familiarity with American culture and ability to communicate effectively with American English speakers? Some foreign-born graduates are doubtless excellent, but many American patients do complain about a communication gap. So why do some big institutions seem to prefer foreigners? Could it be that they want cheap, and above all compliant labor? Physicians here on an employment-related visa dare not object to hospital policy. Whatever the reasons for them, here are some facts about the American medical work force: One-fourth of practicing physicians in this country are international medical graduates (IMGs), who are more likely to work in underserved areas, especially in primary care, according to Madara. According to the Accreditation Council for Graduate Medical Education (ACGME), 10,000 IMGs licensed in the United States graduated from medical schools in the seven countries affected by the ban. Immigrants account for 28% of U.S. physicians and surgeons, 40% of medical scientists in manufacturing research and development, and 15% of registered nurses, according to the Institute for Immigration Research at George Mason University. More than 60,000 of the 14 million workers in health-related fields were from the seven countries affected by the ban. Is medicine, like agriculture, now filled with “jobs that Americans won’t do”? Actually, we have more than enough Americans who love medical work. But some of the best doctors are being driven out by endless bureaucratic requirements, including costly “Maintenance of Certification™” programs that line the pockets of self-accredited “experts” but contribute nothing to patient care. They are being replaced (substituted for) by “mid-levels” with far less training. Then there are thousands of independent physicians having to retire or become employees because they can’t afford the regulatory requirements—soon to be greatly worsened by MACRA, the new Medicare payment system. Physician “burnout” is becoming so bad that we lose up to 400 physicians—the equivalent of a large medical school class—to suicide every year. The U.S. should be a beacon to attract the best and brightest, and it should welcome those who want to become Americans. Unfortunately, the lives of Americans, as well as the opportunities of aspiring foreign-born doctors, are threatened by those who desire to kill Americans and destroy our culture. These must be screened out. Meanwhile, the reaction of organized medical groups to the travel ban is spotlighting serious problems in American medicine.
A 90-day ban on travel from seven countries has sparked tremendous outpourings of “worry” or outright opposition by some 33 medical organizations. “The community is reeling over the order, fearing that it will have devastating repercussions for research and advances in science and medicine,” states an article in Modern Healthcare. Certainly the order is disrupting […]
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Bad Laws/Bad Actors—Part II
When a corporation doing business across many states runs into significant financial difficulty, it has two principal courses of action available under the US bankruptcy laws: reorganize or be liquidated. In either case, the Bankruptcy Court oversees the process with all affected parties being represented. Management itself may seek reorganization, but any plan has to […]
Say It: Optimism Is Rising
“Hope Springs Eternal in the Human Breast; Man never is, but always to be blessed.” Alexander Pope had it right, if you follow the results of a survey produced by a college survey institution whose Optimism Index™ shows that Americans are increasingly optimistic, amid concerns over leadership and progress. The Fishlinger Center for Public Policy […]
For Your Eyes Only
Strange title? Not really. This article isn’t for everybody. If you don’t realize your business is in jeopardy or don’t care, this article isn’t for you. If you don’t see any reason to change the way you have been operating for the past 10 years, this article isn’t for you. If you think social media […]
Four “Must-Haves” for Agency Websites
Chris Paradiso
The Social Notebook
Time and time again, I see agents and brokers from all around the U.S. and Canada who have not spent quite enough time on their agency website. What do I mean exactly? Well, I do see the rare case where an agency doesn’t have a website at all, and believe me that’s a huge problem. […]
Electronic Cigarette & Vape Shops
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor The sale of electronic cigarettes and personal vaporizing devices, currently a $1.5 billion industry, is growing at a rapid rate, estimated to be 25% per year (www.fortune.com). Reuters reports that about 10% of adults now vape and that, in the United […]
The Oath of Hypocrisy—and the Politicians’ “Disease”
By Marilyn M. Singleton, M.D., J.D. As a physician, I proudly recited and adhere to the Oath of Hippocrates, which commands physicians to “use treatment to help the sick according to [their] ability and judgment…and [to] abstain from all intentional wrong-doing and harm.” Physicians don’t all think alike—medically or politically—but when a patient’s health is […]
NAIFA-NYS – A Strong, Effective Voice in Albany
Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve conditions within his sphere. – Theodore Roosevelt Not long after TR spoke those words, a group […]
PIANJ Presents $5K John Laux Memorial Scholarship To Member Agency Family
John Laux Memorial scholarship will foster industry perpetuation Trenton, N.J.—The Professional Insurance Agents of New Jersey, in conjunction with The Fore John Memorial Foundation, is announcing a new $5,000 scholarship in honor of the late John Laux to be presented to the child or grandchild of a PIA member agency entering college in 2017. The […]
Largest Insurance Convention in the State on the Horizon
HARTFORD, Conn.—The Professional Insurance Agents of Connecticut’s Annual Convention, the largest industry networking and education event in the state of Connecticut, will be held at Foxwoods Resort Casino Mashantucket, March 9-10. “The PIACT Annual Convention is the must-attend event of the year for all industry professionals throughout the region,” said PIACT President Loretta Lesko, CIC. […]
Effectively Defending Adversarial Actions Brought Against Former D&Os in Bankruptcy Court
By Eric A. Kuwana and Sarah Downey (Reprinted with permission) For many litigants, the decision whether to prosecute or defend a lawsuit vigorously boils down to a rather basic calculus: What are my chances of success? What is the potential recovery or loss? Is this a “bet the company” litigation? And, how much will […]
Conviction for Health Care Fraud Upheld
It is a Crime to Cheat Insurers The government’s case against Theresa Fisher was strong, predicated in part on the following evidence: testimony by five witnesses who claimed to have been coached by Fisher; testimony by a co-conspirator that both she and Fisher were pressured to bring in patients for insurance-covered procedures; forged doctors’ notes […]
Insurer Might Be Liable for Negligence of Contractors It Hires to Make Repairs; Two-Year Limitation Does Not Apply
Bennett v State Farm Fire & Cas. Co. Edited by Lawrence N. Rogak Plaintiffs had a homeowner’s policy from State Farm. After an oil spill on their property, State Farm hired an engineer and a contractor to clean it up. Plaintiffs alleged that the contractors caused additional damage, and sued State Farm for negligence. State […]
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Up in Smoke…The Cost of Legalized Marijuana to Homeowners
Sean Maher is the co-founder of Swyfft, a platform that uses multi-patented big data and analytics to uncover accurate home insurance policies. A hash lab exploded and fire spread through the apartment in midtown Ventura last month. The blaze started in the kitchen when the butane ignited in the second-story flat. A similar incident in […]
Five Regulations That Need to Change
The administration is undoing regulations at a good clip. The clip and the clipping need to move quickly while the momentum is there. Rob Wilson, President of Employco USA and an employment trends expert has communicated some valid points along these very lines: recent employment numbers have cheered Americans with 235,000 new jobs added in February […]
Coming To You From….
Do you know where I am writing this article from? I could be writing it from my office at IIABNY. Maybe I’m doing it from my home office. I like to spend time at Starbucks drinking coffee and writing, so maybe it was written there. I love visiting Vermont, so for all you know I’m […]
The Time is Now for New York to Join the Interstate Insurance Product Regulation Compact
By Mary A. Griffin, President and CEO of the Life Insurance Council of New York Life insurers offer a wide array of products, including many designed to provide financial security to people who are planning for retirement. In today’s rapidly evolving world, life companies are continuously working to bring new products to the marketplace. To […]
Get the Lead Out
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Lead poisoning is a serious health hazard, especially for young children. Helping clients understand the hazards of, and their possible liability for, injuries from lead poisoning is another value-added service of the professional insurance agent. The most common sources of lead […]
ObamaCare Repeal vs. Reality
The attempt by House Speaker Paul Ryan and other powerful Republicans to “repeal and replace” the Affordable Care Act (ACA or “ObamaCare”) has run into a buzz saw of opposition from both sides. Most proponents of the American Health Care Act (AHCA) concede that the Act is “not perfect.” But there is “political reality” to […]
Instantly Grow Your Instagram
Chris Paradiso
The Social Notebook
Instagram has become a huge element of branding in the digital marketing arena in the past years, therefore it’s critical to take advantage of advertising using sponsored content on this social media network. Sponsored content falls into three categories on Instagram: photo, video, and carousel. Photo advertisements are the traditional still images that Instagram is […]
ISO Launches Market Landscape
ISO announced the launch of ISO Market Landscape(TM), an interactive dashboard that allows insurance professionals across disciplines to visualize and benchmark their company’s results with one of the largest property/casualty insurance databases in the world. ISO is a Verisk Analytics (Nasdaq:VRSK) business. ISO Market Landscape uses data visualization to benchmark insurer performance and identify specific […]
PIANY to Present LIRAP Distinguished Insurance Service Award to Keep
GLENMONT, N.Y.—The Professional Insurance Agents of New York State Inc. will present Johanna Keep, senior vice president of personal lines for CMS, LLC with its Distinguished Insurance Service award at the 42nd Annual Long Island Regional Awareness Program, April 26, 2017. The event will be held at Crest Hollow Country Club in Woodbury, N.Y. […]
ObamaCare Subsidies Rob the Middle Class
by Alieta Eck, MD As the controversy rages between those Republicans who want full repeal and those who want to retain what might be “good” about ObamaCare, we are not asking the right questions. While they are arguing whether or not to keep the ObamaCare subsidies (or the equivalent as “tax credits”), is anyone asking […]
Top 10 Causes of Liability Losses Include Bedbugs, Crashes and Defective Products
Not only are liability losses increasing but they are getting more expensive, particularly in relation to global product recalls, corporate liability, cyber and environmental incidents, according to a new report by Allianz Global Corporate & Specialty (AGCS). Global Claims Review: Liability in Focus identifies defective product or work, crash and human error incidents as the […]
Pay Before Accident to Reinstate Cancelled Policy; No Excuse for Failure to Timely Pay Premium
Insurance premiums are hard to pay. Anyone who owns a car would prefer to only pay insurance premiums until after they have a loss so that they can collect and pass the expense on to the insurer. That, of course, defeats the purpose of insurance to spread the risk to all insureds. When insurers issue […]
Insurer Waits Until After Traverse Hearing to Issue Disclaimer Based on Failure to Cooperate; Too Late, Court Holds
Batista v Global Liberty Ins. Co. of N.Y. Edited by Lawrence N. Rogak A liability insurer issued a disclaimer three years after learning of the occurrence, and a year after receiving a default judgment against the insured. The insurer assigned counsel to represent the insured at a traverse hearing to challenge the validity of service […]
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D.C. or Not D.C.? That is the Question.
State Regulatory System Defended by PCI as House Hears Viewpoints The insurance industry again has its periodic task at hand, i.e., the defense of state regulation. The House seems to be getting the point, having just held a hearing entitled “A Legislative Proposal to Create Hope and Opportunity for Investors, Consumers, and Entrepreneurs,” which itself […]
Winners’ Circle … and Then Some
When Always Dreaming crossed the finish line first to win the Kentucky Derby convincingly, he carried more than a talented jockey with him. The horse’s owners, joined together as Brooklyn Boys with a formidable stable of race horses, are two wealthy men well known in New York: Vincent Viola, recently offered the post of Secretary of […]
Independence Requires Expertise
Technology…it’s invaded nearly every aspect of our lives today. It’s almost impossible to function without it. Did anyone ever dream the time would come where you would actually take time off to avoid using technology? There is no business more affected by technology than insurance. It’s changing the way we operate our business. It’s creating […]
Catching Fire with your Content
Chris Paradiso
The Social Notebook
What exactly do we mean by “catching fire” in terms of your agency’s digital content marketing? Well, simply put, to get more visibility in the social world, your agency is going to need shares, and a lot of them. So the million-dollar question is this: how can you get more people to share more of […]
IIABNY Heads Off Draconian Penalty Increases in State Budget
Budget agreement also includes IIABNY-supported ride-sharing measures Dewitt, New York—Thanks to the efforts of the Independent Insurance Agents & Brokers of New York (IIABNY), insurance producers have been spared drastically larger penalties for violating the state’s insurance law. The state budget the New York Legislature adopted over the weekend dropped the governor’s proposal for increased […]
Home Appliances — Helps or Hazards?
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Home appliances have drastically changed how people live over the last century. They are great time savers and convenience items, as well as providing entertainment. However, these gadgets and products that are meant to make life easier are also responsible for […]
A Simple American Solution for Today’s Government-Caused Health Care Crisis
Where words are many, sin is not wanting.” Proverbs 19:10 By: Dr. W. Scott Magill, Executive Director, ViDoL, USMC/USArmy-Med.Corps The 2016 platform to repeal the worst healthcare law in American history resulted in one-party control of executive and legislative branches of the federal government in 2017. But voters soon re-learned that campaign promises are simple […]
PIACT Offers Testimony in Support of TNC Legislation, Voices Reservations about the Current Proposal
HARTFORD, Conn.—In testimony before the state Senate Insurance & Real Estate Committee on April 18, Professional Insurance Agents of Connecticut President Kenneth A. Distel offered testimony supporting legislation that would create comprehensive legislation for transportation network companies. However, Distel noted the association’s concerns with insurance gaps that would be created by H.B.7126 to establish insurance […]
Qui Tam Action Takes the Profit Out of Fraud
Judgment In Favor of Qui Tam Plaintiff Insurer Can Be Enforced In California an insurer can, on its own behalf and on behalf of itself and the state, bring a qui tam action. When the state does not join in the action the insurer may try the action alone. In People ex rel. Allstate Insurance […]
Storm in Progress Defense Applies Even if Temperatures Warmed Up at Time of Accident
Sherman v New York State Thruway Authority Edited by Lawrence N. Rogak Plaintiff slipped and fell on a patch of ice the morning after an ice storm, when the temperatures had risen above freezing but a light intermittent rain was falling. The Court of Appeals holds that the “storm in progress” rule is a complete […]
Mitigating Cyber Risks for the Insurance Industry with the Right Security Controls
By: Chris Moschovitis, CEO, tmg-emedia It is no secret that cyber security risks add complexities that often restrict the process of seamlessly carrying out business transactions. Firms and institutions in the insurance industry need solutions that ensure confidentiality, availability, and integrity of sensitive data to avert significant damages to their business. However, companies should never […]
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Editorial: “Measurement Began Our Might….”
Steve Acunto
Cover Story, Foreword
When poet William Butler Yeats wrote these words, he was not thinking of insurance underwriting standards for sure. But his line does apply to the essence of the stability and viability of insuring, especially in the face of increasingly intrusive concepts from governments turned activists and activists who’d love to be the government. A proposal […]
How Do You Get Rich?
Readers of this column know I am a proud family man. My twin grandsons are entering college in the fall and we could not be more delighted. They are an endless source of pride and an equally great source of stories. Recently, one of my grandsons asked me, “Grandpa, how do you get rich?” I […]
Insurable Interest—It’s Not Just Theory; Authorized Rep Steals $5.2 Mil—Firm “Fully Insured” But Collects Zero; After 40 Years in the Desert, Norman Rockwell Painting Returns; Vacancy and Ambiguity—A Bad Mix
Jerry Trupin
Exposures and Coverages
Insurable Interest, It’s Not Just Theory Insurable Interest is not just a topic in Insurance 101. You cope with it every time you specify the named insured for a property policy. Insurable interest means the insured has to have some skin in the game. It doesn’t mean the insured has to be the absolute owner. […]
GGA Emerges as Generali Expands Market Presence in North America
Chris Carnicelli is on a mission. CSA Travel Protection, a leading provider of travel insurance, is now Generali Global Assistance. This corporate initiative is part of a broader organizational program to rebrand several Europ Assistance business lines in the United States to Generali Global Assistance. Europ Assistance is part of the Generali Group, one of […]
Over Half of Agents Have Never Had Sales Training
Yes, you are hearing it straight from us—52% of insurance agents have never had any sales training. So if part of becoming an agent is the ability to sell insurance, where did we go wrong? Sales is an art form. There are people naturally born to be salespeople, but the rest of us have to […]
Universal Coverage Means Less Care
By: Jane M. Orient, M.D. The reported success of the Affordable Care Act (ACA or ObamaCare) is based on enrollment numbers. Millions more have “coverage.” Similarly, the predicted disasters from repeal have to do with loss of coverage. Tens of thousands of deaths will allegedly follow. Activists urge shipping repeal victims’ ashes to Congress—possibly illegal […]
Facebook Cannot Appeal Grant of Warrant to Search User’s Account, Holds Court of Appeals
Matter of 381 Search Warrants Directed to Facebook, Inc. Edited by Lawrence N. Rogak In a novel ruling affecting internet privacy, New York’s top court holds that Facebook cannot appeal a court’s search warrant in a criminal case—issued under the federal Stored Communications Act–which compelled Facebook to grant prosecutors complete access to certain users’ accounts. […]
Merchants Awarded “Brand Champion” by IIABNY
Gina Marie Balog-Sartario
In The News
BUFFALO, NY—Merchants Insurance Group is proud to announce they have been named the 2017 Independent Agents Brand Champion by the Independent Insurance Agents & Brokers of New York (IIABNY). The award was given to Merchants “for excellence in the support and promotion of the Independent Agent brand.” Merchants was chosen for this award by a […]
Berkshire Hathaway GUARD Adds Commercial Auto Insurance in New York
Gina Marie Balog-Sartario
In The News
WILKES-BARRE, PA—Berkshire Hathaway GUARD Insurance Companies recently began offering Commercial Auto coverage in New York. The product can be written on a stand-alone basis or together with other complementary lines. The policy is aimed at accommodating the needs of a broad audience, including artisan contractors, repair and service operations, delivery and distributor classes, vehicles associated […]
Arson-for-Profit Fails—Life in Prison Without Parole
Stupid and Vicious Attempt at Insurance Fraud Fails I have reported often that arson-for-profit is the most dangerous, deadly, and stupid way to steal money from insurance companies, because there is always evidence left after the fire and people are killed and injured as a result of the set fire. When the criminals are stupid, […]
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Cyber Risk Beyond Compliance
Aspirin, Antibiotics, Surgery or Real Prevention and Cyber Health? By: Stephen M. Soble and Jack Dufrene ********************* The risks are ponderous, the exposures beyond most calculation, and the responsibility unrelenting. With the advent of Cyber compliance regs, the insurance industry faces baseline standards and a host of off-the-shelf solutions to deal with the pain, but […]
Eternal Rest
The eternal matter of fair compensation to agents and brokers placing business in the NYSIF may be laid to eternal rest if the “second floor,” legislators and regulators listen to the agents’ groups who have eternally pleaded for this measure of fairness. PIANY has just amended legislation to include a requirement for the New York […]
Interpersonal Customer Experiences via Video
Chris Paradiso
The Social Notebook
Have you ever had a difficult time communicating the details of a policy with a customer remotely? Well, technology is always evolving, and now there is a free and easy-to-implement tool that can transform the customer experience through the use of video. It sounds too good to be true, right? Well, this is the real […]
Top 20 Things to Know About NY Paid Family Leave
By Richard A. White We’ve spent the last few weeks combing through Paid Family Leave draft regulations to pull out the most important information, so you don’t have to. Here are your absolute must-knows based on the drafts: NY PFL is one of the most comprehensive paid family leave programs in the country. All New […]
Telematics and Usage-Based Insurance
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor In the George Orwell book, 1984, the overriding theme was “Big Brother is Watching.” With telematics, science fiction is now closer to reality. Telematics is the branch of information technology that deals with sending and receiving information, as well as effecting […]
Déjà Vu (All Over Again)
The NAIC held its 11th Annual International Forum in Washington, D.C. on May 15-16, 2017. The NAIC Press Release issued post-forum states as follows: “The two-day forum included more than 300 regulators and insurers from 20 jurisdictions representing more than 70 percent of global insurance premium.” While there were certainly late arrivals, i.e., too late […]
TriCounty IIAA Installs Officers and Directors for 2017-2018 Term
Gina Marie Balog-Sartario
In The Associations
Awards and scholarship announcements accompanied the evening’s activities May 18, 2017, Albertson, New York—New officers and directors took the helm on May 17 during the Long Island-based TriCounty Independent Insurance Agents Association annual installation dinner and awards ceremony. The gathering, held at Chateau Briand in Carle Place, NY, set the TriCounty leadership for the 2017 through […]
PIACT Lauds House Passage of Amended TNC Bill that Removes Coverage Gaps
Gina Marie Balog-Sartario
In The Associations
May 17, 2017, HARTFORD, Conn.—The Professional Insurance Agents of Connecticut commends the state House for passing H.B.7126, which has been amended to remove insurance coverage gaps that existed in the original bill. The amended bill passed the House [last Thursday] and has been sent to the Senate for consideration. PIACT President Kenneth A. Distel offered […]
Construction Worker’s Slip and Fall on Wet Temporary Staircase is not Enough for Summary Judgment
O’Brien v Port Auth. of N.Y. & N.J. Edited by Lawrence N. Rogak In this Labor Law case, a construction worker slipped and fell on a metal temporary staircase that was wet from the rain. The Court of Appeals held that the fact that a worker falls at a construction site, by itself, is not enough […]
Agent Should Explain Effect of Coinsurance
Promise of Coverage Without Explanation of Coinsurance Can Be Fatal To Insurance Agent No one seems willing to read the insurance policy they purchased. When they have a loss and the failure to read the policy costs the insured money, he, she or it will always sue the insurance company and the insurance agent. Often, […]
Repair or Replacement Cost as a Measure of Indemnity in New York
By Jennifer van Voorhis, Esq. Recently we received a request from a reader inquiring as to who has the responsibility to determine whether a sustained covered loss to a dwelling can be repaired or must be replaced. We always urge a thorough reading of the policy first, in order to determine what coverages exist, but […]
2016
2016 Issues - Click to View
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Pants on Fire!
Courtroom Drama as Judge Calls IME Doctor a “Liar,” Sanctions Attorneys, Threatens Criminal Prosecution Appellate Court Clears Doctor Bermejo v New York City Health & Hosps. Corp. 2015 NY Slip Op 08374 Decided on November 18, 2015 Appellate Division, Second Department At a personal injury trial, it came out during the cross-examination of the IME […]
Now I Know What That Means
As a new year’s gift to readers, note our redesign – not radical, but quite clean and easy to read. Compliments to Gina Balog for executing this. Our web presence has become greatly enhanced as well, for which we thank Claudia Palmira and her team. We have had a good run and will be adding […]
The Multiple Faces of Transparency
In December, Governor Cuomo vetoed two bills intended by their sponsors to strengthen New York’s freedom of information law, or FOIL. In his veto message the Governor stated: “While I appreciate the Legislature’s attempt to further transparency in government, these bills provide an unworkable, inequitable, and piecemeal approach to FOIL reform.” Sounds like the legislation […]
An Important Resolution for 2016
If I had one wish for 2016, it would be that independent agents make a resolution to better communicate their value. It seems like a simple thing but is actually quite involved and touches every aspect of their business. I say communicate instead of advertise or market because today’s consumer, especially millennials, don’t want to […]
Achieving the Right Balance…
Chris Paradiso
The Social Notebook
As more insurance agencies start to undergo a digital transformation, we will see an influx of money pouring into digital technologies. The aim is to somehow get like-minded with our insurance buyers and keep our agency in front of our clients. It can be intimidating for most agencies starting out in the digital marketing world. […]
McFadden is PIANY’s MetroRAP Industry Professional of the Year
GLENMONT, N.Y.—The Professional Insurance Agents of New York State (PIANY) will present Renee McFadden of Distinguished Programs with its Industry Professional of the Year award at the annual Metropolitan Regional Awareness Program. The event is being held at a new location—The Roosevelt Hotel on Thursday, Jan. 28. This award recognizes an individual from an insurance company, […]
Melchionni Honored By City & State Reports
ALBANY, N.Y., Dec. 22, 2015—Ellen Melchionni, president of the New York Insurance Association (NYIA), was selected as one of City & State Reports’ Responsible 100. Melchionni was honored at the inaugural Responsible 100 gala on Dec. 15, 2015 in New York, N.Y. The Responsible 100 honors New York’s 100 most outstanding corporate citizens across all […]
IFNY Elects Officers and Directors for 2016
New York, N.Y.,–The Insurance Federation of New York, Inc. (IFNY) has announced the election of its 2016 Board of Officers and Directors. IFNY, now in its 102nd year, is noted for its prestigious Annual Free Enterprise Award given to business leaders whose significant achievements embody the spirit of American free enterprise. The latest honoree was […]
Accident Must “Arise out of” the Use of Auto — Nexus to Injury Required
Automobile insurance is, by definition, limited to actions or events causing bodily injury or property damage arising out of or as a result of the operation, use, loading or unloading of a vehicle. It is not enough to find coverage that a vehicle was close to the site where the injury occurred and might have […]
Unsigned Peer Report In Motion Papers Is “Cured” By Signed Copy In Reply Papers
Appeal from an order of the Civil Court of the City of New York, Kings County (Johnny Lee Baynes, J.), entered August 12, 2010. The order denied defendant’s motion for summary judgment dismissing the complaint and granted plaintiff’s cross motion for summary judgment. ORDERED that the order is reversed, with $30 costs, defendant’s motion for […]
Who Has Constitutional Rights? Trump Raises the Question
Donald Trump’s suggestion to exclude Muslims from the U.S. has been called unconstitutional as well as offensive to many. Elected officials swear an oath to “preserve, protect and defend the Constitution of the United States.” But do they know what is in it? One thing that is not in it is the poem by Emma […]
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Bye-Bye Boomers, Hello Digital Natives
A look at who will be who in the insurance business over the years ahead Applied Systems and InVEST Release First-of-Its-Kind Report on Generation Z’s Expectations of the Insurance Industry University Park, Ill. – Applied Systems and InVEST today released a first-of-its-kind report that provides insight into Generation Z’s (Gen Z) view of the insurance […]
Waldorf Salad with Peppery Condiments
At the 20th annual Property/Casualty (P/C) Insurance Joint Industry Forum, held last week at the Waldorf, insurance leaders assured attendees that they have adapted successfully to the evolving risks brought about by dramatic technological changes. The Forum’s Experts Panel: A View from the Outside Looking In, was chaired by Charles M. Chamness, president & […]
Unhealthy Plans
On the first day of the new session of the NY State Legislature, the Senate Insurance and Health committees held a joint forum on the failure of Health Republic Insurance Company of New York, the largest of the non-profit health insurance exchanges created under the Affordable Care Act. State regulators shut down Health Republic last […]
Late Notice Problems are a Thing of the Past, Right? Wrong! ; More on Cyber Scams; ISO Tackles Airbnb, VRBO and Other Home-Sharing Services; Short Takes on Significant Topics: Loss Payee Clauses and Large Losses
Jerry Trupin
Exposures and Coverages
Late Notice Problems Are a Thing of the Past, Right? Wrong! In 2008, New York amended its insurance law to require an insurer to show prejudice before denying coverage for a liability claim when the declination is based on the insured’s late reporting of the occurrence. It’s common to say that New York’s late […]
Insurance Agency Websites Done Right
Chris Paradiso
The Social Notebook
This should be a well-known fact by now, but your insurance agency’s website is in place for one key purpose: to successfully market your agency in the digital world. Your website shouldn’t just be a templated presence or simple landing page, but instead should be a marketing powerhouse that leverages your brand, highlights your insurance […]
Gov. Cuomo Nominates Maria Vullo as Superintendent of NYDFS
Governor Andrew M. Cuomo today nominated Maria T. Vullo to serve as the Superintendent of the New York State Department of Financial Services. Ms. Vullo is an experienced senior litigator and manager, with more than 25 years of practice in business litigation and investigations. She is of counsel at Paul, Weiss, Rifkind, Wharton & Garrison […]
Setting Your 2016 Vision, Goal and Strategy
By: Kelly Donahue-Piro, Owner Agency Performance Partners We are here, it’s officially 2016! Time flies. It’s time to get serious about insurance agency goal setting and where you want your agency to go in 2016. If you don’t have a plan then you need to shake down the person who does! No matter if you […]
How to Lose an Insurance Coverage Case
Insured Has Burden to Establish Coverage Making a claim is not sufficient. It is the obligation of the insured first to establish that there is coverage for the loss that is the subject of the claim. It is never automatic that the insured, by simply presenting a claim, shifts the burden to the insurer. In […]
Coffey Elected Chair of New York Insurance Association
ALBANY, N.Y., Jan. 4, 2016—Steven J. Coffey, president and chief executive officer of Broome Co-operative Insurance Company (BCIC), was elected chair of the New York Insurance Association (NYIA) at the association’s Annual Meeting on Nov. 10, 2015 in Latham, N.Y. Coffey is serving a one-year term that began Jan. 1, 2016. Coffey has served on […]
Starting the New Year Right
I hope everyone had a good holiday season. I had one of ups and downs. At the beginning of the season, we needed to replace our air conditioning unit, so we called an HVAC contractor. Several men came, replaced the broken AC and tested the air ducts to make sure the correct flow took place. […]
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Taking Cover: How an Insurance Shortfall Leaves the Energy Sector Exposed
By Nick Dussuyer, Global Head of Natural Resources Industry, Willis Towers Watson Reprinted with the permission of Willis Towers Watson – http://www.willis.com/Documents/Publications/Industries/Energy/Taking_Cover_whitepaper.pdf Today’s energy companies face higher risks than ever, and many of today’s insurers have more capacity than ever and a hunger for new business. So why do so many energy companies still find it […]
Foreword
In Governor Cuomo’s State of the State Address and Executive Budget, the Independent Insurance Agents and Brokers of New York (IIABNY) found “there were no clear surprises in his proposed spending plan for 2016-2017” and noted that several insurance-related issues found their way into the rather lengthy document, notably a proposal that would expand the use […]
Off To Market
Michael Loguercio
Face to Face
As an agency owner, at what point do you decide that your firm is large enough to use technology to attract new business, and therefore you consider choosing to engage in the services of an internet marketing firm? Is it when you reach a certain premium volume? Or perhaps when you achieve a pre-determined number […]
The TriCounty Independent Insurance Agents Association donates $10,000 to the Ronald McDonald House of Long Island
Members of the TriCounty Board of Directors recently presented a check for $10,000 to the Ronald McDonald House of Long Island. The check represented proceeds from the TriCounty ‘Cabaret’ post-holiday party held on January 11th at K-Pacho Restaurant in New Hyde Park, New York. Peter Phillips, President of TriCounty said: “We were so impressed with the […]
Providing an Outstanding Customer Experience
Chris Paradiso
The Social Notebook
In today’s complex marketing age, “customer service” no longer exists. Yes, you heard me right. Customer service is out the window. There’s a good reason for that. It’s because the “customer experience” has now fully taken over the playing field. Companies used to compete to see who had the best customer service, but there’s so […]
Meet the Met
By: Martin Carus On January 12, 2016, MetLife issued a press release describing a proposed break-up of the company into two distinct parts: (i) US “retail business” (for the most part and excluding business in force) and (ii) other business. The former is what is to be embedded into a new company. Note that this […]
A Tale of Two Businesses
When I was very young many, many years ago there was a cartoon called the Rocky and Bullwinkle Show about a flying squirrel and a moose. There was a segment on the show called Aesop & Son patterned after Aesop’s Fables, which were fictional stories that had a truth built into them and ended with […]
Claim for Coverage for Consequential Property Losses
The original version of the California Code of Regulations, Section 2695.9. Additional Standards Applicable to Fire and Extended Coverage Type Policies with Replacement Cost Coverage provided: (a) When a loss requires repair or replacement of an item or part, (b) any consequential physical damage incurred in making the repair or replacement not otherwise excluded by the […]
Can Slip and Fall on Alleged “Old Ice” Defeat Summary Judgment Motion?
Burniston v Ranric Enters. Corp. The “Storm In Progress” rule holds that a property owner may not be liable for a slip and fall accident when rain, snow or ice is falling at the time of the accident, or that not enough time elapsed between the end of the storm and the accident in order […]
“Repeal and Replace”? No Thanks
By: G. Keith Smith, M.D. – http://SurgeryCenterOK.com Republicans are being urged to “repeal and replace” Obamacare (the so-called Affordable Care Act). No thanks. If you think O’Connellcare will be better than Obamacare, I would ask you to think again. If we are unlucky enough to experience the Republican version of Obamacare, I predict we’ll soon […]
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2016/ February 29/ Past Issues
Good Drivers Pay More for Basic Auto Insurance if They Rent Rather Than Own Their Home
Around the Nation, Most Major Auto Insurers Penalize Renters Despite Perfect Driving Records; Consumer Group Calls for Changes Washington, D.C. – Major auto insurance companies charge good drivers as much as 47 percent more for basic liability auto insurance if they don’t own their home, according to a new analysis of premiums by the nonprofit […]
2016/ February 29/ Past Issues
CFA Auto Insurance Study Shows a Highly Competitive Auto Insurance Market
CHICAGO, IL – The following statement by the Property Casualty Insurers Association of America (PCI) is in response to the recent study by the Consumer Federation of America (CFA) in auto insurance rating. The following statement can be attributed to David Snyder, PCI’s vice president of policy development and research. “It’s important for consumers to […]
2016/ February 29/ Past Issues
Making the Case for the Industry
In 1984, a small band of insurance communications professionals gathered in Phoenix for what we called the Insurance Communications Summit. I was a panelist, along with the likes of Sam Friedman, George Nordhaus, Ron Vinson and many others who, for the first time, were coming to the understanding that we actually had a shared mission […]
2016/ February 29/ Past Issues
Transparency or Tyranny?
Sometimes rules that are created to address a real problem have unintended consequences. Such is the case with New York’s Joint Commission on Public Ethics, widely known as “JCOPE.” Late in January, JCOPE voted for an advisory opinion to expand the definition of lobbying to include communications between public relations firms and journalists. So, if […]
2016/ February 29/ Past Issues
Insuring Electronic Data Losses — Time Limit to Start Suit
Jerry Trupin
Exposures and Coverages
Googling for a discussion of dependence on electronic data, I found this in, of all places, Popular Mechanics. “Vehicles are increasingly behaving like computers with wheels…In the past we would have called it the electrical system, but its mission has evolved way beyond simply moving dumb electrons. Collectively, these electronics are known as the Controller […]
2016/ February 29/ Past Issues
The Power of Response in the Social World
Chris Paradiso
The Social Notebook
I can’t stress enough how important social media engagement is for your insurance agency’s digital marketing strategy. There are many social media platforms you can use to broadcast messages. Facebook, Twitter, and Pinterest are among the most valuable. But if you want to attract and build a following that will help you and your insurance […]
2016/ February 29/ Past Issues
LICONY Celebrates its 48th Year
The LICONY 48th Anniversary Celebration Reception was held on Thursday, February 4, 2016 at the Mutual of America Headquarters on Park Avenue in New York City. The 160 in attendance represented LICONY membership; the New York Senate and Assembly; the NYS Department of Financial Services; other trade organizations; and industry friends.
2016/ February 29/ Past Issues
Missouri General Insurance Agency Selects Applied Epic as Digital Foundation for Business Growth
Missouri General Insurance Agency has selected Applied Epic to serve as their digital foundation to manage business growth for their property and casualty and benefits books of business. Applied Epic will also enable Missouri General Insurance Agency to manage their sales pipeline, forecast sales growth, and quickly identify cross and upsell opportunities via a single […]
2016/ February 29/ Past Issues
ACT and AUGIE Launch Insurance Digital Revolution Campaign to Advance Technology Adoption
The Agents’ Council for Technology (ACT) and the ACORD-User Groups Information Exchange (AUGIE) have announced a joint initiative, the Insurance Digital Revolution (IDR). The objective of the IDR is to drive adoption of digital tools that help agents, carriers and MGAs better serve their clients. This new industry advocacy program will build awareness of digital […]
2016/ February 29/ Past Issues
Veterans and The Insurance Industry: A Mission to Make a Difference
By: Merry Korn, Founder and CEO, Pearl Interactive Network At Pearl Interactive Network, we are proud that our company’s growth benefits a mission beyond our own. While our achievements are undoubtedly positive from a business standpoint, they also mean that more and more unemployed veterans are finding work. The staffing solutions world is uniquely satisfying […]
2016/ February 29/ Past Issues
It’s the Insured’s Fault
The Duty of an Insurance Producer is Limited in Illinois In the news today it appears clear that no one is willing to take responsibility for his or her own acts. If something goes wrong, if someone loses money, if a building is damaged, if insurance does not cover a loss, it’s someone else’s fault. […]
2016/ February 29/ Past Issues
Assault And Battery Exclusion Applies Where All Allegations Arise Out Of An Assault
Amato v National Specialty Ins. Co. In this declaratory judgment action, a plaintiff who was allegedly injured in an assault by an intoxicated restaurant patron sought an order declaring that the restaurant’s insurers had a duty to defend and indemnify the restaurant. Supreme Court ruled in favor of the insurers, and the Appellate Division affirmed, […]
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J.D. POWER: Soft Market Drives HO Claimant Satisfaction Down
Amica Mutual Ranks Highest in Overall Satisfaction among Homeowners Insurance Claimants For the first time in five years, customer satisfaction among homeowners filing a property claim has slipped, largely driven by declines in satisfaction with the total settlement and service interactions, according to the J.D. Power 2016 U.S. Property Claims Satisfaction Study(SM) just released. The […]
Deserving Credit
“The evil that men do lives after them, the good is oft interred with their bones.” Julius Caesar, Shakespeare Shakespeare’s quote applies to the insurance industry in the public and the media’s eyes all too often. So I thought that a few recent items point to “credit deserved” by insurance people. Leonard Scioscia has been […]
One for the Road
Michael Loguercio
Face to Face
So often we hear about “Driving While Impaired” (DWI), referring to how prevalent it has become, the injuries and deaths that are attributed to those who commit this act and the impact that it has on the offender’s life, the third party who may be involved, their families, and of course insurance. Although DWI (by […]
Email Marketing For the Independent Insurance Agent
Chris Paradiso
The Social Notebook
Email is a great marketing tool that’s been used for years now. But email marketing has an inherent problem: when you see an email hit your inbox from a big name corporation, do you open it? If the latest deals came up from Target, or if Progressive was emailing you to tell you that you […]
Focus and Finish: Gannon Insurance Agency
Is there a recipe for success? If you ask Steve Gannon, he would say “Yes!” “By a combination of hard work, focus and pure drive, anyone can succeed,” says Steve. “If you aren’t willing to go out on the weekends, take evening appointments when you first start out, you may not get to where you […]
Rep. Blaine Luetkemeyer to Address Big “I”
WASHINGTON, D.C.––The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) announced that Rep. Blaine Luetkemeyer (R-Missouri) will address the association’s Large Agent/Broker and CEO dinner on April 14 during the Big “I” Legislative Conference. “The Big ‘I’ is proud to announce that Rep. Luetkemeyer will be addressing our annual gathering of […]
Defeating the Zebra, Lemonade, Insurify and CoverWallet
Recently many independent agents breathed a sigh of relief as Google announced they were withdrawing from insurance. This news was definitely a positive and welcomed by everyone currently in the insurance business. This is not a time for independent agents to get lax or cocky! Although Google has decided to withdraw, that doesn’t mean they […]
Cyber Insurance: Are you sure you’re covered?
Share with Your Clients An agent presents advice for clients re: Cyber Cover By: Keith Fuller Protecting your balance sheet in the past meant making sure that your property and any additional liability your company has from its day-to-day operations are covered. The world has changed drastically and now you need to be aware of […]
CGL Provides No Cover For Building House on Someone Else’s Land
Insured’s Work On Property Was Clearly Excluded No insurance policy provides coverage for every possible risk of loss. When an insured builder built a house that encroached on the property of another, it sought coverage for the damages of the true property owner. The insurer provided a defense under a reservation of rights but refused […]
Abutting Owner and Next Door Owner May Be Liable for Defective Sidewalk
Sangaray v West Riv. Assoc., LLC Overruling prior precedents, the Court of Appeals holds that New York City’s sidewalk liability law does not only impose tort liability on the owner abutting the sidewalk where a trip and fall occurs, but the owner of the property next door may also be liable if that owner’s negligence […]
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New York State Will Provide Paid Family Leave and $15 Minimum Wage
Reprinted with the permission of Epstein Becker Green By: William J. Milani, Jeffrey M. Landes, Dean L. Silverberg, Susan Gross Sholinsky, Steven M. Swirsky, Nancy L. Gunzenhauser, Ann Knuckles Mahoney, and Alexandra Bruno Carlo On March 31, 2016, New York State’s governor and legislative leaders announced an agreement on the state’s budget for 2016-2017 (“Budget”). […]
No ordinary animal
Love the name: Gorilla Safety. Now comes an innovative new provider of software that fully automates all aspects of fleet and safety management, through its new mobile application and web-based dashboard. Gorilla Safety’s revolutionary mobile app is the first and only cloud-based solution that integrates capabilities necessary for managing short- and long-haul vehicle fleets of […]
Story Telling Connects – Are You Telling Your Story?
When I sat down to write this article, I gave quite a bit of thought to previous articles I have written. I also thought about the enormous amount of unsolicited advice being put out by many well-intended industry folks preaching to agents about all the changes they need to make if they want to stay […]
Insurance Marketing featuring Facebook’s New Feature
Chris Paradiso
The Social Notebook
One thing that I teach insurance agencies on a regular basis is that moving forward, digital marketing is going to be considered a traditional form of marketing, and not just in our industry, but in any industry. Part of your digital marketing strategy should include marketing via Facebook, seeing as it is the world’s largest […]
2016/ April 11/ Current News/ Past Issues
PRI Names Northwell Health Patient Safety “Best Practices” Award
Honorable Mention to: Atlantic Dialysis Management Services, LLC, College Point, NY; Brighton Surgery Center, LLC, Rochester, NY; The New Jewish Home, Sarah Neuman, Mamaroneck, NY ROSLYN, N.Y.—Physicians’ Reciprocal Insurers (PRI) presented Northwell Health, Lake Success, New York, its coveted Patient Safety “Best Practices” Award for 2016. Atlantic Dialysis Management Service, Brighton Surgery Center, and The […]
NAIC Attempt to be PBR Statistical Agent: A Bad Idea for Companies, Consumers, and Regulators
By: John R. Hurley NAIC staff located in Kansas City performs many valuable functions for state insurance commissioners and indirectly for insurers and consumers. Recently, staff reported that it was planning to assume the role of Statistical Agent (SA) for the collection and analysis of experience data and reports related to the implementation and operation […]
2016/ April 11/ Current News/ Past Issues
Arent Fox Secures Dismissal of Major Claim
New York, NY – Arent Fox LLP secured a victory for Fortress Re Inc.—the aviation reinsurance agency that infamously insured the four planes that crashed on 9/11—after a New York district court dismissed a breach of contract claim in late March. Insurance & Reinsurance partner Julius A. Rousseau and associate Lee A. Pepper have represented […]
2016/ April 11/ Current News/ Past Issues
Certificates of Insurance Act takes effect April 10
For construction project managers and others who need proof of insurance from contractors and vendors, important new protection is here. FLORHAM PARK, NJ (March 30, 2016) – This should weed out a few more cheats and liars. For everyone in New Jersey who manages construction projects and coordinates the services of multiple contractors, it can […]
2016/ April 11/ Current News/ Past Issues
Cuomo Announces Health Insurance for Victims
Governor Andrew M. Cuomo announced that insurers and HMOs offering comprehensive health insurance coverage through the New York State of Health individual marketplace are now required to allow victims of domestic violence, or spousal abandonment, to enroll in insurance plans at any time of the year. The New York State Department of Financial Services has […]
Citrix Joins Applied Systems Partner Program for eSignature
University Park, Ill.―Applied Systems has announced that Citrix has joined the Applied Partner Program to offer its eSignature solution, RightSignature, to North American insurance agencies and brokerages via integration with Applied Epic. Through this collaboration, agencies and brokerages can enhance their digital customer experience and improve productivity by automating paperless delivery of documents via eSignature capabilities directly from […]
MSO Announces Promotions
Glen Rock, NJ ̶- MSO, Inc. (The Mutual Service Office, Inc.) is pleased to announce the promotion of three employees to the position of Director: Melissa “Missy” Krepps, CPCU, API was named Director, National Filings for Insurance Programs and Senior Product Development Analyst. Ms. Krepps has been instrumental in the national rollout of the MSO […]
PIA National Names Augusto Russell 2016 Agent of the Year
WASHINGTON, D.C.—Augusto Russell, CIC, of Farmington, Connecticut, has been named the 2016 Professional Agent of the Year by the National Association of Professional Insurance Agents (PIA). Russell is a partner with May, Bonne & Walsh Inc. in Glastonbury, Connecticut. “This award is PIA’s highest honor,” said PIA National President Robert W. Hansen, Jr. “It recognizes […]
Shooting Arises out of Use of a Vehicle; UIM Cover Exceedingly Broad in Washington State
A truly stupid person fired a weapon from an automobile – claiming no intent to harm anyone but striking plaintiff Heidi Kroeber and injuring her. She claimed she was entitled to underinsured motorist (UIM) coverage because the shooting arose out of the use of the auto the shooter was in when he shot her. GEICO […]
Top Court Rejects Expert Opinion That Smell of Gasoline Proves Toxic Exposure Level For Fetus
Sean R. v BMW of N. Am., LLC Plaintiffs alleged that their baby was born with severe defects due to the mother’s exposure to gasoline fumes in their BMW caused by a defective fuel line hose. Plaintiff’s expert doctors wanted to testify that the mother’s reported symptoms, such as headache and nausea, were sufficient evidence […]
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Cyber Security Rules For Insurers
By Anna Murray, Author of The Complete Software Project Manager A few months ago, my software team received the following request from an insurance company executive: “Please create a form on my WordPress website so potential clients and others can upload scans of sensitive documents.” He thought it would be an improvement over the […]
Vrooom
The New York Insurance Association (NYIA) advises that from 2014 to 2015 motorcycle thefts in New York increased by 23 percent. According to a report from the National Insurance Crime Bureau (NICB), motorcycle thefts nationwide increased by six percent during the same time period, rising for the first time in ten years. New York State […]
Court Rules for the Insured in First Late Notice/Prejudice Case; Expand Contingent Bi/Dependent Properties Cover For Your Clients; Short Takes: Large Exposures
Court Rules for the Insured in First Late Notice/Prejudice Case In what may be the first appellate court case involving the 2009 New York law requiring the insurer to show that it was prejudiced by the insured’s giving late notice of an occurrence, the Fourth Judicial Department1 ruled in favor of the insured. The decision […]
Agency Website Metrics via Google Analytics
Chris Paradiso
The Social Notebook
“Celebrate what you accomplish, but raise the bar every time you succeed.” (Mia Hamm) I don’t care who you are, where you come from, whether you’re an individual or an agency, or whether you’re in or outside of the insurance space…No one, no matter who, has the ability to improve without accepting some form […]
Summer Agency Marketing Strategies
The slow, lazy days of summer are a great time to revisit your marketing strategy for your company. Over the wintertime, you have been going along doing the necessary things but you aren’t sure if it’s really working. These quieter days provide the best opportunity to revisit and start tracking what really matters. There are […]
Cuomo: Health Insurers to Provide Coverage for Maternal Depression Screening
Governor Andrew M. Cuomo announced that the Department of Financial Services has issued guidance to inform health insurers of their responsibility to provide health insurance coverage for maternal depression screenings. The guidance follows the United States Preventive Services Taskforce recommendations made earlier this year that group health plans and insurers offering group or individual health […]
UJA of New York to Honor Dominic Casserley, Charles H. Dangelo, and Richard Hershman at General Insurance Annual Dinner
NEW YORK, NY — UJA-Federation of New York will honor Dominic Casserley, president of Willis Towers Watson, Charles H. Dangelo, president and CEO of Starr Indemnity and Liability, and Richard Hershman, senior advisor at FTI Consulting, Inc., at its General Insurance Annual Dinner on Tuesday, May 31, 2016, at Grand Hyatt New York in Manhattan. […]
Sounding an alarm for the future
For decades, I worked with a local alarm company that knew my home alarm system inside and out. Early this year, I received a letter from a different alarm company based in Wichita, Kansas, informing me that it had taken over my local vendor and if I had any questions or issues, I could […]
PIA calls on agents to participate in longest-running Company Performance Surveys
Anonymous survey gives voice to agents who rate their companies on performance items GLENMONT, N.Y.—The Professional Insurance Agents of Connecticut, New Hampshire, New Jersey and New York State launched their Company Performance Surveys today. Each survey, available through June 24, 2016, gauges insurance producers’ views of the companies they represent in their respective states. Independent […]
Bill Wilson Honored with Jeff Yates Award
WASHINGTON, D.C. – The Independent Insurance Agents & Brokers (IIABA or the Big “I”) has awarded Bill Wilson, CPCU, ARM, AIM, AAM, with the Jeff Yates Lifetime Achievement Award, the highest honor the association bestows on a non-agent, for a lifetime of work in the independent agency system. Wilson is Big “I” associate vice president […]
New Hampshire’s Tom Minkler Honored with Woodworth Memorial Award
WASHINGTON, D.C. – The Independent Insurance Agents & Brokers (IIABA or the Big “I”) has awarded Tom Minkler, CIC, with the Woodworth Memorial Award, the highest honor the association bestows on one of its members, during the annual Big “I” Legislative Conference. Minkler is president of the Clark-Mortenson Agency in Keene, New Hampshire, and former […]
Insurance Digital Revolution Announces First Gold and Silver Sponsors
NEW YORK, April 21, 2016 – The Insurance Digital Revolution (IDR) announced its first sponsors, including Gold Level Sponsors: Applied Systems, Nationwide Insurance, and Vertafore; and Silver Level Sponsors, The Cincinnati Insurance Companies and NetVU. IDR is an industry campaign, organized by ACT, AUGIE and PIA, to drive technology adoption to better serve the insurance […]
IIS Forms Insurance Development Forum
New York, NY − IIS has announced the formation of the Insurance Development Forum (IDF), a collaboration between the United Nations, the World Bank Group and the insurance industry. The IDF aims to incorporate insurance industry risk measurement expertise into existing governmental disaster risk reduction and resilience frameworks and to build out a more sustainable […]
Damage, not Negligent Acts, is Occurrence
An Insured Can Only Kill a Child Once When a person is injured or killed as the result of the negligence of another, an insurer is obligated to defend and indemnify its insured up to the limits of liability of the insurance policy. Almost every liability insurance policy contains a per-occurrence limit of liability and […]
Zika: Crisis or Sentinel Event?
According to the World Health Organization (WHO), Zika is, like Ebola, a Public Health Emergency of International Concern. Now the U.S. Centers for Disease Control and Prevention (CDC) has stated that it is “clear” that the Zika virus causes a serious birth defect, microcephaly (small head). CDC publishes a scary interactive map of cases […]
No Witness, No Evidence, Nothing But a Theory Held Sufficient To Sustain Jury Award in Pedestrian Fatality
Oates v New York City Transit Authority A pedestrian was found crushed to death near a bus stop. Nobody saw or heard anything: not the bus driver, not the passengers, not anyone on the street. But the pedestrian’s estate sued the Transit Authority, claiming that the bus ran over her. A Bronx jury found the […]
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PIANY Honors Hourihan, Jarvis, Seeks to Inspire and Build Agents’ Business at LI RAP
Hundreds of professional, independent insurance agents from the Long Island and greater New York area gathered on May 4 at the sprawling Crest Hollow Country Club in Woodbury for a day of networking, tradeshow, education and ceremony at the Professional Insurance Agents of New York State’s Long Island Regional Awareness Program. Tradeshow Long Island RAP […]
Heck Honored. And just what is a “Stevie”?
Steve Acunto
Foreword, Insurance
At a time when personnel needs in the industry are becoming acute (with an estimated 18% loss among professionals through retirement, etc.), a sure 60% percent of people working in the U.S. insurance industry are women. The New York City Association of Insurance Women (NYCAIW) reminds us that only six percent of them hold “C” […]
Six Short Takes on Six Significant Topics
Jerry Trupin
Exposures and Coverages
We have a bumper crop of short takes on significant topics ranging from cat (catastrophe) bonds to hail this month. It’s going to be all the news that fits, we print. Cat Bond Issuance Sets First Quarter Record of $2.2 Billion Despite Fall in Interest Rates Cat bonds once again set a quarterly record in […]
Protecting Fifty Years of Child Health Progress
By Marian Wright Edelman It was a generation ago that Harry Truman said, and I quote him: “Millions of our citizens do not now have a full measure of opportunity to achieve and to enjoy good health. Millions do not now have protection or security against the economic effects of sickness. And the time has now […]
New Hampshire’s Tom Minkler Honored with Woodworth Memorial Award
WASHINGTON, D.C. – The Independent Insurance Agents & Brokers (IIABA or the Big “I”) has awarded Tom Minkler, CIC, with the Woodworth Memorial Award, the highest honor the association bestows on one of its members, during the annual Big “I” Legislative Conference. Minkler is president of the Clark-Mortenson Agency in Keene, New Hampshire, and former […]
The Maze Of Medical Pricing – How Much Does It Cost and What Are We Paying For?
By Gerard Gianoli, M.D. – http://earandbalance.net In a previous editorial, I commended candidate Trump’s proposal of price transparency for hospitals and doctors. It is astounding that this has not been an element of the GOP formula for healthcare reform until now and that an outsider had to bring it up. It is so obviously part […]
Who Is Your Customer?
How well do you know and understand your customer? Not only your current customer but the customer you are looking to add in the future. Are they similar in their wants, needs and motivations? What are their expectations? Meeting and exceeding customer expectations is the key to growing a successful agency today and going forward. […]
Sit on Your Rights & You Will Lose Them — Statutes of Limitation Serve an Important Function
In an attempt to clean up with damages after Hurricane Katrina after sitting on its rights for many years, Marion’s Cleaners, LLC, sued its insurer seeking indemnity from its insurer for damages that resulted from Katrina. In Marion’s Cleaners, LLC v. National Fire & Indemnity Exchange, Slip Copy, 2016 WL 952247 (March 14, 2016), the United […]
Was The Cure Worse Than The Disease? Homeowner Alleges That Tear Gas Remediation Chemical Made Her Sick
Kendall v Amica Mut. Ins. Co. A tenant in plaintiffs’ home had to be subdued by police using tear gas. Plaintiffs had an adverse health reaction to the tear gas residue and their homeowners’ insurer hired a remediation company which used a chemical to remove the tear gas. Plaintiffs then alleged an adverse health reaction […]
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Fitch: U.S. Commercial Insurance Market Performance Heading Downward
Underwriting performance for the commercial lines sector of the U.S. property/casualty (P/C) insurance industry is likely to deteriorate in 2016, according to a new report from Fitch Ratings. The decline follows a three-year underwriting profit for the industry with a combined ratio of approximately 94% in each of the last three years (2013-2015). “Catastrophe losses below historical norms contributed to strong 2015 […]
2015 Results: Premium Growth Slows, Combined Ratio Creeps Up for Property/Casualty Insurers
Private U.S. property/casualty insurers saw their net written premium growth slow to 3.4 percent in 2015 from 4.2 percent a year earlier, while their net income after taxes grew to $56.6 billion in 2015 from $55.9 billion in 2014, according to ISO, a Verisk Analytics (Nasdaq:VRSK) business, and the Property Casualty Insurers Association of America […]
Rank Sentiment
New York CEOs are not happy. They rated the Big Apple 49th out of 50 for the second year in a row, making it the second-worst state in which to do business, according to Chief Executive magazine’s annual Best & Worst States for Business survey. This survey gauges the sentiment of CEOs on a variety […]
What’s the Difference Between a Customer and a Client?
Before I share my opinion on this topic, I will admit to a brief Internet search. As I expected, Google revealed no shortage of customer service advice supporting what I have to say. One source opines that business interests consider the value of a client over a lifetime versus a customer who is forgotten after […]
Digital Access: Insurance Entities are “Not Keeping Up”
Insurance Websites Not Keeping Pace with Changing Customer Expectations, Says J.D. Power Study Insurer websites are not keeping up with customer expectations, with just over half of consumers surveyed saying they “definitely will” return to the site for their servicing needs, according to the J.D. Power 2016 Insurance Digital Evaluation Study(SM). The study,[1] now in its […]
Insurance Agency M&A in Q1 Breaks Record
Insurance agency mergers and acquisitions hit an all-time high for the first quarter of a year, with 109 reported transactions in the first three months of 2016, according to OPTIS Partners’ M&A database. The data covers U.S. and Canadian agencies selling primarily property-and-casualty insurance, agencies selling both P&C and employee benefits, and those selling only […]
How Clean is Your Agency?
We recently wrote a six-part blog series on how to Spring Clean your agency. It was amazing the feedback we received, as well as how many agencies shared the posts with their entire team. As it turns out, many agencies are, well, downright filthy! Just like that one junk closet you may have at home, […]
Dog Bites Accounted for More Than One-Third of All Homeowners Liability Payouts Last Year as Cost Per Claim Soars to More Than $37,000 Per Bite
National Dog Bite Prevention Week was May 15-21; California has Largest Number of Claims, Arizona Has Highest Cost Per Claim Dog bites (and other dog-related injuries) accounted for more than one-third of all homeowners insurance liability claim dollars paid out in 2015, costing in excess of $570 million, according to the Insurance Information Institute (I.I.I.) […]
A Primer on Reinsurance Pricing Strategy
“A Checklist for Optimizing Reinsurance Negotiation” By Larry Warren This article is written with the assumption that both the reinsurer and the direct writer would each benefit from fully exploring all appropriate assumptions and considerations directly and indirectly impacting reinsurance pricing. Such assumptions and considerations are discussed below. The reinsurer benefits by being able to […]
PIANY members meet legislators at Capitol to discuss insurance issues during Albany Lobby Day
ALBANY, N.Y.—Professional Insurance Agents of New York State Inc. members met with their legislators at their Albany offices during the association’s Albany Lobby Day, May 10, 2016. The PIANY members included: PIANY President Gene Sandy, CIC; PIANY President-elect John Parsons II, CIC, CPIA, AAI; PIANY Director Anthony Kammas; and PIANY past-President Richard A. Savino, CIC, […]
Expert Witnesses May Not Testify to Legal Conclusions
Unwise to Settle for Claimed Policy Limits Without Investigating All Available Coverages and Funds Litigation of serious injuries will often be sidelined by limited available insurance and assets to pay a judgment for the true value of an injury. Injured parties and their lawyers will determine the available coverages and will often settle for policy […]
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NYIA Annual Conference: Connect. Collaborate. Change.
Acting New York Financial Services Superintendent Maria Vullo Delivers First Address This year’s New York Insurance Association (NYIA) Annual Conference drew more than 250 insurance industry leaders to the heart of New York State in Verona, New York, June 1–3. The theme of this year’s event, Connect. Collaborate. Change., reflects the collegial nature of NYIA […]
Doughboys…
The New York Times recently listed the top-paid execs in the US. Impressive list, much of it predictable, some of it surprising. Several insurance CEOs and leaders were among the top earners. The numbers are quite high and quite impressive. We add here–you won’t see it anywhere else–that the shareholder, policyholder and public responsibilities are […]
Insurance is a People Business
There’s a big rush today by venture capitalists and Silicon Valley techies to turn the purchase of insurance into an impersonal, technology driven business. There couldn’t be a worse outlook for consumers! Technology is wonderful and a great way to speed up processing and offer 24/7 availability. It should never replace the professional guidance and […]
The TriCounty Independent Insurance Agents Association Installs Officers and Directors for 2016–2017
Albertson, N.Y.—New officers and directors took the helm on June 1 during the Long Island-based TriCounty Independent Insurance Agents Association annual installation dinner. The gathering, held at Chateau Briand in Carle Place, NY, set the TriCounty IIAA leadership for the 2016 through 2017 term. Close to 200 agents and brokers, company representatives, vendors and other members […]
Return on Customer Investment: How Some Global Insurance Companies are Embracing Disruption with Customer Inspiration
By Howard Kogan In a recent PwC study of global insurance CEOs, nearly two-thirds (59 percent) believe there are more growth opportunities within the insurance industry than three years ago. Yet just as many (61 percent) see more threats to the industry than they did three years ago. Why the duality? As one […]
Medical Errors, Hysteria, and Death
By Gerard J. Gianoli, M.D. Medical errors are taken very seriously by the medical profession. It starts early in training at M&M (Morbidity & Mortality) Conference. During M&M, each complication and death is presented before the entire department of students, physicians in training, and professors. The cases are scrutinized and criticized to see what […]
Melchionni Honored by NYIA
Verona, NY — The New York Insurance Association, Inc. (NYIA) honored William P. Melchionni III with the Chair’s Distinguished Service Award at the association’s annual conference on June 2 in Verona, N.Y. Melchionni is Deputy Head, U.S. Federal and State Government Affairs for American International Group, Inc. (AIG). “Bill volunteers countless hours to NYIA as […]
The Marketing Countdown: Five Tips to Transform your Agency in 2016
Chris Paradiso
The Social Notebook
Are you looking to ramp up your agency’s marketing? I sure am, and all the time. Improvement (which can sometimes be a form of change) is the driving force of agency growth, whether it’s through tracking metrics and figuring out what does and doesn’t work, or if it’s just coming up with a new game […]
Restaurant Not Liable for Consultant’s Punch to Nasty Customer
Villongco v Tompkins Sq. Bagels 2016 NY Slip Op 50778(U) Decided on May 18, 2016 Supreme Court, New York County Edmead, J. Edited by Lawrence N. Rogak A bagel store hired a retired fireman as a consultant. Plaintiff, a customer, said a very nasty word to a waitress and pushed her. The waitress immediately told […]
Intentional Acts Can’t Be Insured
No Fortuity – No Coverage Insurance, by definition, insures only against contingent or unknown events. To obtain coverage for defense or indemnity, an insured only needs to establish that the suit against the insured was fortuitous – accidental – unintentional acts. In Mid-Century Insurance Company v. Windfall, Inc., Mettle, LLC D/B/A Mettle Strategic Marketing Solutions, […]
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Vullo Confirmed Superintendant of NYDFS
When the New York State Senate confirmed Governor Andrew M. Cuomo’s nomination of Maria T. Vullo as Superintendent of the New York State Department of Financial Services (DFS), she gained responsibility for regulating more than 1,500 insurance companies and nearly 1,600 banking and other financial institutions. “I am honored to be confirmed to serve as […]
The Workman Years
LICONY’s Tom Workman Hailed as Life Insurers’ Effective Voice from 1999 – 2016 For the life insurance industry in New York, the years 1999 to 2016 are being remembered as “the Workman years,” during which time Thomas E. Workman served as president of the powerful state association of life insurers, generally represented by the insurers’ […]
How Good of An Agency Leader Are You?
Leadership is a big challenge in the independent insurance space. For many agency owners, you may have never worked anywhere but your family’s agency or maybe you have really only been led by a parent. The journey to go from agent to CEO can often be uncharted waters for many agencies. In most agencies, we […]
Death Care
Reprinted from AAPS News, Volume 72, no. 4, April 2016 In the post-Hippocratic, post-Christian, post-modern era, facilitating or even causing death is becoming a form of treatment, often called “end-of-life” care. This is now supposed to be voluntary, although the decision might be made decades prior to the event. There is a continuum, and it […]
PIANJ Elects LaPenna President
ATLANTIC CITY, N.J.—Donald F. LaPenna, Jr., of Cranford, N.J., president of Donald F. LaPenna Associates Inc., was elected president of the Professional Insurance Agents of New Jersey today at the association’s annual business meeting at Harrah’s in Atlantic City. An active member of PIANJ, LaPenna has served as first vice president (2015-16), vice president (2013-15), […]
Marine Insurance Requires Insured to Exercise Uberrimae Fidei
Insured May Not Hide Material Information From a Marine Insurer Marine insurance, because of the risks taken, applies the doctrine of uberrimae fidei (utmost good faith) strictly. In Fireman’s Fund Ins. Co. v. Great American Ins. Co. of New York, United States Court of Appeals, Second Circuit, — F.3d —- 2016 WL 2943139 (May 20, […]
Plaintiff’s Failure to File Note of Issue After 90-Day Notice Sinks Personal Injury Suit
Bender v Autism Speaks, Inc. Plaintiff tripped and fell on a public boardwalk during a charity walk for autism. She sued the autism charity for failing to provide a safe boardwalk. The suit was dismissed for failing to file a Note of Issue after defendant served a 90-day notice. Plaintiff moved to restore the suit […]
WC: No Reforms from Albany
By Martin Koles, M. Koles & Associates LLC Once again, New York State’s Legislative session ended without reform of the coercive and anti-competitive practices of the New York State Insurance Fund (NYSIF). As a director and former president of PIA and executive board member of CIBGNY, I can attest that the associations and their member agents […]
Record-Shattering Event at Harrah’s Makes PIA Annual Conference Biggest Ever
More than 2,000 agents and insurance industry professionals made history at the PIANJ/PIANY Annual Conference at Harrah’s Casino Resort in Atlantic City, N.J., June 5-7. The record-breaking event brought a flood of insurance professionals to the shore, to network and be seen at exciting and fun events; packing an expansive trade show; and attending […]
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Four New York Metro Areas Rank Among Lowest in the Nation for Vehicle Theft
It’s Getting Better! The New York State Department of Motor Vehicles (DMV) and the New York State Division of Criminal Justice Services (DCJS) announced that four New York metro areas were recently ranked among the lowest vehicle theft areas in the U.S. The National Insurance Crime Bureau’s (NICB) annual “Hot Spots” report found that in […]
Rough Patch Ahead
For property and casualty insurers, 2016 could be a tough year, according to a new report just published by S&P Global Market Intelligence, a leading provider of multi-asset class research data and insights. The firm’s 2016 U.S. P&C Insurance Market Report suggests that a combination of elevated catastrophe losses, unfavorable results in the private passenger […]
Non-Governmental Unemployment Insurance; Insurance “Gotchas”
Jerry Trupin
Exposures and Coverages
An Ideally Insurable Risk: Unemployment Insurance? A key insurance concept is “ideally insurable risk.” No, that doesn’t mean the old fire insurance chestnut about covering pig iron under water; it refers to the characteristics of a risk that make it suitable for insurance coverage. The characteristics are: Large number of similar exposure units […]
Great Customer Service is an Advantage in Every Industry, Especially Ours
Recently, I had a routine checkup at a new doctor’s office. After running typical blood work, the physician told me one of the tests seemed off and asked to repeat it. I went back to the lab and got stuck again. I was advised that my results would be posted on the “Doctor’s Portal,” […]
Your Image, Presence, and Agency Online
Chris Paradiso
The Social Notebook
Let me ask you something…when was the last time that you “Googled” your agency online? Or, while we are on the subject, when is the last time that you Googled your name, as the owner of the agency? It’s important that you understand how your audience perceives you online, and it should be no surprise […]
Uber & Insurance: How the Gig Economy Can Infuse Life Into a Legacy Industry
By Robin Smith You’re seeing it everywhere: old-school business learning new tricks. From Expedia’s acquisition of Homeaway, SAP’s buyout of Fieldglass, and the proliferation of Venmo, legacy industries are transitioning to digital platforms, offering personalized communications and incorporating sharing and gig economy aspects in their business models, too. As other industries are making this transition, […]
Agency Branding: Do You Really Know What It Is?
Agency branding…many people think they know what it is but in reality they aren’t sure. Even more importantly, many agents don’t fully understand the power and opportunity in building a brand. Just five years ago, having a better than average website was enough, but in today’s social world you really need to have a […]
Late Notice Defense Difficult to Prove
Notice Requirement Must be Clear and Unambiguous Every liability insurance policy contains a requirement that the insured report claims promptly. Each policy contains a variation on that requirement. Excess policies contain different reporting clauses than do primary policies. In Essex Insurance Company v. Village of Oak Lawn, United States District Court, N.D. Illinois 2016 WL […]
Ambiguity in Policy Voids Exclusion For “Insured vs. Insured”
Boro Park Land Co., LLC v Princeton Excess Surplus Lines Ins. Co. 2016 NY Slip Op 04684 Decided on June 15, 2016 Appellate Division, Second Department Edited by Lawrence N. Rogak A nursing home and its landlord were the insured and additional insured under a professional liability policy issued by Princeton. An employee of the […]
Making American Medicine Great Again
The Republicans are at it again: trying to tweak a bad idea, make it “bipartisan,” and set a flawed system more firmly in concrete. What we really need is a Republican reform—one that can restore the Republic, along with medicine. Yes, ObamaCare needs to be repealed—every last syllable. But that’s not all. To make […]
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Novel Idea: Safety Strategies — A Forward-Looking Entrepreneur Spreads the “Gospel” of Risk Management to Clients in Thoughtful Book
Adam Friedlander gets it. Communicating with clients on a level that treats them seriously enough to receive the thoughts of widely recognized trendsetters accomplishes a lot. Friedlander, a leader in Safety Group creation and management, has written a new book entitled: Safety and Workers’ Compensation Strategies To Unleash Productivity and Profits,” a series of […]
Milestones…
Readers of the Insurance Advocate are surely saddened by the passing of Jay Fishman, one of the industry’s legendary (a word that is way overused and misapplied, though not in this case) leaders. He epitomized high standards and commitment to the business and its good central purposes in serving the public. RIP. … On a […]
Umbrella Limits: How High Is Up?; Notice of Changes to Renewal Policies Required; Safety First?; An Exclusion You Don’t Want
Jerry Trupin
Exposures and Coverages
The federal government is suing a California home owner for $25,000,000 alleging that his negligence caused a 27,500-acre wildfire that took 16 days to contain, destroyed 20 buildings and forced thousands of residents to evacuate. The suit alleges that the cause of the fire was a faulty electrical wiring box that shot sparks, starting a […]
Artificial Intelligence in Digital Marketing
Chris Paradiso
The Social Notebook
Artificial Intelligence (AI) has made its way into digital marketing, and in more ways than one. We can see some forms of AI impacting our agencies every day online—yes, every day. How could that be possible? Simply put, technology is constantly advancing, and the recent advances in AI have allowed us to have more […]
Tell Your Story Often and Everywhere
The insurance marketplace is changing rapidly. New competitors are joining constantly, many looking to leverage technology and transact primarily or completely online. Existing direct response carriers like Geico, Esurance and Progressive Direct are ramping up campaigns to attract more clients. For many consumers, insurance is something they don’t truly understand and they hate paying for. […]
Four Signs You Have the Wrong Employee
Employees can be a great joy or a huge pain. In many agencies, “we work with the team” is the crux of conversation. It’s challenging to find good staff, so all too often we retain team members who are not a great fit or make our lives harder, because the idea of recruiting overwhelms us. […]
Visualizing the Claims Process
By Peter Zeinoun, Director Customer Support Products, LogMeIn Insurance companies today are often time measured on two key metrics: positive customer experience and operating cost. Achieving these two simultaneously is not always an easy task. Regardless of whether you are the agent fielding an insurance claim or the customer placing it, the claims process can […]
Beating a Person Unconscious Is an Intentional Act
No Coverage for Bar-room Attack I have, until I was blue in the face, reminded my readers that liability insurance only applies to fortuitous events–there must be an accident, an occurrence, an injury without intent to cause the injury–for insurance to apply. Regardless, injured people and their lawyers attempt to gain insurance proceeds by artfully […]
Late Notice Disclaimer Rejected by Intercompany Arbitrator; Court Upholds Award
Matter of Geico Indem. Ins. Co. v Global Liberty Ins. Co. of NY 2016 NY Slip Op 50595(U) Decided on April 8, 2016 Appellate Term, Second Department Edited by Lawrence N. Rogak In an intercompany arbitration, Geico sought loss transfer from Global. Global argued late notice and submitted only its disclaimer letter, which the arbitrator […]
Court Won’t Hear Doctor’s Argument That Hearing Impairment Hurt His Small Claims PIP Suit
Mathews v Allstate Ins. 2016 NY Slip Op 51174(U) Decided on July 28, 2016 Appellate Term, Second Department Edited by Lawrence N. Rogak Plaintiff medical doctor brought a PIP suit in small claims court. At trial, defendant insurer produced a PM&R doctor who testified that the testing done by plaintiff was not medically necessary, […]
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2016/ Past Issues/ September 26
Breach Blankets: Statutes in NY, NJ, CT Prescribe Notification Rules for Data Breaches
Survey of Data Breach Notification Statutes By James Westerlind, Arent Fox LLP INTRODUCTION Connecticut, the District of Columbia, Florida, New Jersey, New York, and Pennsylvania have enacted data breach notification statutes which apply to any business (including any insurance company or insurance producer) that acquires, owns or licenses computerized data that includes personal information of […]
2016/ Past Issues/ September 26
Charting Courses
Engagement Labs, a technology and data company, has ranked the top ‘Total Social’ insurance companies in the U.S. based on online and offline conversations. Here are the top five Total Social insurance companies in the U.S. as well as the top five Total Social insurance companies based on only offline and online performance. When analyzing […]
2016/ Past Issues/ September 26
Fooled by a Phisher; Business or Hobby; Hurricanes and Civil Authority Orders; Cat Bonds Come of Age
Jerry Trupin
Exposures and Coverages
Aqua Star, a New York fish importer, received an email supposedly from one of its suppliers, a fish exporter in China, instructing Aqua Star to change the bank information it used to wire payments to the supplier. Aqua Star’s employees complied with the request. Unfortunately, the supplier’s computer had been hacked and the instruction came […]
2016/ Past Issues/ September 26
Ethics is its Own Reward
This summer, I participated in a webinar on ethics, offered by PIA and taught by Steve Lyon. Steve is the cream of the crop when it comes to teaching continuing education courses for our industry. I always encourage those who want something more than just credit from their professional education to take PIA’s classes—but especially […]
2016/ Past Issues/ September 26
Metamorphosis
The independent agency business is going through a metamorphosis. The slow but steady caterpillar that served the public so well for so many years has become wrapped up in a cocoon of change and now must break out into an agile and quick flying modern day butterfly if it intends to survive. There are many […]
2016/ Past Issues/ September 26
What’s Your End-of-Year Plan?
Kids are back to school, Pumpkin Spice is everywhere and the leaves are changing. For our area it’s the most perfect time of year. While all may be distracted by football, we should be getting serious about how we want to end the year. What are all the little projects, goals and details you wanted […]
2016/ Past Issues/ September 26
Protecting Your Client — and Your Bottom Line — with a Crisis PR Plan
By Katherine Heaviside Here’s how it usually works. You’re finally enjoying a well-deserved day off when frantic coworkers begin sending you texts and emails about XYZ Company, your agency’s biggest client. There’s been a data breach impacting tens of thousands of customers. The company is all over social media and popping up on mainstream news […]
2016/ Past Issues/ September 26
Does Improving the Customer Experience Matter to Your Bottom Line?
Chris Paradiso
The Social Notebook
There are many traditional and non-traditional practices related to giving a great customer experience. Insurance companies are spending millions of dollars on studying what is working and what is not, but the million dollar question is this: how many independent insurance agencies are actually investing in a rewarding customer experience? My guess is not enough, […]
2016/ Past Issues/ September 26
Intentional and Wrongful Eviction Not Covered
A“Wrongful Eviction” May or May Not Be Intentional Liability insurance policies, under the personal injury cover, agree to insure against certain offenses, including the offense of wrongful eviction. In State Farm Fire and Cas. Co. v. Otten, Not Reported in N.W.2d 2016, Court of Appeals of Minnesota, WL 2946110 (May 23, 2016), was asked to […]
2016/ Past Issues/ September 26
Americans Unprepared for a Major Disaster
In the wake of the floods in Louisiana and as disaster season peaks, a national consumer survey commissioned by Trusted Choice® and the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”), reveals that many homeowners lack adequate insurance coverage, do not fully understand their homeowners policies and do not have enough […]
2016/ Past Issues/ September 26
Parsons Elected President of PIANY
GLENMONT, N.Y.— John C. Parsons II, CIC, CPIA, AAI, executive vice president of Parsons & Associates in Syracuse, N.Y., was elected president of Professional Insurance Agents of New York State Inc., at a meeting of the association’s board of directors today. Parsons is a third-generation professional independent agent, succeeding his father and grandfather as president […]
2016/ Past Issues/ September 26
PIANY Elects Officers for 2016-17
GLENMONT, N.Y.—Officers of the Professional Insurance Agents of New York State Inc. were elected for the 2016-17 administrative year at the association’s annual business meeting today. John Parsons II, CIC, CPIA, AAI, of Skaneateles, N.Y., was elected president. He is executive vice president of Parsons and Associates Inc. in Syracuse, N.Y. Fred Holender, CLU, CPCU, […]
2016/ Past Issues/ September 26
PIANY Names Holender Director of the Year
GLENMONT, N.Y.—Fred Holender, CLU, CPCU, ChFC, MSFS, of Williamsville, N.Y., was named the Professional Insurance Agents of New York’s Director of the Year at a meeting of the association’s board of directors today. Holender is director of administration for Lawley Service Inc., in Buffalo, N.Y. The award recognizes the hard work and dedication of a […]
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“Yates” Grates D&O Value
Implications Are Far Reaching Can D&O Insurance Protect Officers and Directors Against an Increasingly Aggressive Department of Justice? BY DAVID WOOD and JOSHUA B. ROSENBERG On September 9, 2015, the U.S. Department of Justice published a memorandum entitled “Individual Accountability for Corporate Wrongdoing,” authored by Assistant Attorney General Sally Quillian Yates, the product of a […]
In Focus
The St. Regis Hotel in New York was the site of the Insurance Division of Development Corporation for the Israel/Israel Bonds annual luncheon. Dave S. Hattem, senior executive director and general counsel of AXA Equitable Life Insurance Co., Douglas J. Hayden, president of Wright Public Entity, and Martin Minkowitz, Stroock & Stroock & Lavan LLP […]
Precious Metals Exclusion; Per Claim Deductible; Adjuster Has the Right to See the Damage; Fixing Federal Flood Insurance
Jerry Trupin
Exposures and Coverages
Precious Metals Exclusion Thieves pried open seven air conditioning units at Celebration Church and stole seven condenser coils. Stolen coils can sell for more than $1,000 each because of their copper content. Copper theft is big business. It’s estimated at almost a billion dollars a year, with theft from a/c units accounting for three-fourths of […]
Six Personal Branding Lessons Professionals Can Learn from Trump and Clinton
by Karen LeLand Despite having the two highest unfavorable uDespite having the two highest unfavorable ratings of any major presidential candidates in history, Donald Trump and Hillary Clinton have outlasted their competitors— and one of them is going to become the leader of the free world. What does success in the face of such highly […]
The Rise of Chatbots: Pypestream Brings Secure Mobile Messaging to Insurance Industry
by Donna Peeples Intelligent automation, or chatbots, is transforming customer service in the insurance industry. These bots offer customers new ways to ask questions, make purchases, and more within a messaging app on their smartphone or mobile device. Recently Pypestream, a leading business- to-consumer messaging platform, announced a partnership with Insurance Thought Leadership (ITL), a […]
10 Wake Up Calls on Social Media Marketing for Your Agency
Chris Paradiso
The Social Notebook
If you read the title of this article and thought to yourself, “My agency doesn’t need social media,” then I have some unfortunate news for you: you’re falling behind. For those of us already embracing the power of social media, I applaud you, because the world of marketing is going digital, and social media is […]
Rescission of PIP Policy Available for Fraud
The “Innocent Third Party Rule” Does Not Eliminate Right to Rescind When an insured obtains a policy of insurance by misrepresentation of a material fact or fraud, the insurer may rescind the policy in Michigan. However, when an innocent person is injured by the insured before the policy is rescinded, statutes and courts attempt to […]
Lemonade–A Fairy Tale with an Unhappy Ending?
By now you’ve probably heard of Lemonade, the so-called “peer-to-peer” insurance company offering home, condo and renter’s insurance in New York. It rolled out recently, touting itself as a new brand of insurance company designed to take the typical insurance company and turn it into a new hybrid that is highly automated, competitively priced and […]
EUO No-Show Denial Upheld: Sufficient Basis Existed for Demand
In the matter of the Arbitration between Fawzy Salama PLLC and State Farm Mutual Automobile Insurance Company The issues in this arbitration are the Applicant’s unpaid bills for evaluations and electrodiagnostic testing, denied by the Respondent based on the Applicant’s failure to cooperate for an examination under oath. The Applicant brought this arbitration proceeding to […]
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2016/ November 14/ Past Issues
Optimism: Independent Agents, P&C Insurers Juice-Up Tech Budgets
Independent principals and producers in the property and casualty (P&C) insurance space remain optimistic about the state of the industry and continue to expect growth in the coming years. Agencies are predicting growth in technology budgets in the next 12 months, though smaller agencies are more likely to focus these investments on maintenance of current […]
2016/ November 14/ Past Issues
The Sound of Broken Glass
Sometimes good things happen and you do not notice them until they hit you somewhere in the future. The U.S. House of Representatives has just passed H.R. 5143, the “Transparent Insurance Standards Act of 2016,” introduced by Rep. Blaine Luetkemeyer (R-Missouri). The Big “I” in Washington was quite pleased, as was this writer. The bill […]
2016/ November 14/ Past Issues
Getting Consumer Attention
While developing information for a producer mentoring and sales program, I realized prospecting is totally different today than it was when I was an independent agent. Like many things in our world today it’s changed because of technology. Even more importantly it’s changed because consumer attitudes and buying practices are different. Even many traditional baby […]
2016/ November 14/ Past Issues
The World of Social Media
Chris Paradiso
The Social Notebook
Social media, in today’s world, is an essential for all businesses to achieve marketing success. Whether you’re a large corporation, a small business, or a local mom-and-pop shop, social media is right for your business. It doesn’t matter the industry, nor the products and services your company sells or markets–social media is a powerful […]
Quality and Value Defined
The congressional echo chamber, on both sides of the aisle, constantly talks about the great reform fad: “payment for value” and “quality” care. And the Medicare version called MACRA passed nearly unanimously, with cheers from the marbled halls of the AMA tower. ObamaCare too constantly harps on “quality.” Politicians seem to think that payment […]
2016/ November 14/ Past Issues
Gun, Partner!
Michael Loguercio
Face to Face
As I have written so many times before, I am writing this article while sitting on an airplane…I guess this is my quiet time, with no text messages, phone calls or emails that need to be answered immediately! Well, times sure have changed since I began writing for The Insurance Advocate over eight years ago. […]
2016/ November 14/ Past Issues
Advertising Injury Requires a Fortuitous Loss
Defendant’s Business Saved by Brilliance of Insurer I have over the last 1700 posts to this blog advised against entering into a stipulated judgment and granting a viable defendant a covenant not to execute in the hope of a windfall judgment from the insurer who refused to defend and indemnify the insured. In Auto-Owners Insurance […]
2016/ November 14/ Past Issues
Chunk of Concrete That Fell Off Dump Truck Does Not Qualify for SUM Coverage
Matter of Ean Holdings LLC v Joseph Edited by Lawrence N. Rogak While driving a rental car, claimant was struck by a chunk of concrete that fell off a dump truck, crashed through his windshield and took out his left eye. He filed for UM arbitration and Enterprise Rent-A-Car moved for a stay. The Court […]
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2016/ November 30/ Past Issues
IFNY Honors Kandarian, Nigro
275 Gather at New York’s Historic Union League Club to Honor MetLife Leader and NYC’s Fire Commissioner More than 250 insurance leaders joined in the Insurance Federation of New York’s (IFNY) 102nd Annual Award Luncheon honoring Steven A. Kandarian, Chairman, President and CEO, MetLife, Inc., as he received the Federation’s 2016 Free Enterprise Award. New […]
2016/ November 30/ Past Issues
Insurance Industry Puts Best Foot (Feet?) Forward at IFNY and IICF Events
The Insurance Federation of New York’s (IFNY) 102nd Annual Award Luncheon honoring Steven A. Kandarian, Chairman, President and CEO, MetLife, Inc., and New York City Fire Commissioner Daniel A. Nigro drew 250 to the Union League Club. IFNY’s inaugural Public Service Award was given to Chief Nigro as a new way of the industry shoeing […]
2016/ November 30/ Past Issues
A Whole New, Dangerous World
Last month, I received a call at my house (Yes, my wife and I still maintain our house phone.). When I answered the phone, the person on the other end said, “Grandpa, this is John.” (I’ve changed his name for his privacy.) “John?” I responded. “It doesn’t sound like you.” My grandson, John, is a […]
2016/ November 30/ Past Issues
Top Five Agency Marketing Myths
All too often we find many misperceptions about marketing an insurance agency. Much more often we hear what doesn’t work than what does. The funny thing is in my life we have failed at many marketing campaigns but we don’t give up! Sometimes we find that if we make one change, it is the magic […]
2016/ November 30/ Past Issues
NYIA Regulatory Symposium Recap
The New York Insurance Association (NYIA) held back-to-back essential events for property and casualty insurance companies doing business in New York on November 1st and 2nd at the Century House in Latham, New York. The New York Regulatory Symposium held on November 1st provided attendees with an excellent opportunity to connect with new Insurance Division […]
2016/ November 30/ Past Issues
“Fed” Up: Sound and Fury…Signifying…What?
Shakespeare’s Macbeth, Act V, Scene V: “To-morrow and to-morrow creeps in this petty pace from day to day, to the last syllable of recorded time; and all our yesterdays have lighted fools the way to dusty death. Out, out brief candle! Life is but a brief shadow, a poor player that struts and frets his […]
2016/ November 30/ Past Issues
UIM Coverage Not Available for Driver’s Negligence
UIM Coverage Only Available When Insured Injured by a Third Party Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages are designed to provide indemnity to an insured who is injured by an uninsured or underinsured motorist’s negligence. It is not designed to supplement the liability coverage of the negligent person. In Simmons v. Geico Indemnity […]
2016/ November 30/ Past Issues
PIA Receives Second Consecutive Gold MarCom Award
Association’s magazine recognized in international awards competition GLENMONT, N.Y.—For the second consecutive year, PIA Management Services Inc. received a Gold Award in the “print media/association/magazine” category for its PIA magazine. The MarCom Gold Award is presented to entries judged to exceed the high standards of the industry. PIA magazine is a monthly, state-specific publication for […]
2015
2015 Issues - Click to View
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DFS MODIFIES REG 79 Compromises Reached as Mandatory Inspection Reg Undergoes Intense Scrutiny, Revision
A set of compromises has been reached in the matter of Reg 79 requirements as the DFS adopted modifications to the long-controversial regulation governing automobile photo inspections. Of the several parties to the compromised changes, many reported satisfaction with the Department’s action, taking steps to streamline the inspection process for policyholders, agents, carriers and vendors […]
Progressive
We mourned the death of former Governor Mario Cuomo as did so many across the State. He was a refreshing liberal personality in that he was always clear in what has been lately called “progressive” orthodoxy in taking positions on the issues that faced New Yorkers. In financial services, he was responsible for the De […]
Safe Again!
New York life insurance and annuity beneficiaries can breath easier! They are safe again! Two years after the statutory life guaranty fund was exhausted by the Executive Life Insurance Company of New York failure, the State’s legislature has passed and the Governor has signed into law legislation restoring the viability of the fund. The new […]
Uber, Airbnb and Insurance
Jerry Trupin
Exposures and Coverages
What do Uber and Airbnb have to do with insurance? Sounds like the opening line to a bad joke, but it’s no laughing matter. When each started, Uber and Airbnb wanted as little to do with insurance as possible. It’s not working out that way. The insurance problems each presents are similar, but since they […]
Eric Kobrick and Elizabeth Mullins Chosen as ARIAS•U.S. Chairman and President for 2015
Eric S. Kobrick, Vice President, Deputy General Counsel & General Counsel, Claims, Reinsurance, Operations and Technology at American International Group, Inc. (AIG), was elected Chairman of ARIAS•U.S. at its 2014 Fall Conference in New York City. He succeeds Jeffrey M. Rubin, Senior Vice President, Director Global Claims at Odyssey Reinsurance Company, who has retired from […]
“Telehealth” Bill
ALBANY, NY—Gov. Andrew M. Cuomo has signed a bill into law as Chapter 550 of the Laws of 2014, which will require insurers and medical assistance for needy persons to provide coverage for the provision of telehealth and telemedicine services. The bill defines telehealth as delivering health care services by means of information and communications […]
Tweaking your Agency’s Traditional Marketing Routine
Chris Paradiso
The Social Notebook
As marketers in the insurance industry, we have a responsibility to make our campaigns as effective and efficient as possible. Over the past several years, we have learned that this is accomplished through inbound channels like social media, search engine optimization and content for lead generation. But as inbound has matured and merged with traditional […]
We’re Not Alone
It’s easy to feel that you’re alone when you struggle with business issues. One issue I have been struggling with lately is how independent agents and brokers can get consumers to appreciate the value they bring to buying insurance protection. To those of us who work in the system it’s a no-brainer. There is also […]
Happy New Year!
Michael Loguercio
Face to Face
So for my first article of 2015, I want to share with you some- thing that truly doesn’t get enough press, but plays such a huge part in this thing of ours: the Excess and Surplus market. E&S makes up almost 15% of the Commercial Lines direct premiums, but being that the sector is so […]
How Underwriters Can Weigh (and Diminish) Cyber Risk Against Critical Infrastructure
By Lior Frenkel Critical infrastructure presents a difficult cyber risk problem for insurance underwriters. The capability for cyber attacks is growing, and they are becoming increasingly targeted. The Havex and BlackEnergy malware strains are but two recent examples of the growing sophistication of high-end capabilities for adversaries of any skill level. Military-grade cyber attack techniques, […]
Contractor Fails to Purchase OCP Coverage for Owner, and Owner Does Not Become Additional Insured on CGL Policy Because Contract Did Not Require It
By agreement dated September 3, 2008, Strauss Painting, Inc. (Strauss)/Creative Finishes, Ltd. (Creative) contracted with the Metropolitan Opera Association, Inc. (the Met) to per- form work on the Met’s premises; specifically, to strip and repaint the rooftop steel carriage track for the opera house’s auto- mated window-washing equipment (here- after, generally referred to as the […]
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Top Leaders, Conferees View Trends, Concerns at January Conference
Attracting Millenials Seen as Important Challenge for U.S. Insurers The “millennial question” was one area of consensus among six chief executive officers at a panel discussion at the Property/Casualty Joint Industry Forum, held here. The CEOs—drawn from a wide range of insurers, including large and small carriers, writers of personal and commercial lines, insurers and […]
Fast at Work …
Over the holidays and into the New Year we at?the Insurance Advocate® have been preparing?to mark our 125th year of service to the New York, New Jersey and Connecticut insurance community with a special touch. The Insurance Advocate®, the oldest and largest regional in an industry that is – thankfully – state regulated, is publishing […]
Too Big … To Succeed!
“An essential aspect of creativity is not being afraid to fail.” Edwin Land At this time of year we are bombarded by images of Mother Nature at her most traumatic and beautiful moments. Blizzards and ice storms mixed with bucolic and tranquil winterscapes. One of the more iconic seasonal images is of a youngster so […]
Small Businesses and Facebook
Chris Paradiso
The Social Notebook
Things seem to be getting uglier for small businesses in the world of Facebook. The most recent development that took place was November 5th’s ban on likegating. This is the practice of forcing a customer to like your page in order to receive the content on the other side. Now while this is a small […]
Starting the Year off With a Win
I often discuss legislative and regulatory issues of importance to agents and our industry in this column. Usually, I write an update about a regulation or urge fellow agents to contact their representatives regarding an important bill that will affect us. I am interested in the legislative and policymaking process and my affiliation with PIA […]
How to Mess Up Your Insurance…Without Really Trying
Michael Loguercio
Face to Face
So how many times have your clients come to you and asked, “How do I mess up my insurance policy so that I don’t get paid on a claim?” Not too often, I’m sure, as many insured are very capable of doing this all by themselves and without any assistance or advice on your part. […]
The Griffith Insurance Education Foundation Awards
MALVERN, Pa.—Forty students from 17 different undergraduate and graduate programs were selected as recipients of The Griffith Insurance Education Foundation’s 2014 scholarship offerings. This past year’s schol- arship funds totaled $102,000 and allowed these students to continue advancing their education in preparation for future careers in risk management and insurance. These scholarships are awarded biannually […]
PIANJ/PIANY 2015 Annual Conference at New Location
ATLANTIC CITY, N.J.—The Professional Insurance Agents of New Jersey and New York State have announced they will hold their PIANJ/PI- ANY Annual Conference June 7-9, 2015, at a new location—Bally’s Atlantic City. “The annual conference is at a new location this year, with new programs, new entertainment and new opportunities,” said PIANJ President Glenn Tippy, […]
NYIA Hits “Hijacking”
January 16, 2015 marked five years since the New York Insurance Association, Inc. (NYIA) filed suit to stop the state’s illegal diversion of funds levied on New York insurance companies. The suit was filed in State Supreme Court, Albany County on January 13, 2010. By law, the assessment on insurers is sup- posed to pay […]
Life Insurance Fraud Fails
Reinstatement of Life Policy Like New Policy States, in an attempt to protect life insurance beneficiaries, make it impossible to contest the viability of a life insurance policy, even if obtained by fraud, unless the coverage is contested within two years of the inception of the policy. In Texas the requirement for an incontestability clause […]
Arbitrator’s Refusal to Honor Prior Jury Verdict is Irrational; Award Vacated
New York City Transit Authority v GEICO On December 23, 2013, petitioner filed its petition under Article 75 of the CPLR to vacate an award made by arbitrator Mavis Thomas on September 24, 2013. In its papers, petitioner argued that the award made by the arbitrator to respondent was improper because the arbitrator exceeded its […]
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CYBER WAR: NYSDFS hits the Ground… Regulating
Benjamin M. Lawsky, Superintendent of Financial Services, has released a DFS report on cyber security in the insurance industry and has announced a series of measures that DFS will take “to help strengthen cyber hacking defenses at insurers.” DFS plans to integrate regular, targeted assessments of cyber security preparedness at insurance companies as part of […]
Proof of Concept
When we read in these pages of legislative and regulatory issues – in particular, the recent successes for agents with Reg 60, Reg 79 and now the C of I clarifications – it reminds me of the value agents get from their associations: NYSAIFA, IIABNY, PIANY and the others. That was underlined just the other […]
Report Cards – The Sequel
I received a number of calls recently from colleagues, including a couple of former NY insurance department employees, asking if I had seen the new report card on the effectiveness of each of the state insurance departments. Usually the conversation started out by the caller noting that California received an “F” and NY a “D”. […]
Appraisal Rights Expanded; Drones and Insurance; Cuomo Signs C of I Legislation
Jerry Trupin
Exposures and Coverages
New York has expanded the usefulness of appraisals for settling disputed property insurance losses. The revision clarifies that the scope of the damage is a proper subject for appraisal. The change passed both houses of the legislature unanimously and was signed by Governor Cuomo on November 24, 2014. Almost all property insurance policies include a […]
PIANY Hails Passage of Law Providing Coverage Clarity on C of I
ALBANY, N.Y. — The Professional Insurance Agents of New York State Inc., is applauding Gov. Andrew M. Cuomo’s signing of its top-priority bill (A.9590 and S.6545-A) into law today. The law addresses a growing problem for construction and insurance businesses, where certificates of insurance are issued that may not accurately represent policy coverages. The law […]
Davis named PIANY’s MetroRAP Industry Professional of the Year
The Profes sional In-surance Agents of New York State Inc. presented Kevin Davis, president of Kevin Davis Insurance Serv ices Inc., with its Industry Professional of the Year award at the annual Metropolitan Regional Awareness Program, Jan. 29, 2015. Davis also currently is the managing general agent for Travelers Insurance which is one of the largest writers of specialty insurance coverage for community associations in […]
Twelve Mistakes in Marketing
Chris Paradiso
The Social Notebook
Recently I spoke at an insurance conference about success in social media marketing, and shortly after finishing my speech, a young insurance professional came to me and asked if I could take a few minutes to explain to her what I thought were twelve mistakes in marketing that agencies should avoid in the new year. […]
IIABNY Lauds “Victory for Agents”
eWitt, N.Y.— IIABNY is celebrating a major win for producers who issue certificates of insurance, after legislation it helped develop was signed by Gov. Andrew Cuomo. The Independent Agents and Brokers of New York said that the new law will stop businesses and government agencies from pressuring insurance producers into issuing false or misleading certificates […]
Intercepted!!!!! …by the Police!
Michael Loguercio
Face to Face
So what did you do right after the Super Bowl ended? Cheer for The New England Patriots on their exciting win with seconds remaining? Chastise Pete Carroll of The Seattle Seahawks for what some say was a very poor coaching decision to call a pass play, when the whole world was thinking run out the […]
IIABNY’s Inaugural NYiDAY Sells Out & Delivers
A look back… From its inception, NYiDAY – created by the Independent Insurance Agents & Brokers of New York (IIABNY) and Trusted Choice® – was unlike anything before. “After numerous conversations with agents in the Metro New York area, it became quite apparent there was not an event that gave them what they wanted,” said […]
Top CEOs to Address Big “I”
The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) has announced that the participants for a top insurance carrier CEO panel discussion on Friday, April 24, during its annual Legislative Conference will include: David H. Long, Liberty Mutual Insurance chairman, president & CEO, Christopher J. Swift, The Hartford chair- man & […]
It Doesn’t Pay to Seek Penalties Not Owed
States, like Louisiana, have enacted statutes requiring insurers to pay an agreed claim immediately but no later than 30 days from the date of the agreement. In Louisiana a court can assess a penalty even if the payment is made 34 days after the settlement agreement. However, to get the penalty it is necessary that […]
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2015/ February 18/ Past Issues
LICONYMarks 47th Year
The Life Insurance Council of New York, Inc. (LICONY), celebrated its 47th Anniversary on Thursday, February 5, 2015, with a reception at the Mutual of America headquarters building on Park Avenue, NYC. The Anniversary Celebration Reception was attended by over 150 guests from life insurance companies, legal, accounting, actuarial, and other professional services firms, as […]
2015/ February 18/ Past Issues
Moneyball for Law – Analyzing the big firms
The Brad Pitt film, Moneyball, portrays Billy Beane, baseball team manager of the Oakland A’s, struggling against accepted dogma in player selection. Beane’s insight was to use already available player data to pick athletes. This flew in the face of accepted conventional wisdom in the game. Talent scouts prided themselves on their “eye” for talent, […]
2015/ February 18/ Past Issues
Life Imitates Art
The Mercury Insurance Special Investigations Unit (SIU), which refers to itself as the CSI of the insurance industry, continues to uncover fraudulent claims, saving Mercury policy holders hundreds of millions of dollars and per- forming a service to all of the industry’s SIUs and sleuths. From sophisticated organized crime and sleazy lawyers and doctors to low intelligence criminals chasing quick bucks, […]
2015/ February 18/ Past Issues
The Sausage Factory
There are a number of variations to an old saw comparing the messy legislative process with sausage making. A common current iteration observes that: “If you love the law or sausages you should never see either one made.” Given the vagaries of law-making mills, imagine the possibilities when relying on legislation to solve a simple […]
2015/ February 18/ Past Issues
Traditions, Trends and Turns at PIANY’s MetroRAP
Readers of The Advocate surely are familiar with MetroRAP, the Professional Insurance Agents of New York State’s (PIANY) regional aware- ness program for New York City and the surrounding areas. The event has a history spanning three decades and it usually kicks off PIANY’s extensive events calendar each year. Since 2001, it has been held […]
2015/ February 18/ Past Issues
PIANY’s MetroRAP Brooklyn
New York City’s producer community came back to Brooklyn for the Professional Insurance Agents of New York State Inc.’s 2015 Metropolitan Regional Awareness Program, held Thursday, Jan. 29, 2015, at the Brooklyn Marriott. MetroRAP, PIANY’s first net- working event of the year, has become the place to be seen. This year’s event was a smashing […]
2015/ February 18/ Past Issues
Let’s Talk About Your “Why”
Chris Paradiso
The Social Notebook
Have you seen the iconic 2009 TED Talk by Simon Sinek? The talk was about how great leaders must inspire trust, cooperation, and action. If you have NOT seen or heard that talk PLEASE drop everything you’re doing and watch it. Simon talks about a simple but paradigm-shifting model. This model has transformed the way […]
2015/ February 18/ Past Issues
Rock Paper Scissors…What’s Next?!
Michael Loguercio
Face to Face
So a few days ago, Devin and I were rummaging through some old papers and memorabilia of mine, some of which I had not seen in many, many years. Something that I came across was my original New York State insurance license, issued from the now-non-existent NYS Department of Insurance (remember them?) from about thirty-five […]
2015/ February 18/ Past Issues
Mailing is All Needed to Perfect Nonrenewal
Agent Not Required to Inform Insured of Nonrenewal Some cases go on and on with trial decisions reversed, remanded, retried and appealed again. In Collins v. State Farm Ins. Co., — So.3d —, 2015 WL 468970 (La.App. 4 Cir.), 2014-0419 (La.App. 4 Cir. 2/4/15), after eight years of litigation over damages resulting from Hurricane Katrina […]
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Attorney General in New York named “Prosecutor of the Year”
Award bestowed by the New York Alliance Against Insurance Fraud NEW YORK, N.Y. — Cited for an aggressive campaign to counter auto and healthcare insurance fraud scams, the Office of Attorney General in New York was honored with the “Prosecutor of the Year” award by the New York Alliance Against Insurance Fraud. The award was […]
Generous and again generous….
Insurance leaders are among the most giving of executives. It’s kind of a culture in the field, from local agents who engine local teams, runs, charities and give support to fire fighters and police, up to the C Suite professionals who send dollars and staff to the good causes that change the world for so many. The New York Times […]
News Flash: Tail Wags Dog!
The insurance media sometimes does not know quite how to report on pronouncements by our fearless regulatory leader in New York. This is probably because so many of his statements are about “financial services” without distinction between industries, and insurance industry reporters are not always sure if he is including, excluding or consciously ignoring insurance. […]
A Tale of Two Exclusions: Fungi and Bacteria & Cosmetic Damage
Jerry Trupin
Exposures and Coverages
Reader Asks About: Fungi and Bacteria Exclusion A Westchester producer writes: We have a client that plans to produce and sell maxi- pads in foreign countries. We’ve received two quotes. The first totally excluded losses in any way involving fungi or bacteria. The second has a more limited exclusion: “Bodily injury” or “property damage” which […]
Success in Social Media Starts with…
Chris Paradiso
The Social Notebook
When you think of social media and the success that can be gained from it, one thing that we always need to keep in mind is to continuously keep learning. Social media is constantly changing because of Google’s fluidity, and that’s why we can never stop learning. Remember, Google is the boss of the Internet […]
Some Policies Have Tails, But This One Has Legs!
Michael Loguercio
Face to Face
So think about this for a second: what was the most bizarre risk that you have ever insured? Where did the risk originate from? How did it end up in your office? Were you well versed in the type of coverage that was applicable to the risk? Where did you place it…direct with an admitted […]
Misrepresent Material Fact – Lose Coverage
Uberrimae Fidei Allows Voidance of Marine Insurance Policy Insurance has, from its inception, been an agreement requiring utmost good faith by both parties to the contract of insurance. As used in maritime insurance failure of an insured to deal in the utmost good faith with its insurer allows the insurer to void the insurance. A […]
Medical Provider Must Submit to EUO Whether it Gets an Assignment or Just Authorization to Receive Payment
Stracar Med. Servs., P.C. v State Farm Mut. Auto. Ins. Co. Appeal from an order of the Civil Court of the City of New York, Kings County (Devin P. Cohen, J.), entered January 29, 2013. The order granted defendant’s motion for summary judgment dismissing the complaint and denied plaintiff ’s cross motion for summary judgment. […]
Study Reveals Stability and Growth in P-C Insurance Market
Independent insurance agents continue to outperform captives in several areas. The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) has released the results of the 2015 Market Share Study (based on 2013 data) which reveal that independent insurance agents and brokers (collectively “IAs”) continue to dominate commercial lines while rivaling […]
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Springing into Spring. POTHOLES COST INDUSTRY DEEPLY
Drivers, Local Authorities Deal with Tough Winter’s Potholes Trusted Choice® survey shows about 50% of U.S. car owners report vehicle pothole damage. “The snow, ice and freezing rain during the rough winter months left their mark on the country’s roads. Severe potholes have led to accidents which may impact insurance rates, as premiums are determined […]
REG. 60
“The winter of our discontent” was how King Richard III described his plight in Shakespeare’s play of the same name. In fact the errant king was just reinterred in England after his miscreant bones were discovered. And what timing, near the end of the worst winter in memory. Who would have thought that potholes would […]
Start Up, New York!
It is hard to miss the ads all over the airwaves and print media extolling the virtues of New York State as a great place to do business. Offering tax breaks, access to human and natural resources, friendly regulations, minimal red tape, the State spends tens of millions – yours and my tax dollars at […]
Signs
I’m often asked how I come up with ideas to write my column. Many ideas come from friends and fellow agents who share stories in casual conversation, or an agent will reach out to me because they have an idea that they think others would be interested in reading about. As the time between each […]
PRI Cites Mercy Medical Center, Rockville Centre, for Risk Management and Patient Safety “Best Practices” Award
Terence Cardinal Cooke Health Care Center Earns Honorable Mention “We are proponents of creative, aggressive approaches to achieving excellence in patient care. The Patient Safety Award gives us the opportunity to publicly acknowledge some of the best practices taking place in the field and gives others an opportunity to learn more by facilitating the exchange of information. […]
Google is on the Move
Chris Paradiso
The Social Notebook
Google is once again tweaking its search algorithm with a new change that should have some benefits for its users. Google announced last month that it will rank mobile-optimized sites higher in search results, starting April 21, 2015. Sites that work well on a mobile device should get a “significant” boost over other sites that […]
CMSV Announces Fishlinger Center for Public Policy Research
To further its commitment to the intellectual, ethical, and personal development of its students, faculty, and the public at large, the College of Mount Saint Vincent has announced the creation of the Fishlinger Center for Public Policy Research. The development of the center, which is slated to open in late summer, opens new vistas for […]
Jonathan Bing to Lead Wilson Elser’s NYC Government Affairs Practice
National law firm Wilson Elser appointed Partner Jonathan L. Bing, a former New York State assemblyman and Governor Cuomo appointee, to head of the New York City Government Affairs practice. In this role, Bing will work closely with Albany Regional Managing Partner Kenneth Shapiro and Deputy Regional Managing Partner Lisa Marrello, both of whom lead the firm’s […]
National Fire Adjustment Co., Inc. Names David LeBlanc V.P.
David LeBlanc has been named Vice President of the Canadian Operations for the National Fire Adjustment Co., Inc. announced NFA President Ronald Papa. National Fire Adjustment Co., Inc. is a family–owned and operated public adjusting firm which began in Buffalo, New York, U.S.A. in 1922. The National Fire Adjustment Co., Inc. is one of North […]
What Will Happen if Supreme Court Cuts ObamaCare Subsidies?
The Obama Administration was apparently shocked when the U.S. Supreme Court agreed to hear the case of King v. Burwell, which challenges insurance subsidies flowing through federal Exchanges. The Affordable Care Act (ACA) clearly states that subsidies flow only through Ex- changes established by States. This, according to MIT economist Jonathan Gruber, was meant to […]
Writing Off Insurance Agents, Again, is not a Safe Bet
As a young legislative staffer back in the onset of the 1980s I was given two early lessons: one had to do with attending the same meeting with a reporter, reading about it the next day, and wondering if I was at the same meeting; the other was to never underestimate the power of the […]
Duty to Defend Not Effected by Denial of Motion for Summary Judgment
Defense Can’t Be Avoided by Use of Limine Motions The duty to defend owed by an insurer is very broad and requires an insurer to defend even if there is only a potential for coverage on the facts of the case and the policy wording. Usually, an order denying a motion for summary judgment seeking […]
Where MVAIC Claimant Indicates he was on a Motorcycle, Burden is on Claimant to Prove he is a Qualified Person
New Millennium Med. Imaging, P.C. v M.V.A.I.C. Plaintiff, a radiology center, commenced this action to recover the sum of $2,659.81 and $912.00 for imaging services it provided to its assignor Yao He Wang. Defendant MVAIC requests that the Court dismiss the claim based upon the assignor’s ineligibility for MVAIC benefits under Article 52 of the […]
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Miscalculating : Majority of Americans Overestimate Cost of Life Insurance
The results of the 2015 Life Insurance Barometer — the fifth annual measure of consumer trends and perceptions regarding life insurance, retire- ment and their financial well-being conducted by the non-profit Life Happens and LIMRA – found that while the majority of Americans know they need life insurance, a lack of aware- ness about the […]
“Likeable Enough”
Love this news: USAA reports the financial services industry’s reputation has “recovered considerably” from its recent low point in 2009, but it still falls far below other industries many people love to hate, including energy and telecommunications. Some financial firms escape the downbeat industry assessment, according to the 16th annual Harris Poll Reputation Quotient® (RQ) […]
Mixed Messages
There were two recent, seemingly unrelated events involving NY’s superintendent of financial services – one in his capacity as the chief financial services regulator and one in his separate role as receiver of an insolvent insurer – that send strikingly opposite messages. First there was the very public castigation of the New York branch of […]
What Is Theft? Crime Coverage Terminates for Certain Employees Uber & Lyft Insurance Update The Drones are Coming
Jerry Trupin
Exposures and Coverages
What is “Theft”? “When I use a word,” Humpty Dumpty said in rather a scornful tone, “it means just what I choose it to mean — neither more nor less.” “The question is,” said Alice, “whether you can make words mean so many different things.” “The question is,” said Humpty Dumpty, “which is to be […]
Why Your Mobile Presence Matters
Chris Paradiso
The Social Notebook
Was your agency ready for the April 21 update? Google made its biggest change to its algo- rithm ever. The Google mobile algorithm update will be influencing the display of organic search results on mobile devices such as tablets and smartphones. This will not only be affecting insurance agency websites but all websites that have […]
IIABNY CEO Dick Poppa Receives Lifetime Achievement Award
Washington, D.C. — Richard Poppa, CAE, AAI, president and chief executive officer of the Independent Insurance Agents & Brokers of New York (IIABNY), received the Jeff Yates Lifetime Achievement Award from the Independent Insurance Agents & Brokers of America (IIABA.) Poppa was honored during at ceremony at the IIABA’s Big “I” Legislative Conference at the […]
Agency Impossible
There’s a show on the Food Channel called Restaurant Impossible that I enjoy watching. If you’re not familiar, English Chef Robert Irvine takes two days and $10,000 to turn around failing restau- rants. His team is headed by two other peo- ple, his builder and his interior designer. On his first visit to these establishments […]
Covenant Not to Execute Not a Release
It is almost common for a plaintiff who gets a large judgment against a tortfea- sor that cannot be collected to enter into an agreement with the defendant to not execute upon the judgment in exchange for an assignment of the defen- dant’s claims against its insurer. It is unusu- al, however, for the insurer […]
Medical Provider Must Submit to EUO Whether it Gets an Assignment or Just Authorization to Receive Payment
Appeal from an order of the Civil Court of the City of New York, Kings County (Devin P. Cohen, J.), entered January 29, 2013. The order granted defen- dant’s motion for summary judg- ment dismissing the complaint and denied plaintiff ’s cross motion for summary judgment. ORDERED that the order is affirmed, with $25 costs. In […]
ObamaCare Can Cancel Your Insurance, Warns AAPS
Tucson, AZ. One of the biggest sell- ing points for the Affordable Care Act (ACA or ObamaCare) was the promise that insurers couldn’t cancel your plan if you get sick. But if the U.S. Supreme Court, in King v. Burwell, holds premium subsidies to be illegal in Exchanges not established by States, the Administration will […]
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Modern Technology could very well determine the trajectory of your business
The insurance industry in general has often been accused of lagging when it comes to adopting and leveraging the latest technologies, but that doesn’t mean the industry is standing still, particularly insurance carriers. And sometimes, carriers’ use of technology has come at the expense of insurance agents. In recent decades, insurers have used the Internet […]
Newton Award to New York’s Peter C. Browne
In an advance for commercial property insurers, site-specific exposures can now factor into underwriting models. Verisk has developed a new analytic report that provides underwriters the ability to determine the likelihood of fire incidents and a broad spectrum of non-modelled weather events. The Peril and Incident Report is offered as part of Verisk’s newly enhanced […]
Cyber Insecurity
Although insurance industry players – companies and producers – are not exactly modern Luddites opposed to any technology advances, it is no secret that the industry usually lags behind in keeping up with an ever-chang- ing world. In an age where young people in the same room are more comfortable communicating via texting rather than […]
New Seasons, Innovations and the Rules They Provoke
I’ve always seen Spring as the season of rebirth. As I write this article, I’m sit- ting at home: The tulips are about four inches above the ground and I’m watching the same birds come back and attempt to nest in the automatic awning over my deck, where they have been for the last two […]
Long Island RAP 40th Anniversary Celebration
Hundreds of professional, independent insurance agents gathered at Crest Hollow Country Club in Woodbury for the 40th Annual Long Island Regional Awareness Program on April 22. Attendees took the opportunity to honor their col- leagues, network, earn continu- ing-education credits, peruse the latest industry innovations and of course to hear the inspirational words of Dwight […]
SEO as a Part of Your Agency’s Marketing Strategy
Chris Paradiso
The Social Notebook
Did you ever wonder about making your insurance website more appealing to the three core search engines (Google, Bing and Yahoo)? First I would say forget about Bing and Yahoo. Why? The stats don’t lie – 79% of people use Google. In my opinion, that’s where your focus should be. Have you been scared off […]
Cheaper to Keep Her!
Michael Loguercio
Face to Face
So when you hear this saying, what do you typically think of? Someone who is contemplating a potential divorce? The song made famous by The Blues Brothers ? The movie starring singer turned-actor Mac Davis ? Then what is the first thing that pops into your mind when you hear that saying? What about the […]
Careful with Applications : Broker’s Misrepresentation Without Knowledge of Insured is Sufficient for Rescission
Insurance brokers, who represent the insured to transact insurance with, but not on behalf of, an insurer often will try to make the process easy for the insured by filling out the application before asking the insured to sign it. It is a practice fraught with danger that can cause the insured to have no […]
E&O Considerations for the Automated Agent
Technology is providing agents and brokers (“agents”) today with several tools to increase sales and profitabil- ity, as well as to provide better customer service. Automation is also helping many agencies manage their E&O risks more effectively, because of its capabilities to retain accurate data, foster consistent processes, document transactions and con- versations and generate […]
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NAIFA Launches an Attack on “Unreasonable” Legislation
The National Association of Insurance and Financial Advisors–New York State (NAIFA–NYS) has launched an all-out attack on an initiative introduced in the leg- islature that would institute what it sees as unreasonable requirements upon providers of Financial counsel. NAIFA which represents the interests of tens of thousands of agents, their associates, and their clients who […]
Post Ben: Revisit the Concept
Too bad that the news of Ben Lawsky’s departure from the NYDFS was greeted in the major papers almost universally with a recounting of his hard-hitting penalties and pun- ishments of bankers. It has made him appear a bit of an over-reacher in the prosecution of errant bank operatives, when in fact he meted out […]
Egads Charlie Brown!
One of my favorite Peanuts car- toons is of Linus and Charlie Brown talking. Linus says, “Well Charlie Brown, you win some and you lose some!” Charlie Brown thinks about it and through his inimitable meek smile responds: “Gee, that would be neat!” The insurance industry, particularly in New York, can certainly empathize with Charlie […]
When Does a Property Loss Occur?
Jerry Trupin
Exposures and Coverages
It’s generally clear when a property loss has occurred. The building burns down, the insureds call the fire department, and then call their insurance producers. But sometimes the damage occurs and the insured doesn’t know about it. It’s the insurance variation of “If a tree falls in a forest and no one is around to […]
ISO Tries to Fix “Where Do You Reside” Problem in HO
Jerry Trupin
Exposures and Coverages
ISO Fixes the Residence Prob- lem in Homeowners Policies— Somewhat. Mary, an elderly widow, suffers from a number of chronic ailments and has signs of dementia. Her family decides that she can no longer live on her own and must be moved to a nursing home. They realize that Mary will never recover sufficiently to […]
ISO Responds to Uber, Lyft and Other TNCs
Jerry Trupin
Exposures and Coverages
ISO Responds to Uber, Lyft, and Other TNCs (Transporta- tion Network Companies) ISO has responded to the Uber, Lyft and the TNC craze that’s disrupting the taxi industry by filing new endorsements. It’s a response that will leave ISO-based insurers out of the game. The most important change is a mandatory endorsement that eliminates coverage […]
Computer Hacking Caused by Carelessness More Than Cleverness
Jerry Trupin
Exposures and Coverages
Phishing, not Phenoms, Cause Most Computer Hacking Problems It’s not Professor Moriarty, Darth Vader, or even Crabby Appleton who wreak havoc on our computers, it’s our own gullibility. More than two-thirds of the 290 electronic espionage cases studied by Verizon and Symantec involved some- one victimized by phishing (computer- speak for emails that trick you […]
Catch the Social Media Wave
Chris Paradiso
The Social Notebook
Social media has become one of the most prominent marketing chan- nels. A recent study shows that near- ly 91 percent of all businesses are using social media as a new marketing tool to reach customers and prospects. It’s also reported that Americans spend more than 3.5 hours a day using social media. That’s more […]
Grill Baby Grill!
Michael Loguercio
Face to Face
So as we approach Memorial Day and the dog days of summer, many of us have thoughts in our minds of trav- eling on vacation, trips to the beach, and backyard barbeques. Well, as we commit to these different events, there are a few reminders that I want to share for us to keep in […]
The Time Is Now!
The insurance business is changing. Many insurance consumers have been programmed to believe all insurance coverage is the same and there is no need for the professional services of an insurance agent in the buying process. Unfortunately we all know this isn’t true and shudder to think of what might happen to the unsuspecting consumer […]
When are Intentional Acts Also Accidental? When Herbicides Destroy Crops Litigation Follows
Insurance policies are said to give everything in large print and take it away in fine print. That canard is no longer true since all modern policies are written in common language and each part of the policy is written in the same size print with headings even larger. However, insurance policies provide coverage for […]
Plaintiff ’s Failure to Comply With 90-Day Notice Results in Dismissal : South Nassau Orthopedic Surgery & Sports Medicine, P.C. v Geico Ins. Co.
Appeal from an order of the Civil Court of the City of New York, Queens County (Barry A. Schwartz,J.), entered November 28, 2012. The order denied defendant’s motion to dis- miss the complaint pursuant to CPLR 3216. ORDERED that the order is reversed, with $30 costs, and defendant’s motion to dismiss the complaint pursuant to […]
IIABNY Honor Leaders: Awards given at insurance producer organization’s leadership dinner
COOPERSTOWN, N.Y.—The Inde- pendent Insurance Agents & Bro- kers of New York recognized excellent performance by insurers, a local trade group, volunteers and associates in a ceremony this evening. Acting for the final time in his capacity as IIABNY chair of the board, James Sutton presented the awards at the association’s 2015 Leadership Din- ner, […]
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Guiding Insurance Professionals on the New Insurance Regulatory Guidance
In the wake of some of the largest data breaches to hit health insurance companies, the National Association of Insurance Commissioners has followed on the heels of the Securities and Exchange Commission and has issued “Guidance” on cyber security. In April, the Cybersecurity (EX) Task Force of the National Association of Insurance Commissioners (NAIC) adopted […]
Statewide Doctor Shortage Looms
As our healthcare system is “transformed,” fixing greater focus on primary care, care coordination, and population health, residents across the state need more primary care providers, according to an eye-opening report from the Healthcare Association of New York State (HANYS). Doctor Shortage Imperils Primary Care Expansion confirms that New York’s physician shortage continues and is […]
End of the Trail “My work here is done!” (The Lone Ranger)
Many of us smiled – perhaps cynically – at the New York Times headline on May 20th: “Benjamin Lawsky, Sheriff of Wall Street, Is Taking Off His Badge.” The article included the semi-iconic rendering of “Johnny Lawsky” in old-west sheriff’s garb from The Village Voice cover in 2013. Place a black mask on that graphic […]
IIABNY Elects Todd Rockefeller Chair of the Board Westchester County insurance agent is trade group’s top elected officer
Cooperstown, N.Y.—The Independent Insurance Agents & Brokers of New York (IIABNY) today elected R. Todd Rockefeller as its chair of the board for the 2015-16 term. Rockefeller took the oath of office during a ceremony following IIABNY’s Annual Business Meeting, held at The Otesaga Resort Hotel in Cooperstown. Members also elected and installed new officers […]
Stewart to be Honored at 2015 IIS Global Forum
The International Insurance Society (IIS) has announced that the late Gordon C. Stewart, former IIS Vice Chair and retired CEO of Insurance Information Institute, has been selected as the recipient of the Distinguished Service Award for his dedication and leadership in forwarding the mission of the IIS. Mr. Stewart will be honored before an audience […]
Your Personal Brand
Chris Paradiso
The Social Notebook
An essential part of networking today is to be “memorable” for the right reasons. OK, what does this mean? It means recognizing and developing your personal brand. Without the creation of your personal brand, it will be very difficult to network effectively. A brand is often described as a “collection of perceptions” people have about […]
Insurance Brokers, PEOs and Clients: A Win-Win-Win Partnership
Over a decade ago, insurance brokers and Professional Employment Organizations (PEOs) were nothing more than competitors. PEOs brought workers’ compensation and health insurance options to clients, and these offerings threatened to displace that which insurance brokers had in place. Times have changed. In today’s legislative landscape, especially with the enactment of the Affordable Care Act […]
A Woman’s Place is Not in the Kitchen Any Longer
If you have attended an insurance networking event, you will probably see only a handful of women on the roster and at the networking bar. Women not only enjoy lower auto insurance rates, we also make up 83% of the insurance processing and claims jobs, according to the Bureau of Labor statistics in 2011. Today’s […]
An American Response to Loss of ObamaCare Subsidies
This summer, the U.S. Supreme Court could, in King v. Burwell, uninsure eight million Americans by finding that subsidies are illegal outside State Exchanges. Some Republicans are saying “Let it burn.” For Democrats, it’s “ObamaCare or nothing.” Can you detect a difference? How about an American, rather than a partisan response? One that is voluntary […]
Motorcycle Passenger is Still “Occupying” it After Being Thrown Off; Gets no PIPBenefits for Being Struck While on Pavement Boyson v Kwasowsky
Appeal from a judgment (denominated order and judgment) of the Supreme Court, Oneida County (Bernadette T. Clark, J.), dated October 3, 2013. The judgment granted the motion and cross motion of defendants Kemper Independence Insurance Company and Farm and Family Casualty Insurance Co., respectively, for summary judgment dismissing the complaint against those defendants. It is […]
What Happens When State Formed Insurer Acts in Bad Faith? First Party Bad Faith Creature of Statute in Florida
Citizens Property Insurance Corp. (Citizens) was created by the state of Florida to deal with wind damage claims from the annual damage caused by hurricanes passing through the state that standard, for-profit, insurers were unwilling to risk. To limit the liability of the state funded insurer the Florida Legislature granted Citizens immunity from most suits […]
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NYIA Annual Conference Attendees Saddle Up for Success
The New York Insurance Association (NYIA) Annual Conference attracted more than 240 insurance industry executives to Saratoga Springs, New York May 27–29. Those in attendance made it known that they were ready to fulfill the theme of this year’s event, Saddle Up for Success, in the spirit of Saratoga’s rich horse racing culture. NYIA prides […]
Amendments to the Stringer Bill
Following our cover story in early May in which we presented – on the cover – the language proposed in a bill that would require agents and brokers to recite a rather ridiculous “disclosure,” we have had a waterfall of response. Here is the language we quoted that agents and brokers would be required to […]
Go Figure “Facts are stubborn things, but statistics are pliable.” Mark Twain
Ever wonder how many state insurance regulators there are nationwide? Or how the state departments compare in size, number of staff, or budgets? Or how the states compare in collection of taxes, fees and assessments, fines and penalties or total revenue? The answers to these and many more questions can be found in Volume 1 […]
Designated Premises Exclusion NYTimes On Homeowners Deductibles & Damage to a Tenant’s Apartment Updates on C of I and TNCs
Jerry Trupin
Exposures and Coverages
Designated Premises Exclusion—Score One for the Home Team. I hate the designated premises exclusion endorsement. It links coverage to a specific location rather than providing broad coverage throughout the coverage territory. While it’s probably needed in certain situations (e.g. the insured operates multiple locations and the policy is intended to cover just one), it is […]
Experience or OJT?
It should come as no surprise to anyone that finding, training and retaining quality employees is a huge issue and a top priority in many independent insurance agencies. The effect of the Baby Boomer generation retiring from active participation in agencies is creating a real problem for agency owners and managers to solve. Most of […]
When a Customer is Not a Customer Bankers’ Bond Requires Loss to Bank’s Customer
In an unusually brief, succinct and intelligent decision the Ninth Circuit Court of Appeal interpreted an insurance contract, called a financial institution bond, as it was written in First Nat. Bank of Northern California v. St. Paul Mercury Ins. Co., — Fed.Appx. —, 2015 WL 2225044 (C.A.9 (Cal.) 5/11/15). First National Bank of Northern California […]
District Court Finds Lack of Standing for Cyber Data Breach Victims
The United States District Court in Nevada issued an Order on June 1, 2015 dismissing the complaint filed by alleged victims of a data security breach suffered by Amazon.com d/b/a Zappos.com (Zappos) on the ground that the victims lacked standing to sue because they could not identify any specific harm that they had sustained as […]
Feds Want to Spend $20B on AIDS Drugs, Based on 45 Cases
About $6 billion per year is now spent on a cocktail of drugs to treat “HIV disease”—a positive blood test for antibodies for human immunodeficiency virus, the accepted cause for AIDS. Treatment generally starts when the patient’s CD4 white blood cell count drops below 350-500. (Normal is 500 to 1,200 per cubic millimeter.) But if […]
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2015 PIANJ/PIANY ANNUAL CONFERENCE
Thousands of agents and insurance industry professionals turned out to see the new and exciting developments to the PIANJ/PIANY Joint Annual Conference at Bally’s Park Place in Atlantic City, N.J. June 7-9. The event included a sold-out trade show; jam-packed education from which agents and their staff could obtain valuable information; sensational networking opportunities, and […]
Boundaries
Fast on the heels of the announcement that Anthony Albanese will fill the role of Acting Supt. of the DFS to succeed Benjamin Lawsky comes a letter to the Governor from Elizabeth Warren calling upon him to find and name a prosecutorial czar to shake up the financial services sector – largely the banks – […]
Reflections
Whatever else you may think about Governor Cuomo’s policies, you have to appreciate his ability to be ahead of the field when it comes to tooting one’s horn. Take, for instance, his e-mail blast within minutes of the end of the legislative session. The session gaveled out at 12:18 a.m. Friday, April 25th, and less […]
Fifteen Years Later, Scary Computer Threats Really Do Exist
Anyone who knows me knows that my grandsons are the joy of my life. I spend as much time as I can with them—I go to their school events; enjoy having them visit at home; and I try to make as many games as I can to watch them play soccer. They are quite good. […]
The Beginning…
Chris Paradiso
The Social Notebook
Are you confused and overwhelmed by social media and where to begin? Well, don’t feel bad, most insurance agency owners are. In this article I provide a few of the best social media sites for insurance agency owners and why I feel you and your agency need to be there. First, when considering your insurance […]
IBANY’s Emerging Leader Program Honors 17 Young Insurance Professionals
“I stumbled into the insurance world quite by accident.” “The insurance business found me.” “Insurance was not part of my initial plan.” “A career in the insurance industry was not something I had considered.” Those statements come from honorees in the Emerging Leader program, established this year by the Insurance Brokers’ Association of the State […]
Prechtl Honored by New York Insurance Association
SARATOGA SPRINGS, N.Y.—The New York Insurance Association, Inc. (NYIA) honored Mark Precthl with the Chair’s Distinguished Service Award at the association’s annual conference May 28 in Saratoga Springs, N.Y. Prechtl is executive vice president and chief executive officer of Chautauqua Patrons Insurance Company. “Mark embodies the fundamental purpose of insurance—helping people,” Bernard Turi, NYIA chair […]
Agency Performance Partners Celebrates One-Year Anniversary : Consulting firm shares insight gathered through proprietary agency assessments
EAST GREENWICH, RI—This month marks the one-year anniversary of Agency Performance Partners, an agency success consultancy led by Kelly Donahue-Piro. “During our first year in business, we’ve been fortunate to work with some of the most forwardthinking independent agencies in the country,” Donahue-Piro says. “It’s been exciting to see these businesses start to transform their […]
IIABNY Honors Leaders : Awards given at insurance producer organization’s leadership dinner
Cooperstown, N.Y.—The Independent Insurance Agents & Brokers of New York recognized excellent performance by insurers, a local trade group, volunteers and associates in a ceremony this evening. Acting for the final time in his capacity as IIABNY chair of the board, James Sutton presented the awards at the association’s 2015 Leadership Dinner, held following its […]
The TriCounty I.I.A. Installs 2015–2016 Officers and Directors
Albertson, New York – New officers and directors took the helm on June 15 during the Long Islandbased TriCounty Independent Insurance Agents Association annual installation dinner and awards ceremony. The gathering, held at Cheateau Briand in Carle Place, NY, set the TriCounty IIAA leadership for the 2015-2016 term. More than 200 agents and brokers, company […]
I.I.I. Receives 2015 Innovation Award
The Insurance Information Institute (I.I.I.) was presented with the Insurance Marketing & Communications Association’s (IMCA) 2015 Innovation Torchbearer Award, given annually to those who have “demonstrated innovative ideas or initiatives impacting the insurance industry.” “IMCA selected the Insurance Information Institute for this prestigious honor as a result of its exceptional record of seeking to educate […]
Does the AIA Construction Contract Avoid Litigation?
Insured May Effectively Waive Subrogation Subrogation is an equitable remedy where an insurer that pays to indemnify its insured will be able to step into the shoes of the insured and sue any tortfeasor who is responsible for the property damage that its policy of insurance was required to indemnify its insured because of the […]
Dr. Carson Wants to Heal, Unite Americans
Physicians from North Carolina, along with some from around the country who were in Raleigh for a meeting, had a unique opportunity to chat with Dr. Ben Carson last week. We heard some original ideas—and some facts that all presidential candidates should be talking about but apparently don’t dare. It’s not just the $18 trillion […]
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Major Questions Surround I-PIRP Assessment Process
Guest Author
Cover Story, Feature
By F. Joseph Wertz This past year, New York State extended the pilot of the Internet Points Insurance Reduction Program (IPIRP) despite major questions regarding the studies supporting its effectiveness. There has been no conclusive proof that the I-PIRP actually improves driver safety and reduces the risk of accidents, yet the I-PIRP pilot program has […]
Every So Often…..
Every so often, we get it right. Among the many e-mails received here following my piece in this space on June 29th, there were several that expressed pleasure at our critique of Sen. Warren’s presumptuous advice to Gov. Cuomo on his selection of the next DFS chief. She’d like it if the Governor were to […]
Summer Refreshments
Every once in a while it seems like a good idea to take a refresher course on the wonderful world of insurance regulation from our state regulators, to our national overlords, to the international financial wannabe wizards: a little bit of summer school, if you will, to catch up on all the developments that we […]
Two Big Cases: Fedex Ground vs Drivers and Supreme Court on Fiduciary Liability
Jerry Trupin
Exposures and Coverages
Courts have a way of shaking up the insurance industry. We are going to look at two cases today that may change the rules in two areas: independent contractors and fiduciary liability. FedEx Offers to Pay $228 Mil to Settle Independent Contractor Case An average of almost $100,000 each, that’s what FedEx Ground has offered […]
2015/ Current News/ July 27/ Past Issues/ Uncategorized
Capitalizing on a Changing Market: Sava Insurance
By Kelly Donahue-PiroChange is a challenge for many agency owners but not for Donna Yother from Sava Insurance. In fact when you meet her one of the first things she generally tells people is that she loves change. Donna has not sat still in her 30 years in the insurance business. Located in New London, […]
Consumer Costs at Stake: The Case for an Organized Approach to Principle-Based Reserving
By John R. Hurley The National Association of Insurance Commissioners (NAIC) has been developing a different approach to life insurance reserving and pricing for almost 10 years. The current system used by each state, the Standard Valuation Law (SVL) involves pricing and reserving assumptions fixed by law and regulation and applicable to all life insurance […]
Marketing to Millenials
Chris Paradiso
The Social Notebook
In general, it is said that Millennials display a great deal of confidence. This is a result of a combination of a few different things. The focus they receive from their parents and high expectations placed upon them, not to mention their new-found independence along with the advent of cell phones, the internet, social media […]
PIANY: 2015 NYS Legislative Wrap Up
The New York State legislative session that originally was slated to end on Wed., June 24 was extended by lawmakers in Albany through the week to address important issues including longterm rent-control regulations; mayoral control of New York City schools; and the 421-a tax abatement. Gov. Andrew M. Cuomo, Senate Majority Leader John Flanagan, R-2, […]
PIA launches E&O Risk Management Tool Kit for Agents and Brokers
GLENMONT, N.Y.—The Professional Insurance Agents associations in Connecticut, New Hampshire, New Jersey and New York launched a PIA member-only benefit this week—the Agents and Brokers E&O Risk Management Tool Kit. This tool kit can help PIA members prevent or mitigate errors-andomissions damage and offers them tools and information to protect their agencies. “A champion of […]
IIABNY Offers Premium Onboarding Training
As agents hire new employees, new tools are needed to onboard, educate and assimilate in a structured and productive way. Online learning is ideal for new hires and job changers and is an excellent way to build coverage education into the workday. IIABNY offers curriculums on Commercial Lines and Personal Lines from industry education leader […]
A Special “Thank You”
By Lisa K. Lounsbury When you look at the major wins and critical stops of the New York State Legislature’s 2015 session, it is critical that you know the story behind these successes. The volunteer leaders of IIABNY (the Independent Insurance Agents & Brokers of New York), our local association leaders, and our countless engaged […]
How Do You Set Aside an Appraisal Award?
Umpire Must Be Unbiased Appraisal awards are almost impossible to set aside. However, if it is shown that the umpire is biased or even has a potential for bias, the award can be set aside. In Zurich American Ins. Co. v. Omni Health Solutions, LLC, — S.E.2d —, 2015 WL 4034465 (Ga.App., 7/2/2015) the question […]
MSO Outing Benefits Emmanuel Cancer Foundation
Glen Rock, NJ— MSO®, Inc., an insurance rating/service bureau located in Glen Rock, NJ, held its 22nd Annual MSO Golf Outing on May 19, 2015. At the outing, held at the Heron Glen Golf Course in Ringoes, NJ, MSO offered attendees and companies the opportunity to sponsor a hole, with proceeds going to Emmanuel Cancer […]
Will Republicans Keep the Court from Blowing Obama’s Cover?
The Big Lie of ObamaCare is in the title: the Affordable Care Act. Administration officials invoke “affordable” over and over again.The U.S. Supreme Court could well blow the Democrats’ cover in King v. Burwell if it rules that people in the 37 states that did not establish an Exchange cannot legally get taxpayer subsidies for […]
Applied Systems Launches Applied Performance Management 2015
University Park, Ill.—Applied Systems has announced the release of Applied PerformanceManagement 2015 to U.S. and Canadian insurance agencies and brokerages. With the release of Applied PerformanceManagement 2015, insurance executives gain greater visibility into operational performance based on their organizational structure, clients and geographies. Access to this broader range of information allows executives to more easily […]
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LTC FINANCING: Breakthrough Proposal Looks to Private Sources
By Wesley Yin LTSS includes institutional care, community- based assistance, and homebased assistance with daily living activities. Elderly households’ LTSS expenses in the event of cognitive or physical impairment present the largest source of out-of-pocket spending risk. The average 65-year-old couple can expect to spend $65,000 on LTSS, and five percent of elderly couples can […]
Donald Trump
What a great attention getting headline. Just use his name and, bingo, you get attention. I anticipate some brave entrepreneur seeking to franchise Trump Insurance or Trump Brokerage. Competitors might include Kardashian Risk Management or Jenner Reciprocal Underwriting – figure that out. The presidential campaign has become a Branding Battle. Agents and brokers fight that […]
Disconnection
One of the most important tasks in advising insurance company or producer management over the years has been to stress the importance of reporting violations – no matter how minor, incidental or innocent – to the regulatory authorities. The challenge is to overcome management’s fear of repercussions that often outweighs the potential consequences of not […]
It Takes More Than an Injury to Trigger Liability, Flood Insurance Debris Removal Coverage Gaps, Risk Purchasing Group Coverage Shortcomings, 10 Most Expensive Hurricanes to Strike the U.S.
Jerry Trupin
Exposures and Coverages
It Takes More Than an Injury to Trigger Liability Michael Mossberg slipped and fell into the water while disembarking from a friend’s sailboat. Mossberg was injured and sued the marina where the boat was docked. The Supreme Court of Nassau County ruled in his favor and Crow’s Nest (the marina) appealed. The appellate court reasoned […]
Don’t Be A (F)SAP!
In April 2015, the International Monetary Fund (IMF) issued Country Report 15/90 (i.e., The Financial Sector Assessment Program report). The report is dated March 2015 and analyzes the United States in terms of adherence to the Insurance Core Principles (ICPs) formulated by the International Association of Insurance Supervisors headquartered in Basel, Switzerland. The United States […]
Rey Insurance: Taking Their Agency to the Next Level
By Kelly Donahue-Piro Family and insurance tend to go hand-in-hand but for the Rey sisters, Laura and Linda, they take running a family-based business to the next level. The dynamic duo purchased the agency from their father in 2013 and have relentlessly pursued agency growth ever since. Rey Insurance, in Sleepy Hollow, NY, focuses on […]
Basis of the Business Model
There are a few tenants of modern life that everyone should know and heed. Among them: Change your digital passwords regularly; never hitch a ride with a stranger (unless you know the Uber driver is fully insured); and don’t believe everything you see on the Internet. It’s amazing what you find there. So many websites […]
Five EASY Ways Your Agency Can Create Engaging Content
Chris Paradiso
The Social Notebook
Creating engaging content on social media is not only easy, but it can be very enjoyable and also contribute to strengthening relationships within your insurance agency. When we say easy, we mean it. This strategy requires only creativity, your team, and a camera! Believe it or not, content that requires minimum effort and the most […]
Not Every Prospect Deserves Your Time and Attention
I read an article this week about a young consumer (in his early twenties) looking to buy a car, register and insure it. As luck would have it he intended to get a premium indication on a Friday afternoon and planned to buy the car over the weekend. The premium indication was to be based […]
CPCU The Myths About NY’s Certificates of Insurance Law
By Timothy Dodge, AU, ARM, CPCU New York’s certificates of insurance law officially took effect on July 28, 2015. The New York State Department of Financial Services has posted an initial list of certificate forms it has approved. We are getting closer to a huge relief for New York insurance producers. Judging from the emails […]
Three’s Company… or is it a Crowd?
Michael Loguercio
Face to Face
Remember last summer’s ice bucket challenge… I am certain that if you personally did not take part in it, you absolutely knew someone who did. Whether they dunked themselves in a pool of cold water, or dumped a bucket full of ice over their head, millions of people throughout the country participated in this “dare” […]
Can Murder be Accidental?
It seems that some judges believe that insurance is an entitlement rather than a contract that can be interpreted beyond reason to provide benefits to victims of persons insured even if that person intentionally causes injury. In so doing they forget that insurance is a contract that provides indemnity only for fortuitous actions and can […]
Alliant Acquires Preferred Concepts
NEWPORT BEACH, CA — Alliant Insurance Services, the nation’s largest specialty insurance brokerage firm, has expanded its managing general agent (MGA) practice through the acquisition of Preferred Concepts, a leading insurance program underwriter and wholesale broker with offices in New York, New Jersey, and Connecticut. This is Alliant’s fourth MGA acquisition of 2015. “As the […]
ShelterPoint Life Partners with National Vision Administrators
GREAT NECK, NY — ShelterPoint Life Insurance Company is partnering with National Vision Administrators, L.L.C. (NVA), one of the largest national vision networks and benefit administrators, to provide enhanced network benefits and claims processing capabilities for its policyholders. The partnership allows ShelterPoint to leverage NVA’s negotiating power to reduce the cost of its vision benefits […]
NYSIF Selects Fiorillo as 2015– 2016 Recipient
ALBANY, N.Y.—The New York Insurance Scholarship Foundation, Inc. (NYISF) awarded its 2015–2016 scholarship to Thomas Fiorillo, a senior at St. John’s University studying actuarial science from New Port Richey, Fla. “The New York Insurance Scholarship Foundation is pleased to recognize a student as exemplary as Thomas,” Ellen Melchionni, president of NYISF said. “His academic and […]
King v. Burwell: The Fix Was Definitely In
By Richard Amerling As I predicted back in March, the U.S. Supreme Court ruled for the administration in King v. Burwell. So I was not surprised by the decision, but that doesn’t mean I am not deeply disappointed. I am. Beyond the ramifications for the continuation of the abominable Obamacare, the obvious truth is that […]
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Litigation Revolution: How Legal Big Data Will Be Changing Insurance
By Toby Unwin and Guy Kurlandski All lawyers are not created equal. Some are quite simply better, whether by knowledge, skill in advocacy, connections or case management. Whom you choose is often a matter of little more than luck. The public has for centuries chosen litigators by perceived ability, or peer recognition. Sadly this often […]
Libertarians…and not.
In a season of relentless speculation on how voters view the nearly 20 total candidates vying for 2016 ballots, U.S. voter motivation has taken on all the trappings of consumer styled surveying, possibly because a hero of the supermarket magazine rack is in the race. While some believe – and campaign heavily – in libertarian […]
Regulatory Kudzu
Anyone who has travelled in or visited the Southeastern US is likely to be familiar with kudzu, the ubiquitous climbing vine that seems to have swallowed large chunks of landscape, invading and conquering whole forests in an unstoppable march. Kudzu, a plant native to Japan and China, was introduced in the 1920s as forage, and […]
Dorothy Parker on Insurance Workers’ Comp Experience Modification Change Certificates Of Insurance—Are The Bad Old Days Coming Back?
Jerry Trupin
Exposures and Coverages
And Now For Something Completely Different— Dorothy Parker on Insurance Dorothy Parker, the doyenne of the Algonquin Round Table in the 1920s and the quintessential New Yorker, has always been one of my heroes. How could you not love someone who said the two most beautiful words in the English language are ‘cheque enclosed’?1 However, […]
Five Stats Every Agency Owner Must Obsess Over
By Kelly Donahue-Piro In my line of work with local agencies across the country, I often find principals are not focused on their agency’s data but rather they manage from the checkbook. Trust me, money is a key indicator of success and by looking at the numbers you can find papercuts before they become bigger […]
How to Stay Relevant in the World of Google – An Agency Must!
Chris Paradiso
The Social Notebook
If you were an agency owner who owned several websites, would you think that it’s more important to keep your website visitors interested in what you have to say, or would the content not matter as long as you attracted them in the first place? That’s the million dollar question. Attracting new visitors is very […]
Newly Elected PIANY President Speaks on Importance of the Association
During the PIANY awards dinner and reception held at Shaker Ridge Country Club, Colonie, newly elected PIANY President Eugene L. Sandy told fellow board members their dedication and commitment to the association and the industry is contagious. “PIA is great at helping agents run and at marketing their own agencies: I want to put this […]
You Get Out More Than You Put In
Earlier this month, the Professional Insurance Agents of New York State held its annual reception in Albany. There, we honored the newly elected officers and directors for 2015-16 and presented awards of distinction. The Advocate no doubt will report on the awards and the new administration, but I want to share a particularly striking speech, […]
Should a Signed Rejection of UM/UIM Cover be Ignored? Can an Insurance Agent be Negligent for Not Obtaining UM Coverage After the Insured Rejects Coverage?
In Arizona, like most states, a statute requires that an insurer offer each insured both Uninsured Motorist and Underinsured Motorist Coverage and holds that it can only be excluded if the insured signs a document specifically rejecting the coverage. In Wilks v. Manobianco, — P.3d —-, 2015 WL 4132181 (Ariz., 7/9/15) the Arizona Supreme Court […]
Claims Processing Simplified with Virtual Presence Technology
By Marieke Wijtkamp When property damage occurs, insurance clients want immediate service and closure from their insurance provider. Waiting days for a decision and the added inconvenience of staying home for a claims adjustor causes distress. For the insurance company, incurring the extra cost associated with sending out adjustors also burdens the operation. Leading insurance […]
Berkshire Hathaway GUARD Names Lyle Hitt E.V.P. of Property and Liability Insurance
WILKES-BARRE, PA – Berkshire Hathaway GUARD recently named Lyle Hitt Executive Vice President of Property and Liability Insurance. In his new role, Hitt will oversee activities related to lines of coverage used to complement the company’s traditional workers’ compensation specialty. Specifically, he will lead the expansion of the organization’s property and liability lines into new […]
Corporate Synergies Announces Appointments
Mount Laurel, New Jersey,– Corporate Synergies, a national property and casualty insurance and employee benefits consulting company, has announced the appointment of two industry veterans to key positions within the firm’s Property & Casualty Practice. Industry veteran Kenneth Jones has been named Sales Leader and Alexander Alday has joined the team as Vice President of […]
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DISRUPTION Insurers Face Radical Innovators…and Need to be Among Them
It is the rare insurance executive who would argue that innovation will drive a company’s competitive advantage and growth, yet most labor to spark innovation within their organizations. A new KPMG International report states that 48% say they are already being disrupted by new, more nimble, competitors. Based on a survey of 280 insurance executives […]
Mutual Admiration
The Financial Services Round Table notes that arbitration provides an efficient way for customers to resolve disputes with financial companies. A proposed new rule by the Consumer Financial Protection Bureau (CFPB) could push consumers’ arbitration of dispute resolution options back decades. Arbitration awards customers relief more quickly than lawsuits, which must make their way through […]
Quo Vadis, NARAB?
Insurance producers can be forgiven for their skepticism toward regulatory efforts to create a uniform national licensing process. Over the past couple of decades, as producers found it competitively necessary to expand their reach beyond their home state, they were introduced to the wonderful world of state individuality – each jurisdiction with its own set […]
Crime Insurance News: Bitcoin and Fraudulent Impersonation Coverages; Bitcoin Comes to Insurance
Jerry Trupin
Exposures and Coverages
Bitcoin seems to be, as Winston Churchill said about Russia, a riddle wrapped in a mystery inside an enigma. Even the name Satoshi Nakamoto, the one claimed to have developed Bitcoin, seems to be an alias for some other person or persons. Nevertheless, in many ways using Bitcoin is not that different from what you […]
Are you Mobile-Friendly?
Chris Paradiso
The Social Notebook
Unless you’ve been living under a rock for the last few years, you’ve probably caught wind of the Mobile vs. Desktop marketing saga, relating to customers actually buying products online from a desktop, versus buying and searching for products from their smartphone. When four out of five consumers shop on their smartphones and 40% or […]
Why You?
Why would someone choose you to handle their insurance protection? What makes you better than all the other providers out there? Do you really know what your customers think about you and your agency? Do you have any idea what consumers are looking for in an insurance provider? Why choose you, has come up a […]
Be Careful About Replacing ObamaCare
By Marilyn M. Singleton, M.D., J.D. Since the day the Affordable Care Act was enacted, we have been subjected to the “repeal and replace” mantra. Replacement offerings are basically slimmed down versions of the ACA. A few brave souls have proposed a straightforward repeal. Of course, such bills were merely making political hay since Obama […]
The Most Difficult Problem Facing Insurers
Insurance fraud continually takes more money each year than it did the last from the insurance buying public. There is no certain number because most attempts at insurance fraud succeed. Estimates of the extent of insurance fraud in the United States range from $87 billion to more than $300 billion every year. Insurers and government […]
Time Marches on but Does It Get Anyone Anywhere?
On November 16, 2014 the NAIC/Center for Insurance Policy Research issued a paper entitled, “U.S. Group Capital Methodology Concepts Discussion Paper” (the Paper) through the ComFrame Development and Analysis (G) Working Group (hereinafter, “the Working Group”). This Paper was part of the agenda package for the Working Group’s September 24, 2015 meeting. Following is an […]
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Pamela J. Newman: Insurance Advocate’s 2015 Insurance Professional of the Year
The Insurance Advocate is proud to name Dr. Pamela J. Newman, President and CEO of The Newman Team at Aon Corporation, our 2015 Person of the Year. Dr. Newman has been a leading presence in the industry for years, as she has consistently proven that superior client service can make all the difference…and does.
Businesses Upping Cyber Cover Purchases
As we go to press, Zurich Insurance released its fifth annual Advisen Cyber Survey of U.S. risk managers looking at trends in information security and cyber liability. Zurich presented the key findings, analysis and conclusions during a presentation at the Advisen Cyber Risk Insights Conference in New York on October 20th. The results reflect responses […]
LG Insurance: Can’t Stop, Won’t Stop
What do you think of when you first meet Aaron Levine, owner of LG Insurance? Impressive. Aaron started LG Insurance in 2009 as a scratch agency; in fact this was his first full-time insurance position. In 2007, Aaron focused on commercial real estate and obtained his commercial real estate license. Understanding that you could increase […]
Property/Casualty Insurance – 2015 First Half Results
By Dr. Robert P. Hartwig, CPCU and Dr. Steven N. Weisbart, CLU Highlights The U.S. property/casualty industry had a strong first half in 2015. Overall net income after taxes (profits) in the property/casualty (P/C) insurance industry increased by $5.0 billion (up 19.2 percent) in the first half of 2015 to $31.0 billion from $26.0 billion […]
Outside-In vs. Inside-Out Customer Experiences
Chris Paradiso
The Social Notebook
In the world of “customer experience,” formerly known as “customer service,” what’s the difference between outside-in and inside-out? Inside-out thinking for your agency means your focus is on the agency’s processes, systems, and insurance products that are designed and implemented based on internal thinking and intuition. You and your agency are focused on how you […]
Conviction of Murder Establishes Beyond a Reasonable Doubt that Killing Was Intentional
It seems that some judges believe that insurance is an entitlement rather than a contract that can be interpreted beyond reason to provide benefits to victims of persons insured even if that person intentionally causes injury. In so doing they forget that insurance is a contract that provides indemnity only for fortuitous actions and can […]
Without a Timely Denial, Prima Facie Case Requires Only Proof of Mailing
Viviane Etienne Med. Care v Country-Wide Ins. Co. Note: The Court of Appeals here upholds the Viviane Etienne v Countrywide decision from the Appellate Division, which held in effect that a third-party billing company could establish a prima facie case despite the fact that the biller had no personal knowledge of the facts of the […]
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2015/ November 16/ Past Issues
Reap What You Sow
The Wall Street Journal has – wittingly or unwittingly – underscored the conundrum that is NY’s Department of Financial Services. Its October 26 article headed “New York Bank Regulators Exit After Clash With Governor Cuomo’s Office,” reporting on the resignation of the Department’s acting superintendent, makes no reference at all to insurance. The October 30 […]
2015/ November 16/ Past Issues
Gotta Love Her!
Pamela J. Newman graced our cover last issue as Insurance Advocate’s 2015 Insurance Professional of the Year and proceeded to grace the victory party as well with her selfless, elegant manner – thanking her staff and according responsibility for her success to them generously. The Newman Team at Aon has a service formula worth imitating […]
2015/ November 16/ Past Issues
PIACT Praises Insurance Commissioner’s Warning to Companies About Canceling Coverage Over Home Foundations
PIACT praises insurance commissioner’s warning to companies about canceling coverage over home foundations HARTFORD, CONN.—The Professional Insurance Agents of Connecticut Inc. is applauding Connecticut Insurance Commissioner Katharine L. Wade’s recent notice to insurance companies, directing them not to cancel or non-renew homeowners insurance coverage as a result of foundation issues in homes if such action […]
2015/ November 16/ Past Issues
What’s The Plan?
Fall is here. The weather’s changing. Snow and cold are just around the corner. Thanksgiving and the Holidays will soon be upon us. 2015 is drawing to a close. Insurance agents have other things on their minds this time of year. January renewals, year-end loss ratios and contingency checks to name a few. They also […]
2015/ November 16/ Past Issues
Hudson Valley RAP Celebrates PIANY’s Legislative Successes
Zebrowski to insurance agents: PIA and lawmakers can be mutual resources Nearly 300 insurance professionals from across New York gathered on Oct. 28 in the Doubletree Hotel in Tarrytown, N.Y., to enjoy a day of networking, education and more as part of PIANY’s 12th Annual Hudson Valley Regional Awareness Program. During the event’s luncheon, newly […]
2015/ November 16/ Past Issues
Your Personal Branding Guide in the Digital Age
Chris Paradiso
The Social Notebook
The idea of personal branding is relatively new in today’s complex marketing world. The first mention of the concept “personal branding” online was in 1997 when Tom Peters wrote an article for Fast Company titled The Brand Called You. However, in the last decade, the importance of personal branding has grown astronomically as new social media […]
2015/ November 16/ Past Issues
How to Build a Killer CSR Incentive Program
By Kelly Donahue-Piro, President of Agency Performance Partners Have you ever started a new initiative with your team but gotten discouraged when it didn’t take off like wildfire? Maybe you spent hours thinking of the best plan to drive the highest result but when you launched it your team gave you bitter beer face. Here […]
2015/ November 16/ Past Issues
Why a Risk Manager in Louisiana Should be Licensed as an Agent
Risk Manager Can Be Liable For Failing to Provide Coverage Ordered Insurance Risk Management companies help their client obtain insurance by negotiating on behalf of an insured with insurance agents and brokers. The insured uses a risk manager to take on an obligation to provide needed coverage that the insured does not feel competent or […]
2015/ November 16/ Past Issues
Building a New Paradigm: Consolidation Trends in the Insurance Brokerage Industry
By Steve Vilas, vice president – Finance and Operations, Burnham Benefits Insurance Services, Inc. Consolidation within the insurance brokerage community has been an ongoing trend at least since the 1990s but undeniably more pervasive in the last several years, due in large part to the complexities of the Affordable Care Act (ACA) and the overall […]
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2015/ November 30/ Past Issues
IFNY Annual Luncheon: More than 300 Join in Tribute to Donald Kramer
More than 300 insurance leaders joined in the Insurance Federation of New York’s (IFNY) 101st Annual Free Enterprise Award Luncheon to honor Donald Kramer, Chairman, CEO and Chairman of Investment Committee, ILS Capital Management, Ltd. (Bermuda), as he received the Federation’s 2015 Free Enterprise Award. IFNY President Nick Pearson presented the Federation’s top honor to […]
2015/ November 30/ Past Issues
The Figuration Clerk
IFNY Free Enterprise Award honoree Don Kramer, easily one of the industry’s top exponents, recalled a bit of his history in the First National City Bank building that now houses Cipriani. He recalled the teller window just to the left of what is now the stage and the lines there, but most importantly, he traced […]
2015/ November 30/ Past Issues
Past is Prologue
The new Spielberg/Hanks movie “Bridge of Spies” is by all accounts a relatively factual telling of a 1950s Cold War drama played out on the front pages of the press with little public knowledge of the real drama occurring behind the scenes. The movie’s hero is an insurance lawyer from Brooklyn, James B. Donovan, who […]
2015/ November 30/ Past Issues
Who’s Driving?
Michael Loguercio
Face to Face
Many folks nowadays look to leasing, not only for a more affordable payment, but also for the fact that they can drive a new vehicle every three years or so. This in and of itself is a huge benefit for multiple reasons, including the inherent benefit of being able to take advantage of the latest […]
2015/ November 30/ Past Issues
Seven-Step Process to Build Your Social Presence
Chris Paradiso
The Social Notebook
Sir Richard Branson has a famous quote, “If you’re an entrepreneur and you don’t have a social media presence, your company is at a competitive disadvantage.” While Sir Richard is speaking the absolute truth, many insurance agents and agency owners feel intimidated by social media. So let’s take it in steps; here are several tips […]
2015/ November 30/ Past Issues
Applied Systems Receives Highest Number of ACORD Awards at 2015 ACORD Forum
Company recognized as global leader in delivering innovative solutions to the insurance marketplace University Park, Ill.– Applied Systems announced that ACORD (Association for Cooperative Operations Research and Development), a global provider of insurance data standards, business and technology leadership, recently honored Applied Systems with the highest number of 2015 ACORD Awards, including the prestigious Leadership […]
2015/ November 30/ Past Issues
Protecting your business in the New Year
We are coming to the time of year when we take stock of all we’ve just endured and look forward to the year to come. Much has taken place in 2015; certainly more than I could write about in a single article. So, as we reflect, let’s consider what I think is the most overlooked […]
2015/ November 30/ Past Issues
Israel Bonds Insurance Division Luncheon Results in Record $44.6 Million in Bond Investments
250 people gathered on November 10th at Pierre Hotel in New York to honor Ronald Joelson, Northwestern Mutual and Stephen Ungar, AmTrust Financial Services, Inc. NEW YORK—On Tuesday, November 10th, 250 industry professionals and Israel Bonds supporters gathered for the annual Israel Bonds Insurance Division luncheon at the Pierre Hotel in New York City. […]
2015/ November 30/ Past Issues
PIANY to focus on NYSIF’s 30-day notice requirement during the 2016 legislative session
GLENMONT, N.Y.—During a recent survey, members of the Professional Insurance Agents of New York State Inc. told their association to focus on removing the requirement for policyholders to provide 30-days’ notice to withdraw from the New York State Insurance Fund during the 2016 legislative session, which will begin in January. Each year, PIANY surveys its […]
2015/ November 30/ Past Issues
Is Breach of Contract Required for Bad Faith?
Payment of Appraisal Award Fulfills Policy Promises An insurance company and its insured disagreed on the scope of damage due to hail. Eventually appraisal was demanded and an award was rendered and paid, including interest. Regardless, the insureds, unhappy, sued the insurer. In Burks v. Metropolitan Lloyds Ins. Co. of Texas, Slip Copy, 2015 WL […]
2015/ November 30/ Past Issues
Venue For Suit Based On Breach Of Policy Condition Is Where “The Contract Exists” — Insurer’s Offices
Country-Wide Ins. Co. v Blenman Plaintiff, Country-Wide Insurance Company, brings this action for a declaration that Plaintiff is not obligated to pay claims for no- fault benefits submitted to Plaintiff in connection with an alleged motor vehicle accident in which defendant, !genie F. Blenman, allegedly sustained personal injuries. The Accident took place on May 1, […]
2015/ November 30/ Past Issues
Danger: Interstate Compact Could “Fundamentally Transform” Medicine
While Americans are preoccupied with the political theater of the Presidential race, special interest groups toil to pass legislation that could radically transform your medical care. One example is the Interstate Medical Licensure Compact, which has passed in 11 states. Pennsylvania has joined a number of others in proposing it. The proposal promises to provide […]
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2015/ December 21/ Past Issues
Brokers: You Really Need to Know About Cyber Insurance
Legislative and Regulatory Update by Amy Roberti – Council of Insurance Agents and Brokers (edited for the Insurance Advocate®) Where there’s smoke there’s fire—and where there’s a crisis, there are state and federal lawmakers and regulators trying to be helpful. Major data breaches are in the news every day in both the private and public […]
2015/ December 21/ Past Issues
Tapping Talent
The NAIC reports that 25% of the industry will retire by 2018. That’s why so many are doing double duty in the office and on the volunteer scene. LICONY Timothy A. Walsh succeeds David Walsh as Chairman of the Board of Directors for 2016. Is it a genetic thing? No, the two men are unrelated. […]
2015/ December 21/ Past Issues
Hope for the New Year!?
Abandon hope, all ye who enter here. Hope springs eternal in the human breast ~Dante’s Inferno ~Alexander Pope, An Essay on Man No matter how discouraging, frustrating or bad the year has been, the prospect of a new year always seems to evoke a sense of optimism for a better tomorrow. A new year: a […]
2015/ December 21/ Past Issues
Preparing for an important legislative session
The holidays crept up on many of us this year, but not on PIANY: The association surveyed its members and held focus groups by way of Advisory Councils in October to pinpoint the issues members want their association to focus on—issues that impact our businesses every day. And, once those were identified, PIA volunteers took […]
2015/ December 21/ Past Issues
Certificates of Insurance in the Courts Again; A Reader Writes Re: Fraudulent Impersonation; D-Day and Insurance
Jerry Trupin
Exposures and Coverages
Certificates of Insurance in the Courts Again Will no one rid me of these troublesome Certificate of Insurance issues? The latest case to stir the pot involves a dispute over coverage on a wrap-up project. An electrician employed sub-contractor Urban Power & Lighting, alleged that he was injured and, as usually happens, sued everyone in […]
2015/ December 21/ Past Issues
Visual Content Marketing for Your Insurance Agency
Chris Paradiso
The Social Notebook
We live in an age of marketing where “traditional” marketing methods alone are not enough to leverage your agency’s brand. As I’ve mentioned before, marketing is going digital, and in fact, I believe that in 2015 and 2016 coming up, digital marketing should be considered the next era of traditional marketing. Mastering the digital marketplace […]
2015/ December 21/ Past Issues
Cyber Insurance: What you Should Know
By: Robert Jones – AIG Edited for the Insurance Advocate® No matter how strong or sophisticated an organization’s IT defenses are, how thorough the vetting of an organization’s vendors may be, or how well an organization trains or plans in preparation to respond to a data breach or other incident, there will still be network […]
2015/ December 21/ Past Issues
So This Is Christmas
Michael Loguercio
Face to Face
As John Lennon so beautifully resonated, “So This Is Christmas, and a Happy New Year…Let’s hope it’s a good one, without any fear.” Well, “fear” is something that unfortunately we need to keep in mind not only during this Christmas and Hanukkah season, but all through the year as there are people out there who […]
2015/ December 21/ Past Issues
LICONY 15th Annual Conference
LICONY held its 15th Annual Legislative & Regulatory Conference on October 7-9, 2015 at The Otesaga Hotel in Cooperstown, New York, over 200 in attendance. This conference was attended by LICONY member companies, professional and other services firms, NY Legislators and Regulators, and representatives from other trade associations.
2015/ December 21/ Past Issues
IBANY’s Annual Holiday Breakfast
(Pictured above: Aileen Marchese with IBANY President Rubin Alspector of Marsh & McLennan) The Insurance Brokers’ Association of New York (IBANY) held its annual Holiday Breakfast on December 8 at the Down Town Association in New York City. IBANY’s guest speaker was Mike McGavick, CEO of XL Group, PC, the parent of XL Catlin. […]
2015/ December 21/ Past Issues
Independent Insurance Agents Gone By 2020
Do you believe this? Why not, it’s the title of my article so it must be true. The point is, just because someone writes an article or references survey information it doesn’t mean their prediction will come true. What does happen is that many independent agents reading the headline or the article take it at […]
2015/ December 21/ Past Issues
How to Plead a Consumer Fraud Case for Denial of a Claim
Win Some, Lose Some When people are unhappy with their insurance company they refuse to limit themselves to a suit for breach of contract and obtain the indemnity promised by the policy. Rather, they file lawsuits seeking tort damages for breach of the covenant of good faith and fair dealing and violation of consumer protection […]
2015/ December 21/ Past Issues
For Services Performed In New Jersey, The NJ Fee Schedule Is The Prevailing Fee
Surgicare Surgical Assoc. v National Interstate Ins. Co. Plaintiff appeals from an order of the Civil Court of the City of New York, Bronx county (Anthony Cannataro, J.), entered November 17, 2014, which granted defendant’s motion to dismiss the complaint pursuant to CPLR 3211. Order (Anthony Cannataro, J.), entered November 17, 2014, affirmed, with $10 […]
2015/ December 21/ Past Issues
The Locker Room Controversy and the Threat to Your Child’s Health
An Obama Administration ruling that a school must allow a transgender “girl” with male parts full access to the girls’ locker room, or lose federal Title IX funding, sparked a revealing exchange between Megyn Kelly and school superintendent Daniel Cates on Fox News. Kelly tried to entrap an uncomfortable official, who seemed to be reciting […]
2014
2014 Issues - Click to View
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$4M to Fight Fraud
$4M to Fight Fraud Over the past few years we have tried to assess the impact of Governor Andrew Cuomo on the insurance business and on the environment that affects the insurance business in New York State. This has not been simple. On the one hand we have what we find to be a tendency […]
Click on the Dotted Line!
Michael Loguercio
Face to Face
Click on the Dotted Line! So tell me if this has ever happened to you in your office: you get a telephone call from a prospect, or perhaps it was an email lead that you obtained via your “Get an auto or homeowners quote” button on your agency website or Facebook fan page, and immediately […]
Herzl Regins v. Hospitals Insurance Company
By Betty Flood and Katlin Nash Herzl Regins v. Hospitals Insurance Company Albany, N.Y.—New York State Court of Appeals Chief Judge Lippman and Judges Graffeo, Read, Smith, Pigott, Rivera, and Abdus-Salaam decided the case of Herzl Ragins v. Hospitals Insurance Company in favor of the defendants. Plaintiff brought this action for breach of an insurance […]
Insurance Advocate’s Enterprise of the Year 2013
Insurance Advocate’s Enterprise of the Year 2013 MSO Sets Expansion, Member Services Goals “Fresh” is the best word to describe MSO today. Fresh can mean a lot of things, but the Insurance Advocate’s Enterprise of the Year has taken this word to a new level. MSO, Inc., formerly known as Mutual Service Office, started life […]
The Team at MSO
The Team at MSO A Complete Team Listing: Jan Scites, J.D., CLU, ChFC CEO & President Jan Kozlowski V.P., Insurance Programs & Regulatory Compliance Ian McKechnie V.P., Actuarial Services Missy Krepps Senior Product Development Analyst Jane McGraw Product Development & Statistical Reporting Analyst Sue Quimby Director, Client Relations & Training; Senior Product Development Analyst Megan […]
PROFILE
Jan Scites, J.D., CLU, ChFC Ms. Scites is currently CEO of MSO, Inc., the New Jersey based Property and Casualty Rating Bureau that provides policy forms, rates, commercial inspections, and state filing services. Prior to MSO, Inc., Ms. Scites held several senior management positions at AT&T, including Vice President, Broadband and Corporate Strategy, and Vice […]
Leadership: MSO Board of Trustees
LEADERSHIP MSO Board of Trustees Donald Applegate has been a Trustee of MSO since 1997 and Chairman of the Board since January 2013. He is actively involved with the Board in setting strategic direction for MSO. In 1996, Don was named President and CEO of Farmers of Flemington Insurance Company and has been a Director […]
MSO, Inc., Subscribing Companies
MSO, Inc., Subscribing Companies Allegany Co-op Insurance Co. Bedford Grange Mutual Insurance Co. Briar Creek Mutual Insurance Co. Cumberland Ins. Co. Cumberland Mutual Fire Ins. Co. Delaware Grange Mutual Insurance Co. Farmers Insurance Company of Flemington Farmers’ & Mechanics’ Mutual Ins. Assoc. of Cecil County Farmers’ Mutual Fire Ins. Co. of Marble, PA Farmers Mutual […]
Reacting to Change
Reacting to Change This started out to be a simple article on independent agents and brokers having a plan in 2014. Every time I wrote a draft it felt wrong. I knew what I was saying as I wrote was accurate and necessary but it wasn’t what I really wanted to say. My words where […]
Warning Shots
Warning Shots Don’t you just love the flexibility of the English language? Although annoying to many purists (and often to the sensitivity of our ears) English is always adapting and moving with current times. Even the Oxford English Dictionary has accepted this flexibility by adding current usage into its venerable pages, often the result of […]
Managing General Agency vs. Insurance Company Disputes: Why Does History Continue to Repeat?
Managing General Agency vs. Insurance Company Disputes: Why Does History Continue to Repeat? By Dale C. Crawford For the potential arbitrator or consulting expert, the phone call always goes in one of two distinct directions. As soon as the caller identifies him/herself as an attorney, the conversation quickly turns to the business at hand: I […]
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2014 PERSONAL LINES OUTLOOK Achieving profitability through excellence in underwriting… A SPECIAL REPORT
By Dax Craig, President and CEO, Valen Analytics There appears to be violent agreement that 2014 is the year of advanced technology, data and analytics in insurance. Of course, these kinds of prognostications don’t sneak up on anyone. A convergence of growing organizational eagerness and sophisticated tools is allowing momentum to build for the next […]
ForeWord
WC Exposure; Digital Future; New Faces in High Places Liberty Mutual appears to be slowing down its workers’ compensation business as it announced the sale of Summit Holding and related companies to American Financial Group Inc. Liberty Mutual, according to SNL, had already been ceding market share in 2013, with Travelers Cos. Inc. writing more […]
The Joy of Ownership
The Joy of Ownership (The following story is total fiction – except for the parts that aren’t) Congratulations! You just won tens of millions in the lottery, and after 20+ years in the [claims/underwriting/ actuarial/program/brokerage/other – pick one] side of the insurance business, you can now retire from active participation in the business. Your good […]
Love Will Keep Us Together, but Obamacare May Not
Michael Loguercio
Face to Face
Love Will Keep Us Together, but Obamacare May Not Those of us who were around in the 70’s most likely remember the song, “Love Will Keep Us Together” from the duo of “The Captain and Tennille”. Well, after 39 years of marriage, their ship is sailing and they are both not aboard. “Why?” you may […]
IIABNY: New York Health Insurance Exchange Offers Consumers Fewer Options, Less Comprehensive Coverage
IIABNY: New York Health Insurance Exchange Offers Consumers Fewer Options, Less Comprehensive Coverage Association director Jack Smith tells Senators exchange plans ‘not a viable option’ for customers New York’s health insurance exchange offers consumers and business owners fewer plan options and narrower choices of health care providers, IIABNY told state senators. Jack Smith, an IIABNY […]
NY State Bond Issue to Cover WC Trust Claims
NY State Bond Issue to Cover WC Trust Claims New York State issued $370 million in bonds to assist businesses in failed group self-insured trusts to fulfill their obligations to their injured workers. The bonding is made possible by the 2013 Business Relief Act, which authorizes the Workers’ Compensation Board to use the proceeds to […]
New York State Insurance Fund Elects Eric Madoff
Kaitlin Nash In The Associations
New York State Insurance Fund Elects Eric Madoff By Katlin Nash The New York State Insurance Fund Board of Commissioners has elected Eric Madoff as its Executive Director. Mr. Madoff joins the Fund from the New York State Department of Financial Services (DFS), where he served as Chief of Staff from 2011 to 2013 where […]
Kelly Norris Named Executive Director for Northeastern PIA
Kelly Norris Named Executive Director for Northeastern PIA Kelly K. Norris, CAE, has been named executive director of the Glenmont, N.Y.-based Professional Insurance Agents associations of Connecticut, New Hampshire New Jersey, and New York State, and their affiliated organizations. She succeeds Diane Fowler who retired January 1st and is latest in a long line of […]
Resolutions
Resolutions We all make resolutions this time of year … some of us with more success than others. In fact, by the time this article reaches your desk, many resolutions will have been broken already. I, personally, have resolved to lose five pounds and I’ve already broken my resolution to exercise more. In the big […]
Cahill Appointed to the NCOIL Executive Committee
Cahill Appointed to the NCOIL Executive Committee Albany, NY—Assemblyman Kevin Cahill (DUlster, Dutchess) has been selected to serve on the Executive Committee for the National Conference of Insurance Legislators (NCOIL). NCOIL is a non-profit agency founded in 1969 to promote sound insurance public policy, which is centered around model legislation. It offers state legislators a […]
NYPIAA Hails Cuomo Signature of New Law
NYPIAA Hails Cuomo Signature of New Law The New York Public Insurance Adjusters Association has applauded Governor Cuomo for enacting into law legislation which it says “promises to help consumers make better choices when hiring a public adjuster and contractor in the event of a fire, flood or other catastrophe.” The new law will prohibit […]
Insured Must Pay Premium to Effect Insurance
Insured Must Pay Premium to Effect Insurance If Judge Doesn’t Believe You – You Lose Mark Brooks appealed from a judgment of the Superior Court in favor of Massachusetts Mutual Life Insurance Company (MassMutual) following a jury-waived trial. At trial, Brooks asserted that MassMutual made misrepresentations to him regarding his obligation to make premium payments […]
GUEST OPINION: We Need Doctors Who Are Out of Control
We Need Doctors Who Are Out of Control By Alieta Eck, M.D. We constantly are told that “while ObamaCare might not be perfect, the right has not come up with a better plan.” Is it possible that we do not need a “plan” at all? Think about it. Has the federal government set up a […]
IN MEMORIAM: Eugene Wollan
Eugene Wollan By Steve Acunto The sad news of Gene Wollan’s passing reached this office on the wintry morning of February 3rd. The Times obituary reported in simple terms that he died at home after a long illness, with his family at his side. We hope it was peaceful for him, a great friend of […]
Insurance Industry Leaders See a Yes, a No and an Appetite for Regulation Ahead
Insurance Industry Leaders See a Yes, a No and an Appetite for Regulation Ahead Outlook for personal and commercial lines not optimistic. Leaders of the property/casualty insurance industry believe Congress will delay implementation of the Biggert-Waters (BW) 2012 NFIP reforms, according to a survey conducted by the Insurance Information Institute (I.I.I.) at its 18th annual […]
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2014/ February 10/ Past Issues
LICONY Heats Up Legislative Activities
LICONY Heats Up Legislative Activities The Life Insurance Council of New York, Inc. (LICONY) celebrated its 46th Anniversary on Thursday, February 6, 2014, with a reception at the Mutual of America headquarters building on Park Avenue, NYC. The Anniversary Celebration Reception was attended by guests from life insurance companies, legal, accounting, actuarial, and other […]
2014/ February 10/ Past Issues
ForeWord
So sad to learn of Gene Wollan’s passing. He was a force for good in the field of reinsurance law and a great friend. I knew Gene from the Metropolitan Opera and other incarnations in addition to his being a great writer and contributor for the Insurance Advocate. R.I.P… The Life Insurance Council of New […]
2014/ February 10/ Past Issues
Budget Balancing (and Other Magic Tricks)
Budget Balancing (and Other Magic Tricks) The State of Nirvana has come up with a painless way to not only balance its budget, but to also increase spending on new programs and capital projects and reduce taxes. Nice trick, right? How, you may ask, is this possible? Nirvana has decided to require all state domiciled […]
2014/ February 10/ Past Issues
National General Holdings Corp. Acquires Renewal Rights and Assets of Tower Group’s Personal Lines Business
National General Holdings Corp. Acquires Renewal Rights and Assets of Tower Group’s Personal Lines Business Karfunkel Cites Advantages to Agents, Brokers National General Holdings Corp. (NGHC) has moved to acquire the renewal rights and assets of the personal lines insurance operations of Tower Group International, Ltd in connection with an agreement simultaneously entered into by […]
2014/ February 10/ Past Issues
Peace of Mind
Peace of Mind Some 30 years ago when I was starting my new career as an independent agent I learned a concept at the time that I thought was just a gimmick to get people to buy the coverage they needed. During my training at the Aetna’s PRIME school they stressed we weren’t selling Insurance […]
2014/ February 10/ Past Issues
MetroRAP Rings in the New Year
MetroRAP Rings in the New Year On Thursday, Jan. 23, PIANY held its first RAP of the year: MetroRAP, a landmark event for the New York City Metro insurance community, has become the first event professionals mark on their calendar. Despite record cold outside, insurance agents and those seeking to interact with them met each […]
2014/ February 10/ Past Issues
Life Settlements Market Holds New Opportunities
Life Settlements Market Holds New Opportunities Conning, a thought leader in insurance since 1912, has recently shared an executive summary of its latest study on the Life Settlement market, revealing that there is increased investor interest and new opportunity for the aggregation of these policies by licensed agents and brokers. As an asset class, life […]
2014/ February 10/ Past Issues
First Party vs. Third Party
First Party vs. Third Party “Other Insurance Clause” Eliminates Coverage First party property insurance only insure the owner of the property for its loss and makes no promise to defend or indemnify the insured against claims of third parties. Even in bailment situations, where the policy insures against the risk of loss of property of […]
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2014/ February 24/ Past Issues
The Affordable Care Act Spillover Property Casualty Insurance
The Affordable Care Act Spillover Property Casualty Insurance The Insurance Research Council is a division of the American Institute For Chartered Property Casualty Underwriters (The Institutes). The Institutes are affiliated with the CPCU Society, a community of credentialed insurance professionals who promote excellence through their technical expertise and ethical behavior and The Griffith Insurance Education […]
2014/ February 24/ Past Issues
Consolidating Producer Associations: One or Two… or What?
Consolidating Producer Associations: One or Two… or What? For as long as I can remember, agents and brokers have disagreed over whether or not the two major producer associations in New York (IIABNY and PIANY) should merge or consolidate – you pick the combination wording du jour. In recent issues, one of our columnists, Jamie […]
2014/ February 24/ Past Issues
Show Us the Numbers!
Show Us the Numbers! Ah, Spring! The long, torturous winter with its seemingly endless cold and snow is behind us and we can look forward to warmer days, greening trees, blooming flowers and the beginning of Derek Jeter’s retirement tour. Spring is also reporting season for the insurance industry. Just about everyone in the industry […]
2014/ February 24/ Past Issues
Policy Must Be Read as A Whole Single Fire – Multiple Occurrences
Policy Must Be Read as A Whole Single Fire – Multiple Occurrences Bad facts with severe injuries make bad insurance law when courts attempt to interpret policies to provide maximum funds available for the victim. The Supreme Court of Connecticut was asked to interpret various provisions of a professional liability insurance policy to determine the […]
2014/ February 24/ Past Issues
New York Court of Appeals Rejects Insurance Company’s Use of Limitations Period “That Renders Coverage Valueless”
New York Court of Appeals Rejects Insurance Company’s Use of Limitations Period “That Renders Coverage Valueless” New York, NY— Rejecting what plaintiff’s counsel called a “heads we win, tails you lose” insurance company argument, the New York Court of Appeals has found that an insurance company cannot enforce a two-year suit limitation period on a […]
2014/ February 24/ Past Issues
Brown & Brown, Inc. to Acquire Uniondale Based Wright Insurance Group, LLC
Brown & Brown, Inc. to Acquire Uniondale Based Wright Insurance Group, LLC DAYTONA BEACH, FL and TAMPA, FL—J. Powell Brown, Chief Executive Officer and President of Brown & Brown, Inc. (NYSE: BRO), announced that Brown & Brown, Inc. has entered into a merger agreement to acquire The Wright Insurance Group, LLC (“Wright”). This transaction brings […]
2014/ February 24/ Past Issues
New Threats in the 21st Century
New Threats in the 21st Century It was dramatic to watch the chief executives of Target and Neiman Marcus testify this month in front of the Senate Judiciary Committee about recent data hackings at their stores during the holiday season. But as I caught parts of the hearings, I wondered if the size of these […]
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The Ever Looming Nature of Cyber Liability
The Ever Looming Nature of Cyber Liability The threat of cyber crime continues to grow in the public’s awareness By: Paul Dzielinski – U.S. RE Corporation (This article originally appeared in the New York Insurance Association’s Your NY Connection magazine.) Imagine turning on your work computer tomorrow and all you see is the blue screen […]
State of Inflexibility
State of Inflexibility It is right there in the New York insurance law: if an insurer “ceases to do any insurance business for more than one year continuously,” it is subject to, among other things, forfeiting its charter and being liquidated. There is no counterpart to this provision in the NAIC receivership model act’s long […]
Workers’ Compensation Opt-Out; Court of Appeals Reverses Ruling on Failure to Defend; Two-Year Time Limit to Start Suit Tested; Carbon Monoxide is a Killer— Literally and Financially; Update on Improvements & Betterments
Jerry Trupin
Exposures and Coverages
Workers’ Compensation Opt-Out; Court of Appeals Reverses Ruling on Failure to Defend; Two-Year Time Limit to Start Suit Tested; Carbon Monoxide is a Killer— Literally and Financially; Update on Improvements & Betterments Workers Compensation Opt-Out Prior to 1954, Maine elected its governor in September. From 1896 through 1932 whichever party won the gubernatorial race invariably […]
Welcome To McDonalds, May I Take Your Data?
Michael Loguercio
Face to Face
Welcome To McDonalds, May I Take Your Data? I am certain that we have all heard those words, at least almost those words, which are usually muffled with a sound quality so poor that it basically sounds like the person on the other end of the headset and behind window number one, is eating a […]
Workplace Bullying – New Age Workers’ Comp Benefits
Workplace Bullying – New Age Workers’ Comp Benefits By Donald T. DeCarlo, Esq. It is not just your child being bullied at school that’s creating concern as described in the national press, concern also extends from the fact workers compensation benefits are now being awarded for mental stress in the workplace as a result of […]
Why Should I Do Business With You?
Why Should I Do Business With You? A fair question and your response is critical to the future success of your agency. I just finished recording an upcoming two part webinar on value added selling. I’m pretty sure there will be some members and their staff who will laugh at the idea. They prefer price […]
Four-State PIA Survey Shows Hard Market isn’t Escalating as Expected
Four-State PIA Survey Shows Hard Market isn’t Escalating as Expected GLENMONT, N.Y.—In the first month of 2014, the PIA affiliates in Connecticut, New Hampshire, New Jersey and New York conducted their second-annual Market Trends Survey, finding the heralded hard market may not be launching as expected. In fact, when compared to responses from last year, […]
On Dissent
On Dissent By Casey O’Brien, Cuyler News ALBANY, N.Y.—Insurance cases are being brought to the forefront at the New York Court of Appeals, ranging from a three million dollar malpractice case to personal injury cases, with three out of five including a dissent. It happens coincidentally that there are five insurances cases at once, one […]
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Insurers’ Focus on Market Conduct, Privacy and Filing Rules
Insurers’ Focus on Market Conduct, Privacy and Filing Rules Market conduct exams topped the list of concerns among all respondents to Wolters Kluwer Financial Services’ new U.S. Insurance Regulatory and Risk Management Indicator. In the report (follows on page 18) just released, seventy-five percent of those surveyed indicated a significant level of concern with exams, […]
Insurance Reasoning / Spill-over
Insurance Reasoning / Spill-over There is a new subject in Economics that is taking the country by storm. It’s called ObamaMath. It starts with the addition of 7 million people together with the subtraction of 5 million people to determine the success of an ill conceived equation. Right. 7 million sign ups, but 5 million […]
Hats Off to the Younger Generation
Hats Off to the Younger Generation By G. Keith Smith, M.D. The Unaffordable Care Act (UCA) is about to become even more unaffordable, thanks to the unpredicted wisdom of the younger generation. Recognizing yet another Ponzi scheme in UCA, the vast majority of young people (a group the central planners had counted on to keep […]
Medical Costs for Auto Injury Claims Outpace Inflation, Even as Reported Injuries Become Less Severe
Medical Costs for Auto Injury Claims Outpace Inflation, Even as Reported Injuries Become Less Severe MALVERN, Pa.—Medical expenses reported by auto injury claimants continue to increase faster than the rate of inflation, in spite of the fact that the severity of the injuries themselves remain on a downward trend. A new study by the Insurance […]
IIABSC Installs Officers & Directors for New Term
IIABSC Installs Officers & Directors for New Term Albertson, N.Y.—The Independent Insurance Agents & Brokers of Suffolk County, Inc. installed new officers and directors for the 2013 through 2014 term. More than 110 IIABSC members and guests attended the May 22 event which took place at the East Wind Conference center, Wading River. NY. Thomas […]
Tea Leaves and Press Releases
Tea Leaves and Press Releases My very first Insight column (IA, May 21, 2012) took a look at the press releases issued by the new Department of Financial Services for the first four months of 2012. I pointed out that not one of the 27 DFS press releases issued in that period related to support […]
Twelve Commandments of Selling
Twelve Commandments of Selling As professional independent agents, we each have our own unique selling style. What works for me may not work for the agent down the street, and neither approach may work for the next person. In fact, a singular sales approach often is what sets us apart from our competition. But, over […]
PRI Names North Shore-LIJ Health System Winner of Risk Management and Patient Safety “Best Practices”
PRI Names North Shore-LIJ Health System Winner of Risk Management and Patient Safety “Best Practices” Parker Jewish Institute for Healthcare & Rehabilitation, New Hyde Park, New York, Earns Honorable Mention Roslyn, N.Y. — Physicians’ Reciprocal Insurers (PRI) presented North Shore-LIJ Health System, Lake Success, L.I. its Risk Management and Patient Safety Best Practices Award for […]
NOW What?
Michael Loguercio
Face to Face
NOW What? How many times, since you first became “intimately involved” within the insurance industry, have you been asked that most obvious question, “When should I file a claim?” I can tell you this: that from being in this thing of ours for many, many years, I would venture to guess that it is something […]
The Institutes’ AAI-M Designation Now Available
The Institutes’ AAI-M Designation Now Available MALVERN, Pa. — In response to evolving industry trends, The Institutes have released a new course, Advanced Agency Leadership and Strategic Alignment (AAI 87). With the introduction of AAI 87, insurance professionals who have completed The Institutes’ Accredited Adviser in Insurance (AAI®) designation program can now also earn the […]
Health Insurance Fraud
Health Insurance Fraud Health Insurance Fraud is rampant. Most people convicted of health insurance fraud are doctors and other health care providers. Where most of the money goes, however, is to people taking advantage of free or subsidized health care benefits when they are not entitled to receive the benefits because there is no investigation […]
REVERSED: Executive Plaza v. Peerless Insurance Company
REVERSED: Executive Plaza v. Peerless Insurance Company In a far-reaching and historic decision, the highest court in New York State, answering a certified question posed by the United States Court of Appeals, has ruled that insurance companies cannot hide behind their policies’ two year contractual limitations period to deny policyholders the right to collect their […]
Court of Appeals Reverses K2 Decision
Court of Appeals Reverses K2 Decision ALBANY, NY—The New York Court of Appeals reversed its decision in the case of K2 Investment Group v. American Guarantee & Liability Insurance Company. This new decision upholds the important principle that an insurance policyholder is entitled to all coverage purchased as part of a policy but no additional […]
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The Hartford and IBM Ink $500 Million Cloud Accord
The Hartford and IBM Ink $500 Million Cloud Accord Move Aimed at Agent and Customer Service The Hartford and IBM (NYSE: IBM) just announced a new six-year technology services agreement to implement a new service model that includes a private cloud infrastructure. The project will leverage the expertise of both firms, market insights and research […]
Can Spring be far behind…?
Can Spring be far behind…? We need some thought and some thaw on several fronts, as Spring starts to show its green. How could any legislator ignore the fact that the Terrorism Risk Insurance Act (TRIA) saves U.S. taxpayers billions of dollars to cover losses that could result from a terrorist attack? A RAND Center […]
Pension Stripping and De-Risking
Pension Stripping and De-Risking Pension what? Is this some form of new TSA security protocol? A new energy source? An X-rated event for old people? No, but it does involve the alchemy of converting pension obligations into annuities. Corporations, particularly large organizations with massive pension obligations, are always looking for ways to reduce or stabilize […]
A Collapse is a Collapse is a Collapse?; What’s your Problem? More on Improvements & Betterments; ISO’s New CGL Data Breach Exclusions; Labor Law Claims Continue to Keep New York’s Courts Busy
Jerry Trupin
Exposures and Coverages
A Collapse is a Collapse is a Collapse?; What’s your Problem? More on Improvements & Betterments; ISO’s New CGL Data Breach Exclusions; Labor Law Claims Continue to Keep New York’s Courts Busy A Collapse is a Collapse is a Collapse? “Is a Collapse a Collapse if nothing actually Collapses?”1 If we could channel Gertrude Stein, […]
Auto Insurance Under the Knife
[FEATURE] Auto Insurance Under the Knife Standing Committee on Insurance Holds Public Hearing to Examine High Costs and Coverage Gaps By Betty Flood and Casey O’Brien ALBANY, N.Y.—The New York Assembly Standing Committee on Insurance held a public hearing on April 10th to examine the automobile insurance market in the state. The hearing was conducted […]
This Internet Thing of Ours
Michael Loguercio
Face to Face
This Internet Thing of Ours Recently, Symantec Corporation, whom we all know as the folks who build counterattack and virus protection software, released a study regarding cyber-attacks, and in their report they state that “we have only seen the tip of the iceberg” according to Property Casualty 360. The report discloses that Cyber Crime is […]
No Excuse For Failure to Appoint Umpire
No Excuse For Failure to Appoint Umpire The Supreme Court of Alabama was asked, in Ex parte Tower Insurance Company of New York Inc., 1120228 (Ala. 08/23/2013), to grant a petition for a writ of mandamus filed by an insurance company, an independent adjusting firm, and an adjuster employed by that firm (collectively “the petitioners”) […]
5 Tech Trends Revolutionizing the Insurance Industry
5 Tech Trends Revolutionizing the Insurance Industry By John Sarich From property & casualty to healthcare, big technology changes are coming for the insurance industry. With the onset of the Affordable Care Act, a whole new world of required technology has become necessary for health insurers. And while property & casualty is typically reluctant to […]
Clumsy Regulation Puts Insurance at Risk
Clumsy Regulation Puts Insurance at Risk By Diane Katz, Thomas A. Roe Institute The Senate Banking Committee convened this week to examine recent moves by federal regulators against insurance companies. There exists considerable confusion on and off the Hill about Washington’s place in what has always been the states’ regulatory domain—confusion produced by lawmakers’ careless […]
Top 9 Ways Government Attacks American Seniors
Top 9 Ways Government Attacks American Seniors By Elizabeth Lee Vliet, M.D. Chaos, cost increases, and turmoil reign since Obamacare took effect. Hidden changes drastically transform Medicare, affecting your ability to get needed medical care—even if you pay out of pocket. Here is my list of the Top 9 government attacks on American seniors: 1. […]
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LOOKING UP — First Net Underwriting Gains Since 2007 Mark P/C Insurers’ 2013 Results
LOOKING UP First Net Underwriting Gains Since 2007 Mark P/C Insurers’ 2013 Results Private U.S. property/casualty insurers’ net income after taxes grew to $63.8 billion in 2013 from $35.1 billion in 2012, with insurers’ overall profitability as measured by their rate of return on average policyholders’ surplus climbing to 10.3 percent from 6.1 percent. At […]
A question often asked…
A question often asked… The IBANY held its annual fete at an amazing location at 2 Desbrosses Street Rooftop in New York’s SoHo. There were about 400 in attendance. Anthony Greene and his band of brokers did a great job. Many industry veterans were among the happy younger generation of professionals – the latter far […]
Motivational Misdirection
Motivational Misdirection Anyone who loves a good mystery knows that determining motivation is a key element to understanding actions. But as in all good mysteries, motivation can be cleverly concealed or woven into the fabric of a tale. We are probably all guilty at one time or another of the practice of misdirection in order […]
April Was Volunteer Month: What are you doing for your industry?
April Was Volunteer Month: What are you doing for your industry? I have been asked more than a few times where I get my ideas for writing this column. In fact, when I was first approached to contribute to the Insurance Advocate in 2005, a colleague of mine advised against it. He said interesting issues […]
Social Media –The 5 Reasons Your Business Cannot Survive Without It
Social Media –The 5 Reasons Your Business Cannot Survive Without It By Chris Paradiso Social media is no longer just a possible fad. It is now an actually form of communication. If you are an agency owner and have yet to begin using social media to support your sales strategy, you may need to recheck […]
IBANY Spring Reception Draws 400+ Attendees
IBANY Spring Reception Draws 400+ Attendees The Insurance Brokers and Agents of New York, Inc., (IBANY) held its Annual Spring Reception at the Tribeca Rooftop in New York City on April 17, 2014. The event followed the Board of Directors meeting at which the 2014-2015 Board were elected. The elected members include: Directors: Anthony Greene, […]
RRGs Report Financially Stable Results at Year-End 2013
RRGs Report Financially Stable Results at Year-End 2013 By Douglas A. Powell, Senior Financial Analyst, Demotech, Inc. A review of the reported financial results of risk retention groups (RRGs) reveals insurers with a great deal of financial stability. Based on year-end 2013 reported financial information, RRGs continue to collectively provide specialized coverage to their insureds. […]
Myth BUS-ted!
Michael Loguercio
Face to Face
Myth BUS-ted! As a school board member for 10 years, on countless occasions I have had many a parent tell me how (especially in inclement weather) they would prefer to not only drive their little darlings to school in the morning, but also pick them after school in the afternoon. Of course my initial response […]
Court Denies Default Motion in DJ Action Even Though Defendants Defaulted
Court Denies Default Motion in DJ Action Even Though Defendants Defaulted Interboro Ins. Co. v Rosetta Dawkins et al. Plaintiff INTERBORO INSURANCE COMPANY moves pursuant to CPLR 3215 for a default judgment against defendants MERIT ACUPUNCTURE, AVENUE C MEDICAL, P. C. PROFESSIONAL HEALTH IMAGING and TOTAL MOBILITY, P.C. (collectively, the “Provider Defendants ). Plaintiff purports […]
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HEIGHT OF ABSURDITY — New York’s Dizzying Scaffold Bill
HEIGHT OF ABSURDITY New York’s Dizzying Scaffold Bill By Casey O’Brien ALBANY, N.Y.—Governor Andrew Cuomo has stated there won’t be much movement on the Scaffold Law this year; but that doesn’t stop the issue from continuing to be highly contested throughout the state. Labor Law 240, more commonly known as the Scaffold Safety Law, was […]
Consolidating
Consolidating Moses Insurance Group has acquired Maloney Petrison Agency, a full-service firm in Williamsville, NY since 1978. The purchase was finalized some weeks back and just announced by Robert Moses. The acquisition of Maloney-Petrison Insurance is a strategic part of the Moses Insurance Group’s expansion and future growth plans in the Greater Buffalo/Western New York […]
ENCORE! ENCORE!
ENCORE! ENCORE! Congratulations to the New York Liquidation Bureau! Yes, you read that right. For the second year in a row the Bureau has timely posted its annual report on its website (www.nylb.org). This is the statutorily required report of the Superintendent of Financial Services as receiver (liquidator, rehabilitator, conservator or ancillary receiver) on the […]
Another Hole in the Dike: Court of Appeals Allows Errors & Omissions Claim; Business Income Coverage for Employees’ Payroll and Commissions; The Mudslide Tragedy— Insurance Aspects
Jerry Trupin
Exposures and Coverages
Another Hole in the Dike: Court of Appeals Allows Errors & Omissions Claim Business Income Coverage for Employees’ Payroll and Commissions The Mudslide Tragedy— Insurance Aspects Another Hole in the Dike: Court of Appeals Allows Errors & Omissions Claim The New York Court of Appeals has again denied an insurance broker’s motion for summary […]
Your Local Neighborhood MARKET-ing
Michael Loguercio
Face to Face
Your Local Neighborhood MARKET-ing So many times you have heard me mention in this column, or in a conversation that we may have had, about how important it is to obviously market both yourself and your business products through community involvement. You have also heard me say many times how important both face to face […]
Taking A Lesson From March Madness
Taking A Lesson From March Madness Why do consumers believe that insurance is a commodity? Because an enormous amount of advertising money has been spent to teach them that. Conversely not enough time, money and effort has been spent to tell them the truth. Most independent agents and brokers know that not all coverage is […]
RAA Elects Officers
RAA Elects Officers Tad Montross, President and Chief Executive Officer, General Reinsurance Corporation, was elected chair of the Board of Directors of the Reinsurance Association of America (RAA) at the 46th Annual Meeting of Members held in Washington. Elected to serve with Mr. Montross are vice chair Henry Klecan, President and Chief Executive Officer, SCOR […]
LIRAP: More than 300 drawn to PIANY in Woodbury Conference
LIRAP: More than 300 drawn to PIANY in Woodbury Conference More than 300 insurance professionals attended The Professional Insurance Agents of New York’s Long Island Regional Awareness Program on May 1, 2014. This year’s Long Island RAP took place at Crest Hollow Country Club in Woodbury. The venue and perfect spring weather combined with inspired […]
Putative Class Action Challenges Use of “Shadow Insurance”
Putative Class Action Challenges Use of “Shadow Insurance” By Matthew Gaul, Denton’s Anew putative class action suit filed in the Southern District of New York alleges that the use of so-called “shadow insurance” transactions violates New York Insurance Law Section 4226(a)(4), which prohibits insurers from making “any misleading representation, or any misrepresentation of the financial […]
Change is Not Always for the Better
Change is Not Always for the Better By Marilyn M. Singleton, M.D., J.D. Recently, I took a respite from my concerns about the Affordable Care Act, which I left simmering in the crockpot while I was re-visiting the Kingdom of Cambodia. Most people visit Cambodia for a brief trip to Siem Reap to experience the […]
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M&A A’ GO•GO
There were 110 announced mergers and acquisitions of insurance agencies in the U.S. and Canada in the first four months of 2014, the strongest showing of any comparable period for at least seven years, OPTIS Partners’ new survey reveals. “While it’s still early, 2014 could surpass the record set in 2012 if the rest of […]
M&A A’ GO•GO : M&A Scoreboard, Q1’14
M&A A’ GO•GO M&A Scoreboard, Q1’14 By Adam Cancryn and Jan Haider Kiani The underwriter space logged a total of $4.4 billion in M&A transactions in the first three months of 2014, by far the highest first-quarter total in four years. The deals ranged across all sectors and specialties; private equity firms swooped in for […]
PIANY – NJ 75th Just Ahead
PIANY – NJ 75th Just Ahead Sad news. Ken Pollack wrote to advise of the passing of Joseph Costa, a lifelong insurance professional who became a leading volunteer in the IIABNY and its several affiliated chapters. Joe was President of Queens and Kings County Association in 1979 – 1980, a member and President of the […]
EXTRA! EXTRA! Read it Here First!
EXTRA! EXTRA! Read it Here First! Certain information about the insurance business in New York is being exclusively presented here for the very first time! This information is not otherwise publicly available and was mined from the Department of Financial Services through the magic of the Freedom of Information Law (FOIL), with the help of […]
Outrage: DMV’s Internet I-PIRP Program Fails
Outrage: DMV’s Internet I-PIRP Program Fails By William Bonds, President, Empire Safety Council It is outrageous that the Department of Motor Vehicles is considering renewing the Internet-Point/Insurance Reduction Program (I-PIRP) based on fraudulent and flawed studies coupled with failed User/Identity Validation measures. The impact of these fraudulent research studies diminish the credibility of the Department […]
Agents and CSRs Must Remind People of the Value We Offer Them
Agents and CSRs Must Remind People of the Value We Offer Them The relationship between the independent agent and the insured is one of, if not the most, important things we offer our clients. We work or live right down the road; we have a familiar face; and we work with our clients always on […]
IIABNY Taps Suffolk County Insurance Agent to be Chair of the Board
IIABNY Taps Suffolk County Insurance Agent to be Chair of the Board Riverhead, N.Y.—Insurance agent James D. Sutton, CPCU, AAI, CIC led the list of officers elected by members of the Independent Insurance Agents & Brokers of New York, Inc. New York’s oldest insurance producer trade association installed Sutton as chair of the board at […]
PIA’s Launches Company Performance Surveys
PIA’s Launches Company Performance Surveys GLENMONT, N.Y.—The Professional Insurance Agents of Connecticut, New Hampshire, New Jersey and New York State launched their Company Performance Surveys on Monday, May 5, 2014. Each survey, available through June 30, 2014, gauges insurance producers’ views of the companies they represent in their respective states. Independent agents will rate the […]
Extending TRIA Ensures Workers’ Comp Availability
Extending TRIA Ensures Workers’ Comp Availability WASHINGTON, DC – The Coalition to Insure Against Terrorism (CIAT), which represents business consumers of terrorism risk insurance across a broad range of industries welcomed the findings of a new RAND Corporation study that confirmed the Terrorism Risk Insurance Act (TRIA) is critical to ensuring the availability of workers’ […]
Independent Insurance Agents & Brokers of New York Present Awards
Independent Insurance Agents & Brokers of New York Present Awards Riverhead, N.Y.— The Independent Insurance Agents & Brokers of New York recognized excellent performance by insurers, a local trade group, volunteers and associates during its May convention. Acting for the final time in his capacity as IIABNY chair of the board, Andrew Kaufman presented the […]
IIABNY Top Honor to WAHVE Founder Sharon Emek
IIABNY Top Honor to WAHVE Founder Sharon Emek The Independent Insurance Agents & Brokers of New York (IIABNY) presented WAHVE founder Sharon Emek, Ph.D., CIC with its highest honor: The 1882 Fellow Award during the organization’s leadership dinner on May 14, 2014 in Riverhead, N.Y. following the IIABNY’s 132nd annual business meeting. The 1882 Fellow […]
Ernesta Procope, NYC Insurance Broker, Receives Black Enterprise’s Lifetime Achievement Award
COLUMBUS, OHIO—Ernesta G. Procope, chairman of E.G. Bowman Company, a Manhattan insurance brokerage, has received the 2014 A.G. Gaston Lifetime Achievement Award from Black Enterprise magazine at its annual conference mid-May in Columbus, Ohio. The award “recognizes the entrepreneurial spirit and the guiding light of an individual who has established an extended and consistently distinguished […]
Crystal Appoints Lou Roca Executive Managing Director
Crystal Appoints Lou Roca Executive Managing Director NEW YORK N.Y.—Crystal & Company, a leading strategic risk and insurance advisor, has named Lou Roca as Executive Managing Director and head of Commercial Insurance Services. In this role he will be responsible for the growth and the development of the business unit, defining and executing the unit’s […]
CyberRiskPartners, LLC Selects Advisor
CyberRiskPartners, LLC Selects Advisor RYE, N.Y.— CyberRiskPartners, LLC has announced that Farmington Capital Partners (“FCP”) has been appointed financial advisor to assist the Company with a review of potential capital and strategic alternatives. FCP will examine and consider opportunities available to the Company with the objective of further enhancing shareholder value. This will include exploring […]
When an Insurer Must Interplead Funds
When an Insurer Must Interplead Funds When an insurance company is faced with competing claims for the proceeds of a life insurance policy and cannot determine which claim is proper, it may deposit the benefits of the policy into court and ask that the competing interests litigate the right to the proceeds. Since it has […]
NYS to Require Licensing of Title Insurance Agents
According to the Bill, however, “title insurance agents” are unequivocally incorporated into the definition of “insurance agent.” Moreover, new Section 2113 imposes certain mandatory disclosure requirements and restrictions on commissions and payments of fees to title insurance agents.
“Accountable Care, Patient Protection” Act Harms Young Millennials
“Accountable Care, Patient Protection” Act Harms Young Millennials By Elizabeth Lee Vliet, M.D. “Millennials,” the group of young people born after 1980, overwhelmingly voted in 2008 for politicians who promised “healthcare for all” and sponsored the “Affordable Care Act” (aka Obamacare). Sadly, young people took on faith the promises of an orator and did not […]
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E&O: “Voss” Decision Raises the Bar for Agents
With Sandy claims looming over the heads of many Long Island and New Jersey agents, carriers and residents, the New York State Court of Appeals has heightened insurance brokers’ liability to their clients for the possible failure to recommend sufficient, proper coverage for their property. The upshot of what is now termed “the Voss decision” may be far-reaching for agents and brokers and their errors and omissions insurers.
The Decision…
The primary question before us is in this insurance dispute is whether a special relationship existed between the insureds and their insurance broker. Under the circumstances of this case, we conclude that the broker failed to meet its burden justifying summary judgment and [*2]dismissal of the complaint is not warranted.
Capital Ideas
The real changes however are coming at the top of the food chain. New money sources are changing the expectations and the outlook for insurance itself. The Casualty and Actuarial society sounded off on this, stating that “reinsurers and the entire property/casualty industry need to evolve as waves of capital reshape their business model.”
Regulatory Paranoia
It started over a year ago, in a speech before a prestigious conference on the state of the U.S. and world economies, when New York’s Superintendent of Financial Services first raised the warning signs against private equity firms “becoming active in the acquisition of insurance companies” because “these private equity firms are more short-term focused – when [insurance] is a business that’s all about the long haul.” Since issuing this warning shot, the issue of hedge funds and private equity firms investing in the insurance business has become a topic of significant discussion and some action.
Certificates of Insurance in the News Again
Jerry Trupin
Exposures and Coverages
Certificates of insurance are a sore point with both those who ask for them and those who have to provide them. On the one hand, the requests sometimes ask for the impossible and the other, the certificates often don’t enable the certificate-holder to detect serious gaps in coverage. … Agent associations and others have been fighting the first part of the problem by pushing for state administrative or legislative action to make it illegal to ask for expansion of coverage via a certificate of insurance. Risk managers have been pushing for more information on what coverage is provided by the policies underlying the certificate of insurance. There are new developments on both fronts.
No One Wants a Satisfied Customer!
Michael Loguercio
Face to Face
Whenever I speak with an agency, one of the first questions that I ask them is “What makes you different than the agency across the street?” and guess what I immediately hear almost every time: “Our customer service is the best, and our customers are all satisfied!” Well, that’s great, as I am sure that your customers are very “satisfied”, but is purely being satisfied going to keep them renewing with you every year, and more importantly are they going to tell a friend about your firm? Most likely not… so what do you need to do in order to make this happen?
PIA-endorsed Floodbroker.com Now Offered to PIA Members
“The errors-and-omissions exposure created by not offering a particular coverage haunts every agent. It is a well-established fact that following a hurricane, not offering flood insurance to your clients is a leading cause of E&O claims,” Spindelman says. “Groundless or not, E&O claims are real and have a detrimental effect on all parties concerned. The highhazard zoned properties will be far more likely to have some form of flood insurance due to bank insistence. While Floodbroker.com rates many high-hazard flood risk properties (even those that require elevation certificates), the program serves a significant market segment of property owners who are not obliged by a bank to buy flood coverage as well.”
Are We Our Own Worst Enemy?
The sad part is the agency I referred them to didn’t check back after the fact to see how their experience went and so they have no idea that their new clients have started out on the wrong foot. … The issues and less than satisfactory experiences were all things that should not have occurred in the agency. It involved failing to provide exactly the kind of personalized, quality service that is the hallmark of doing business with an independent insurance agent. Is it any wonder after experiencing less than adequate service why it is so easy for our competitors to sell price as the only determinant in deciding where you buy insurance.
Four Factors That Will Grow Your Agency
I personally feel that every agency needs at least one social media because I have witnessed significant growth from the day I hired my first social media engineer, due in large part to the way society and technology has progressed. Agency owners simply lack the time to manage all of the social media outlets, so that’s where the social media engineer comes in. I often hear agency owners say that they cannot afford a social media engineer, but what I say to that is: you can’t afford NOT to have a social media engineer!
I’ve Made Up My Mind – Don’t Confuse Me With Facts
The Four Corners Rule, applied in Pennsylvania and several other states, limits the decision to defend and/or indemnify an insured to a review of the allegations of a complaint. As such, it ignores facts extrinsic from the wording of the complaint, and provides an insured with coverage that would not exist if the court applied the facts rather than the allegations. In Lanigan v. T.H.E. Insurance Co., 646 WDA 2013 (Pa.Super. 03/14/2014), a Pennsylvania appellate court was asked to reverse a summary judgment in favor of an insurer by ignoring the facts and applying only the allegations of the complaint.
Court of Appeals: City Liable for Permitting Bicyclist to Enter Road That Was Closed for Repairs
Wittorf v City of New York (2014 NY Slip Op 04037)
We are asked in this case if the City of New York was engaged in a proprietary function at the time of plaintiff ’s bicycle accident in order to determine if the jury properly evaluated the City’s actions under ordinary negligence principles.Asbestos Litigation Creates Vague Notions About the Law
When some primary insurers exhaust their policy limits, excess insurers must take over the defense and indemnity of the insured as their interests appear. When there are multiple primary and excess insurers the allocation of the costs of defense and indemnity become complicated and result in litigation when the multiple parties should work together to […]
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NYIA Annual Conference
The New York Insurance Association (NYIA) prides itself in offering the premier property and casualty insurance event in New York, and attendees say 2014 was no exception. More than 225 people joined NYIA this year at the Sagamore Resort in Bolton Landing, New York, May 28–30. New York State Department of Financial Services Superintendent Benjamin […]
Certificates of Reliability
There is an interesting dilemma that the NY regulators have been facing for literally decades now. It involves a well-defined and acknowledged violation of the insurance law and regulations that has defied any viable enforcement solution. The subject is the issuance of insurance certificates that improperly expand or provide coverages not intended or included in […]
75 Years Strong … When it Comes to Teamwork, PIA is the Best!
Iwrite this article in the afterglow of the PIANJ/PIANY Joint Annual Conference, which took place June 8- 10 at the Trump Taj Mahal in Atlantic City. This event is particularly special to me for several reasons. First, I have a personal connection to the event itself. In 2000, I was convention chair for the PIANY […]
TriCounty Independent Insurance Agents Association Installs Officers and Directors for the 2014 – 2015 term
ALBERTSON, N.Y.—New officers and directors took the helm on June 5 during the Long Islandbased TriCounty Independent Insurance Agents Association annual installation dinner and awards ceremony. The gathering, held at the Fox Hollow in Woodbury, NY, set the TriCounty IIAA leadership for the 2014 through 2015 term. About 180 agents, company representatives, vendors and other […]
IIABSC Installs Officers and Directors for the New Term of 2014 – 2015
WADING RIVER, N.Y.—The Independent Insurance Agents & Brokers of Suffolk County, Inc. installed new officers and directors for the 2014 through 2015 term. Over 90 IIABSC members and guests attended the May 29 event which took place at the East Wind Conference center, Wading River, NY. Richard A. Poppa, President & CEO of the Independent […]
Bring It On!
So a while back I wrote a piece on BYOD (Bring Your Own Device), and spoke about what exactly the benefits are to employers, businesses, and employees. However, along with all of those benefits are a plethora of risks and dangers that are associated with BYOD. First off, let’s begin with the definition of BYOD, […]
PIANJ/PIANY Joint Annual Conference Marked by Milestones and Records
Two thousand agents and insurance industry professionals made history at the PIANJ/PIANY Joint Annual Conference and 75th anniversary celebration at the Trump Taj Mahal in Atlantic City, N.J. June 8-10. The event surpassed all previous records for attendance as the industry flooded the boardwalk, networking and honoring industry stars at gala banquets, and packing an […]
White Honored by New York Insurance Association
BOLTON LANDING, N.Y.—The New York Insurance Association, Inc. (NYIA) honored Thomas White with the Chair’s Distinguished Service Award at the association’s annual conference May 29 in Bolton Landing, N.Y. White is president of Community Mutual Insurance Company, an affiliate of Union Mutual of Vermont Companies. White is also regional vice president of Union Mutual, responsible […]
Healthcare Fixed, on to Climate Change
Now that 8 million or more have signed up on health insurance exchanges under the Affordable Care Act (ACA), the President is deploying his phone and his pen to solve another urgent problem: climate change. This will require another transformational change that no previous President has been able to bring about, as they were unable […]
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EBB and FLOW: Unions Swim Against the Tide as Pension Issues Surface
Contributions to multiemployer defined benefit pension plans have been a mainstay, legacy feature of union negotiations in many industries. But the fabric of such staples may be tearing apart as employers contemplate the potential of escalating contributions to amortize unfunded liabilities that increase costs but may have imperceptible value for their own employees. Increasingly, employers […]
When Policy Excludes Someone Who "is" Covered Under Another Policy, "is" also Includes "Was"
It is now legendary that when former President Bill Clinton testified before a grand jury in 1998, he rationalized his repeated statements that “there is nothing going on between us” [himself and Ms. Lewinsky] by telling the jurors, “It depends on what the meaning of the word ‘is’ is….” He went on to explain that […]
P/C Insurers’ Profits and Profitability Slipped in First-Quarter 2014 as Gains on Underwriting Shrank
JERSEY CITY, N.J.—Private U.S. property/casualty insurers’ net income after taxes fell to $13.8 billion in first-quarter 2014 from $14.3 billion in first-quarter 2013, with insurers’ overall profitability as measured by their annualized rate of return on average policyholders’ surplus falling to 8.4 percent from 9.6 percent. Insurers’ pretax operating income – the sum of net […]
Certificates of Insurance: New CT Law & Cancellation Notice Requirement Solution An Email Swindle Yields a Trifecta of Insurance Issues Cyber Breach: A Billion Dollar Headache
Certificates of Insurance Yet Again Want Expanded Coverage via Certificate in CT? FUHGEDDABOUDIT! Two months ago I wrote about Delaware’s new law that not only bars insurers and producers from issuing false or misleading certificates, but also bars anyone from requesting such a certificate.1 Connecticut has just passed a similar law to be […]
Christmas In July
Oh the anticipation! Ever hopeful for pleasant surprises and thoughtful gifts! Alas, once again it is not to be. Nothing but another collection of coal in our stockings! Guess we’re still bad boys and girls. The 2013 annual report of the NY superintendent of financial services to the governor and the legislature, required to be […]
Being 007 Ain’t What It’s Cracked Up to Be
I love a good spy story—Espionage, conspiracy, international trade and government drama … it’s all so exciting! But, in real life the most dangerous versions of these can seem mundane on the surface. Perhaps that’s why agents—insurance agents, not secret agents—have been so slow to do for themselves what they should also be recommending to […]
7-11-2014 Back to the Future
So for the past twenty something years, I have been traveling across the country for business, visiting forty three out of fifty states. I have stood right next to hot, flowing lava; been in a hurricane in New Orleans; witnessed firsthand earthquakes in Seattle and Los Angeles; survived 115 degree heat in the jungle of […]
VA Scandal—a Battlefield of Deceit, Delays and Death for Veterans
The VA has many truly dedicated doctors, nurses, and health professionals who do their best to genuinely serve America’s veterans. I salute their conscientious work and commitment under difficult conditions, often in a culture of fear and intimidation if they identify News headlines since the Phoenix scandal first broke in late April, however, clearly […]
How is Your Relationship?
Not your personal relationship but the relationship your agency has with your clients and prospects. The most important reason to get your insurance protection from an independent agent or broker is the strong, trusting relationship you develop with your agent and the agency staff.^P What’s it like to be a customer or prospect of your […]
IMUAElects Officers & Board
The Inland Marine Underwriters Association (IMUA) elected a new slate of officers: Michelle Hoehn, The Travelers Group, was inaugurated as IMUA’s new Chairperson replacing Peter Opinante, Swiss Re America, who has served as the Association’s Chairperson for the past four years. Also elected were Deputy Chairperson William Rosa, XL Reinsurance, and L. Pat Stoik, Chubb […]
Foundation Announces 2014 Spring Scholarship Winners
MALVERN, Pa. — The Griffith Insurance Education Foundation has announced that 21 undergraduate and graduate students from nine states have been selected as recipients of $63,000 in scholarship funds. These biannual scholarships are available to students who are in good academic standing and are committed to pursuing careers in the insurance industry. Through scholarship opportunities, […]
Facts Rule: Coverage Pollution Exclusion Effective
Insurers do not want to cover pollution under a basic automobile insurance policy. In their generosity they take on the liability of their insureds if, as a result of a collision or upset of an insured vehicle, some pollution occurs. That does not, however give coverage for every incident of pollution related to a vehicle. […]
When Policy Excludes Someone Who "is" Covered Under Another Policy, "is" also Includes "Was"
It is now legendary that when former President Bill Clinton testified before a grand jury in 1998, he rationalized his repeated statements that “there is nothing going on between us” [himself and Ms. Lewinsky] by telling the jurors, “It depends on what the meaning of the word ‘is’ is….” He went on to explain that […]
Emotionitist: a Political Malady
Today’s political debates are extremely polarized and emotional. One person’s charming, clever, and assertive is another’s manipulative, cunning, and ruthless. Consider the opposing perspectives on some of the most important issues: • Did the politician lie or merely misspeak? • Is the NSA perpetrating an obscene invasion of privacy or deploying a crucial tool against […]
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DISCORD: ACORD IntroducesForm That Spells C of I Flux
The new ACORD form 855NY will shake up our already hectic certificate of insurance world. It’s an addendum to certificates of insurances for New York. It will provide detailed information about the policies shown on the certificate, particularly the CGL. This is good news for additional insureds and their risk manager. It’s bad news for […]
Markham Rollins, Jr., James Inzerillo Served Industry and Community
We note with sadness the passing of two professional gentlemen, truly worthy of the name: The first is Markham Rollins, Jr., aged 80, father of Markham III and Charles, and successor to his father in the operation of the Rollins Agency in Bronxville, founded in 1910, now located in Rye Brook. A former U.S. Marine, […]
Alphabet Soup
Last August I took a semi-serious look at the acronymic National and International insurance regulatory agencies, institutions and forces of nature (“Late Summer Delights: Fishing for Acronyms,” IA, August 19, 2013), with a somewhat jaundiced view of how these paragons of regulatory expertise may affect the future course of the insurance industry and its denizens. […]
Mobile Moments: Are You Ready?
First it was the “web.” Then it was “social.” Now it’s “mobile.” The pace of technological change is daunting. If you were late to the party for the first two, you better not be late for mobile. Mobile has fundamentally transformed every element of consumer behavior. And it’s transformed how businesses engage with shoppers and […]
Serio on Bickford
Steve: The large pile of reading material that accompanied me on my summer encampment to Block Island included the May 12th edition of the Insurance Advocate (among a number of other editions in my quest to get up to date). I especially like to read Peter Bickford’s Insight columns when I do pick […]
You’re Gonna Need a Bigger TV
If you have ever watched television, surfed the web, picked up a newspaper, been on Facebook, Twitter, or LinkedIn, spoken with your kids since last August, or if you have been to a Dunkin Donuts, then you know that today begins “Shark Week” on The Discovery Channel! Although I am a huge fan of state, […]
InVESTAwards 70 Academic Student Scholarships
InVEST has awarded $87,000 in scholarships to 70 students pursuing insurance- related degrees, breaking previous scholarship records. The program is a key incentive in attracting new talent to the insurance industry. Many of the winners are from New York schools. “InVEST congratulates the 70 students representing 17 schools and from eight states who earned scholarships […]
PIWA Hotline: Newest Benefit for Wholesalers and Members
GLENMONT, N.Y.—The Professional Insurance Wholesalers Association of New York State Inc. has announced a new, exclusive member benefit designed to provide quick, practical guidance on day-to-day issues facing the insurance wholesaler. The association will launch a toll-free phone line, called the PIWA Hotline, at (844) FOR PIWA or (844) 367-7492, by which members will receive […]
Staying #1 in Your Client’s Mind
The world of the independent agent and broker is changing rapidly and in many areas. Sometimes it seems things are changing so quickly it’s impossible to keep up. Competition is fierce. Clients are demanding more service, completed faster and taken care of when it’s convenient for them. Running an agency isn’t getting easier and finding, […]
Insurers Must Avoid the Gastonette; Insurer’s Duty is to the Insured
Insurance policies of all types have contribution or excess clauses. Sometimes the clauses conflict and when two insurers insure the same risk both will claim that the responsibility lies with the other. In Central States, Southeast and Southwest Areas Health and Welfare Fund v. First Agency, Inc. — F.3d —, 2014 WL 2933225 (C.A.6 (Mich.)) […]
Paying Out Policy Limits to One Insured Before Second Insured Files Claim is Not Bad Faith
The plaintiffs operate a farm on land leased from two brothers, Donald J. Keicher and Robert Keicher. On May 13, 2011, runoff from a heavy rainstorm allegedly caused manure that the plaintiffs had spread on their fields to contaminate several ponds on adjoining land. It is undisputed that Donald and Robert Keicher also own the […]
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2014/ Past Issues/ September 15
ShelterPoint Life: New York’s First Rehab Life Unfolds Fresh Brand, Bright Plan for National Expansion Art Shea
[COVER] ShelterPoint Life New York’s First Rehab Life Unfolds Fresh Brand, Bright Plan for National Expansion New York’s familiar First Rehab Life Insurance Company (First Rehab) has adopted a fresh, new banner as it sets sail on a full scale effort to attract a national audience. The venerable Long Island-based resource that has served agents […]
2014/ Past Issues/ September 15
Single-Handedly
FOREWORD Steve Acunto Single- Handedly Every New York taxpayer should thank DFS leader Ben Lawsky for the spate of fines – and their size – that seem big enough to balance the State’s budget. Looks like he’s bolstering the bottom lines single-handedly. Ben is an ambitious man, hardly a fault, but […]
2014/ Past Issues/ September 15
A Man of Letters
[INSIGHT ] By Peter H. Bickford Who says the art of letter writing is dead? In this age of smart phones, instant messaging, initials in place of sentences, and the general demise of the printed word, it is quite refreshing to see at least one regulator that seems to relish the written word and […]
2014/ Past Issues/ September 15
Short Takes on Sunday Topics
[EXPOSURES AND COVERAGES] By Jerome Trupin, CPCU Short Takes on Sundry Topics: Sandy Claims Deadline, Sewer Backup, Continuing Ed Problems, Security Breach Law, and Hail & Ice It’s Almost Midnight for Sandy Claims Most states mandate that insurance policies provide at least two years from the date of a property loss for an insured to […]
2014/ Past Issues/ September 15
Mobile Moments: Are You Ready?
[ THE SOCIAL NOTEBOOK] By Christopher Paradiso, CPA Ways to Get Ahead in the Social Media Arena When you think of social media and the success that can be gained from it, one thing that we always need to keep in mind is to continuously keep learning. Social media is constantly changing because of […]
2014/ Past Issues/ September 15
APIx, a New Art Stability Rating System, to Lower Risk on Blue- Chip Art
[RESOURCES] APIx, a New Art Stability Rating System, to Lower Risk on Blue-Chip Art Los Angeles, CA—A provisional patent application for the Art Preservation Index or APIx was filed in July to standardize the measurement of stability risks of blue-chip paintings and other types of artwork that may deteriorate over time. The APIx is a […]
2014/ Past Issues/ September 15
MSO Outing Benefits Emmanuel Cancer Foundation
[NEWS NOTES] MSO Outing Benefits Emmanuel Cancer Foundation Glen Rock, N.J.—MSO®, Inc., an insurance rating/service bureau located in Glen Rock, NJ, held its 21st Annual MSO Golf Outing on May 20, 2014. At the outing, held at the Heron Glen Golf Course in Ringoes, N.J., MSO offered attendees and companies the opportunity to sponsor […]
2014/ Past Issues/ September 15
Ian McKenchie Named MSO VP, Actuarial Services
Guest Author
In The Associations
[ IN THE ASSOCIATIONS] Ian McKechnie Named MSO Vice President, Actuarial Services Glen Rock, N.J.—MSO, Inc. (the Mutual Service Office, Inc.) is pleased to announce the addition of Ian M. McKechnie, CPCU, ARP, CIDM, AIAF, CSF, ARe, FLMI, ARC, AU to their management staff. As Vice President, Actuarial Services, he is responsible for development of […]
2014/ Past Issues/ September 15
The Age of the Customer: Companies Turn to Enhanced Video Communication
[ TECHBITES] By Jim Dicso, President & CRO, SundaySky The Age of the Customer: Companies Turn to Enhanced Video Communication In the last century, business sources of dominance have evolved from mass manufacturing to global distribution to information mastery. Today, we’ve entered the next generation of the business evolution – the age of the customer […]
2014/ Past Issues/ September 15
Interboro Insurance Group Celebrates 100 Years!
[COMPANY NEWS] Interboro Celebrates 100 Years! Interboro Insurance Group was proud to host their 100th Anniversary Party on July 9, 2014, at The Carltun in Eisenhower Park. The evening was enjoyed by over 250 guests who included employees, brokers, vendors and a variety of other business associates. To make the event more enjoyable, it was […]
2014/ Past Issues/ September 15
Other Insurance Clause Raises Actual Controversy
[ON MY RADAR] By Barry Zalma Other Insurance Clause Raises Actual Controversy Self-Insured & Insurer “Other Insurance Clause” When two or more insurers agree to insure against the same risk of loss disputes often arise as to which insurer must pay on a primary basis, which is excess or whether they must share the liability […]
2014/ Past Issues/ September 15
Disclaimer Issued 24 Days After Notice of Suit is Timely; Carrier Needed to Investigate
[COURTSIDE] By Lawrence Rogak Disclaimer Issued 24 Days After Notice of Suit is Timely; Carrier Needed To Investigate Guideone Ins. Co. v Darkei Noam Rabbinical Coll. In an action for a judgment declaring that the plaintiff is not obligated to defend or indemnify the defendants Darkei Noam Rabbinical College, Darkei Noam, Inc., Keren Hachesed, and […]
2014/ Past Issues/ September 15
Take Control of Your Brand: The 4Cs of Brand Management
[ THE LAST WORD] By DeEtta Jones Take Control of Your Brand: The 4Cs of Brand Management There are plenty of reasons to care about your brand, and high among them should be to make your voice heard: your unique voice. Voice is the contribution made to something larger than oneself. It’s the medium for […]
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2014/ Past Issues/ September 29
“Reasoned Analysis” – An Important Letter to the Editor
[FOREWORD] Steve Acunto “Reasoned Analysis” An important Letter to the Editor RE: Jerry Trupin’s analysis of the ACORD 855NY form, Aug. 18 Dear Mr. Acunto, Jerry Trupin gave Insurance Advocate readers a reasoned analysis of the ACORD 855NY form in the Aug. 18, 2014, edition of the magazine. While relevant from the certificate […]
2014/ Past Issues/ September 29
Controlling Information
[INSIGHT ] By Peter H. Bickford Controlling Information It has been almost twenty years since Seinfeld’s mailman Newman uttered that threat and, even with the passage of time and the ensuing digital age, it is still a timeless reminder of the importance of availability and access to information. Even today with seemingly unfettered access to […]
2014/ Past Issues/ September 29
Big “I” Installs New Leadership
Big “I” Installs New Leadership Team Michigan’s David Walker as Chairman, Louisiana’s Randy Lanoix as Chairman-Elect, Connecticut’s Spencer Houldin as Vice Chairman; Jon Jensen of South Carolina Joins Executive Committee ALEXANDRIA, Va.— David Walker was inaugurated as the new chairman of the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”), with […]
2014/ Past Issues/ September 29
New York and New Jersey Amond Excellence in Insurance Education Awardees
ALEXANDRIA, Va.—Big “I” independent insurance agent associations in 24 states were recently recognized by the Independent Insurance Agents & Brokers of America (IIABA or The Big “I”) with Excellence in Insurance Education (EIE) Awards at the association’s Education Convocation in Grand Rapids, Michigan. “The Big ‘I’ Excellence in Insurance Education awards honor the outstanding contributions […]
2014/ Past Issues/ September 29
Hagerty Named “Great Place tow Work® 2014: Employee Trust is the Leading Factor for Great Workplaces
Hagerty Named “Great Place to Work® 2014: Employee Trust is the Leading Factor for Great Workplaces H agerty, a leading insurer of classic cars, was named by Great Place to Work® as one of the best small and medium workplaces in the United States on its annual 2014 Best Small & Medium Workplaces, just […]
2014/ Past Issues/ September 29
PIANY Elects New Leaders
GLENMONT, N.Y.–Anthony A. Kubera, CIC, director of business development for Russell Bond & Co. Inc., in Buffalo, N.Y., was elected president of Professional Insurance Agents of New York State Inc., at a meeting of the association’s board of directors today. Kubera is a member of PIANY’s Political Action Executive and Governing Committees. He is an […]
2014/ Past Issues/ September 29
The Griffith Insurance Education Foundation Awards $3,500
MALVERN, Pa.—The Griffith Insurance Education Foundation presented $3,500 in awards to 10 students at the Future Business Leaders of America (FBLA) National Conference in Nashville, Tennessee. As an event sponsor, The Griffith Foundation supported an insurance and risk management competitive event as part of the FBLA’s Competitive Events Program. More than 60 students participated at […]
2014/ Past Issues/ September 29
The Vulnerability of Art: Collection Risk Management Tips
[ RISKMANAGEMENT] By Michelle Impey, Fine Art Director, Fireman’s Fund Insurance The Vulnerability of Art: Collection Risk Management Tips When I visit the homes of high net worth clients to assess their art assets as the Fine Art Director with Fireman’s Fund Insurance, providing loss prevention advice is my primary objective. Whether it is a […]
2014/ Past Issues/ September 29
They Don’t Make ‘em Like They Used To
[ON THE LEVEL] By N. Stephen Ruchman, CPA They Don’t Make ‘em Like They Used To If you stick around long enough, you acquire expertise, skills, loyalties and valuable relationships. These are what make a career; they are the dividends of time well invested. I’ve been around a while. And I’ve developed such relationships with […]
2014/ Past Issues/ September 29
Between You and Me, Keep This On The DownLOAD!
Michael Loguercio
Face to Face
[FACE TO FACE] By Michael Loguercio Between You and Me, Keep This On The DownLOAD! So many times when I speak with an agency about purchasing a management system, or switching to the EZLynx Management System from their current provider, one of the questions almost inevitably posed to me is, “What carriers do you download […]
2014/ Past Issues/ September 29
Dipping Your Toe Into the Social Media as an Agent
[ THE SOCIAL NOTEBOOK] By Chris Paradiso Dipping Your Toe Into the Social Media as an Agent One of the biggest questions I am asked on a regular basis is, “what can I do to kick start my agency’s marketing plan into the social media arena.” An excellent question and I would imagine if you […]
2014/ Past Issues/ September 29
Must Insured First Prove Prima Facie Case?
[ON MY RADAR] By Barry Zalma Must Insured First Prove Prima Facie Case? An LLC is not an Employee When an insured acquires an insurance policy the insured promises, among other things, to first prove that when presenting a claim for indemnity the insured will establish a prima facie (on its face) case that coverage […]
2014/ Past Issues/ September 29
Unless Auto Policy Specifically Excludes Temporary Substitutes, They Are Covered for Sum
[COURTSIDE] By Lawrence Rogak Unless Auto Policy Specifically Excludes Temporary Substitutes, They are Covered for Sum Mechanic Driving Customer’s Loaner Car Covered Under Customer’s Auto Policy Matter of State Farm Mut. Auto. Ins. Co. v O’Brien In a proceeding pursuant to CPLR article 75 to permanently stay arbitration of a claim for underinsured motorist […]
2014/ Past Issues/ September 29
Obamacare, Goebbels and Ginsburg
[GUEST OPINION] By G. Keith Smith, M.D. Obamacare, Goebbels and Ginsburg Afriend recently opined to me about his increasing frustration with those who are unable to distinguish between politics and religion, particularly those for whom politics is their religion. This describes statists of all stripes, I think. Folks either want to use the power of […]
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“TO CONVERGE, OR NOT TO CONVERGE,” That is the Question for Regulators and Legislators: And the answer may prove vexing on this increasingly dramatic financial services stage.
Whether “’tis nobler in the mind to suffer the slings and arrows of outrageous fortune….” is besides the point for financial services decision-makers. The question here is whether there are “noble minds” pondering this question as respects current efforts to devise global capital standards for insurers. I’ll leave the answer to you the reader after […]
Shared Histories
It is so gratifying to share common history and opinion. Art Moll was a friend to so many of us and to the industry itself that, when we ran his column in “Looking Back” several letters and e-mails followed with sentiments we all share. We present one of the most thoughtful here below. As always […]
A Golden Opportunity!
Welcome to my 50th Insight Column! I guess that makes it some kind of golden anniversary. But I look at it more as having been provided with a golden opportunity. For the past two and a half years my column has been addressing the natural tension between insurance regulators and regulatees, particularly where regulated entities […]
Short Takes on Sundry Topics II: The $750 Million Comma; Assault & Battery Exclusions; A Written Contract Required to be an AI; Theft By Tenant—Is It Covered?; & Certificates of Insurance Legislation
Jerry Trupin
Exposures and Coverages
My “possible topics” basket is still overflowing and new items come in all the time, so here’s another round of Short Takes. The $750 Million Comma BP is claiming that an exclusion in a contractor’s policy is ambiguous because a comma is missing in its agreement with the contractor. The missing comma may cost insurers […]
Morph to Thrive and Not Just Survive
Independent agents have existed for a long time and will continue to exist, maybe in smaller total numbers but evolved into very large agencies and smaller “boutique” or specialized agencies. No matter the size or nature of the agency, in order to grow organically all independent agencies will have to expand on the value that […]
Life Insurance Industry Convenes in Cooperstown for Annual Legislative & Regulatory Conference
From September 22 through 24, approximately 170 life insurance executives, state and national policymakers, firms that provide services to the industry, and their guests convened at The Otesaga Resort Hotel in Cooperstown, NY, to engage each other in discussion on a range of life insurance-related issues on the state, federal and international levels. The occasion […]
Email Marketing Myths That are Killing Your Agency’s Campaigns!
Chris Paradiso
The Social Notebook
As an email marketing aficionado, nothing infuriates me more than misleading ‘facts.’ NOTHING! And I don’t mean the ‘email is dead’ kind of articles that emerge every so often (just to set the record straight here, email marketing is very much alive) but rather articles suggesting that email marketing is only for the big corporations, […]
Text in the City
Michael Loguercio
Face to Face
As someone who has travelled quite extensively throughout the country on both business and pleasure, so many times I have been driving around and said, “Don’t people in this city know how to drive?!?!” Whether it is because of those who are texting and driving, or aggressively driving, or just trying to get home, it […]
When an SIR Isn’t
In this case the California Court of Appeal was asked to once again apply the well-established principle that any limitation on the coverage provided by a liability insurance policy must be expressed and consistent with the reasonable expectations of the insured. Simply put, people who write insurance policies should say what they mean and do […]
Insurance Companies (Even Small Ones) Are Not Immune from Cyber Risk
By Paul Dzielinski It seems as though every time you read the newspaper or watch the evening news, there is a story about another corporation’s website being hacked and their customer data compromised. Many business owners, especially small ones, take a head-in-the-sand approach and think, “This won’t happen to us. We’re a small company and […]
No Coverage for Damage Caused by Rainwater Entering Building Because of “Faulty Design”
Plaintiff commenced this action seeking insurance coverage from Tower for the collapse of a retaining wall in its parking lot and water damage to the interior of its building as a result of a June 23, 2011 rainstorm. Tower claimed that the insurance policy does not provide coverage for these damages and disclaimed. This matter […]
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Claims Handling is Always King
Every other year, the PIA affiliates managed from Glenmont (PIA of Connecticut, New Hampshire, New Jersey and New York) conduct the oldest and largest survey measuring agents’ opinions of their carriers’ performance. As they say in sports, this is a “bi-year” for PIA’s Company Performance Survey. So, the associations conducted the Benchmark Survey to make sure that next year’s Company Performance Survey will measure the items that are most important to agents.
Is the term “industry loss and loss adjustment expense reserves” a meaningful one?
Insurance literature is replete with articles, analyses, studies and discussion documents related to industry loss and loss adjustment expense (L&LAE) reserves, the impact of L&LAE reserve adequacy on insurance pricing cycles, as well as the correlation between inadequate L&LAE reserves and the failure rates of carriers. However, we found negligible justification for the terminology or […]
Standing Strong
Greater New York Insurance Companies celebrated its 100th anniversary the first week of November in a style that fit the modest, but unquestionably upbeat swing of this highly successful enterprise. The dinner included 300 elected and regulatory officials, brokers, company executives and industry leaders gathered at New York’s historic Union League Club one block from GNY’s Madison […]
How About Free? Free Would be Nice!
The year 1984 has significance on so many fronts but none greater than its import regarding access to information. Contrast 1984 as George Orwell’s target year in his futuristic classic about subverting control over all communications through “Big Brother,” with 1984 as the year the first Macintosh computer was introduced and the dawning of the […]
Israel Bonds Luncheon Draws 250+ Fishlinger, Barton and Granum Honored
The annual Development Corporation for Israel/Israel Bonds Insurance Division luncheon was held on October 28th at Gotham Hall in New York City. Dr. Larry Barton, Chancellor, and O. Alfred Granum, Professor of Management, The American College, and William Fishlinger, Chairman & CEO of Gramercy Risk Holdings, were honored for their professional achievements and civic endeavors. […]
Management System Envy…is Bigger Really Better?
Michael Loguercio
Face to Face
So when shopping for an agency management system, what exactly are you looking for and what, precisely, are you trying to accomplish? Bigger…better…than what? As you are well aware, there are many extenuating factors that may (and most likely will) contribute to the ever changing landscape of the independent agency, which in turn will affect […]
Position Your Business for Future Opportunities
I have been a professional independent agent for nearly five decades. The job is challenging. But, I can say without hesitation that the compensation of running my own agency has extended far beyond the financial benefits, and I encourage anyone with an entrepreneurial spirit, the desire to truly help people, and the willingness to work […]
No Damage to Vexatious Litigant
Liability insurance policies are designed to protect those insured against claims seeking damages from the insured. Some suits, however, seek equitable remedies and no damages. In such a case, where damages are neither alleged nor proven, the availability of coverage for defense is questionable. The question was brought again in Ohio by a vexatious litigator. In […]
Court of Appeals, in Novel Case, Adopts “Likely to Succeed” Standard for Unappealed Legal Malpractice Cases
Grace v Law (2014 NY Slip Op 07089) We are presented with an issue of first impression for this Court: What effect does a client’s failure to pursue an appeal in an underlying action have on his or her ability to maintain a legal mal- practice lawsuit? We hold that the failure to appeal bars […]
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2014/ November 17/ Past Issues
GNY Marks 100th Year Anniversary Three hundred gather to celebrate venerable New York Company’s first century
Greater New York Insurance Companies, nationally recognized specialists in insuring commercial and habitational real estate as well as other commercial classes of business celebrated its 100th anniversary on Thursday evening, November 6th, 2014 with a Gala Anniversary Dinner including elected and regulatory officials, brokers, company executives and industry leaders. The celebration, held at New York’s […]
2014/ November 17/ Past Issues
IFNY Annual Luncheon Draws 350; Hyatt Brown Honored
More than 350 insurance leaders joined in the Insurance Federation of New York’s (IFNY) 100th Annual Free Enterprise Award Luncheon to honor J. Hyatt Brown, Chairman, Brown & Brown, as he received the Federation’s 2014 Free Enterprise Award. The honoree’s son, J. Powell Brown, President and CEO of Brown & Brown, IFNY President Nick Pearson […]
2014/ November 17/ Past Issues
TRIAGE
In this season of high notes and well wishes, we applaud the new officers and directors of the New York Insurance Association (NYIA) for 2015. Chair is Bernard Turi, senior vice president, general counsel, general auditor and chief risk officer, Utica National Insurance Group, Utica; First vice chair: Steven Coffey, president and chief executive officer, Broome Co-operative […]
2014/ November 17/ Past Issues
Forecast: Cloudy With Lack of Clarification
Shame on AIG! It has now joined the growing list of insurance companies in NY that have agreed to pay substantial fines for their sins. These are not the fines of our predecessor administrations, where the largest fines were in the hundreds of thousands. No, now we are talking about fines in the tens of […]
2014/ November 17/ Past Issues
Cyber/Data Breaches
Jerry Trupin
Exposures and Coverages
“There are only two types of companies: those that have been hacked, and those that will be. Even that is merging into one category: those that have been hacked and will be again.” Robert Mueller, former director of the FBI.1 Cyber/data breaches2 are big news. And it’s not just the Targets and Home Depots of […]
2014/ November 17/ Past Issues
Time it Right—The Value of Timing When Using Social Media for Your Business
Chris Paradiso
The Social Notebook
Now more than ever, social media is a critical aspect of business. Many different platforms are used to ensure you are reaching your target audience, and getting your message across clearly. Every day we pin, tweet, and post about our business to maintain our social media presence and reach out to our audience. It is […]
2014/ November 17/ Past Issues
Hundreds Gather to Discuss Insurance-Related Issues at Tappan Zee Bridge Site
Guest Author
In The Associations
Insurance professionals from both sides of the Tappan Zee Bridge and across the Hudson Valley convened recently at the Professional Insurance Agents of New York State Inc.’s Hudson Valley Regional Awareness Program at the Doubletree Hotel in Tarrytown. “Hudson Valley RAP has become an institution over the past decade, almost as much as the Tappan […]
2014/ November 17/ Past Issues
Natural Selection or Apath?
There is an unhealthy trend occurring in our business caused by inaccurate perceptions and apathy on the part of some independent agents and brokers. They believe they can no longer success- fully write and retain personal auto insurance! Some have started to give up on personal insurance all together. They have conceded that market to […]
2014/ November 17/ Past Issues
Something to be Thankful for
Two weeks before Thanksgiving, I drove to Glenmont PIA headquarters for our committee and board days. On the way up, I crossed the Tappan Zee Bridge. For anyone who hasn’t driven over the bridge recently, it’s amazing to see the cranes, the pilings going in and the amount of progress being made on this construction […]
2014/ November 17/ Past Issues
Park Shifts into Drive
Park Insurance has changed gears pretty neatly, moving from its formative stages up to a speed level fit for a promising road ahead. President Tom Polsinelli is at the controls daily, even hourly, measuring and navigating admirably to keep his growing enterprise on the straight and narrow, from personnel decisions to court appearances. It’s the […]
2014/ November 17/ Past Issues
The Deadly Politicization of Ebola
The Ebola story gets stranger every day as administration officials, the CDC, and President Obama himself stretch logic and reason to the breaking point and beyond in an attempt to explain away their opposition to the basic epidemiological method of containment and quarantine. There is simply no dispute that Ebola needs to be contained in […]
2014/ November 17/ Past Issues
Rescission Attempt Fails
You Can Lie to an Insurer in Illinois and Still Keep Coverage When a person, directly or through a broker, lies in an application for insurance it usually results in voidance of the insurance policy either by the equitable remedy of rescission or by the language of the policy. Illinois, at least in the case […]
2014/ November 17/ Past Issues
Whether Batting Screens Were “Open and Obvious Condition” is a Jury Question
Francis v New York Yankees Partnership Order, Supreme Court, Bronx County (Howard H. Sherman, J.), entered April 16, 2013, which granted defendant’s motion for summary judgment dismissing the complaint, unanimously reversed, on the law, without costs, and the motion denied. Plaintiff allegedly sustained personal injuries when, to avoid a golf cart coming toward her in […]
2014/ November 17/ Past Issues
No Meritorious Defense Required When Moving for Extension of Time to Answer
Metropolitan Prop. & Cas. Ins. Co. v Braun Order, Supreme Court, New York County (Saliann Scarpulla, J.), entered on or about May 8, 2013, which denied plaintiffs’ motion for a default judgment and granted defendants’ cross motion for an extension of time to interpose an answer, unanimously affirmed, without costs. The motion court providently exercised […]
2014/ November 17/ Past Issues
Republicans Can No Longer Blame Harry Reid for Failing to Repeal ObamaCare
The time for Republican self-congratulation is over, and the work needs to begin. It appears that the majority of the voting population recognizes that our country is in dire condition. Time is running out to fix it. Are Republicans going to work for our country, or just shift money around to different special interests? It […]
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2014/ December 22/ Past Issues
The Consequences of Misclassifying Employees as Independent Contractors in New Jersey
Guest Author
Cover Story, From Counsel
By Frank Agostino, Esq. & Eugene Kirman, Agostino & Associates, P.C. Overview The U.S. Department of Labor recently awarded a total of $10.2 million to 19 states for the purpose of improving worker classification compliance. New Jersey received the third-largest total award of $838,621. This sum included the second-largest bonus, $496,399, for its performance in […]
2014/ December 22/ Past Issues
Sad news
Insurance Advocate has received two sad notices, as we go to press. The first was this note and obituary from Diana Sands, daughter of Linda Lamel. “Dear Steve: My mother passed away on Friday, December 5th at her Manhattan home at the age of 71. At her request and with the encouragement of her former colleagues […]
2014/ December 22/ Past Issues
A View From The Far Side
Regulators are people too! I spend a lot of focus in this column on problems with excessive, pointless, redundant and counter-productive insurance laws and regulations. In the process, however, many of those individuals responsible for interpreting and enforcing the rules are often unintentionally caught in the crossfire. So I want to take a moment to […]
2014/ December 22/ Past Issues
Business Income—Purchase Adequate Limits Whether or not Coinsurance Applies; Telephone Toll Fraud
Jerry Trupin
Exposures and Coverages
The most frequent question producers ask me concerns how to set the amount of insurance for business income coverage. Here’s one from a NYC producer: “We are insuring a condo association of 50 units… If total annual maintenance fees amount to $250,000 for all units combined, would you suggest that we write the [Business Income] […]
2014/ December 22/ Past Issues
Holiday Wishes
It’s the time for holiday greetings. I received a holiday email from PIA this week featuring the staff at Glenmont headquarters, and it gave me the idea for this article. I was president of PIANY and I am a director on the board of PIA Management Services, which manages the PIA state affiliates of Conn., […]
2014/ December 22/ Past Issues
David J. Walsh Named Chairman of LICONY
At its Annual Meeting, the Life Insurance Council of New York, Inc. (“LICONY”), elected David J. Walsh to serve as Chairman of the Board of Directors for 2015. Mr. Walsh is President & Chief Executive Officer for Amalgamated Life Insurance Company. “Dave is a strategic thinker with deep experience on legislative and regulatory matters affecting […]
2014/ December 22/ Past Issues
Improving Customer Experience with Digital Marketing
Chris Paradiso
The Social Notebook
Agencies that have relied on traditional channels to build and grow personal relationships face a future in which conversations and in-person meetings have become the equivalent of landline phones and cursive writing. If you never meet the customer, how do you get to know them? Just as you trained staff to ask the right questions […]
2014/ December 22/ Past Issues
Meeting the New Challenges
Marketing insurance protection has changed considerably since I started my independent agent career many years ago. As I sat behind my desk on that first day with my telephone, criss-cross directory and my x-date cards there was no internet. Prior to coming onboard as an agent I had spent many nights on the phone gathering […]
2014/ December 22/ Past Issues
Polluter Must Pay
Pollution Exclusion Applies It is axiomatic that insurance companies have the right to limit coverage in any manner they desire, so long as the limitations do not conflict with statutory pro- visions or public policy. People who are sued have a problem with the concept when the policy wording does not apply to the allegations […]
2014/ December 22/ Past Issues
Noncumulation Clause Means One Policy Limit Applies To All Lead Paint Claims From All Plaintiffs Even After Policy Renewal
Nesmith v Allstate Ins. Co. SMITH, J.: In Hiraldo v Allstate Ins. Co (5 NY3d 508 [2005]), we interpreted a so-called “noncumulation clause” contained in a series of successively- issued liability insurance policies. We held that a person suing for exposure to lead paint during the terms of all the policies could recover no more […]
2013
2013 Issues - Click to View
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Withstanding Hurricane Sandy
Industry’s September 30th Numbers Point to Strength, Resilience 2012’s first 9 month results are in and they point to the industry’s strength and its ability to withstand Sandy losses. Prior to Hurricane Sandy, private U.S. property/casualty insurers’ net income after taxes grew to $27 billion in nine-months 2012 from $8.4 billion in nine-months 2011, […]
Stability.
Hope all of our readers had a pleasant New Year’s break and start 2013 on an optimistic note… In this issue we report on the September 30th industry results which should be encouraging inasmuch as the industry’s strength will allow it to weather, pardon the expression, the efforts of Super Storm Sandy. Again, in shaky […]
All About Report Cards
Report cards are everywhere in life. Report cards let us know how we are doing in the eyes of our overseers and peers, whether they be our bosses, co-workers, teachers, coaches, administrators, regulators or even sports analysts and fans. Report cards are an acceptable way for society to hold a group or individuals accountable for […]
2013 Commercial Property Changes—Major or Minor?
Jerry Trupin
Exposures and Coverages
ISO forms will change in 2013. There are both restrictions and broadening of coverage plus many cases where ISO says the change just reinforces its original intent. It’s tempting to regard the changes as minor, but remember a minor change is one that affects someone else’s claim. A major change is one that affects your […]
Sandy’s Silver Lining
Super Storm Sandy caused death and destruction over a wide area of the Eastern Seaboard. Lives were disrupted, some forever. As always happens when tragedy hits, those who were lucky enough to not be directly impacted come together to offer help and support to those affected. It was just that concern for those affected that […]
When is a Door Not a Door…Ok,When It’s Ajar!
Michael Loguercio
Face to Face
There is a very old and wise saying, that I have always shared with my kids, “It’s not always what it is…but what it appears to be.” This saying hold true in many facets of our life…and when it comes to securing our data this thing of ours is certainly no different. As another year […]
Homeowner's Policy Covers Cost of Mobile Home as Replacement for Regular Home
Gauthier v Countryway Ins. Co. Plaintiffs commenced this action seeking to recover damages based upon defendant’s alleged breach of contract and bad faith in settling plaintiffs’ insurance claim for fire damage to their house. Following joinder of issue and discovery, defendant moved for partial summary judgment dismissing certain claims, including plaintiffs’ claim for consequential damages, […]
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On The Waterfront…Ocean Harbor is a Leading Contender for Northeast Markets in U.S. Expansion
By: Art Shea In case you have wondered whatever became of Ralph Milo, long a popular industry figure as the Chairman and CEO of Clarendon, the four hundred million dollar insurance group sold to Hannover Re in 1999, you will find him these days at Ocean Harbor Insurance Group, which he now chairs with the […]
Eliminating Friction
Governor Cuomo has started off 2013 with the swift passage of the SAFE Act in a whirl wind of activity in Albany. We hope that the same kind of attention will find its way down to the mid-section of the State of the State address, in which he proposed great reforms for workers’ compensation programs […]
A Desert Flower
The “Looking Back” feature in the past couple of issues of IA have been cruel reminders of the abrupt and inglorious closing of the old New York Insurance Exchange twenty-five years ago. These reminders have led to a new flurry of inquiries: What ever happened to the effort to revive the exchange? Has the effort […]
DFS Licensees Keep Getting in Trouble
According to the Department of Financial Services’ January 2, 2013 release of disciplinary actions, 7 DFS licensees were revoked while 41 others were imposed fines ranging from $500 to $63,000. All since the DFS’ previous release of disciplinary actions in September 2012. As expected, a handful of small fines ($500, $750) were for technical reporting […]
What Noah Didn’t Have to Go Through
Now I know why God used a flood to purge the Earth in the Bible. As a professional agent who lives and works on Long Island, I can report that after two months, Sandy has made evident the good and bad of all humanity. First the good: I am proud to be part of an […]
Does Your Dog Bite?
Michael Loguercio
Face to Face
“Woof!” If every dog in the United States made that sound one little doggy in the window at a time, we would hear almost 75 million “barks…and that’s just from the dogs that we know about! As everything I typically write about relates directly back to this thing of ours, reported dog bites occur nearly […]
Another Poetic But Brutally Frank Eviscertation of MUA By Judge Straniere
Dugo v State Farm Mut. Auto. Ins. Co This litigation involves two separate law suits brought by plaintiffs for first-party no-fault benefits provided to defendant State Farm Mutual Automobile Insurance Company’s insured. In the first action (Index No.23900/02), plaintiff, J.R. Dugo, DC, PC, as assignee of Anthony Giambrone, sought payment of $9,600.00 for chiropractic services […]
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Cuomo Focuses on WC Reforms Industry Leaders See Potential Gains
By Betty Flood Morrow and Katlin Nash Albany, N.Y.—In a much needed change to workers’ compensation, Governor Andrew M. Cuomo recommended in his State of the State his plan to introduce legislation that will continue to reduce the cost and improve the administration of workers’ compensation for New York’s business and workers. Governor Cuomo’s proposals […]
Mr. Chairman
It has been difficult to speak with John Filice these days. John is showing great strength together with his staff at U.S. Surety in the aftermath of Superstorm Sandy. That’s right, it’s January 30th and he is still climbing the stairs, struggling with electronics and having each day be that much more of a challenge, […]
A Matter of Opinion
Q: May a licensed insurance agent or broker co-sponsor seminars with a law firm in order to provide general insurance advice to employers? A: Yes. (NY Insurance Department, Office of General Counsel Opinion No. 11-01-07) Q: May an insurer require a third-party claimant to execute a release before the insurer will pay a settled claim? […]
My Wish for the Future of Our Business
As I enter the end of my career I look at the young people I work with and I wonder what this business will be like for them. Insurance is the only real work I have known and all things considered it has been very good to me. I’m not sure this business will be […]
Department of Amplification
Jerry Trupin
Exposures and Coverages
– Notice to Broker is Not Notice to Insurer – Late Notice Update – A Broker’s Duties to the Insured – Improving Crime Protection for Employee Benefit Plans Let’s look at some recent developments in areas we’ve looked at before. Notice to Broker is Not Notice to Insurer This combines three topics that we’ve looked […]
I’ve Fallen and I Won’t Get Up…and I’m Suing!
Michael Loguercio
Face to Face
We have all seen the commercial, and most likely repeated the phrase, I’ve fallen and I can’t get up!” in a mock emulation of the TV spot. Of course when we exclaim that expression we say it in jest, and not by any means attempting to diminish the value and importance of the product that […]
Earth Movement Exclusion Fails Because Movement of Fill Found to be Effect, Not Cause, of Damage
Trezza v New York Cent. Mut. Fire Ins. Co. This is an action, declaring the plaintiffs’ right to coverage under a homeowner’s insurance policy issued by the defendant. The plaintiffs own and reside at the property located at 8 Greenbrier Avenue, Farmingville, New York. According to the plaintiffs, on February 1, 2012, two pipes beneath […]
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2013/ February 18/ Past Issues
OPINION: Ongoing ELNY Debacle Exposes Serious Problems
Even though the courts have once again come to the rescue of the Bureau, the ELNY fiasco fully exposed the Bureau for its decades-long covert mismanagement of insolvent insurance companies. The New York Superintendent of Financial Services and the New York Liquidation Bureau have experienced two major victories in the past few weeks. First, they […]
2013/ February 18/ Past Issues
“Opinion”
This issue of Insurance Advocate leads with a cover story by Peter Bickford, one of our prized columnists and a respected longtime industry observer. Peter expresses a well-reasoned opinion that we hear over and over again; that is, that the New York Liquidation Bureau might best be itself liquidated. Peter hastens to point out that […]
2013/ February 18/ Past Issues
Looking Forward to ‘Better Than Ever’
A couple weeks ago, I participated in a meeting of the North Side Civic Association in Long Beach, Long Island. Located on the furthest west part of the outer barrier islands off the South Shore in Nassau County, readers may be familiar with Long Beach because of its iconic boardwalk, which was destroyed by Sandy […]
2013/ February 18/ Past Issues
First Case on New NY Late-Notice Law Favors Insurer
Jerry Trupin
Exposures and Coverages
The first case under the revised New York insurance law section that now requires an insurance company to show prejudice before it can deny coverage for late notice, has just been reported. It’s Atlantic Casualty Ins. Co. v. Value Waterproofing, Inc., No. 11 Civ. 7565 (DLC) (S.D.N.Y. Jan. 15, 2013). In the February 4th issue […]
2013/ February 18/ Past Issues
Community Unity
Michael Loguercio
Face to Face
So, in recent times we have experienced here in the Northeast an earthquake, a tornado, a super/hurricane/ perfect storm with all the “trimmings” that you can ever imagine, and now this: a blizzard with snow that fell at up to 4 inches an hour, lightning and thunder (that frightened me while I was out shoveling […]
2013/ February 18/ Past Issues
Rental Car Company’s Goof Gives Rise to False Arrest Claim, Not Negligence
Ferguson v Dollar Rent A Car, Inc. Order, Supreme Court, New York County (Saliann Scarpulla, J.), entered February 28, 2012, which granted defendants Dollar Rent A Car, Inc. and Auto Rental, LLC’s motion for summary judgment dismissing the complaint as against them, unanimously affirmed, without costs. Plaintiff alleges that she was wrongfully arrested and detained […]
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LICONY Celebrates 45th Anniversary
On February 7, 2013, almost one hundred fifty life insurance executives, regulators and legislators gathered at the Mutual of America Headquarters in New York City to celebrate the 45th Anniversary of the Life Insurance Council of New York (LICONY). Welcoming and substantive legislative and regulatory remarks were provided at the event by New York State […]
Stepping Up.
In this issue of the Insurance Advocate we congratulate Michael Loguercio who will lead the PIANY MetroRap Session this year. Mike is a dynamic guy who adds a lot to everything he does, including these pages. We look forward to seeing everyone at the PIANY Rap Session… We have gotten an incredible response to our […]
A Truer Course
In 1995 then NY superintendent of insurance, Ed Muhl, took an extraordinary step: he by-passed the Liquidation Bureau and appointed an independent special agent in charge of the liquidation of an insurance company – United Community Insurance Company (UCIC). The independent agent engaged a core group of professionals to assist with the marshalling of assets, […]
Stay in School, Don’t do Drugs, and Maybe Become an Insurance Agent
Michael Loguercio
Face to Face
A few years ago I shared with you in this column about the time I was speaking at a Career Day at one of the elementary schools in our local school district where I am the school board president. I asked the students, “Who wants to be an insurance agent when they grow up?”, and while […]
Excessive Fee Paid to Subpoenaed Witness Does Not Disqualify Him, But Jury Gets to Know About it
Caldwell v Cablevision Sys. Corp. At issue on this appeal is whether the testimony of a subpoenaed fact witness, who receives a fee alleged to be disproportionately in excess of CPLR 8001 (a)’s mandatory fee requirement for attendance at trial, is inadmissible as a matter of law. We conclude that such testimony is generally admissible, […]
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IMPACT: Employers Brace For Change
Allen Roberts on Top 5 Issues Facing Businesses Allen Roberts, member of the law firm Epstein, Becker and its former managing partner, provides the Insurance Advocate’s readers with a rundown of five topics which will impact employers in 2013 and beyond. In the article that follows, Allen offers an alternative, even contrarian view of each […]
An icon by any other name…
The spirited vitality of industry icon Maurice “Hank” Greenberg comes through quite clearly in his new book, The AIG Story, a “must read” if you are in the insurance, banking, political, legislative or regulatory sphere….or simply on the planet “business.” Greenberg is pleasantly direct. I know this first hand. Some years back, I attended a […]
Time Out!
Time Out! “Many baseball fans look upon an umpire as a sort of necessary evil to the luxury of baseball, like the odor that follows an automobile.” – Hall of Fame Pitcher Christy Mathewson Spring is here, and with it a new baseball season. As a new season begins, the past is history, optimism abounds […]
The Challenges of Applying Deductibles
Jerry Trupin
Exposures and Coverages
By Jerome Trupin, CPCU and Arthur L. Flitner, CPCU, ARM, AIC Sandy propelled insurance issues front and center. One issue was increased wind deductibles. In coastal areas exposed to hurricane-force winds, insurers have pushed for higher deductibles, ranging up to 5 percent for homeowners wind claims. In a storm like Sandy, a 5 percent deductible […]
A Class ACT…AUGIE and AIMS, too!
Michael Loguercio
Face to Face
As many of you know, I have long been involved with some wonderful insurance industry organizations, and ACT/AUGIE/AIMS is certainly in a class of its own, high class that is, of which myself and many others are proud to be active members. Known for gathering some of the country’s top insurance carrier, agency, and service […]
Ben Franklin: Electricity, Insurance, Proverbs and Extensions of Time
Benjamin Franklin is credited with many things: For example, we all learn in grammar school that Franklin demonstrated lightning in a form of electricity and that, as an inventor, he created one of the first electricity generators. Another thing most people in our industry recognize is that he helped conceive and form the first mutual […]
Doberman Bites Little Girl on the Face, but We Get Suit Dismissed
Nicolette Ferrieri by f/n/g Luigi Ferrieri vs Paul Sigler and Francine Sigler Note: This is a dog bite suit in which the Rogak firm represented the defendants. Plaintiffs sued defendants after defendant’s dog bit the 9 year old girl on her face. The plaintiff, Luigi Ferrieri, and his family were guests at the defendants’ Shelter […]
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Forced-Placed Fiasco: Insurer Fined $14 Million (That’s Million) by DFS
The DFS investigation revealed that the premiums charged to homeowners for force-placed insurance can be two to ten times higher than premiums for voluntary insurance — despite the fact that force-placed insurance provides far less protection for homeowners than voluntary insurance. “The force placed insurance industry has for too long been plagued by an intricate […]
Good Faith in a Handshake
In the last issue of this publication, we ran a story that remembered with affection the late Cummin Clancy. The story was written by Brian and Brendan Clancy and appeared here in an In Memoriam column. Cummin Clancy taught me a lot early on in my career with respect to what it meant to be […]
Rehab the Rehabilitator!
There was a time not so long ago when the New York Insurance Department took the view that if an insurance company stopped writing new business and tried to simply run-off its business, it was engaging in a prohibited activity—self-liquidation. The failure to “do the business of insurance for a period of one year” was—and […]
There Goes the Neighborhood…NOT!
Michael Loguercio
Face to Face
Those of you who have been reading my column for the past five years have witnessed an overall shift in my philosophy from the spring of 2008 when I “came out” and announced that I converted from being a NIMBY (that I have affectionately called so many of you over the years) and took the […]
Thinking About Thinking
Do you find yourself completely drained at the end of the work day but frustrated because you didn’t have time to think about what you were doing? Were there projects you worked on that you didn’t have the time to complete as well as you wanted? You just needed to get them done. If you […]
Catholic Diocese v. Insurer
By Katlin Nash ALBANY, N.Y.—The New York State Court of Appeals will be hearing oral arguments in the case of Roman Catholic Diocese of Brooklyn v. National Union Fire Insurance Company of Pittsburgh, PA. The lawsuit filed against the Roman Catholic Diocese of Brooklyn and Reverend James Smith in 2003, the daughter of a church […]
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AFTER-MATH: Calculating Sandy’s Swath
By Betty Flood and Katlin Nash, Cuyler News Service New York Assembly hearings examine consumer info, response of industry, and risk management issues ALBANY, N.Y.—The Assembly Insurance Committee started the Albany dialogue in earnest in recent hearings aimed to determine if policy holders are properly informed of their coverage needs and options following Superstorm Sandy. […]
A Good Fight
In this issue of the Insurance Advocate, I have taken the liberty of publishing an editorial that has gained quite a bit of attention with respect to the long-term implication of Ultimate Fighting in New York State. The long-term implications range from the further dumbing down of civility in our society to the power of […]
Reality Check
How do we want young people to view our industry? Are we happy with their learning about us from the Hollywood version of greedy, heartless, old men denying desperate people from just compensation? Do we want tomorrow’s hopes to view us as surrounded by legions of high-paid, well-dressed lawyers overwhelming the helpless? Or how about […]
Employment Practices Liability: Discrimination Claims Alleging Disparate Treatment Employee Theft Coverage: Two Questions From Readers
Jerry Trupin
Exposures and Coverages
The two topics this month concern employees. The first examines aspects of coverage for employment practices discrimination claims by employees and the second deals with employee theft. Employment Practices Liability Insurance: Coverage for Discrimination Claims Alleging Disparate Treatment “I’m being sued for discrimination.” That’s the astounding message I received from my daughter. She and all […]
50 Shades of Insurance…Begins with Black and Blue
Michael Loguercio
Face to Face
After 123 years, the Insurance Advocate publishes its first PG-13 Rated article, sans photos, and hopefully our last! – Editor He gently took her hand, his fingers slowly interlocking with hers, and gradually they emerged from the tunnel that leads to the uninhabited beach. Sunset fell an hour or so earlier, leaving them romantically guided […]
PIA Ranked “A Top Workplace”; How Would Your Employees Rate Your Agency?
At a recent board meeting of PIA Management Services, the umbrella corporation that manages the Glenmont, N.Y.-based Professional Insurance Agents associations of New York, New Jersey, Connecticut and New Hampshire, I learned that the organization is about to be honored as one of the “Top Workplaces” in New York’s Capital Region by its primary newspaper, […]
Premises Owned by Insured and Rented Out for Non-Garage Business, Not Covered Under Garage Policy
Order, Supreme Court, Bronx County (Kenneth L. Thompson, Jr., J.), entered December 6, 2011, which, to the extent appealed from as limited by the briefs, granted the branch of plaintiffs’ cross motion for summary judgment that sought reformation of an insurance policy with defendant Lancer Insurance Company, denied the branch of plaintiffs’ cross motion that […]
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REGULATORY REASONING: Supt. Lawsky Reflects on Approaches to His and Colleagues’ Roles
By Betty Flood and Katlin Nash ALBANY, N.Y.—New York Superintendent of Financial Services Benjamin M. Lawsky spoke at the 22nd annual Hyman P. Minsky Conference on the state of the U.S. and world economies in New York State and what the Department of Financial Services is doing to improve the insurance and banking industries. Superintendent […]
“Dog ate my homework” is not included.
A new survey by Insurance.com called “Ticketmasters” ranks popular excuses drivers give to police when stopped for a potential violation. Among people who said they have used excuses when pulled over by a police officer, here’s how explanations break down: 1. I couldn’t see the sign telling me not to do it: 20.4 percent 2. […]
Healthy Competition
New York’s superintendent of financial services, Benjamin Lawsky, spoke recently about healthy competition. Before you get too excited about a new direction for the DFS, I should point out that he was talking about competition among financial regulators, not among insurance companies or other industry participants (see related article this issue). Speaking at a highly-regarded […]
The Time is Now!
Demographics, technology and advertising threaten the future of independent agents and brokers. As the client base ages and evolves their expectations, demands and buying patterns are changing as well. It’s influenced by the information consumers can obtain on the internet. The internet also offers 24/7 access for pricing and purchasing insurance. At the same time […]
One From Column “A”
Michael Loguercio
Face to Face
So my son Devin, who is a member of the NY Young Insurance Professionals and whom many of you know, tells me the other day that he is writing a paper for his junior year economics class at the University of Hartford, on counterfeit auto parts manufactured in China that find their way into our […]
Fraudulent Out-of-State Vehicle Registration Crackdown
By Betty Flood and Katlin Nash A LBA NY, N.Y.—The New York Stand Against Insurance Fraud endorsed a measure for the crackdown on rate evasion insurance fraud. New York State Senator Lee Zeldin (R, C, I- Shirley) has called for a crackdown on rampant auto insurance fraud being committed by New Yorkers who intentionally and […]
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Reinsurance Association of America Elects 2013-2014 Officers
WASHINGTON, D.C.—Tad Walker, President and Chief Executive Officer, PartnerRe North America, was elected chair of the Board of Directors of the Reinsurance Association of America (RAA) at the 45th Annual Meeting of Members on April 26, 2013 in Sea Island, Georgia. Elected to serve with Mr. Walker are vice chair Tad Montross, Chairman and Chief […]
Ring, Rhyme and Reason
In this issue of the Insurance Advocate we feature several different items worthy of note, not the least of which the names of those who are now elected to serve as volunteer leaders of the RAA and the IIABNY. We also feature a recent PIA survey’s results. In our last issue we presented a list […]
Disappearing Act
What do you do when you do not like the statutory format of a required report? The options would seem to be to comply with the reporting requirement, ignore the law and be punished for failing to comply, or change the requirement. If you are a licensed insurance company, broker, agent or other regulated entity, […]
$41.7 Million Liability Judgement Mediation for Disputed Sandy Claims More on Fund Transfer Fraud
Jerry Trupin
Exposures and Coverages
This is current events month. While the topics aren’t closely related, they’ve all been in the news or on my desk in the past month. $41.7 Million Liability Judgment for Injury to One Person The headline read: “Conn. Student Disabled On School Trip Wins $41.7 Million.”1 My first reaction: “Must have been an awful injury.” […]
Major Industry Events No Insurance Pro Should Miss
On June 6, the Long Island Insurance Division of the UJAFederation of New York’s 2013 Annual Dinner will take place at Shelter Rock Jewish Center in Rosyln, N.Y. I’m very excited about this event, not just because I co-chair it with my good friend, Justin Fries, who also sits on the PIANY board, but because […]
Senate Targets Auto Fraud
Senate Targets Auto Fraud ALBANY, N.Y.—The New York State Senate passed legislation to crack down on auto insurance fraud which has led to injuries, even death, for innocent victims and costs hundreds of millions of dollars a year in higher premiums when New Yorkers already pay some of the highest auto insurance rates in the […]
Google It!
Michael Loguercio
Face to Face
As you know from reading my column for so long, every so often I am fortunate enough to happen upon some very interesting information that I enjoy sharing with those of you who enjoy my work. Today is no different! With gratitude to the “Agents Council for Technology” and “ACORD Users Group Information Exchange” (ACT/AUGIE) […]
When Farm Animals Wander into the Road, Owner May Be Liable for Auto Accident
Hastings v Sauve We hold that the rule of Bard v Jahnke (6 NY3d 592 [2006]) does not bar a suit for negligence when a farm animal has been allowed to stray from the property where it is kept. Karen Hastings was injured when the van she was driving hit a cow on a public […]
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NYIA ANNUAL CONFERENCE
Addresses Most Pressing Issues in New York Sandy, impact of healthcare reform and latest in labor law among the topics discussed The New York Insurance Association (NYIA) 2013 Annual Conference featured a variety of sessions and events that covered the gamut of key issues the industry is currently facing in New York. More than 200 […]
Navigator.
Many of us attend seemingly endless board meetings, committee meetings, and council meetings; we may start to get bored, look at our cell phones, look out the window, get a water and generally get unwound by some of the monotony that is inherent in process driven circumstances. There are very few times in my life […]
Foil Redux
I have previously written about my efforts to fill some of the gaps in the annual report of the NY superintendent of financial services to the legislature and the governor through the use of Freedom of Information Law (FOIL) requests. As I reported, the result was a mixed bag – some success and some not so […]
A Free Ride?
Recently I was having a conversation with my adult sons and they started to complain about various issues and how someone ought to do something about them. I asked them why they thought someone else should be correcting things that had to do with them and they told me they don’t have time to do […]
A Dream and a Mouse
Michael Loguercio
Face to Face
As president of The Longwood Central School District Board of Education here where I live on Long Island, I have the privilege of presenting the welcome address to the graduating class at their graduation commencement ceremony. Although I try to make it as short and sweet as possible because I know that the kids do […]
Excess Lines Association Has No Power to Sue to Enforce Insurance Law Violations
ELANY vs. Waldorf & Assoc. In this action, the plaintiff Excess Line Association of New York (hereinafter “ELANY” or the “plaintiff ”) seeks an accounting of the defendants’ books and records and damages related to the defendants’ failure to report the placement of excess-line insurance policies and the defendants’ failure to pay premium taxes and […]
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PIANJ/PIANY Joint Annual Conference Proves Professional Agents are Stronger than Sandy
The Northeast’s biggest show in the industry returned to the Boardwalk and the Trump Taj Mahal Casino Resort in Atlantic City, N.J., on June 9-11, 2013. Some 2,000 agents, company representatives, exhibitors and other insurance industry professionals showed up to prove that the PIANJ/PIANY Joint Annual Conference is stronger than ever, even in the face […]
Worth the trip.
The Insurance Advocate has received several recent reports on the industry’s performance and on issues affecting insuring in New York, New Jersey, Connecticut and the rest of the country in some cases. The most eye-opening of the recent disclosures was a crackdown by the New York DFS on what it has termed “shadow insurance”. We […]
PIRP Burp DMV Pilot Program’s Effectiveness in Focus
ALBANY, N.Y.—The Point and Insurance Reduction Program (PIRP), approved by the Department of Motor Vehicles, is available through private companies or corporations, called “course sponsors,” throughout New York State. Each qualifying course must meet strict standards set by the DMV for the safe driving information presented and program effectiveness. The idea is simple; it is […]
Beauty is Skin Deep!
WOW! What a report! Full of colorful charts, graphs, statistics and other amazing stuff ! It is clearly a thing of beauty! I am referring – surprisingly – to the self-proclaimed “New York Liquidation Bureau – 2012 Annual Report,” which was announced by Superintendent Lawsky by press release on May 29th and at the same […]
I Wouldn’t Send a Knight Out on a Dog Like This
Michael Loguercio
Face to Face
So back in January I did an article on dog bites, and spoke to the reasons of why dogs bite, the frequency of claims, the severity of bites, and certain means of prevention. Well, with the dog days of summer just about upon us, and with homeowners carriers tightening their underwriting on homes that include […]
Professionals.
Over the past week and a half, I’ve kept quite the calendar! In fact, in just five days, I attended the UJA Long Island event and the PIANJ/PIANY Joint Annual Conference in Atlantic City. As I said in my last column, these are the two not–to–be missed events for any professional in our industry. These […]
No Bad Faith Liability for Insurer in Regard to Punitive Damage Award
Seldon v Allstate Ins. Co. Order, Supreme Court, New York County (Debra A. James, J.), entered April l9, 2012, which denied defendants Allstate Insurance Company and Allstate Insurance Co., Inc.’s (Allstate) motion for summary judgment dismissing the third cause of action, unanimously reversed, on the law, without costs, and the motion granted. The third cause […]
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Good, Bad, UGLY Looking back at Sandy and at Industry’s Readiness
In this issue of the Insurance Advocate, we present a testimony given by Ron Papa of Buffalo, in his capacity of Past President of the National Association of Public Adjusters to the N.A.I.C. This testimony is rather thoughtful and deserves reading as do the side bars with a look at hurricane and flood preparedness through […]
Cancel Liability Insurance the Day a Property is Sold? Secondary Dependent Properties NY WC Experience Split Point Change Approved as of 10/1/13
Jerry Trupin
Exposures and Coverages
The three topics this month are unrelated, but are all important. A perfect example of how diverse the insurance business is. Don’t Cancel Liability Insurance the Day the Property is Sold. Often producers, in a mistaken effort to provide outstanding service, cancel all insurance for an insured as soon as they learn that an insured […]
1776
Michael Loguercio
Face to Face
4th of July: barbeques roaring, cold ones popping, and fireworks lighting up the skies. We all know the history of Independence Day, but does anyone ever stop and think what happened after that day on July 5th (happy birthday, Mom!), or the days, months, and years after that? How we not only fought for our […]
Getting to know clients.
In this issue in the Insurance Advocate we pose the simple one word question “Ready?” We refer here to the lessons of Super Storm Sandy and to the prospect in the future of an industry’s preparedness in the wake of it. We present testimony of Ron Papa before the N.A.I.C., which has many searching ideas […]
Less Is Not More
The New York legislature ended its 2013 session in the wee hours of the morning on June 22nd. The next day Governor Cuomo issued a press release together with a 46-page end of session report titled “New York Rising” extolling the accomplishments of the Administration with the help of the legislature. The Governor’s end of […]
Session Round Up
ALBANY, N.Y.—Seventy nine insurance bills were introduced during the New York State Legislative Session. Only four of those bills were passed by both the Assembly and the Senate and sent to the Governor for his approval. Those four bills are: Senator James Seward (R, C, I-Cayuga) (S4327) and Assemblyman Phil Steck (D, Albany) (A6918) sponsored […]
For the Greater Good?
This article has not been easy for me to write. Because of my deep feelings, I have rewritten it several times over the last few days. The problem is, I feel very strongly about what I am saying and hope that you will take my passion into consideration and not be offended. Independent agents and […]
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 […]
PPACA is Coming: Prepare for Next Year
By John Sarich In just six months, all health insurance exchanges must be certified and operational under the Patient Protection and Affordable Care Act (PPACA). The exchanges will open to consumers less than a year later, on Oct. 1, 2014. The move that carriers and agents alike have been awaiting with a mix of dread […]
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The More Things Change…
I’ve been writing this column for about a decade and I still haven’t run out of things to say. Some folks may suggest that this reflects my personality, but I believe it’s because the insurance industry—and particularly the field of professional, independent agents—is so multifaceted and dynamic that there is, literally, no end to the […]
I Don’t Need or Want Coverage!
As an underwriter and later as an agent, it was always hard for me to understand why consumers weren’t willing to buy “voluntary” insurance to protect them against loss. When I say “voluntary” insurance I am talking about coverage not mandated by law, mortgage holders or others with an insurable interest. Issues like flood insurance, […]
Late Summer Delight: Fishing for Acronyms
Many years ago I participated in a meeting at the old New York insurance department moderated by a relatively new deputy. A few minutes into the meeting the deputy interrupted the proceedings and declared: “No more acronyms!” The offending acronym was “Pru Re.” Pru Re, of course, is not an acronym – it is simply […]
Fattening Ingredients
As if the boundaries of exposure needed expansion, the American Medical Association has recognized obesity as a disease in the same vein that the American Psychiatric Association has diagnosed and reset a manual of mental disorders. What is happening is simple: more and more diseases, more and more illnesses are being translated into exposures for […]
If You See Something, Don’t Say Something!
Michael Loguercio
Face to Face
By now we all are very much aware that when it comes to insurance and privacy, just because you see something doesn’t mean you can discuss it with anyone who is not entitled to that information. This is especially true when it pertains to areas that are protected under the federal HIPAA laws. Effective September […]
Sandy Updates: $18.8 B and Counting; NFIP Plays by Its Own Rules; Cat Bonds & Sandy Should an Insured Report a Lead Abatement Order to Its Liability Insurer?
Jerry Trupin
Exposures and Coverages
We’ll start this month by looking at some recent developments related to Sandy and then examine a situation that tests my mantra that the first three steps in claims handling are: Report, Report, and Report. Sandy at $18.8 B and Counting The latest reports peg the insured damage from Sandy at $18.8 billion, excluding National […]
Major Policy Scam: AG Gets Conviction in MV Fraud Case
Two time fraudster Raja Ishtiaq was convicted after a five-week trial for his role in a massive scheme to fraudulently obtain commercial car insurance policies and New York City Taxi and Limousine Commission (TLC) licenses. Over a period spanning almost five years, the defendant and his co-conspirators fraudulently obtained thousands of dollars in discounted insurance […]
E-Commerce: Is the Insurance Industry Really Ready for Electronic Transactions?
Electronic transactions have been implemented in online banking, trading, credit card usage, airline transactions, medical records and federal court dockets. Despite this, and despite recent legislative and regulatory developments facilitating its use, the insurance industry lags other major consumer sectors in adopting e-commerce transactions. Those insurers who have implemented such practices, however, are doing so […]
Emanuel Levy 1918-2013
EMANUEL LEVY, Editor of the INSURANCE ADVOCATE, and vice president and treasurer of The Roberts Publishing Corp. passed away in Ann Arbor, Michigan on August 18, 2013. He was born in the Bronx, N.Y. on April 11, 1918 and was educated in the public schools of New York City. He was graduated from Brooklyn College […]
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2013/ Past Issues/ September 09
Signed Into Law…
Albany, N.Y.—New legislation has been signed into law. Legislation restricting the supervision of state licensed real estate appraiser assistants has been signed into law by Governor Andrew M. Cuomo of the laws of 2013. The law became effective on July 1, 2013. “The new standards had to be adopted by state appraisal programs by July […]
2013/ Past Issues/ September 09
Attorney’s Rhetorical Question in Appellate Brief Does Not Amuse the Court
Promed Durable Equip., Inc. v GEICO Ins. Appeal from an order of the Civil Court of the City of New York, Kings County (Lisa S. Ottley, J.), entered October 25, 2011. The order, insofar as appealed from, denied defendant’s cross motion for summary judgment dismissing the complaint and found, in effect, that plaintiff had established, […]
2013/ Past Issues/ September 09
New York Retirees AT RISK DFS Audit Hits State Pension Technology
The Department of Financial Services (DFS) released the first in a series of audits on the New York State Common Retirement Fund (CRF). The audit uncovered serious information technology problems at the Office of the State Comptroller (OSC) that are putting retirees and taxpayers at significant risk. To help address these problems, DFS – the […]
2013/ Past Issues/ September 09
Failure to Defend Insured Stops Insurer from Pleading Exclusion Must Vandalism Be Directed at the Insured to Trigger Coverage? Is Delivery of Policy to the Wholesale Broker Delivery to the Insured?
Jerry Trupin
Exposures and Coverages
This month we’re going to look at three cases that may change the way you view insurance coverage. Two of them involve the New York Court of Appeals, which seems to be coming down on the insured’s side more frequently than in the past. And at the end we’ll quickly look at an item that […]
2013/ Past Issues/ September 09
It’s None of Your Business…Social Business, That is!
Michael Loguercio
Face to Face
You hear it every day, social networking: Facebook (which by the way has now climbed over its IPO price and is increasing every day!) Twitter, Tumbler, LinkedIn, Instagram…where does it end? Guess what? It doesn’t…it just keeps growing! Two new key trends that we are now seeing are “social culture” and the “connected society” which […]
2013/ Past Issues/ September 09
Robust Bust
Are you as tired as I am of hearing the word “robust”? Everything is robust. You have a wine, it’s robust, you have fans at a baseball game who are robust, you have a new suit hanging on the rack at Brooks Brothers and the sales clerk tells you the color is robust. And on […]
2013/ Past Issues/ September 09
D & O Cover for Associations Presents Challenges
In the Community Association world, Directors and Officers Liability Insurance is a must. Community Associations, such as Condominium Associations, Homeowners Associations, and Co-ops, present a unique set of challenges to insurance brokers. Education is a key component to understanding these challenges and it is the insurance broker’s job to educate and explain the types of […]
2013/ Past Issues/ September 09
Gone, But Not Forgotten!
You may have heard the huge sigh of relief coming from Downtown Manhattan in early August, particularly from the William Street offices of the New York Liquidation Bureau. On August 8th the decades long failed rehabilitation of Executive Life Insurance Company of New York (ELNY) finally ended and it was officially liquidated. Not only was […]
2013/ Past Issues/ September 09
MSO® Partners with Nexxus Solutions Group
Glen Rock, N.J.—MSO®, Inc. (The Mutual Service Office, Inc.) has announced that they have partnered with Nexxus Solutions Group. Based in Orlando, FL., Nexxus Solutions Group, LLC is a managed repair network servicing the Insurance Industry and their customers. Nexxus Solutions Group’s national network encompasses mitigation companies, contractors and service providers, who mitigate, repair or […]
2013/ Past Issues/ September 09
Are Your Clients Raving Fans?
My last 2 blog posts at IIABNY have been about establishing the value of buying protection from an independent agent. Having consumers appreciate that value takes the decision on where to buy coverage out of the realm of just price. Technology has allowed price sellers who deal directly with consumers over the internet to offer […]
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2013/ Past Issues/ September 23
Negative Developments
Technology is a wonderful thing. It makes our lives easier and our businesses more efficient; it continuously provides us with the ability to do things we never would have been able to do before; and it solves problems. It builds businesses and provides jobs. But, we have to keep up with it. Often, it seems […]
2013/ Past Issues/ September 23
The Too Honest Jeweler
The story that follows is based on fact. The names, places and descriptions have been changed to protect the guilty. This story was written for the purpose of providing insurers, those in the insurance business, and the insurance buying public sufficient information to recognize and join in the fight against insurance fraud. The jeweler had […]
2013/ Past Issues/ September 23
State Producer Licensing: Going, Going . . . ?
Over the past several decades I have assisted a number of small to midsized brokerage firms with licensing and disciplinary matters with their State regulators. The majority of these matters involved inadvertent licensing lapses through inadequate record keeping and monitoring rather than juicier issues like improper placements or premium trust account mismanagement. In the past […]
2013/ Past Issues/ September 23
ObamaCare is about Your Money, Not Your Health
By Marilyn M. Singleton, M.D., J.D. The politics of selling the Affordable Care Act (ACA) focuses on promising health and wellness. Somehow, having “coverage” is supposed to get you to a primary care doctor, who will keep you healthy. And if he doesn’t, he will be held accountable by not being paid. The fact is […]
2013/ Past Issues/ September 23
Retirement: Better Than It Used to Be
By Sharon Emek, Ph.D. Can there be too much of a good thing? When it comes to retirement, yes. Abe Lemons, a college basketball coach from the 1950s through the 1980s, once said: “The trouble with retirement is that you never get a day off.” For working stiffs, it seems an impossibility that you could […]
2013/ Past Issues/ September 23
Class.
In this issue of the Insurance Advocate, we present PIANY’s new slate of officers for 2013-2014 and congratulate each of them for their service to date to their peers. We look forward to confirming the truth of “the best is yet to come”… PIANY cited Assemblyman Cahill for his service to the association and the […]
2013/ Past Issues/ September 23
A.G. Schneiderman Announces Sentencing of Former Insurance Agent
Defendant Sentenced to Up to Six Years on Prison, Ordered to Pay Full Restitution to Victims POUGHKEEPSIE, N.Y.—Attorney General Eric T. Schneiderman announced the sentencing of a former Saratoga County insurance agent who defrauded an elderly couple of more than $300,000 over the course of a nearly eightyear period. Joseph A. Marvullo, 64, of Porter […]
2013/ Past Issues/ September 23
DWD Driving While Distracted Tech Age Kids Sound Alert
The results of a new “distracted driving” study conducted by New Jersey auto insurance group, Plymouth Rock Assurance has been released on the heels of a recent New Jersey court ruling finding that the sender of text messages, who knows that the recipient is driving and texting, may be held responsible for distraction and liable […]
2013/ Past Issues/ September 23
Matter of Hronich v. Con Edison
Albany, N.Y.—The New York State Court of Appeals heard the case brought by Antonio Hronich’s widow Gaudenzia Hronich against his former employer Con Edison Company of New York, Inc., Sedgwick Claims Management Service, Inc., and N.Y.S. Workers’ Compensation Board and the Special Disability Fund. Antonio Hronich, a long-time employee of Consolidated Edison, was diagnosed in […]
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Homeowner’s Policy Provides No Coverage to Insured for Spouse’s Wrongful Death Claim
Homeowner’s Policy Provides No Coverage to Insured for Spouse’s Wrongful Death Claim Matter of Randall S. Courtney v Dryden Mut. Ins. Co. Plaintiff is the administrator of the estate of Randall Courtney. He commenced this action seeking a declaratory judgment that defendant is required to defend and indemnify him in an action that arises from […]
GUEST VIEW – A LETTER TO THE DMV
FROM: William Bonds, President Danielle Philp, Education Director EMPIRE SAFETY COUNCIL DATE: October 1, 2013 TO: Honorable Andrew M. Cuomo , New York State Governor, The Executive Chamber Barbara J. Fiala, Commissioner, NYS Department of Motor Vehicles The Hon. Dean G. Skelos, Temporary Senate President, New York State Senate The Hon. Sheldon Silver, Speaker, […]
NAIC Update on Insurance Industry Investment Portfolio Asset Mixes
Guest Author
In The Associations
NAIC Update on Insurance Industry Investment Portfolio Asset Mixes By the Capital Markets Bureau of the NAIC NEW YORK, N.Y.—The asset mix of an insurance company’s investment portfolio varies over time based on different influences, including both macroeconomic and industry-specific factors. The general state of the global economy, industry trends, market events and the political […]
Outpouring
Outpouring Thanks to so many readers who expressed their heartfelt sympathy on the passing of Manny Levy, long time editor of this publication. We feature one letter below from Stewart Fries, a longtime friend of this publication and a close associate of Manny’s, particularly in this publication’s advocacy for the straightening out of the […]
Yes, Deer!
Michael Loguercio
Face to Face
Yes, Deer! So how many times have you said those words…or have had them whispered to you, in a soft, meager, and meek tone of voice? Well guess what?! It’s that time of year that you will be hearing it quite often…or maybe even saying it yourself! Rutting season, as it is known, is the […]
The Wonderful World of Annuities
The Wonderful World of Annuities Picture the child sent out to play in the snow so bundled up with layers upon layers of protective clothing that the child is barely able to move or to enjoy the experience. Keep that picture in mind if you want to buy an annuity in New York. The statutory […]
New York Second in Nation For Questionable Workers’ Comp Claims; First Niagara Benefit Consulting Named Top Producer by The Business Council of New York State
New York Second in Nation For Questionable Workers’ Comp Claims Albany, N.Y.—New York is second in the nation, only behind California, for questionable workers compensation insurance claims. New York jumped to second in 2012 from fifth in 2011. “Workers compensation insurance fraud is a serious problem in New York,” Ellen Melchionni, president of the New […]
Big “I” Presents Best Practices Awards to Companies
Big “I” Presents Best Practices Awards to Companies ALEXANDRIA, Va.—The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) presented insurance carriers CNA, Central Insurance Companies, EMC and Travelers with the its Best Practices Award of Excellence at the recent education convocation held in conjunction with the Big “I” Leadership Conference in […]
Insurance Lessons Learned from Sandy: Steps to Share with Your Business Clients
Insurance Lessons Learned from Sandy: Steps to Share with Your Business Clients NEW YORK, N.Y.— The difficulty many businesses had reopening after Hurricane Sandy is a reminder of the importance of having a disaster recovery plan and the right type and amount of insurance, according to the Insurance Information Institute (I.I.I.). In fact, the I.I.I. […]
LETTERS
Steve: It was very sad to hear of Manny’s passing…even at age 95… Manny was one of my heroes in the Insurance industry. There were many times he stood up to the higher powers, against what he thought was wrong, and he wasn‘t afraid.. Thirteen years ago, I had the great honor and privilege, to […]
You Wouldn’t Take a Trip Without a Map or GPS
You Wouldn’t Take a Trip Without a Map or GPS As we enter the last quarter of 2013 it’s time to make that final push for production and to start the planning process for 2014. The day to day operation of an insurance agency is pretty hectic and it’s not easy to find the time […]
Q&A with… F. Glen Gabriel CEO, Bender Insurance
Q&A with… F. Glen Gabriel CEO, Bender Insurance Access General Agency Coming on Strong for Brokers In our ongoing survey of activities in the business, we have come to the conclusion that some general agencies are enjoying their success and standing “pat” while others are actively seeking new brokers, providing them fresh access to top […]
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MEDMAD Outlook: Profits Flatlining Amid Changes
Conning and Company’s work provides the insurance industry with some of the most valuable research and observations available. In the report below we present their outlook on Medical Malpractice for the coming years. The original report was entitled Medical Professional Liability – Looming Threats to Solid Performance 2013 from which we extract a summary and […]
Harold Lee & Sons @ 125
Harold Lee & Sons @ 125 Harold Lee & Sons is a credit in a number of ways to the Independent Agency and Brokerage system, but most of all, to the fact that this agency has survived and prospered marvelously as a uniquely ethnic agency, is testimony to the enormous opportunity this country provides. For […]
Big “I” Scores McKinsey Report as “Off Base” on Independent Agency System
Big “I” Scores McKinsey Report as “Off Base” on Independent Agency System ALEXANDRIA, Va.— Robert Rusbuldt, Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) president & CEO, finds serious flaws with much of a recently released study titled “Agents of the Future: the Evolution of Property and Casualty Insurance Distribution” by […]
Interpleader
Interpleader When an Insurer Must Interplead Funds When an insurance company is faced with competing claims for the proceeds of a life insurance policy and cannot determine which claim is proper, it may deposit the benefits of the policy into court and ask that the competing interests litigate the right to the proceeds. Since it […]
PIANY Honors Ryan with the Hudson Valley RAP Distinguished Insurance Service Award
PIANY Honors Ryan with the Hudson Valley RAP Distinguished Insurance Service Award GLENMONT, N.Y.—The Professional Insurance Agents of New York State Inc. is presenting Kevin M. Ryan, CIC, CPIA, with its Distinguished Insurance Service award at its 10th Hudson Valley Regional Awareness Program. This award is presented to individuals in the insurance industry who have […]
Health Insurance Marketplace Certification Course
Health Insurance Marketplace Certification Course ALBANY, N.Y.—Following up on their earlier success, The Independent Insurance Agents and Brokers of New York (IIABNY) and the New York State Association of Health Underwriters (NYSAHU) have announced another joint project to certify insurance producers for the state’s new individual health insurance marketplace. The organizations are offering a course […]
DFS Announces Ban of Harbinger Capital’s Philip Falcone From Involvement in Operations of All New York-Licensed Insurers, Including Fidelity New York
DFS Announces Ban of Harbinger Capital’s Philip Falcone From Involvement in Operations of All New York- Licensed Insurers, Including Fidelity New York Fidelity New York Also Agrees to Put in Place Enhanced Policyholder Protections – Modeled on Those DFS Established at Other Insurance Firms Owned by Private Equity Companies NEW YORK, N.Y. – Benjamin M. […]
Reflections During a Difficult Time
Reflections During a Difficult Time Iam writing this article at the end of a difficult week for me. I attended the wake and services for my long-time friend and assistant, Roberta. It’s difficult to describe the depth and importance of the relationship Roberta and I shared. I was lucky enough to hire my Roberta 45 […]
Ethics, Conflicts and Justice Stewart
Ethics, Conflicts and Justice Stewart Being against ethical standards in our business is like being against apple pie or ice cream! Rooting for conflicts of interest is like a Yankee fan rooting for the Red Sox! We all have rules that must be followed in our business and professional lives. These rules are generally set […]
Are We Becoming Ethical in Spite of Ourselves?
Are We Becoming Ethical in Spite of Ourselves? By John R. DiForte, MBA, CPCU Radical shifts in technology are leading to greater transparency in our daily lives. Any time we use an electronic device, we leave a record that can be searched, cross-referenced, duplicated, and potentially shared. This knowledge of transparency often leads to increased […]
Flood Insurance Gaps More on Duty-to-Defend Case Is Email a Written Record of Settlement?
Jerry Trupin
Exposures and Coverages
Flood Insurance Gaps More on Duty-to-Defend Case Is Email a Written Record of Settlement? Is there a Leak in Your Insured’s Flood Coverage? If you’re providing that coverage for your insureds, pat yourself on the back; if you were doing it before Sandy, stand up and take a bow. If your insured requires limits higher […]
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2013/ November 11/ Past Issues
COVER STORY: Comp Costs Climbing
Albany, N.Y.—New York State increased its maximum workers’ compensation benefits significantly in 2007, but the perception that higher benefits explain New York’s high overall comp costs is inaccurate, a new analysis of the state’s workers’ comp benefit levels show by the Workers’ Compensation Policy Institute. the Workers’ Compensation Policy Institute. “There does not appear to […]
2013/ November 11/ Past Issues
LOOKING BACK
[LOOKING BACK… Insurance Advocate, 25 years ago]
2013/ November 11/ Past Issues
When Is A Letter is a Suit?
When Is A Letter is a Suit? Ninth Circuit: A State Can Insert a Definition Into a Policy After It Expired The Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq. (“CERCLA”), establishes a retroactive strict liability regime that imposes joint and several liability upon past and current landowners or operators […]
2013/ November 11/ Past Issues
Imaginary Games
Imaginary Games Sports broadcasting legend, Bill Mazer, died recently. Mazer was one of the pioneers of sports radio talk show, with a career spanning 60 years – 40 in the Metropolitan New York area including 20 years hosting “Sports Extra” on WNEW-TV. Mazer was known particularly for his encyclopedic memory for all kinds of sports […]
2013/ November 11/ Past Issues
PIA Management Services Partners with FloodBroker.com
PIA Management Services Partners with FloodBroker.com GLENMONT, N.Y.—PIA Management Services Inc. announced it has partnered with Rochester, N.Y.-based FloodBroker.com to offer member agencies a unique sales tool to facilitate the sale of flood coverage and provide critical documentation of the agency’s efforts to do so. This exclusive agreement will provide members of the Professional Insurance […]
2013/ November 11/ Past Issues
Big “I” 2013 Best Practices Study Released
Big “I” 2013 Best Practices Study Released ALEXANDRIA,Va.,—The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) has released its 2013 Best Practices Study which found an increase in agencies with specializations, expansion of technology investment and an increase in profitability across most of the study’s six revenue groups. “The results of […]
2013/ November 11/ Past Issues
One or Two – It’s Your Call
One or Two – It’s Your Call Independent agents and brokers face many challenges today. In the personal insurance arena competition is fierce and the choice that dealing with an independent agent provides also creates its greatest liability, as working with multiple companies creates increased agent/broker costs, workflow issues and a lack of carrier support […]
2013/ November 11/ Past Issues
A wave of sentiment…
A wave of sentiment… As we go to press, a wave of sentiment is washing up in Washington to advocate the extension of TRIA and the results, so far, seem to be favorable for the insurance community which, not ordinarily in favor of Government intervention the business, sees this particular backstop as an important one […]
2013/ November 11/ Past Issues
Applied Systems Donates $30,000 to InVEST
Applied Systems Donates $30,000 to InVEST ALEXANDRIA, Va—InVEST, the insurance industry’s premier classroom- to-career education program, is pleased to announce that Applied Systems has donated $30,000 to the program. “Applied Systems’ commitment to the InVEST program with this generous gift of $30,000 will help create a career path for the next generation of insurance professionals […]
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2013/ November 25/ Past Issues
Lessons Learned After Sandy and Possible Ways to Strengthen New York
AFTER SANDY: 35 POINTS Lessons Learned After Sandy and Possible Ways to Strengthen New York New York is not known as an epicenter for natural catastrophes. In 2011, tropical storms Irene and Lee caused widespread flooding in upstate New York. Entire communities were washed away. New Yorkers had not seen such dire circumstances in years. […]
2013/ November 25/ Past Issues
When Will Agents Be Represented Fairly as “Good Guys?”
When Will Agents Be Represented Fairly as “Good Guys?” Perhaps it’s the time of year, but over the last month or so, I’ve been particularly sensitive to the constant image challenge agents face as scapegoats and fall guys. Agents take false and undeserved hits from all directions all the time: primarily from ubiquitous direct-writer ads, […]
2013/ November 25/ Past Issues
Harold Lee & Sons Celebrates 125th Year
Harold Lee & Sons Celebrates 125th Year Museum of Chinese in America (MOCA) Marks Lee Agency’s and Family’s History – The Lee Family of New York Chinatown Since 1888 It is rare that an independent insurance agency makes it into a Museum, but Harold Lee and Sons is itself a rarity. To mark its 125th […]
2013/ November 25/ Past Issues
One Secret of Real Success
One Secret of Real Success Tis the season for taking a long view of our work and our goals. Lancer’s Dave Delaney offered a nice approach to his and his Company’s success: “We are now approaching thirty years since we bound our first policy. To survive on the underwriting side of this business, you have […]
2013/ November 25/ Past Issues
Patrick Woods Receives Rodermund Service Award from CAS
Patrick Woods Receives Rodermund Service Award from CAS JERSEY CITY, N.J., Patrick Woods, assistant vice president and actuary at ISO Insurance Programs and Analytic Services, has been awarded the 2013 Matthew Rodermund Service Award by the Casualty Actuarial Society (CAS). ISO is a member of the Verisk Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK). Woods […]
2013/ November 25/ Past Issues
New York Insurance Association Elects 2014 Officers and Board of Directors
New York Insurance Association Elects 2014 Officers and Board of Directors LATHAM, N.Y.—The New York Insurance Association (NYIA) elected its 2014 officers and board of directors at the association’s Annual Meeting in November. The following officers were elected for a one-year term ending Dec. 31, 2014: Chair: Bernard Turi, senior vice president, Utica National Insurance […]
2013/ November 25/ Past Issues
Guest View: CARCO Exec. Responds to Insurance Advocate Columnist Re: Reg 79
CARCO Exec. Responds to Insurance Advocate Columnist Re: Reg 79 By Jim Owen, President, CARCO Arecent article in the “Advocate” proposing repeal of the New York vehicle photo inspection regulation (“Regulation 79”) should be welcomed by those that steal cars, sell cars that were damaged by Superstorm Sandy, and prey upon unsuspecting consumers. Contrary to […]
2013/ November 25/ Past Issues
GNY’s Heck Reflects Upon Sandy and the Industry’s Role at New York’s CPCU Conferment
GNY’s Heck Reflects Upon Sandy and the Industry’s Role at New York’s CPCU Conferment Mr. Warren Heck, Chairman of the Greater New York Insurance Group, addressed the New York Chapter of CPCU at its Annual Conferment on November 15th, 2013. He reflected on the industry’s response following hurricane Sandy and on TRIA. Mr. Heck, who, […]
2013/ November 25/ Past Issues
Back Seat Passenger Unties Driver’s Bikini Top, Causing Her to Lose Control; No Liability Per Emergency Doctrine
Back Seat Passenger Unties Driver’s Bikini Top, Causing Her to Lose Control; No Liability Per Emergency Doctrine Pelletier v Lahm After a defense verdict from a Rockland County jury, plaintiff moved to set aside the verdict, which was denied, and plaintiff appealed. The Appellate Division affirmed. The Supreme Court properly denied the plaintiff’s motion pursuant […]
2013/ November 25/ Past Issues
No Opposition Fatal
No Opposition Fatal No Insurance Policy Covers Every Possible Risk of Loss Clark and Nancy Sadler appealed a summary judgment granted in favor of Texas Farm Bureau Mutual Insurance Companies (“Farm Bureau”) on the Sadlers’ Deceptive Trade Practices- Consumer Protection Act (DTPA) claim. The Sadlers sued Farm Bureau for breach of contract and violations of […]
2013/ November 25/ Past Issues
User Unfriendly
User Unfriendly We all complain about regulations. Grousing about excessive, intrusive, costly, ineffective, unnecessary, time-consuming, and annoying regulations is an apparent birthright given the amount of time and energy we often spend on the subject. We who work in the insurance industry have the added joy of participating in a “regulated” industry, which means that […]
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Cellar Stairs Accessed by Sidewalk Trap Door are Not Covered by Building Code
Cellar Stairs Accessed by Sidewalk Trap Door are Not Covered by Building Code Bautista v 85th Columbus Corp. Defendants move (1) for summary judgment pursuant to CPLR 3212 dismissing the first cause of action of the complaint against all defendants, and (2) to dismiss the second cause of action for failure to state a cause […]
Reg. 79: Opinion
Reg. 79: Opinion As we move into 2014, a number of things are still unresolved that deserve attention from regulators and legislators; a number of other issues and other news items have come across our desk as the old year waned that we would like to comment upon. First, the big news these past two […]
Resolutionary Wars
Resolutionary Wars The marking of a new year – whether it be January 1st, the Chinese New Year, the Jewish New Year, or any other iteration of a new beginning, is the only major holiday in most societies celebrating the passage of time. January 1st as the beginning of a new year, of course, is […]
Leasehold Interest Insurance Court of Appeals: VMM& Sec 240 Decisions Super Bowl & the Weather Outside is Frightful
Jerry Trupin
Exposures and Coverages
Leasehold Interest Insurance Court of Appeals: VMM& Sec 240 Decisions Super Bowl & the Weather Outside is Frightful This month, I want to expand my previous discussion of two problems: leasehold interest insurance and the definition of vandalism and malicious mischief, plus take a look at another NY Court of Appeals case. I’ll wind up […]
Demotech Co-Founder Named One of Twenty People to Know in Insurance
Demotech Co-Founder Named One of Twenty People to Know in Insurance The employees of Demotech are pleased to report that our President and co-founder, Joseph L. Petrelli, has been named one of twenty people to know in insurance by Columbus Business First. In a Central Ohio insurance community consisting of more than 50,000 insurance professionals […]
BIG “I” RESPONDS TO FIO REPORT
BIG “I” RESPONDS TO FIO REPORT WASHINGTON, D.C.—The Independent Insurance Agents & Brokers of America (the Big “I”) commended the U.S. Department of Treasury’s Federal Insurance Office (FIO) for the release of the long-awaited report on “How To Modernize And Improve The System Of Insurance Regulation In The United States.” “The Big ’I’ has been […]
Sit On Your Rights – Lose
Sit On Your Rights – Lose Arbitration Award Affirmed Plaintiff, Excelsior Insurance Company (“Excelsior”), appealed from a trial court order confirming an arbitration award issued in favor of defendant, One Beacon Insurance Company (“Beacon”). Both Excelsior and Beacon are members of Arbitration Forum, Inc. (“AFI”), and signatories to its arbitration process. Special arbitration under AFI […]
LOOKING BACK… Insurance Advocate, 25 years ago
[LOOKING BACK… Insurance Advocate, 25 years ago]
Michael A. Zarcone to Chair LICONY
Michael A. Zarcone to Chair LICONY At its Annual Meeting in early December the Life Insurance Council of New York, Inc., (“LICONY”), elected Michael A. Zarcone to serve as Chairman of the Board of Directors for 2014. Mr. Zarcone is Chief of Staff, Office of the Chief Executive Officer, and Head of Corporate Affairs for […]
Evan Greenberg Receives IFNY Free Enterprise Award
Evan Greenberg Receives IFNY Free Enterprise Award 400 Leaders and Top Professionals Hear NAIC’s Nelson and Supt. Lawsky The Insurance Federation of New York held its 99th Annual Luncheon to celebrate its 100th Centenial Year at Cipriani’s on Wall Street in November, attracting 400 insurance leaders and professionals for what amounted to a somewhat […]
Washington has it Backward on Defunding ObamaCare
By Janet M. Orient, M.D. Washington has it Backward on Defunding ObamaCare Defunding ObamaCare does not really require an active decision by the U.S. House of Representatives. It is the default option— as in what happens if you don’t do something. Constitutionally, the people’s House holds the government’s purse strings. It does not need to […]
NYIA Wrap up: Property & Casualty Industry Gears Up for 2014 as NYIA sets Priorities
NYIA Wrap up: Property & Casualty Industry Gears Up for 2014 as NYIA sets Priorities The New York Insurance Association (NYIA) held its 2013 Annual Meeting on November 14 in Latham, New York. The meeting included a Legislation and Regulation Committee Meeting, two informative presentations and a business meeting. The highlight of the event was […]
FIO Long Awaited Report Calls for “Hybrid” Regulatory System
By Mike Nelson and Susan Stead, Nelson Levin FIO Long Awaited Report Calls for “Hybrid” Regulatory System Devoted to exploring the progress of the modernization of the insurance industry, FIO Focus provides information and insights about the organizations and issues that are driving change and influencing the future of the industry. The Federal Insurance Office […]
2012
2012 Issues - Click to View
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Good News For Insurance Professionals: Baby Bust is Over, Fertility Rising Again in U.S.
[dropcap]O[/dropcap]ne of the most compelling reasons to purchase life insurance is the birth of a child. According to a just released report from Demographic Intelligence (www.DemographicIntel.com), the nation’s premier provider of birth statistics and U.S. fertility analytics for a variety of industries, there will be an increase in births in 2012 and even more in […]
Insured's Non-Residence at Insured Home Voids Claim For Fire Loss
[dropcap]D[/dropcap] efendant New York Central Mutual Fire Insurance Company moves pursuant to CPLR R3211 for an order dismissing the plaintiff ‘s amended complaint in its entirety. The plaintiff opposes the instant application. Pursuant to an order dated November 17, 2011, the parties were notified that the court elected pursuant to CPLR R3211(c) to treat the […]
Insurance Fraud Hall of Shame: Read These “Beauties”
WASHINGTON—A cashstrapped businessman torches his home then massacres five people to keep witnesses from testifying. A cop shoots himself to steal workers comp money. Two scammers stuff a coffin with a mannequin and cow parts to invent a dead person for a million-dollar lifeinsurance payout. These are among the extreme schemers elected to the Insurance […]
Bank Insurance Agencies Report Increased Acquisiton Growth and Contingent Income
WASHINGTON, D.C.— Despite slight growth from acquisition and increased contingent income, issues relating to staffing efficiency led to weaker profits for bank insurance agencies, according to the latest Bank- Insurance Viability Index, a quarterly report compiled by MarshBerry and sponsored by the American Bankers Insurance Association. An analysis of bank-owned agencies showed that profits fell […]
The FIO: Recent Developments in Focus
The Federal Insurance Office – What It Is. [dropcap] T [/dropcap]he Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) established the FIO within the Treasury Department. The first Director of the FIO is Michael McRaith, the former Illinois Director of Insurance. In November 2011, the Treasury Secretary created a Federal Advisory Committee on […]
A Day Without Challenges
[dropcap]A[/dropcap]gents face struggles every day. In fact, I believe the ability to meet challenges and face adversity is one of the measures by which you can judge whether a professional independent agent will be successful or not. In my five decades as a professional, independent agent, I can honestly say I have never gone to […]
What Do You Want to Be When You Grow Up?
Michael Loguercio
Face to Face
[dropcap]H[/dropcap]ow many times have you asked that question of a young child, or maybe even a “matured” child… or maybe even of yourself? As a parent, and board of education president, I have had the opportunity to ask that question many a time to many a young person, and until recently I never would have […]
"Fine" Print
[dropcap]H[/dropcap]ad the opportunity recently to speak to the partners at Prestige, Inc., one of the largest PEO’s in New York, to learn how they have been gaining adoption among independent insurance agents across the tri-state area. Brian Lehmann, who is the top executive at the company, formerly of Motorola, explains it this way: “More and […]
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Insured's Ambiguous Notice Fails to Trigger Insurer's 20-Day Time to Stay ARB
Matter of Country-Wide Ins. Co. v Ramirez Petitioner Country-Wide Insurance Company (“Country-Wide”) moves for an order, pursuant to CPLR 7503, permanently staying arbitration, or, alternatively, temporarily staying arbitration pending a “framed-issue” hearing or the completion of discovery. Respondent, Jose R. Ramirez (“Ramirez”) “cross-petitions” for an order denying the petition and sanctioning Country-Wide pursuant to 22 […]
Caveat Insurance Leaders: New Financial Incentives May Lead the IRS to Your Door
By Tom Pliske after a long period of uncertainty, it has now become clear that insurance companies have a major new threat with which to be concerned. Last year, the Internal Revenue Service paid out its first claim subject to the new Whistleblower laws passed in 2006. Since the law went into effect, there have […]
The Crimes They Are a Changin’
Jerry Trupin
Exposures and Coverages
Am I the only one providing expert witness assistance for fidelity claimants? Fidelity coverage (also known as “employee theft” or “employee dishonesty” coverage) is just a small part of the insurance universe, generating many fewer claims than property and liability coverage and of those, even fewer end up as lawsuits. Nevertheless, my expert witness activity […]
Follow the Fortunes and the Fortunate
In this issue of the Insurance Advocate, you will notice some typical features and one new topic that may spark some interest. First we cover PIANY’s Metro Rep, an event that has grown beautifully over the past several years. PIANY has now three local meetings, large in size, attractive to agents and generally quite accessible, […]
New York’s Alex Giordano Sets SIIA Agenda
Chairman Leads National Group Alex Giordano gladly accepted the responsibility of chairing his trade association, the Self-Insurance Institute of America, Inc. (SIIA), even though his duties would take time from his day job as one of the nation’s leading marketers of stop-loss insurance for sponsors of self-insured employee group health benefit plans. “That was an […]
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2012/ February 20/ Past Issues
So Long as Petition to Stay ARBis Brought Timely, It Can Be Amended Later
Matter of Government Employees Ins. Co. V Albino In a proceeding pursuant to CPLR article 75 to permanently stay arbitration of an uninsured motorist claim, Juan R. Albino appeals from a judgment of the Supreme Court, Queens County (Rios, J.), dated May 12, 2011, which, after a framedissue hearing, granted the amended petition. ORDERED that […]
2012/ February 20/ Past Issues
The Time is Now – The Game Changer is Here!
Anyone who has read my articles or heard me speak knows I have been advocating for a major shift in the way Independent agents and brokers operate in the marketplace. Competition is coming from everywhere and through an increasing number of sources. Most of the competition is using digital marketing and the internet to grab […]
Metro RAP Up
Michael Loguercio
Face to Face
Welcome Back RAP! In a true New York sort of style, and for the second year since its return to Manhattan, insurance professionals from all around the greater New York City area gathered at the Professional Insurance Agents of New York State Inc.’s 2012 Metropolitan Regional Awareness Program, held Wednesday, Jan. 18, 2012, at the […]
2012/ February 20/ Past Issues
In this Issue
We are always surprised where copies of the Insurance Advocate turn up. Typically you will find one on the front table in most insurance offices in New York and New Jersey, having been read and placed there among other industry publications. Such is the case with a recent issue which greeted us pleasantly in the […]
2012/ February 20/ Past Issues
SoggySaga: Executive Life’s Liquidation Drowns Policyholders’ Annuitants Interests in 21-year Long Process
In 1991, Executive Life Insurance Company of New York (ELNY), the stressed but solvent subsidiary of its insolvent parent, Executive Life Insurance Company of California, was placed in rehabilitation in New York to protect it from cash surrenders becoming “a run on the bank.” Twenty-one years later, the rehabilitator has petitioned the court to declare […]
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American Transit Insurance Co. Celebrates 40th Anniversary : More than 250 attend celebration as awards are presented by Company President & CEO and Leadership Staff
NEW YORK, N.Y.—More than 250 brokers and other insurance leaders attended the 40th Anniversary Celebration of the American Transit Insurance Company held January 26, 2012, at the New York Athletic Club on Central Park South. New York State Senator Martin Golden offered an official welcome and offered observations about the Company which marks its 40th […]
Sen. John Thune to Address Big “I” Conferees
The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) has announced that Sen. John Thune (R-S.D.), Chairman of the Senate Republican Conference, will address the association’s membership on Thursday, April 26. Sen. Thune will be a keynote speaker at the legislative conference breakfast which occurs just prior to the association’s annual […]
AG Focuses on Non Profits
In the last issue of the Insurance Advocate, we were pleased to report that former Superintendent James Wrynn had landed-happily-in a new position where the opportunities seem to be extraordinary, placing him on an international stage in the insurance law sphere. Wrynn left the Department in good standing and in good report, according to what […]
FNA Announces Partnership to Distribute Assura Group’s IncomeAssure : Supplemental Unemployment Insurance Coverage to be Available Through FNA’s New York and New Jersey Network
NEW HYDE PARK, LI—First National Administrators (FNA) has announced an agreement with Assura Group of N.Y., Ltd., for the marketing and distribution of one of the newest and most innovative products in the financial marketplace, IncomeAssure. IncomeAssure enables policyholders to insure against loss of income if their job is lost. The policy provides substantial income […]
Amalgamated Life Now Licensed in All 50 States and D.C.
White Plains, NY based Amalgamated Life Insurance Company, a leading provider of life and health insurance, announced that it recently became licensed in Florida and is now licensed in all 50 states and the District of Columbia to market its comprehensive suite of insurance products. For this well-respected provider of choice, this means the ability […]
E&O: Professional Underwriting Group, Inc. Provides Insolvency Carve Back for Demotech Rated Carriers
Professional Underwriting Group, Inc. (PUG) and Demotech, Inc. have announced that insurers earning a Financial Stability Rating® (FSR) of A or better from Demotech are eligible for reasonably priced, comprehensive insurance agents & brokers professional liability insurance (E&O) that includes coverage for insolvency to the producer when the market is rated A or better by […]
Scaffold Law Does Not Apply When Worker Falls From Ladder While Cleaning A Product Made By His Employer
Plaintiff was injured when he fell from a ladder in a factory while cleaning a product manufactured by his employer. We hold that his activity was not protected by Labor Law § 240 (1). I The product in question was a steel “wall module” made by third party defendant West Metal Works, Inc. at its […]
A.G. Schneiderman Sets “Bold Plan” For New York’s Nonprofit Sector
New York Attorney General Eric T. Schneiderman has introduced a bold plan to reform and revitalize New York’s nonprofit sector, including legislation to eliminate outdated and costly burdens on nonprofits, strengthen oversight and accountability, and reaffirm his office’s commitment to policing fraud and abuse. Acknowledging that organizations throughout New York State face historic financial […]
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Crackdown: State Handcuffs, No Fault Crooks, Locks up Scores of Conspirators in Major Bust Industry Praises DFS Effort
ALBANY, N.Y.—At the direction of Governor Andrew M. Cuomo, nofault insurance medical mills and insurance companies are facing a statewide investigation by Benjamin M. Lawsky, Superintendent of the Department of Financial Services (DFS). The regulation implements a 2005 law that gives DFS the power to regulate doctor participation in the no-fault system. Lawsky accepted this […]
Captive Audiences
We received the news of a New York State Appeals Court decision upholding the ruling that independent insurance agents disclose their commissions to clients in a manner prescribed by the Insurance Department with mixed feelings. First, we did not believe that the lawsuit approach would prevail in New York State, and that the agents essentially […]
You Know Me, Always ACTing Up!
Michael Loguercio
Face to Face
At last week’s Agent’s Council for Technology (ACT); ACORD User Group Information Exchange (AUGIE); and American Insurance Marketing and Sales Society (AIMS) meetings in Tampa, FL, initiative updates showed the progress being made to improve business for agents nationwide. With much gratitude to my friend Michael Carroll, Communication Specialist at ACORD, I am able to […]
Let’s Get Personal: Homeowners and Personal Liability Insurance Problems
Jerry Trupin
Exposures and Coverages
Not Every House is a Home In 1992 Robert Zises bought a home in Lake Katrine, NY and purchased homeowners insurance. In 1998 he rented the house to two tenants and moved to another home in Tivoli, NY. In 2006 the homeowners policy covering the Lake Katrine house was placed with New York Central Mutual. […]
Interboro Acquires AutoOne from OneBeacon
MINEOLA, N.Y.—Interboro Holdings is pleased to announce that it has completed the acquisition of AutoOne and AutoOne Select Insurance Companies from OneBeacon Insurance Group. The transaction, which was approved by the New York State Department of Financial Services, will result in the creation of Interboro Management Inc. employing 135 individuals in Mineola and Syracuse, New […]
Homeowners Have No Duty to Prevent Drunks From Leaving Their House, Nor to Guide Them as They Drive Away
Martino v Stolzman MEMORANDUM: The order of the Appellate Division, insofar as appealed from, should be reversed, with costs, the Oliver defendants’ motion for summary judgment granted, the complaint in Action No. 1 and the amended complaint in Action No. 2 dismissed against them, and the certified question answered in the negative. On the evening […]
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Contract's Waiver of Subrogation Clause Insulates Bank's Alarm Company From Burglary-Loss Suit
Abacus Fed. Sav. Bank v ADT Sec. Servs., Inc. et al., Respondents, Holmes Protection of New York, Inc., et al., Defendants George S. Sava, for appellant. Charles Eblen, for respondent ADT Security Services, Inc. Dennis M. Rothman, for respondent Diebold Incorporated, Inc. CIPARICK, J.: Plaintiff Abacus Federal Savings Bank (Abacus) commenced this action against defendants […]
ISO ClaimSearch Tracks Social Media Postings
ISO has announced a new resource that will help claims and fraud investigators identify an individual’s presence on social networking websites. Web Presence Search – available through the ISO ClaimSearch® Decision Net® public records information portal – can identify an individual’s “web footprint” or trail of digital information left as a result of postings on […]
Verisk Introduces Crime Analytics
Verisk (Nasdaq:VRSK), a leading source of information about risk, has announced the formation of Verisk Crime Analytics, reflecting the company’s recent growth in crime analytics and its potential penetration into this growing market. Following other recent product launches and acquisitions, Verisk currently owns and operates national crime databases that provide services to the construction, retail, […]
Social Media-From Their Point of View
Michael Loguercio
Face to Face
As so many followers of this column, I am a father of a 20 year old son and a 17 year old daughter (going on 40!) who like so many of us “old people” use some form of social media in our daily lives whether it is for business, pleasure, or education. As a very […]
Optimistic.
When Easter, Passover, and the flowering of Spring all happen in the very same short frame of time, the pull of optimism is irresistible. While I do not quite agree with the legendary anthropologist, Sir James Fraser, that there is merely something instinctual about our assignment of Springtime to ritual change and transformation, I must […]
Simple Tips to Avoid Disciplinary Actions
Licensed insurance producers in New York often subject themselves to unnecessary disciplinary action by the State of New York Department of Financial Services (“DFS”). Of course there are serious issues with misappropriating premium funds and other untrustworthy or egregious conduct, but the tips below address more routine and procedural issues, which, if complied with, can […]
Springtime for… Compliance
By Kathy Donovan, Wolters Kluwer Financial Services The insurance industry experienced yet another year of significant legislative and regulatory activity in 2011, with the promise of continued growth in this level of activity this year. Close to 22,000 statutes, regulations and bulletins impacting the insurance industry were newly created, revised or issued last year, and […]
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Risk Retention Groups: Financial Stability is Focus of Demotech Analysis
GAO and NRRA at Odds Despite current economic uncertainties and the dialogue between the General Accountability Office (GAO) and the National Risk Retention Association (NRRA), Risk Retention Groups (RRGs) in total improved reported results in a number of key areas for the year ending December 31, 2011. The GAO issued its report pertaining to the […]
The Case Against Artisan Policies
On April 24, 2012, the Appellate Division in New York decided a case against an insurance company involving the New York False Claims Act and the issuance of “artisan policies.” Artisan policies are designed to provide coverage for small contractors, such as carpenters, plumbers and roofers, or other skilled manual laborers, but do not generally […]
Intentional Acts Exclusion Smith v Geico Ins. Co. v Liberty Mutual Insurance Co.
This is an action to recover nofault insurance benefits, including outstanding medical bills and loss of earnings, from Geico. It appears that, on or about September 2, 2008, the plaintiff was injured when he was involved in an accident with a motor vehicle operated by nonparty Edward J . Conrad. Geico insured the plaintiff’s vehicle, […]
Going it Alone…or, Better, Together.
Many agents and brokers aren’t interested in being involved in industry affairs and organizations. They won’t commit time and effort on common issues, matter of fact they won’t even attend meetings. They leave those issues to a relatively small group of dedicat ed and committed agents that serve year after year. I realize that their […]
Another Kind of Hero
Michael Loguercio
Face to Face
For those of us who are fortunate enough to know Dave Isenberg, this story will not surprise you as he is always one to put others before himself, and to use his life’s experiences to selflessly assist those who may benefit from it. A veteran of the insurance industry for nearly 50 years, David recently […]
House Financial Services Committee Chairman Spencer Bachus Named Big “I” Legislator of the Year
WASHINGTON, D.C.—The Independent Insurance Agents & Brokers of America (the Big “I”) named U.S. House of Representatives Committee on Financial Services Chairman Spencer Bachus (R-Ala.) as the Gerald Solomon-IIABA Legislator of the Year for 2011. In his address to the group, Rep. Bachus discussed numerous issues that impact the small business community, consumers and the […]
CPCU Liability Coverage for Defective Products, Impaired Property, and Product Recall Updates on Homeowners Residency Issues and an Employee Dishonesty Loss That’s One for the Books
Jerry Trupin
Exposures and Coverages
What’s Your Problem?With this column I’m starting an occasional discussion of problems sent by readers and friends. If you have a problem you’d like my thoughts on, send it to me at cpcuwest@aol.com. Here’s the first one: An agent in Rockland County, NY asks: I have a contract metal/plastic fabrication firm as a client. They […]
Moving Around Town
We continue to marvel at what our colleagues will invent, create and grow in the insurance sphere. Of course, not everything grows to full fruition, some things die halfway through their season, a fact of which we are reminded over and over again in our travels in the industry. I can not tell you how […]
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SLAPP: Malpractice Coverage Impacted Increasingly by Recent Decisions
Malcolm S. McNeil Ismael Bautista, Jr. Certain lawsuits create a snarl of considerations that require an adjustor to carefully assess the ramifications of the dispute and litigation in a way that effectively weighs the future costs against the ongoing exposure to bad faith and the implications of dealing with insured and uninsured claims within the […]
Proposed Insurance Regulation No. 68-C: No Fault Insurance
The Superintendent of Financial Services has proposed Regulation No. 68-C to address no-fault insurance fraud. The proposed regulation is designed to curb abuse of the no-fault insurance system. Highlights are as follows: • Health care providers will have to comply with a 120 day period to provide requested information or the claim can be denied. […]
A Lawyer Walks into a Market of Last Resort …
I have a client who happens to be an attorney. I’ll call him Joe for purposes of the story I’m about to share. Joe recently called me for advice about a client of his who was having a problem with the New York State Insurance Fund. I understand the client was audited and the NYSIF […]
By Way of Introduction…
Welcome to our first Insight column! When Steve Acunto asked me to write a regular column for Insurance Advocate, my first reaction was negative. At this stage in my career, why undertake an assignment with deadlines and the constant pressure to come up with something interesting and informative for the readership? Then I went back […]
“Partners”
In this issue of the Insurance Advocate Peter Bickford’s column premieres on page 12. Peter is a longtime, rather astute observer of the business, whose work we have featured with great pride over the years. We believe that, in keeping with the Insurance Advocate’s mission to observe regulation and legislation that affect the progress of […]
How About A Little Phone Text?
If u cn rd this den u prbly no where im goin wid this article. Texting. It’s everywhere. Everyone is doing it. Don’t worry, it won’t hurt, and I promise you won’t get pregnant the first time you try it. Very quickly it is replacing all means of electronic communication, and I would venture to […]
DFS Fines Insurers $2.7 Million
DFS Investigation Uncovers Widespread Violations, Consumers “Left In Dark” Benjamin M. Lawsky, Superintendent of Financial Services, announced that 15 insurers have been fined $2.7 million because they failed to notify small businesses that they were eligible to buy special insurance coverage for mental illnesses and children with serious emotional disturbances. Oxford was fined $1.3 million, […]
Advertising Regulatory Group Recommends Allstate Discontinue Certain Claims in ‘Mayhem’ Campaign
NAD Finds Advertiser Can Support Certain Claims, Following Progressive Challenge NEW YORK, NY– The National Advertising Division of the BBB has just recommended that Allstate discontinue certain advertising claims made in its “Mayhem” advertising campaign, and modify additional claims. NAD determined, however, that the company could support one challenged claim, as well as the tagline: […]
Fraudulent Incorporation
Concourse Chiropractic, PLLC v State Farm Mut. Ins. Co. Defendant moves for summary judgment. Plaintiff moves to compel discovery.[FN1] BACKGROUND Concourse Chiropractic, PLLC (“Concourse”) sues as assignee of Odalis Guzman (“Guzman”) seeking to recover first party no-fault benefits for chiropractic treatment it provided to Guzman. Concourse submitted bills for treatment it provided to Guzman for […]
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Let’s not boast, but…
In this issue of the Insurance Advocate, Steve Ruchman uses the word mensch which now possesses the universal meaning of “stand up guy”. This is not an expression new to insurance in these parts, given its provenance from the Yiddish quarters of New York. For many years, the insurance industry has been an unsung hero […]
Mensches
Lately, I’ve noticed a trend in advertising by direct writers. They’re focusing on the advantages of buying insurance from a local agent. Even that dreadful lizard has opened up local offices (albeit few and far between) so it can attract customers who seek local experts and compete with independent insurance agents. I’ve always said a […]
“A Billion Here, a Billion There, and Pretty Soon You're Talking Real Money."
(Attributed to Everett M. Dirksen, US Senator from Illinois, 1950-1969) Based on a very unscientific twoitem sample – the recent J.P. Morgan trading loss and the Executive Life of NY (ELNY) loss – the minimum point for media outrage apparently is $2 billion. How else can one explain the media attention to the $2 billion […]
Edmund Kelly Named President of AAIS; New Yorkers Among Leaders
Wheaton, Ill. Edmund J. Kelly of Boulder, Col. was recently chosen president of the American Association of Insurance Services (AAIS), an organization that develops policy forms and rating information used by more than 700 P/C companies throughout the U.S. Kelly’s appointment was announced by Paul Baiocchi, the longtime president of AAIS who will continue as […]
Surety Claims are "Insurance" for Purposes of Priority When Insurer Is In Rehabilitation
More than a decade ago, on October 10, 2001, Supreme Court, New York County (Lehner, J.) granted the application of the Superintendent of Financial Services (“the Superintendent”) to be appointed as rehabilitator (“Rehabilitator”) of Frontier Insurance Company (“Frontier”) pursuant to Article 74 of the Insurance Law (“Article 74”). In a Decision & Order dated July […]
Pollution, Certificates of Insurance, and Duty to Defend
Let’s look at some different points of view on three perennial liability insurance problems: Pollution, Certificates of Insurance, and Duty to Defend. Pollution May Not Mean Pollution “A rose is a rose is a rose,” but pollution is not always pollution. In the early 1970s, faced with enormous pollution liability claims arising from newly enacted […]
It’s The DEADLIEST Time of the Year!
Michael Loguercio
Face to Face
So here we are Memorial Day… and all I keep hearing from those I know are, “Can you believe the summer is here already?” Quite frankly it felt like summer was here all winter, but this weekend means that it’s time to open the pool, power wash the deck, freshen up the flower beds, and […]
Willis D&O Dictionary Expands and Clarifies, as D&O Terms Dazzle and Defy We present a synopsis of the dictionary in this issue
Willis North America, the global broker has published its Directors and Officers Liability (D&O) Insurance Dictionary, offering firms a comprehensive overview of terms that are likely to be used in describing their D&O insurance and liability exposures. This Willis publication, updated in response to recent significant changes to the litigation environment facing executives and their […]
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A Lesson in a Tragic Loss
Several weeks ago my family and I lost a very important person. Joe was a big part of our family growing up with my sons and we lost him at 30 years old. After 2 years of fighting a rare form of leukemia his body just couldn’t go on. I remember 2 years ago when […]
First Rehab Life's "Quintessentials" EAP Breaks the Mold
Great Neck, NY – First Rehab Life (The First Rehabilitation Life Insurance Company of America) is now offering Employee Assistance Programs (EAP) services for employer groups of 2 or more employees. While EAPs are nothing new in the world of employee benefits, Quintessentials (First Rehab Life’s non-insurance small group EAP) breaks the mold: The level […]
DFS Report: Size and Content May Send Message
As a history buff and insurance business fan, one of my favorite features of Insurance Advocate has always been the “Looking Back” page, with its reminders of what we were reading about our industry 25 years ago or more. It helps provide perspective, continuity and understanding of the issues that we faced then and that […]
What is Shawangunk?
The “pilgrimage” up to New Paltz, New York, to the formidable Mohonk Mountain Hotel and Resort in the Shawangunk mountains, was truly worth the trip, particularly as the NYIA gave its principal award this year to Cecilia Norat, a great favorite to this writer and a well-known person on these pages. I have said enough […]
50 Shades of Insurance
Michael Loguercio
Face to Face
BYOD: “Bring Your Own Device” to work. So…how many times have you thought of doing it…by yourself… in your office…all alone? What about your employees…do they ever go at it alone in your office? Do they ever do it with other employees? Do they ever do it alone, with their own “personal devices”? No? Are […]
Norat Honored at New York Insurance Association Annual Conference
NEW PALTZ, N.Y.—The New York Insurance Association, Inc. (NYIA) honored Cecilia E. Norat, Esq. with the Chair’s Distinguished Service Award at the association’s annual conference May 31 in New Paltz, N.Y. Norat is a past chair of NYIA and deputy general counsel and director of state relations and Global Regulatory Group for American International Group, […]
County Defaults on Bonds Sold to Insurer, Then Calls Them a "Stupid, Lousy Investment"
Frankenmuth Mut. Ins. Co. v Waste Mgt. of NY, L.L.C. Frankenmuth Mutual Insurance Company, Plaintiff, against Waste Management of New York, L.L.C. and SANITARY DISTRICT NO. 1, TOWN OF HEMPSTEAD, Defendants. Counsel for Plaintiff: Fox Rothschild, LLP Counsel for Defendant (Waste Management): Schnader Harrison Segal & Lewis LLP Counsel for Defendant (Sanitary District): Law Offices […]
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Let The Free Zone Ring!
The insurance and financial industries are constantly seeking new risk spreading options. In recent years these new options have included, among other things, cat bonds, sidecars, special purpose vehicles and insurance linked securities. Alternative risk facilities and options exploded on the scene in the 1980s as a result of tremendous swings in capacity and availability. […]
College Pitcher Assumed Risk of Being Hit by Line Drive During Batting Practice Bukowski v Clarkson Univ.
Almost every day, we are reminded of the injury risks attendant to participation in organized sports. The question presented in this personal injury action is whether a college baseball pitcher assumed the risk of injury associated with his participation in indoor practice. We conclude that plaintiff Bukowski assumed the inherent risk of being hit by […]
Third Circuit Interprets 'Arising Out Of' Clause for UM Benefits Broadly
For uninsured motorist coverage to apply, vehicle liability policies provide that the injury to the insured must be “caused by accident and arise out of the ownership, maintenance, or use of an uninsured auto.” The “arising out of ” clause defines the required causal link between the uninsured vehicle and the injury. Insurers have consistently […]
The Creeping Risk of Mobile and Personal Devices in Insurance
No doubt you’ve heard about the ‘consumerization of IT’ or the Bring Your Own Device (BYOD) trend. BYOD is nothing new in the insurance industry – for many years, independent agents and brokers have used their own computers to access insurance company applications and run their businesses. But you may not be aware of the […]
“So Call Me Maybe…but not while driving!”
Michael Loguercio
Face to Face
Afew weeks ago I wrote a piece in this column about the deadliest time of the year to drive, of which we are currently right smack in the midst of. After speaking with a number of friends of this column, they asked me if it were possible to drill down a little deeper to see […]
Leading M.D. Views the Supreme Court “Obamacare” Decision
The Supreme Court has ruled that Obamacare is constitutional and has upheld the law – a victory for those who want the Federal government to micromanage your life and medical care. This is a tragic defeat, however, for those who support our Founder’s vision of liberty and privacy and the right to control our private […]
On my mind…
Been a hot summer so far for this “bachelor” whose family is in Italy for July. From my occasional porch-perch overlooking the Hudson and from my more likely post, looking over your e-mails, press releases, letters and receiving VM messages and even the occasional anonymous letter, I have kept a number of news and opinion […]
CPCU Hacker Empty Firm’s Bank Account – Who Pays ?
Hackers emptied a construction firm’s bank account to the tune of $558,000. Another firm lost $125,000 when the office manager, in violation of the firm’s written policies, had logged into a social networking site, triggering what computer security consultants call a “corporate account take-over.” If misery loves company, these firms should be very happy; information […]
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DEMOTECH – RATINGS: A Strong, Straight Line in a Complex Grid – A conversation with Joseph L. Petrelli, and Sharon Romano, co-founders, Demotech, Inc.
For a man who deals in complexities, Joe Petrelli’s life has been a straight line to success. Born and raised in Rochester, New York, he graduated from The College of Insurance and had his first full-time job in Syracuse, New York. Joe earned a Masters of Business Administration from The Ohio State University in 1986, […]
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 […]
Which Government Healthcare Plan is Better?
When politicians promote the superiority of their government plan to “replace” ObamaCare, my reaction is simple: I don’t care what a mugger does with my money. The difference between the thought processes of the Austrian economists and those of other schools is this: the Austrians say in essence that they don’t care what you do […]
“Righting” Insurance For Coops and Condos—Who Insures What?
Jerry Trupin
Exposures and Coverages
Bea and Ben Aden purchased a vacation condo in western New Jersey and were looking forward to some peace and quiet in the country. When their unit was devastated by fire, what they got was exasperation and expense. First they were faced with the ordeal that any homeowner must deal with following a fire, but […]
Climate Liability Risk: Will it be the Next Chapter in the Global “Blame Game”?
It has long been accepted that the “compensation culture” that arose in the U.S. about 40 years ago has in this century taken on global dimensions. A simplistic but accurate description of a compensation culture is a society in which most injuries can be traced to a causal agent from whom damages for the harm […]
Remembering Fred Perrotta
Fioravante “Fred” Perrotta died this past July. His New York Times obituary (July 28, 2012) focused on his public service as a key aide to Governor Rockefeller in the 1960s and later as part of Mayor Lindsay’s administration, including an unsuccessful run for city comptroller. In between those two lives, however, Fred played a significant […]
GUARD Now Writing Disability Insurance in New York
GUARD Insurance Group has announced the immediate availability of a new Disability insurance product in New York. Statutory coverage will be offered through independent agents appointed by GUARD for the state, and a number of optional enhancements will be available. According to GUARD’s Executive Vice President of Insurance Operations Marshall Kornblatt, “We see Disability Benefits […]
An Olympic Sized Policy
Michael Loguercio
Face to Face
So what is incredibly popular, attracts 17,000 athletes from 205 countries, encompasses 26 different sporting competitions, and took place in London, England, for two weeks? Well, to most people it is the Olympics; however to someone in the insurance industry it was just another huge sporting event that needs to be insured. As reported in […]
Is Getting Oil Dumped in Your Basement by a Stranger “Vandalism”? Trial Required to Find Out
In an action to recover damages for breach of contract, the defendant appeals from an order of the Supreme Court, Nassau County (Cozzens, Jr., J.), entered December 12, 2011, which denied its motion for summary judgment dismissing the complaint. ORDERED that the order is affirmed, with costs. The plaintiffs alleged that, in February 2010, they […]
Insurance Company Liquidator Gets Judicial Immunity
This court entered an order (“Liquidation Order”) on November 20, 1997, pursuant to which U.S. Capital Insurance Company (“U.S. Capital”) was adjudged to be insolvent and placed into liquidation. The Liquidation Order appointed the then- Superintendent of Insurance and his successors in office as Liquidator of U.S. Capital. Benjamin M. Lawsky, the Superintendent of Financial […]
New York Court Rejects Arbitration Clause Used in Chartis Workers Comp Policies
Judge Eileen Bransten in the Supreme Court of New York has reaffirmed a decision that may have a wide-ranging effect on the ability of workers compensation insurance companies to enforce the arbitration clauses contained in their workers compensation insurance policies. In National Union Fire Insurance Co. et al. v. Source One Staffing, LLC., Index No. […]
“Start Balancing…Volumes”
We’ve all heard the adage: “Don’t put all your eggs in one basket.” But many of us have broken this golden rule. We get comfortable with one company because it is easy to do business with or because it has been great with claims for our clients in the past, and we build our book […]
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2012/ Past Issues/ September 10
The Battle of the Bar Begins a “War” for Insurance E-buyer Protections
The surprising first person account of independent agent Ed Higgins’ growing campaign to protect auto insurance consumers from online “savings” traps This following personal account of an independent agent’s experience spans more than a two-year period and is presented here following many months of correspondence, voice mail messages, e-mail messages, industry trade publication articles, and […]
2012/ Past Issues/ September 10
Perfecting Clients’ Protection is a Moving Target
– CyberTheft is in the News Again – Umbrella Liability Limits—How High is Up? – Deduct Depreciation to Calculate ACV?—Connecticut Provides an Answer – Exclusion Of Injuries To Employees Of Independent Contractors – To be Indemnified for Legal Costs, the Hold Harmless Agreement Must Spell it Out – Exclusion of Injuries To Employees Of Independent […]
2012/ Past Issues/ September 10
Pre-Existing Conditions – Policy Exhaustion
American Arbitration Association New York No-Fault Arbitration Tribunal In the Matter of the Arbitration between Lutheran Medical Center and GEICO AAA Case No. 412012029477 AAA Assessment No. 17 991 24504 12 Brynne L. Haines, Esq., Arbitrator Summary of Issues in Dispute Does Public Health Law which requires insurers to pay for hospital treatment of […]
2012/ Past Issues/ September 10
“Serving on a Board has Never Been so Risky” – Willis
NEW YORK—Increased regulatory, shareholder and media scrutiny combined with volatility in the global economy means that serving on the board of a company has never been so risky, according to Willis Group Holdings (NYSE:WSH), the global insurance broker, which released its latest Boardroom Guide on Executive Risk. Against a backdrop of almost unparalleled financial […]
2012/ Past Issues/ September 10
Impacting the Independent Agency System Model
Every day it becomes more and more evident to me that the Independent Agency System is at a critical junction. What happens going forward is dependent on the speed at which agencies can adjust to the changes in our business. Consumers have had a multi-million dollar plus annual brainwashing to convince them that insurance is […]
2012/ Past Issues/ September 10
Domestic Excess Line Carrier – An Oxymoron?
During the last legislative session, the Excess Line Association of New York proposed and the Senate passed legislation that would allow the establishment of domestic excess line carriers in New York. At first blush this sounds wrong. By their very nature excess and surplus line insurers are “non-admitted” foreign or alien companies that can only […]
2012/ Past Issues/ September 10
What Does “Free Market” Mean in Orwellian Newspeak?
We are accustomed to Newspeak from the federal government, in which words have the opposite of their traditional meaning. For example, there’s what I call UCA, the (Un)affordable Care Act. But now the problem is metastasizing to supposedly conservative publications and nominally free-market think tanks. In an article in The Weekly Standard, Eli Lehrer, president […]
2012/ Past Issues/ September 10
One Side of a Mini Saga
The mini saga of Ed Higgins’s experience vis-à-vis what he identifies as a misleading element in a direct writer’s internet sales program, gets a full, yet clearly one-sided airing in this issue. We have fact checked and read all of the materials provided to us by Mr. Higgins with respect to his experience and found […]
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2018/ Past Issues/ September 24
PIANY Taps Top Talent for Year
GLENMONT, N.Y.—Jamie A. Ferris, AAI, CIC, CPIA, of Lansing, N.Y., was elected president of the Professional Insurance Agents of New York, at a meeting of the association’s board of directors today, at PIANY Headquarters in Glenmont, N.Y. Ferris is president of P.W. Wood & Son Inc., in Ithaca, N.Y. An active member of PIANY, Ferris […]
2018/ Past Issues/ September 24
Barry Bares All
Our popular columnist, Barry Zalma, has just put pen to paper and has produced claims books that are worth the money – really. His premise is that it is the insurance claims person – the adjuster – who works to keep the promises made by the insurance policy. The adjuster cannot, however, help the insurer […]
2018/ Past Issues/ September 24
When you’re finished changing, you’re finished. – Ben Franklin
There’s an abundance of quotes about the inevitability of change; against resisting change; and most appropriately about the value of change. The place I’ve heard most of them are at PIA. The organization is always at the forefront of our industry, and the visionaries who have led the organization call repeatedly for agents to be […]
2018/ Past Issues/ September 24
Expanded and Improved Medicare for All: Beware of Greeks Bearing Broccoli
by Marilyn M. Singleton, M.D., J.D. During the Supreme Court oral arguments in the challenge to the Affordable Care Act’s mandate to purchase health insurance, people laughed when the late Justice Scalia asked whether the government could make you buy broccoli. Never happen? The laughable has become reality. A California bill awaiting the governor’s signature […]
2018/ Past Issues/ September 24
Legal Analytics: ‘Must-Have’ Tool Assists Carriers in Data-Driven Legal Decisions and Success in Litigation
by Ronald C. Porter The insurance industry relies heavily on analytics to understand and predict risk when writing policies. But what happens when a disputed claim becomes a legal matter? Shouldn’t insurers apply those same kinds of analytics to understand and predict their legal exposure? Until recently, insurance litigation relied heavily on legal research, anecdotal […]
2018/ Past Issues/ September 24
The De-sciencing of American Medicine and What it Means to You
With all the talk about “evidence-based medicine,” you might think that doctors were becoming much more focused on rigorous science. But like the names attached to bills in Congress—such as the Affordable Care Act, which outlaws affordable insurance, the language used in the movement to fundamentally transform America and American medicine usually means the opposite […]
2018/ Past Issues/ September 24
Failure to Exceed SIR Releases the Excess Insurers
No Cover Available from Excess and Umbrella Policies Insurers use a self-insured-retention (SIR) to avoid the expense of dealing with small claims and avoid the expense of defending or indemnifying an insured until the SIR or underlying insurance is exhausted. As a result the excess insurer can charge a small premium because its exposure is […]
2012/ 2018/ Past Issues/ September 24
WAHVE “Hello”
Work At Home Vintage Employees LLC (WAHVE) is an interesting concept. Essentially, it is a domestic remote staffing service for insurance firms. There are some firms which provide for staffing and for services outside of the U.S. In this case, WAHVE employs the services of retired, semi-retired, or outside consultants to assist organizations with the […]
2012/ 2018/ Past Issues/ September 24
Immunity For [All] Some!
Peter Bickford
Cover Story, Insight
Let’s have a little chat about immunity. No, not immunity from retribution for squealing on Aunt Bea and her high stakes Saturday night poker game, or for giving state’s evidence against the mob before disappearing into witness protection. And no, not immunity for blowing the whistle on your employer, or for acting badly as a […]
2012/ 2018/ Past Issues/ September 24
Doing The Right Thing
Readers of this column may recall my affinity for locally owned book stores. I love shopping at and spending time in them; of course I love the products and the service and it makes me very happy to know that I am supporting a local merchant. Even as I’ve become a reader of digital books […]
2012/ 2018/ Past Issues/ September 24
When a Hundred Percent is Just Not Good Enough
So all your life you have been striving to do everything you can to ultimately achieve the 100% level, correct? Well that’s certainly an admirable goal…unless you’re an insurance company! Years ago when interest rates were at record highs, and carriers could invest in funds that brought double digit returns, being at a 100% combined […]
2012/ 2018/ Past Issues/ September 24
Disability Carriers Launch “Defend Your Income”
Effort Focuses on Educating Working Americans on Need to Protect Their Income PORTLAND, M.E.—In an effort to make the often- overlooked subject of disability income planning more visible, the Council for Disability Awareness (CDA) and its member companies announced the launch of the Defend Your Income movement. This educational program seeks to unite consumers, advisors, […]
2012/ 2018/ Past Issues/ September 24
Go Know: a Chupah is a "Structure" For Purposes of Labor Law
McCoy v Kirsch Note: A “chupah” is a canopy, usually made of fabric supported by wooden posts, under which a bride and groom perform a traditional Jewish wedding ceremony. — LNR APPEAL by the defendants, in an action to recover damages for personal injuries, as limited by their brief, from so much an order of […]
2012/ 2018/ Past Issues/ September 24
Top 25 Writers Prop Up Premium for New York Commercial Automobile
For the year ending December 31, 2011, Direct Premium Written (DPW) for New York commercial automobile writers remained relatively flat compared to the year ending December 31, 2010, decreasing less than one percent. This decrease to New York commercial automobile DPW represents an approximately $10 million change from the prior year. In fact, DPW has […]
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Leaders Enliven LICONY Legislative Confab in Cooperstown
The Twelfth Annual LICONY Legislative & Regulatory Conference Nearly 140 conferees from the life insurance industry, leading professional firms that serve the industry, and prominent insurance regulators and legislators took part. The meetings were substantive, the social events were enjoyable, and the weather was perfect. Proof that there is Life in Cooperstown after the summer […]
Spine.
Response to Ed Higgins’s article in the last issue of the Insurance Advocate was swift, sharp and abundant. The majority of e-mails came from insurance agents who expressed their admiration for Ed and for his work. We have not yet heard from any of the other protagonists whose opinions and positions we have invited and […]
When is a Release Not a Release?
When is a Release Not a Release? Once again the NY Insurance Department* is attempting to narrow the ability of insurance companies to settle claims. Current Regulation 64 provides a straightforward requirement that insurers cannot require a claimant to sign a release as a condition of settlement that is “broader than the scope of the […]
What is The Workers’ Compensation Split Point, How is it Changing, and Why Should You Care?
Jerry Trupin
Exposures and Coverages
To calculate workers compensation experience rating modifications, an insured’s incurred losses are split into a primary loss portion and an excess loss portion. The amount of the incurred loss equal or less than the “split point” is the primary loss and the portion in excess of the split point is the excess loss. Effective January […]
Where Have All The Young People Gone?
Certainly not into the insurance industry and definitely not into independent insurance agencies. What a surprise! What young 20 something college graduate wouldn’t want to go to work in an industry portrayed in TV commercials as two doofuses in light blue suits? What intelligent, young person with a great personality wouldn’t flock to an industry […]
So You Want To Be A Track Star…Well Start Tracking!
Michael Loguercio
Face to Face
As someone who visits with agencies in many areas of our country on a daily basis, I probably “have heard them all” when it comes to questions that are posed to me by agents regarding everything from “What are the most competitive carriers?” to “What technology is available to help me increase my bottom line?” […]
Subway Doors Catch Plaintiff's Foot While Exiting; Defense Verdict Vacated, Then Reinstated
Selzer v New York City Tr. Auth. This appeal arises out of a personal injury action in which the plaintiff alleges that he sustained injuries as he was exiting a subway car on the R train at Whitehall Street, Manhattan. At trial, the plaintiff testified that the defendant’s conductor negligently closed the doors on his […]
Disciplinary Actions Against Insurers, Agents, Brokers & Adjusters
So far in 2012 the New State Department of Financial Services (DFS) has not issued any publicly available Office of General Counsel Opinions. A review of the most recent disciplinary actions taken by the DFS against insurance companies, agents, brokers, and adjusters (released September 10, 2012), sheds some light on what areas have been the […]
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PRI Marks 30th Year
Physicians’ Reciprocal Insurers (PRI) marked its 30th Anniversary on Thursday, September 27, 2012, during a gala event held at the de Seversky Mansion on Long Island’s north shore. More than 100 guests were in attendance to celebrate the benchmark anniversary of the physician centered insurer, founded by medical doctors for the insuring of their colleagues […]
Better than a PR Campaign….
There is no better image maker for the insurance industry than its performance in the wake of a catastrophic event. Hurricane Sandy was just such an event here in the Northeast. Interestingly, on the very day the storm attacked the tri-state area, there were at least two major insurance agent events scheduled: the Down State […]
A Primer For Agencies: Understanding the Arbitration Clause
Arbitration has been the preferred method of dispute resolution in the reinsurance arena for decades and has grown into quite its own industry, including the development and standardization of forms and procedures, and a proliferation of law firms, consultants and other service providers specializing in reinsurance arbitrations, and of “certified” or “qualified” arbitrators (I confess […]
Support for the Agency System is Key to Success
Note from Steve Ruchman: Readers of this column know its purpose is to voice the professional independent agents’ perspective on our industry. The following was written by PIA National President Andrew C. Harris. It’s absolutely salient and appropriate and I couldn’t have said it better myself, so I’m using this space to share his message […]
“5 Days From Hell”
Michael Loguercio
Face to Face
Once again I am sitting on a US Airways flight, travelling to Dallas, TX for our annual EZLynx sales meetings. It’s always an enjoyable time, getting to visit with “our gang”, learning about new products, and sharing ways to improve the technological experience for all those involved in this thing of ours that enjoy the […]
Landlord's Hallway Camera Catches Hubby with Female Visitor; Lawsuit for Prima Facie Tort Survives Dismissal
Otero V Houston St. Owners Corp. I. BACKGROUND Plaintiffs sue to recover damages for invasion of privacy from defendants’ installation of cameras on premises where plaintiffs were tenants. Defendants Chaim Babad and Houston Street Owners Corp. owned and defendants Babad Management Co. and Houston Street Management Co. managed the premises. Defendants move to dismiss the […]
Deer in The Headlights
Deer-Vehicle Collisions Rise as Claims Near 8 Percent in Four Years The expanding urban sprawl finds more roads being built through wildlife habitats displacing deer from their natural habitat, leading to a rise in deer-vehicle collisions, according to the Insurance Information Institute (I.I.I.). Deer migration and mating season generally runs from October through December, and […]
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2012/ November 12/ Past Issues
IFNY Free Enterprise Award to AIG’s Robert Benmosche
The Insurance Federation of New York, Inc. (IFNY) bravely held its 98th Annual Free Enterprise Award Luncheon on November 9th, drawing a crowd of 350 insurance leaders to New York’s Cipriani Wall Street. It was the first affair held after Hurricane Sandy at the venue and, according to the Guest of Honor, Mr. Robert Benmosche, […]
2012/ November 12/ Past Issues
No Tie Required
Given the destructive power and resulting disaster that followed our recent hurricane, I believe that some systems need to come together a little better than in the past. In speaking with a friend who is very close to the adjusting process, I inferred from him that, had insurers been involved in FEMA and in other […]
2012/ November 12/ Past Issues
Insurance Solvency Regulation: Quo Vadis?
It is hard to escape hearing about Solvency II, the EU plan to strengthen the financial requirements for insurers, and the US efforts to address the consequences of these new standards on domestic companies. For most of us our eyes glaze over with the mere mention of the subject, and certainly with the details. However, […]
2012/ November 12/ Past Issues
What are the Traps in Wrap-Up Exclusions? What if a Condo/Coop Doesn’t Rebuild After a Loss? What Does ‘Reside’ Mean in a Homeowners Policy?
Jerry Trupin
Exposures and Coverages
Who said these topics aren’t related? They all begin with a W. It’s WWW; not the world wide web of the Internet but the world wide web of insurance. What Are the Traps in Wrap-Up Exclusions? Wrap-up programs combine general liability, workers compensation and umbrella insurance coverage for all contractors working on large construction projects. […]
2012/ November 12/ Past Issues
Weathering the Storm
Long Island agents’ priorities have shifted. The storm that has devastated my friends and neighbors is a top priority. While much of the Insurance Advocate’s readership is in affected areas, I still want to share my observations and invite you to share yours with me. After the storm, we have had a minor earthquake, and […]
2012/ November 12/ Past Issues
Getting Fannies In Facebook Seats
Michael Loguercio
Face to Face
So ten days have passed since I composed my most recent article on what is now being called by the mainstream media as “SuperStorm Sandy”, and I’m back on a US Airways flight only this time headed home to Long Island from our EZLynx sales meetings. Every early morning while I was away, I have […]
2012/ November 12/ Past Issues
Court Orders In-Camera Review of Insurer's Claims File to Determine What Parts Must Be Disclosed
McLaurin Fields v First Liberty Ins. Corp. Mildred Collins was the owner of the property located at 21 Tilney Avenue in Medford, New York and had a homeowners policy of insurance with the defendant until her death on July 28, 2008. The homeowners policy was renewed and issued to the Estate of Mildred Collins effective […]
2012/ November 12/ Past Issues
Defensive Medicine: How to Survive Obamacare
By Richard Amerling It’s been a horrible year for individual liberty. First, John Roberts re-writes the Obamacare legislation in order to side with the four liberals on the U.S. Supreme Court to uphold the constitutionality of the individual mandate. Then Mitt Romney, a moderate technocrat, failed to make the case to change course with the […]
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2012/ November 26/ Past Issues
FACING US NOW: A concise outline of critical national issues and their implications for your business
The Patton Boggs law firm is a national leader in public policy and related areas. We present their thinking on what faces us as citizens and business leaders. S.A. To put matters in perspective: Unless current law is amended, all of the Bush tax cuts will expire at the end of the year, as will […]
2012/ November 26/ Past Issues
Post Sandy Strategies
When Governor Cuomo announced appointments to three commissions – NYS 2100, NYS Respond, and NYS Ready – the groups charged with undertaking a review and making recommendations to “overhaul New York State’s emergency preparedness and response capabilities, as well as examining how to improve the strength and resilience of the state’s infrastructure to better withstand […]
2012/ November 26/ Past Issues
Rethinking Insurance Guaranty Funds
It’s probably a good thing that the NY Insurance Law prohibits advertising the existence or terms of a life guaranty fund in the sale or solicitation of life insurance products. The statutory caps for the NY life funds are fully committed to the $1.6 billion deficit of Executive Life Insurance Company of New York (ELNY), […]
2012/ November 26/ Past Issues
New York’s Highest Court Strengthens Policyholder’s Rights and May Place Insurance Brokers at Risk
Sari Gabay
From Counsel, Legal
On November 19, 2012, the New York Court of Appeals – the highest court of the State of New York, apparently strengthened the rights of policyholders as against their insurance brokers. In American Building Supply Corp. v. Petrocelli Group, the plaintiff-insured was required by its lease to obtain general liability insurance in the m i […]
2012/ November 26/ Past Issues
Court Orders In-Camera Review of Insurer's Claims File To Determine What Parts Must Be Disclosed
McLaurin Fields v First Liberty Ins. Corp. Mildred Collins was the owner of the property located at 21 Tilney Avenue in Medford, New York and had a homeowners policy of insurance with the defendant until her death on July 28, 2008. The homeowners policy was renewed and issued to the Estate of Mildred Collins effective […]
2012/ November 26/ Past Issues
Central Planners’ Miscalculations Have Consequences
After the election, the victors are exulting that ObamaCare is here to stay, and that the “best is yet to come” as their glorious plans to “fundamentally transform America” can proceed. In their intellectual arrogance, the power- seekers have left a key variable out of their calculations: human behavior. Their predictions, for example, of increased […]
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2012/ December 17/ Past Issues
IICF Northeast Largest-Ever Grant Distribution
The Insurance Industry Charitable Foundation (IICF) Northeast division made its largest-ever distribution of charitable grants at its sixth annual benefit dinner on Wednesday December 12, 2012. The total amount of awarded grants is $960,000. David Brinkman, chair of the IICF Northeast division board and executive managing director of Aon Benfield, reported that the division has […]
2012/ December 17/ Past Issues
The Lead Story.
I think the best way to conclude Insurance Advocate’s 123rd consecutive year of serving the industry is to run the article that appears on page 3, describing the industry’s generosity and service. We presented a similar message last issue in the IFNY story on the new charitable initiative the Federation has undertaken. It’s a story […]
2012/ December 17/ Past Issues
Wrapped in Foil!
Many, many years ago, I worked for an overly demanding boss. One day when New York City was being pummeled by record snows – one of those memorable blizzards where people were skiing down empty Manhattan avenues – my boss emerged from his office demanding that the mail be brought to him. When the receptionist, […]
2012/ December 17/ Past Issues
Insured’s Failure to Read Policy Does Not Automatically Bar E&O Claim Against Broker Dot The “I’s” and Cross the “T's" on NFIP Claims False Address on Auto Policy Voids Coverage If Contract Doesn’t Require Additional Insured Status, You Don’t Get It
Jerry Trupin
Exposures and Coverages
A Breech in the Dike? Successful lawsuits against producers by New York insureds alleging errors or omissions are few and far between. The key word is “successful.” Hope springs eternal, so there are plenty of lawsuits—just not many successful ones. A recent New York Court Of Appeals decision may change that. American Building Supply Corp […]
2012/ December 17/ Past Issues
Taste the Soup!
Michael Loguercio
Face to Face
The Holidays! They are here! …and before we can sprinkle that last bit of reindeer dust or shout out, “Now Dasher! Now, Dancer! Now, Prancer and Vixen! On, Comet! On, Cupid! On, on Donner and Blitzen! …they will most likely have passed so quickly once again! This year, as in the past, so many of […]
2012/ December 17/ Past Issues
New York’s Highest Court Strengthens Policyholder’s Rights and May Place Insurance Brokers at Risk
On November 19, 2012, the New York Court of Appeals – the highest court of the State of New York, apparently strengthened the rights of policyholders as against their insurance brokers. In American Building Supply Corp. v. Petrocelli Group, the plaintiffinsured was required by its lease to obtain general liability insurance in the minimum amount […]
2012/ December 17/ Past Issues
The Patient Protection and Affordable Care Act and the Fiscal Cliff
By: Marilyn M. Singleton, M.D., J.D. It’s doubtful that the country will be popping bottles of champagne on January 1, 2013—we can’t afford it. But we will be throwing confetti printed by the Federal Reserve over a cliff. As of November 27, 2012, the country’s debt was $16.279 trillion—just $115 billion below the $16.394 trillion […]
2011
2011 Issues - Click to View
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SECOND ACT SEEN: Jim Wrynn Seems a Logical Choice, as Govs Cuomo-tion Sets Consolidation of Insurance, Banking and Consumer Protection Depts
When Jim Wrynn “signed up” for the top job in New York’s muscular insurance regulatory arm, he inherited a lot of work in progress, but would make his mark with innovations realized under a low key styled, but no less achievement driven regime. The Superintendent of Insurance sent his mandatory resignation to the transition team […]
Wrynn Reign
The Insurance Advocate wishes Governor Andrew Cuomo success in his “deeds not words” approach to a Government that, in the new Governor’s words needs more than “baby steps” to reform. Andrew Cuomo starts off with a good wind in his sails, but is running straight into hurricane like forces including the state’s pension obligations, the municipal unions and Medicare […]
The Independent Broker who Saved Christmas
Michael Loguercio
Face to Face
As we all know, 2010 has brought many changes to the insurance industry, with undoubtedly the most notable being New York State’s Regulation 194. However, with the Christmas, Hanukah, and New Year’s season behind us, we may use this time to reflect upon some of the good that has arisen from our business. As I […]
Don't Set Sail in 2011 Without an Agency Plan – It's Not To Late!
2011 is here and what are your plans for this year? We have a new governor in a state saddled with budget issues and skyrocketing taxes. New York is hardly business friendly and that coupled with our stalled economy doesn’t make for a positive environment in which to operate your business. How do your clients […]
Insurers Delays in Paying Homeowner Claim Result in Bad Faith Judgment
On January 31, 2007, Plaintiffs home in Pelham, New York (the “Dwelling”) was substantially damaged by fire. At that time, Plaintiffs were insured by Defendant under a Deluxe Homeowner’s Policy. Due to the damage caused by the fire, the Plaintiffs could no longer reside in the Dwelling and rented another residence. They also apparently put […]
Citigroup Insurance Agencies Pay $2 Million Fine
New York, N.Y.—Three Citigroup-affiliated insurance agencies have paid a $2,000,000 fine to New York to resolve insurance law violations committed from 2003 to 2007. An Insurance Department examination of Citicorp Insurance Agency, Inc., Citicorp Investment Services, and SBHU Life Agency, Inc., found violations of the Insurance Law and Department regulations with regard to certain sales […]
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Cuomo-tion: Priorities Move to the Fore as New Governor Seeks Public Confidence
The first time the younger Cuomo ran, he did not get the Democratic Party’s support. So he went to work at a law firm, then went to HUD and became a favorite son of former President Bill Clinton, followed by a lucrative stint at a real estate investment firm. But Andrew’s political life was still […]
Two into One.
Response to our cover article on Jim Wrynn was overwhelmingly favorable toward theSuperintendent, many holding that he has not had much of a term on the job and should probably get that chance. We’re concerned about seeming to “cheerlead” for the Superintendent, but our feelings are exactly as laid out in the piece: we think he has […]
ERISA Fidelity Bond and Fiduciary Liability Conundrums
Jerry Trupin
Exposures and Coverages
ERISA fidelity bonds and fiduciary liability coverage for the fiduciaries of an ERISA plans are often confused. Both are important, but they serve different purposes. A quick take on the difference: the ERISA fidelity bond covers embezzlement from an employee benefit plan; fiduciary liability protects the fiduciaries for claims alleging mismanagement of the plan, but […]
Plastic Piles Up Profits for Agents, Ease for Clients
by Art Shea It’s Sunday evening. You just got the call that your nineteen year old son was involved in a five car accident. Your new car is totaled. You meet your son at the hospital and find out everyone is going to be OK; just some minor bumps and bruises. You finally get the […]
Smile and Say Surcharge!!
Michael Loguercio
Face to Face
How many times have you prepared to enter your car, however right before getting into the vehicle you look underneath, and in the backseat, and around the perimeter, just to see if anyone is lurking around your vehicle, ready to attack you and separate you from your hard earned money? Well, from now on you […]
No-Fault Abuse Drives New Yorkers Premiums Up
OK, I apologize for the pun and I know you’ve heard it before, but the situation is getting worse: This month, the Insurance Research Council released a study showing that no-fault auto insurance claims in New York City that were found to include “claim abuse” rose from about 29 percent to 35 percent over the […]
Insured's Failure to Update Address With Sec'y of State Does Not Excuse Late Notice of Lawsuit
If an insured does not receive lawsuit papers timely because it failed to advise the Secretary of State of its change of address, does that excuse late notice of the suit to its insurer? No, says the Appellate Division, reversing Supreme Court, New York County (Milton A. Tingling, J.). “The subject insurance policy’s notice of […]
Federal Tax Case Leads to Workers Comp Fraud Arrest
The fraud investigation of Rosa Rivera, 66, of the Bronx began when the New York State Insurance Fund learned that Ms. Rivera had been charged by federal authorities with filing false tax returns for clients of her tax preparation service. A closer look revealed that Rosa Rivera had been working as a self-employed tax preparer […]
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No Fault, No Fix, No Fuss: Why everyone loves No Fault just the way it is
What can one say about a field of law where judges write things like this in their decisions: “No-fault litigation [is] a Frankenstein monster that has assumed a life force of its own, becoming so unmanageable and uncontrollable that it acts out in ways never envisioned by its creator.” [1] “The disturbing reality [is] that first-party no-fault […]
Yesterday, Today and Tomorrow
It was one of those rare occasions when several former New York State Superintendents of Insurance, former top department leaders and “past this” and “past that” were present in the same room. LICONY held its annual reception hosted by Mutual of America on Park Avenue on February 3rd and was joined by former Superintendents Howard Mills, Eric […]
Applicability of Regulation 194
The Insurance Department continues to address inquiries regarding the parameters and application of Regulation 194. In OGC Op. No. 10-11-01, the Department opined that a producer that is a business entity, such as a corporation or partnership, is the producer “selling an insurance contract” for purposes of § 30.3(a) of Regulation 194, even though the […]
What's In YOUR Pipeline?
Michael Loguercio
Face to Face
Insurance agencies inherently know the sales process: obtain the X-date; then the policy information. Quote the risk. Deliver the proposal…and ask for the business. Have the applications signed. Get the check. While many insurance agencies have processes in place to move a sale through the appropriate steps to issuing a policy, they lack the technology […]
Lawyer Hurts His Back Because He Stood Up Suddenly During Upsetting Phone Call: No Liability
Just when you thought you’d probably heard it all, the plaintiff in this lawsuit — an attorney — alleged, among other things, that during a phone call with defendant funeral home over foul-ups during his mother’s funeral, he got so upset that he jumped up out of his chair and thereby injured his back so […]
Visualization
In my column this month I want you to do a little visualization with me. Imagine you’re a young person just graduating from college. It doesn’t matter if it’s a two year degree program through a community college or a four year degree from a state or private college or university. Maybe you didn’t […]
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2011/ Current News/ February 21/ Past Issues
SCOR Welcomes Standard & Poor’s Decision to Affirm Its “AA-” Rating
SCOR has been informed of the decision by Standard & Poor’s (S&P) to affirm the financial strength rating for the Group and its main subsidiaries at “AA-,”, with a “stable outlook,” and to maintain the counterparty credit ratings at “AA-/A-1+.” In its most recent report¹, S&P highlights SCOR’s: “Very strong business risk profile,” with a […]
2011/ Current News/ February 21/ In the Associations/ Past Issues
UJA-Federation of New York Honors Macia and Hearn
UJA-Federation of New York honored Seraina Macia, CEO of Blackboard Insurance, executive vice president, AIG, and Peter Hearn, president and CEO of Guy Carpenter & Company, LLC, at its General Insurance Annual Event on Tuesday, June 5, 2018, at the Marriott Marquis in New York City. The event drew 600 attendees and raised $1.2 million […]
2011/ Current News/ February 21/ Past Issues
In Memoriam – Paul Robert Olshen
Paul Robert Olshen – JUNE 4, 1938 – MARCH 1, 2018 Paul was a native of Brooklyn, New York and a graduate of Erasmus Hall High School and NYU “in the heights” and a proud member of Tau Epsilon Phi fraternity. Paul worked as an insurance broker for 57 years. He started his career working […]
2011/ Current News/ February 21/ Past Issues
DFS Supt. Vullo Issues Cybersecurity Filing Deadline Reminder
February 15, 2018 Compliance Certification Filing Deadline is Approaching for Covered Entities under New York’s Landmark Cybersecurity Regulation Covered Entities Must Submit a Statement of Compliance to the Superintendent of Financial Services for Prior Calendar Year DFS Has Also Added Cybersecurity Questions to “First Day Letters” Issued in Connection with Examinations of Institutions Financial […]
2011/ Current News/ February 21/ In the Associations/ Past Issues
Mock to Receive Executive of the Year at PIANY’s MetroRAP
FOR RELEASE: Jan. 12, 2018, Darel Cramer, Communication Assistant, PIANY GLENMONT, N.Y.—The Professional Insurance Agents of New York State will present Stephen Mock, principal and CEO of JLNY Group LLC, with its Executive of the Year award at its annual Metropolitan Regional Awareness Program, Jan. 25, at Roosevelt Hotel in New York. The MetroRAP […]
2011/ Current News/ February 21/ Past Issues
Vincent A. Alba, 1925 – 2017
Gina Marie Balog-Sartario
In Memoriam
by Jeanne Abatelli, TriCounty IIAA Recently, we lost one of our most beloved and dedicated professionals of all times. After serving in the US Marine Corps during WW ll, Vinny Alba spent his entire career in the insurance industry including many years doing volunteer work for the Big ‘I’ associations. His biography would go on […]
2011/ Current News/ February 21/ Past Issues
NJ Transit’s Sandy Coverage Not Capped at $100M: Court
September 5, 2017– A New Jersey judge has ruled that a $100 million sublimit for flood losses does not apply to New Jersey Transit Corp.’s claim for coverage of Superstorm Sandy damage, granting the transportation system a major win in its $400 million dispute with a group of excess insurance carriers. Ruling from the bench […]
2011/ Current News/ February 21/ Past Issues
Gov. Cuomo Announces New Actions to Strengthen the Fight Against Heroin and Opioid Addiction
$4.5 Million Request for Applications for the Development of New Open Access Centers Across New York State Requesting Information From Providers on the Development of Recovery High Schools $8.4 Million Outpatient Treatment Center Opens in Rochester Governor Andrew M. Cuomo today announced two new actions to expand addiction treatment and recovery services for people across […]
2011/ Current News/ February 21/ Past Issues
DFS Cybersecurity Regulation Compliance Requirements are Effective Today
NYS-DFS, August 28, 2017—Financial Services Superintendent Maria T. Vullo reminds all entities covered by the DFS cybersecurity regulation, that today, August 28, 2017, is the first compliance date of New York’s first-in-the-nation cybersecurity regulation. Beginning today, banks, insurance companies, and other financial services institutions regulated by DFS are required to have a cybersecurity program designed […]
2011/ Current News/ February 21/ Past Issues
NYDFS Continues Innovative Regulatory Initiatives with Launch of Online Cybersecurity Portal
DFS Continues Innovative Regulatory Initiatives with the Launch of New Online Cybersecurity Portal for Businesses Seeking to Report Cybersecurity Events in New York New DFS Portal Assists Businesses Complying with New York’s First-In-The-Nation Cybersecurity Regulation Covered Entities Can Also Virtually File Certificate of Compliance Due By February 15, 2018 July 31, 2017 — Financial Services […]
2011/ Current News/ February 21/ Past Issues
PIANY Seeks Nominations for Insurance Industry Stars
GLENMONT, N.Y.—The Professional Insurance Agents of New York is calling for nominations for its 2017 Distinction of Professionalism Awards. Nominations are due Friday, July 28, 2017. The association will honor insurance professionals who exemplify the qualities and actions that serve as a model of excellence in the insurance industry and for the independent agency system. […]
2011/ Current News/ February 21/ Past Issues
ShelterPoint to Lead the First NYS Paid Family Leave Expert Panel
Garden City, New York, (July 5, 2017) – ShelterPoint Life Insurance Company has created an expert educational panel that will discuss the impact of New York State’s Paid Family Leave (PFL) mandate on employers, employees and the business community. The discussion, titled, “What is Paid Family Leave (PFL)? What does it mean for employers and employees?” will take place […]
2011/ Current News/ February 21/ Past Issues
USI Insurance Services Announces Agreement to Purchase Wells Fargo Commercial Insurance Business
VALHALLA, N.Y., June 27, 2017 – USI Insurance Services (“USI”) has entered into an agreement with Wells Fargo & Company (“Wells Fargo”) (NYSC:WFC), to purchase Wells Fargo Insurance Services USA (WFIS), which includes its Insurance Brokerage and Consulting, Employee Benefits and Property & Casualty national practices, along with Safehold Special Risk, Small Business Insurance, Student […]
2011/ Current News/ Editorial/ February 21/ Past Issues
EquityComp Wins / Products Out in Full Force
EquityComp has officially – and apparently favorably – resolved its dispute with the California Department of Insurance. While reports in the media to date and advisories from various unofficial sources have been factually inaccurate, the EquityComp program has been at a standstill in many states for new business since the middle of last year. Today, under […]
2011/ Current News/ February 21/ Past Issues
Governor Cuomo Announces Approval of First Application for Autonomous Vehicle Demonstration in New York
First Autonomous Vehicle Demonstration to Take Place in Albany on June 13 Photo Available Here Governor Andrew M. Cuomo today announced that Audi of America Inc. is the first company approved to perform an autonomous vehicle demonstration in New York State. Earlier this month, the Governor announced that New York is now accepting applications from companies […]
2011/ Current News/ February 21/ Past Issues
Hamilton Insurance Group Appoints New Chairman and Interim Group CEO
Hamilton Insurance Group Appoints William C. Freda as Chairman, and David A. Brown as Interim Group CEO HAMILTON, Bermuda, May 15, 2017 – Hamilton Insurance Group (“Hamilton”), the Bermuda-based holding company for property and casualty insurance and reinsurance operations in Bermuda, the US and at Lloyd’s, today announced that William C. Freda has been appointed […]
2011/ Current News/ February 21/ Past Issues
Experts Expect Simultaneous Cyber Attacks on Multiple Companies: AIG
On the wave of the massive cyberattack just a day or so ago comes an excellent article from Carrier Management and American International Group. Heads’ up everyone! ** ** ** ** ** ** ** May 12, 2017–Nine in 10 global cybersecurity and risk experts believe that cyber risk is systemic and that simultaneous attacks on […]
2011/ Current News/ February 21/ Past Issues
The Life Insurance Industry Advocates for Modernization in Albany
Life Insurance Council of New York Members Push for Measures That Will Allow New Yorkers to Have Access to More Insurance Products, More Quickly May 2, 2017—Senior executives from New York’s life insurance companies are meeting with state leaders in Albany (today) as part of the Life Insurance Council of New York’s (LICONY) Day on […]
2011/ Current News/ February 21/ Past Issues
DFS Superintendent Vullo Supports CSBS Lawsuit Challenging Proposed OCC “Fintech” Charter
This just in from New York State Department of Financial Services . . . . . April 26, 2017 : Statement by New York Financial Services Superintendent Maria T. Vullo Regarding the Lawsuit Filed by the CSBS Challenging the Authority of the Comptroller of the Currency to Create a Nonbank Special-Purpose National Bank Charter for […]
2011/ Current News/ February 21/ Past Issues
DFS Reminds Health Insurers of Their Obligation to Cover Office Visits That Also Include Medical Marijuana Certification, Among Other Services
NYDFS—April 12, 2017—Financial Services Superintendent Maria T. Vullo announced today that the Department of Financial Services (DFS) is reminding all insurers authorized to write accident and health insurance in New York State, including health maintenance organizations, student health plans and municipal cooperative health benefit plans, that they must provide coverage for office visits for covered […]
2011/ February 21/ Past Issues
Departmental Consolidation: Seward Sees Folly in Fast Tracking Cuomo Plan
Senator James Seward (R-Oneonta) and Chairman of the Senate Majority Insurance Committee said “we are going to proceed very cautiously on that. We are willing to sit and talk about it and see if something can be worked out, but I want to proceed cautiously for a number of reasons.” “In my mind,” continued Senator […]
2011/ February 21/ Past Issues
Sic Transit
Our recent cover article on “No-Fault” has drawn a lot of fire from both of the equation. In this issue, we present one of the more acrid letters we received, from Attorney Craig Bruno. We commend that you read it (page 3). The issue simply will not go away and we will keep up the […]
2011/ February 21/ Past Issues
Deviations from Policy Forms
The Department recently issued two Office of General Counsel Opinions related to unapproved deviations from policy forms. Most recently, on January 31, 2011, in OGC Op. No. 11-01-08, the Department opined that an insurance agent or broker may not complete a certificate of insurance that purports to amend, expand, or otherwise alter the terms of […]
2011/ February 21/ Past Issues
Stolen Property is Recovered, Who Gets To Keep It? Three Clues: Adhesion, Ambiguity, and Contra Proferentem
Jerry Trupin
Exposures and Coverages
In 1976, thieves stole Helen Thompson’s portrait of her Colonial ancestors, John Apthorp and his two daughters, painted by Angelica Kauffmann, a founding member of the British Royal Academy. In March 2007, the painting was recovered when an art dealer saw it listed in the Art Loss Register.1 The total value of the property stolen […]
2011/ February 21/ Past Issues
A New Regulatory Regime? New Yorks Proposal to Merge its Insurance and Banking Departments and Consumer Protection Board into a Single Agency
By Mark Peters and Mohana Terry, Edwards Angell Palmer & Dodge LLP On February 1, 2011, New York Governor Andrew Cuomo unveiled a proposed 2011-2012 executive budget (the “Executive Budget”). As part of the Executive Budget, the Governor submitted a bill (the “Bill”) merging the Insurance and Banking Departments and the Consumer Protection Board into […]
2011/ February 21/ Past Issues
Imagine if these Winter Blizzards Had Been Summer Hurricanes
I received a phone call this week from a former client whose entire family I used insure. About two years ago, the whole family left my business to go with State Farm for cheaper policies. Now, they’ve all received non-renewal notices because their homes are too close to the coast. I’m glad they came back to […]
2011/ February 21/ Past Issues
ACT ACORDingly!
Michael Loguercio
Face to Face
“So what do you say when someone says to you “Is it cold enough for you?” Well, I usually say how “I wanna go to Flo- Ri-DA!” and this past weekend I did have an opportunity to visit the Sunshine State, even though it was only for two days. As a member of the ACT […]
2011/ February 21/ Past Issues
Auto Insurers Default at Arbitration Results in Being Forced to Provide Coverage Where None Existed
This was a petition by American Country Insurance Company for an order vacating an arbitration award against it on the basis that the arbitrator “exceeded her authority, it was rendered in violation of and the decision is utterly arbitrary.” Neither MVAIC nor AAA opposed this motion and the Court decided it on default. “American Country […]
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Christie Liberates Captives
By Gregory V. Serio New Jersey Governor Chris Christie’s recent enactment of legislation into law allowing for the creation of captive insurance companies in the Garden State has not only created a new economic opportunity there but also has brought about a moment of reckoning for his neighbors to the East. New York, once counted […]
NYSID REPORT P/C FRAUD
The NYSID together with other State and Federal agencies have stepped up the fight against fraud. The Annual Report of the Superintendent of Insurance on the operations of the Frauds Bureau and an assessment of the insurance industry’s anti-fraud efforts for 2010, which reveals an aggressive, even creative approach…and good options. A total of 668 […]
Score Card
One area in which the Insurance Advocate has been consistent is our attack on insurance fraud and our deep concern over the indifference in some quarters to problems that afflict New Yorkers as a consequence; for example the no-fault system – see our February 7th issue. In this issue we present the Insurance Department’s Property Casualty Fraud Report […]
SOS (Save Our Schools)
Michael Loguercio
Face to Face
I’m sure you have been hearing and seeing all of the commercials, newspaper articles, and conversations about states around the nation where governors and legislatures have cut spending in areas that may personally affect so many of us, either directly or indirectly. One area of importance to all is in the area of education. Whether […]
Default Denied in Pip/Um Subro Suit for Failure to Plead Essential Facts
The Court’s duty is not “ministerial.” If subject matter jurisdiction is lacking, the Court should “refuse to proceed further and [should] dismiss the action.” This court decision involves a fact pattern that is not often litigated: it is a PIP and UM subro suit against a non-covered person — that status applying because the defendant […]
Convincingly Communicated
As I write this column Japan has just experienced a major earthquake, a tsunami and 2 nuclear power plant explosions. The news is inundated with stories and footage of the damage. When you look at the desperation and agony on the face of the Japanese people your heart breaks. Many have lost their home and […]
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Two into One
We believe–perhaps it’s self-delusion–that our column calling upon legislators and the governor to forego the idea of merging banking, insurance, and consumer protection, simply merging of insurance and banking, may have had some influence on the outcome. Frankly, we do hear regularly from legislators’ staff and of course from industry leaders all the time. We […]
Worksite and Indemnity Limited Benefit Medical Plans: Whats Fact, Whats Conjecture?
By Matthew Esposito Even such respected writers as Mr. Wendell Potter whose recent piece in the New York Times doubts the usefulness of this particular insurance product, may be correct about some things some of the time, but may be woefully wrong about others all of the time. Half-truths can prove inflammatory and unduly shake trust. While […]
Something Youll Want to Tell Your Insureds; One New Development; and Two Points Ive Overlooked
Jerry Trupin
Exposures and Coverages
What Happens When Plaintiff Sues Your Insured By Serving the NY Secretary of State And the Summons Never Reaches Your Insured? When your insured incorporated or formed an LLC, it agreed to permit claimants to serve notice of suit on the Secretary of State instead of serving the insured. Upon receiving service, the Secretary of […]
You Want Sprinklers On That?
Michael Loguercio
Face to Face
One hundred years ago this past March 25th, a fire at what was known as The Triangle Shirtwaist Factory in Manhattan, NY, killed 146 factory workers. At the time it was the largest number of deaths in one single incident (obviously that number was surpassed on September 11th) and caused cities around the country to […]
Spreading Some Good News
Reviewing recent headlines can be a depressing endeavor lately: The European economy; our northeast weather, the Libyan dictatorship and treatment of its people; the news of the earthquake, tsunami and subsequent nuclear crisis in Japan … I could go on and on, but I just don’t want to. … things seem just horrible in the […]
Retroactive Cancellation of Policy OKas to Insured and Anyone Else a Party to Misrepresentation Due to Lack of Insurable Interest
Defendant Allstate Insurance Company moved for summary judgment under CLPR 3212. Plaintiffs Luis Rodriguez and Rafael Jiminez subsequently moved to preclude defendant from testifying at trial and to strike its complaint, or in the alternative, for an order scheduling depositions with preclusionary language. Plaintiff Rodriguez was the holder of an automobile insurance policy with defendant. […]
Donating Commissions to Charity
New York State Insurance Laws prohibit rebating and inducements in the sale of insurance. But when, and under what circumstances, can a licensed agent or broker donate a portion of commissions to charity? By way of background, Sections 2324 and 4224 of the Insurance Laws prohibit licensees from directly or indirectly paying, allowing or giving […]
Annuities, Life Insurance Buyers Protected Under New State Regs
Two new regulations to combat misleading practices in the sales of annuities and life insurance to senior citizens and other consumers were introduced by Insurance Superintendent James J. Wrynn. The two emergency regulations that have been put in place by the New York State Insurance Department: • Require that only a suitable annuity, based on […]
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Notes on the Merger of New Yorks Insurance and Banking Departments
By William D. Latza and Michael J. Moriarty Editor’s Note: This article was originally published on March 29, 2011. On March 31st, Governor Cuomo announced passage of the New York State Budget Bill for 2011-2012 that contained the authority to merge the New York State Insurance and Banking Departments. The New York State budget for […]
Upstate: 13 Arrested for Scamming WC System
Thirteen people from eight counties have been arrested on charges they cheated New York’s workers’ compensation system, working side jobs while collecting benefits for injuries they purportedly left them physically unable to work. The arrests followed investigations by the New York State Insurance Department’s Frauds Bureau, the New York State Insurance Fund, along with investigators […]
They Made Me an Offer I Cant Refuse
Michael Loguercio
Face to Face
So how many of you have close millionaire friends living in Nigeria; or wealthy long lost relatives in the United Kingdom, or intimately know members (named Smith) from a Board of Governors of a country that you never even heard of that want to share their fortunes with you? Or maybe instead of your kid’s […]
Front End Loader Comes Under Industrial Code Section Dealing With Backhoes and Power Shovels, Holds Court of Appeals
The Court of Appeals holds here that “front end loaders” come within the same section of the Industrial Code which prescribes safety measures which must be used with “backhoes” and “power shovels,” even though front end loaders are not specifically mentioned. As a result, a plaintiff who was injured when a pipe fell from a […]
Candid Reflections
Over the last few weeks the question has come up several times as to why I left being an independent agent to join IIABNY. A fair question as I know when I was an agent and I would hear former agents extolling the virtues of being an independent agent and I always wondered why that […]
So far, so good
We can not but observe that the Business Council is actually happy with the budget process for the first time since we’ve been following it, going back to the 1980’s. We can not help but observe that a compromise was reached in the consolidation of the Banking and Insurance Departments —the desired result in our […]
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The Industry in 2011: Ups and Downs Reflected in Results P/C Insurers Results for 2010 Bolstered By Investments, As Underwriting Results Deteriorate
Private U.S. property/casualty insurers’ net income after taxes rose to $34.7 billion in 2010 from $28.7 billion the year before, with insurers’ rate of return on average policyholders’ surplus — a key measure of overall profitability — increasing to 6.5 percent from 5.9 percent, according to ISO and the Property Casualty Insurers Association of America […]
The Clock is Ticking Set an Alarm for Your Insureds
Jerry Trupin
Exposures and Coverages
Allegany Co-op Insurance sent its insured, Michael Stoppani, a letter demanding a proof of loss in connection with fire damage he had reported. The letter was sent by both regular and certified mail. Michael received the certified mail letter on March 9th, 2009. He submitted the proof of loss on May 8th, 2009, which is […]
Temporary Tarps Over Roof Openings During Construction Are Not A Roof No Coverage For Personal Property Damaged By Rain
The plaintiffs alleged that their home and its contents were damaged as a result of a rainstorm. They filed a claim under a homeowners insurance policy issued by the defendant, Graphic Arts Mutual Insurance Company. Graphic Arts informed the plaintiffs that the damage to their home was covered under the policy. However, it disclaimed coverage […]
He Could-Go-All-The-Way!
Michael Loguercio
Face to Face
Many of you I am sure, no matter where in the country you reside, have heard the phrase “He Could-Go-All- The-Way!” spoken numerous times by one of the leaders in sports media. There are probably hundreds of pieces of video tape out there that have a football player running down the sidelines, while this famous […]
Deloitte Views Claims; First Rehab Views Growth.
Given the industry’s 2010 results – our cover story- here’s a timley report. “Driving Operational Excellence in Claims Management,” just issued by Deloitte finds that property / casualty insurers who upgrade to better claims management also increase efficiency, reduce costs, and improve customer and agent service..” To enhance operational excellence in claims, the report suggests […]
Agents: Between A Rock and a Hard Place
Last month, my agency hosted the Professional Insurance Agents of New York’s spring Long Island Advisory Council. PIA holds its Advisory Council meetings around the state twice a year. The meetings are a great source for the association to hear input from its members about the benefits and services it provides and to learn what […]
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First Rehab Adds Davis Vision
First Rehab Life (The First Rehabilitation Life Insurance Company of America) has introduced Group Vision Insurance with Davis Vision effective May 2011. The updated product launches first in the company’s home state of New York and will be available in a growing number of states by the end of 2011. First Rehab Life partnered with […]
A Tip of The Hat…
Congratulations to Adam Friedlander on his soon–to –be–published landmark book on WC…..to Frank and Ellen Mastowski, founders of Jimcor Agencies, on 25 years of service as an MGA/Wholesale operation with 7 branch offices throughout the Northeast and 150 employees, including the Mastowskis’ agency partnerships and two children–Coryn and James—currently Co-CEO’s—of the Montvale, NJ based enterprise…to […]
Osama Sleeps With the Fishes
Michael Loguercio
Face to Face
Did you hear the one that Osama Bin Laden is now a TV star? He’s starring in the next Shark Week! What was the last thing Osama said when the United States showed up at his door? “I need a Navy Seal like I need a hole in the head!” Da Dum Dum! “What was […]
PIANY LI RAP Features Award Presentations
More than 350 attended the PIANY’s LI RAP session on May 5th and were treated to a large trade show, educational offerings and an important awards luncheon. Trish Dean, marketing director for Morstan General Agency, won the Louis A. Morelli Memorial award. The award recognizes an individual in the insurance industry who has demonstrated those […]
Where The Rubber Meets The Road
Ijust finished my weekly IIABNY Live! webcast where we talked about this same subject – claims handling. Unfortunately I am very familiar with this subject as I just had both a homeowners and an auto claim in a month’s span. Before you jump to conclusions and assume I am a bad client I want to […]
Cuomo Spurs Investigation: 46 Arrested for Fraudulent Multiple Licenses
Governor Andrew M. Cuomo announced that 46 commercial drivers, including bus drivers, were arrested in and around New York City for fraudulently obtaining multiple driver licenses using an alias. The arrests, made possible through the state’s use of facial recognition technology, were part of the Governor’s ongoing crackdown on bus safety that began March 17. […]
City Court Has Jurisdiction to Hear Suits Over Property Insurance Where Defense is Based on Exclusion
Royal Housing LLC v Allegany Co-op Ins. Co. Do the lower courts (such as City Court, in this instance) have jurisdiction to hear suits for insurance benefits where the defense is an exclusion? Yes, holds the City Court of Jamestown in this case. Allegany Co-op Insurance Company moved for an order dismissing plaintiff ’s complaint […]
Crummell v Avis Rent A Car Sys., Inc.
Does “additional coverage” — insurance over and above the statutory minimum — purchased by someone who rents a car, extend to other drivers not authorized by the rental agreement? This court holds “no.” In this action, plaintiff Clarence Crummell (“Plaintiff”) seeks to recover for personal injuries allegedly sustained in a motor vehicle accident on June […]
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Unanimous Confirmation: LAWSKY TO HEAD NEWLY CONSOLIDATED DEPARTMENT OF FINANCIAL SERVICES
By Sabrina Pry Albany, N.Y.—Benjamin M. Lawsky has been confirmed Superintendent of the soon to be created New York State Department of Financial Services (DFS). DFS – a product of the merger of the State Banking and Insurance Departments – will begin operations on October 3, 2011. “I am both deeply honored and humbled to […]
Stick ‘em Up!
Michael Loguercio
Face to Face
Over the years I have written in my column about numerous ways that bad guys try to dupe us into sending them our hard earned money through the use of fictitious email scams, phishing expeditions, and spoofing amongst other methods designed solely to fraud and deceive unsuspecting or unknowing potential victims. Although their M-O’s may […]
Restaurant Had Plenty of Reason to Believe That Patron’s Death From Food Poisoning Would Result in a Claim
“This is an insurance coverage dispute concerning whether plaintiff Tower must defend and indemnify its insured, defendant Babylon Fish & Clam, Inc. (Babylon), under an occurrence-based commercial general liability insurance policy. The underlying lawsuit is a wrongful death action brought by defendant Sandra Menken, individually and as executor of the estate of Michael J. Menken, […]
Obligation to Report Arrests
Section 2110(j) of the New York Insurance Laws, which became effective in 2004, requires an insurance producer to report any criminal prosecution of the licensee in any jurisdiction, “within thirty days of the initial pretrial hearing date.” Although enacted 6 years ago, Section 2210(j) is the subject of numerous disciplinary actions in the Department’s most […]
Is Insurance Going to the Dogs?
Jerry Trupin
Exposures and Coverages
Dog bites have become a major insurance issue. The American Association of Insurance Services (AAIS) has just announced that it will be filing an exclusion for use with its homeowners and personal umbrella forms that will eliminate BI and PD liability coverage for claims arising from direct physical contact with any (emphasis added) canine. According […]
Honors, Letters, Appeals
In this issue we introduce Benjamin Lawsky, the new Superintendent of New York’s newly combined Departments of Insurance and Banking and note, with pleasure, that Jim Wrynnwill remain on the team on the insurance side. Thanks to our Albany team for hammering out this piece on deadline, falling exactly the day of the confirmation hearings… …Jan […]
Full circle
Last month, I received a brochure from Forrester and Co., congratulating me because Ruchman Associates reached its 50th anniversary this year. Fifty years! It gave me pause to consider my career. As I reflected on my experience in the industry, there are two things I can say without doubt: One is that things sure have […]
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Attempt to Save Premium is Costly to Insured
Living in New Jersey but Insured in Florida is Fraud No one like to pay insurance premiums. However, in a state like New Jersey, insuring a vehicle with No Fault insurance is mandatory. Since insurance in Florida is less expensive than in New Jersey a resident of New Jersey was tempted to and, in fact, […]
NYIA Annual Conference: Newly Confirmed Financial Services Superintendent Outlines Vision in Keynote Address
Benjamin Lawsky, the newly confirmed, first-ever Superintendent of the New York State Department of Financial Services outlined his vision for the state insurance and banking industries during his keynote address at the New York Insurance Association (NYIA) Annual Conference on Thursday, June 2 in Verona, New York. Superintendent Lawsky noted that there were four main […]
Rice Honored at New York Insurance Annual Conference
VERONA, N.Y‚—The New York Insurance Association, Inc. (NYIA) honored Jeffrey W. Rice, CPCU, ARe, president and chief executive officer of Wayne Cooperative Insurance Company with NYIA’s 2011 Chair’s Distinguished Service Award at the association’s annual conference on June 2 in Verona, N.Y. “Jeff has made tremendous contributions to both the New York Insurance Association and […]
Governor Cuomo Appoints Hayes, Bing to Key Insurance Posts
Gov. Andrew M. Cuomo announced the appointment of Dennis J. Hayes to serve as Chief Executive Deputy Director of the State Insurance Fund. Most recently, Mr. Hayes was the Special Deputy Superintendent of the New York Liquidation Bureau (NYLB). He had previously served as Assistant Special Deputy Superintendent of the NYLB, where is oversaw the […]
“…in Public Places”
So proud to see people we feel we “grew up with” in the business achieving status that-and that their careers more than merit. Last week we referred to Dr. Ellen Kiehl and to Mark Yavornitski – whose picture we received together with our dear friend Ben Brewster, who came up from Florida for the event […]
Analyze This!
Michael Loguercio
Face to Face
We all know how technology has affected every part of our lives, and this thing of ours is certainly no exception. As a matter of fact, think back a few years when we had little to no technology in our offices, and I’m sure you will now say, “How did we ever do without it?” […]
Compensation for Sale of Customer Lists
The Insurance Law permits an insurance broker or insurance agent to pay unlicensed individuals or entities for referrals. That is, where there is no discussion of insurance policy terms and the compensation is not based upon the sale of insurance. Under limited circumstances briefly explained here, a licensee may even compensate a nonlicensee based upon […]
Why Aren’t We Growing As We Planned?
My daily conversations with agents and brokers center on the marketplace and how to write more business. Every day another report or survey is released on consumer buying preferences. First consumers are buying more frequently from the internet and then the majority wants to do business with an independent agent or broker. You can go […]
IIABNY Lauds Senate Bill Creating Role for Agents in Health Insurance Exchange
DeWitt, N.Y.—The Independent Insurance Agents & Brokers of New York has applauded a State Senate bill that would guarantee a role for agents and brokers in the state’s forthcoming health insurance exchange. Senate Bill 5652, introduced by Senators James L. Seward (RMilford) and Kemp Hannon (R-Garden City), is the first formal proposal for creating New […]
PIANYOfficers Meet With Legislators in Albany
GLENMONT, N.Y.—Donna Chiapperino, past president, Richard Savino, president-elect, and Bruce Rowledge of The Professional Insurance Agents of New York State, Inc., met with local lawmakers in Albany on key issues affecting independent insurance agents in New York state. They met with the following area legislators: Brian Murphy, counsel for Sen. Kenneth LaValle, R-1; Sen. Jack […]
Municipal Parking Lot Defects Require Prior Written Notice Before Lawsuit, Says Court of Appeals
Groninger v Village of Mamaroneck Plaintiff commenced this personal injury action against the Village of Mamaroneck after she slipped and fell on ice in a parking lot owned and maintained by the Village. The Village moved for summary judgment dismissing the complaint, asserting that it had neither received prior written notice of the defect (see […]
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What’s on the minds of the analysts?
1. Social Media Use Implies Future Risks, Trends PALM BEACH, FL – As social media use gains in importance in connecting insurers with policyholders and prospects, social media tools are producing voluminous metrics ripe for expert analysis – notably among actuaries. However, actuaries currently do not have a place at the social media table, and […]
No, YOU Stick ‘Em Up!
Michael Loguercio
Face to Face
In this very column last month in a piece I affectionately titled “Stick ‘Em Up!”, we talked about how unscrupulous people use different methods of technology to defraud and deceive unsuspecting or unknowing victims out of their hard earned cash. We also talked about different ways that insurance agencies (and all businesses for that matter) […]
InVest Ponies Up Dollars: It’s A People Business.
Liberty Mutual Group CEO Edmund F. “Ted” Kelly retires from active management effective June 28th and is succeeded by President David H. Long. Ted Kelly, an Insurance Federation of New York, Inc. Free Enterprise Awardee and model executive, will continue to serve as chairman of the board of Liberty Mutual Holding Co. Mr. Long, a 25-year Liberty Mutual […]
Industry Events and Networking; A "Shore" Thing!
Last week, I had the opportunity to participate on a panel named Coastal insurance: It’s a shore thing, during the New York Insurance Association convention, at the Turning Stone Resort in Verona, N.Y. I was able to visit with many well-known industry representatives, as the event was attended by insurance company executives, and key members […]
Don’t Deduct Depreciation When Calculating Actual Cash Value (ACV) for a Partial Loss?
Jerry Trupin
Exposures and Coverages
Does Actual Cash Value equal replacement cost less depreciation? Don’t be so sure. A recent NY court case held that the insurer could not deduct depreciation when calculating the actual cash value of a partial loss1. The valuation provision in the policy read as follows: 9. Valuation We will determine the value of Covered Property […]
Cop Run Down by Fleeing Suspect is Entitled to UMArbitration
In a proceeding pursuant to CPLR article 75, inter alia, to permanently stay arbitration of a claim for underinsured motorist benefits, the petitioner appeals from an order of the Supreme Court, Putnam County (Nicolai, J.), dated November 15, 2010, which, after a framedissue hearing, denied that branch of the petition which was to permanently stay […]
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Common Law Indemnification is not Triggered by Supervisory Duties – Actual Supervision is Required, Holds Court of Appeals McCarthy v Turner Constr., Inc.
The issue before the Court is whether defendant-property owners Boston Properties, Inc. and Times Square Tower Associates, LLC are entitled to common law indemnification from defendantgeneral contractor John Gallin & Son, Inc. For the reasons that follow, we hold they are not. The property owners leased a retail storefront located at 7 Times Square Tower […]
Do I Get Free Maintenance With That Policy?
Michael Loguercio
Face to Face
Now I know most of you who read this column do your best to “sell” insurance coverage mostly on the quality of the coverage and services that you provide, as opposed to just on price. However, have you ever given any thought on how you would continue this business practice of yours if well, let’s […]
State Specialists List for 2011 New York, New Jersey, Connecticut, Pennsylvania and Washington DC
In 2007, Demotech, Inc. created an industry wide, objective classification system for property and casualty insurance companies. The Demotech Company Classification System categorizes all property and casualty insurers into one of eleven categories based on Demotech’s analysis of the data reported by the companies. The eleven categories in the Demotech Company Classification System are Nationals, […]
“Health Exchange” Bill Moves, then Slows in N.Y. Legislature
According to Senator Kemp Hannon (R – Nassau) and Chair of the Senate Health Committee and Senator James L. Seward (R-C-I – Oneonta) Chair of the Senate Insurance Committee, the bill was directed to the Senate Rules Committee due to several intensive discussions which could not be completed before the recess of the Legislative Session, […]
Ink Ready: Insurance Bills likely to see Governor Cuomo’s Signature
Legislation pertaining to insurance have passed both houses of the Legislature and are now before Governor Andrew M. Cuomo. The bills range from Medicaid coverage for portable x-ray services to the definition of insurance fraud. Following are the bill summaries: Exemption from Certain Rate and Form Approval Requirements Policies for Large Commercial Insureds and Special […]
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Whistle Blowers
Much has been published in the general and financial press about policy choices of Congress and the executive branch that give businesses in virtually every industry reason to reevaluate the potential for liability under whistleblower regimes. Underwriting risk as a companion to corporate liability arising from whistleblower disclosures merits similar front-burner attention. Such risk might […]
You Know You’ve Had Too Much Shark Week When…
Michael Loguercio
Face to Face
So I’m sitting here on the sofa, clicker in hand, repeatedly flashing back and forth between Shark Week on Discovery Channel, and Mob Week on AMC. Now of course I could DVR either one (or both), and then watch them consecutively later on, even fast-forwarding through the commercials… but who wants to wait another hour for two of my […]
Volunteering and the Verrazano Bridge
One of the first things I learned when I was in the army was never volunteer for anything—and that philosophy worked well for me in the service. But, I found this is not the case with regard to my career as an independent agent. Volunteering in my community opened up opportunities for me—it built my […]
Gentlemen and Scholars.
If ever there were a gentleman in the legal community it’s Allen Roberts, whose feature article written together with his partner Stuart Gerson appears on our pages. Allen is well known in the legal community and in the community of those who support humane treatment of animals. He is well known, too, in the New York social world, […]
Changes in the Works for WC Experience Rating Plan; Rescinding a Policy for Unintentional Error in Application; and Reports from the Real World
Jerry Trupin
Exposures and Coverages
There’s a big change coming in how workers’ compensation experience modifications are calculated. NCCI (National Council on Compensation Insurance) actuaries have recommended increasing the $5,000 primary/excess split point to $15,000. For example, at present a $50,000 claim would be result in a $5,000 primary loss and a $45,000 excess loss. Under the proposed change, $15,000 […]
Time to Reflect
I’m just getting caught up from being away for a week on vacation. That in itself is an interesting statement. How many of us have so much work and responsibility at our jobs that a week away on vacation means working extra when you return? That doesn’t even take into consideration the e-mails that got […]
Common Law Indemnification is not Triggered by Supervisory Duties – Actual Supervision is Required, Holds Court of Appeal
The issue before the Court is whether defendant-property owners Boston Properties, Inc. and Times Square Tower Associates, LLC are entitled to common law indemnification from defendantgeneral contractor John Gallin & Son, Inc. For the reasons that follow, we hold they are not. The property owners leased a retail storefront located at 7 Times Square Tower […]
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2011/ Past Issues/ September 12
“Your Cheque is in the…Morgue!”
Sometimes revolutions start off quietly and build and build until you wake up one morning and find that everything has changed…almost overnight. This is the case with Insurcard, a relative new comer to the insurance business that will revolutionize the way claims are paid and settled, whether they be single payment or long-term payment formats. […]
2011/ Past Issues/ September 12
What’s Next…Locusts?
Michael Loguercio
Face to Face
So last week I’m sitting in my car, waiting on line to get gas at the Sunoco station located in the town on Long Island where I live. Waiting on a line for gas was eerily reminiscent of the gas crisis of the 70’s, only the difference now was that back in those days my […]
2011/ Past Issues/ September 12
What’s Lacking.
As I write this column a significant number of Americans are still reeling from the devastation of Hurricane Irene. For some it may take years before they put themselves back together. As Irene approached the eastern seaboard concerns ran high that this could be the storm that devastated metropolitan areas along its path especially New […]
2011/ Past Issues/ September 12
No Fault Flux: Is Central General Hospital v. Chubb Still Good Law?
Ever since the seminal decisions by the New York Court of Appeals in 1997 in Presbyterian Hospital in the City of New York v. Maryland Casualty Company2 and Central General Hospital v. Chubb Group of Insurance Companies,3 the contours of no-fault law have been relatively clear: With the “exceptional exception”4 of a narrow category of defenses classified as […]
2011/ Past Issues/ September 12
Customer Shot Outside Diner; Diner Not Liable
Facts and Arguments On February 16, 2009, plaintiff Omar Ramnarine was a customer of the Cozy Soup and Burger, Inc. diner (“diner”) which is located in Greenwich Village on Broadway near Astor Place. The diner is open 24 hours a day, 7 days a week. At approximately 5:00 a.m. that day, plaintiff left the diner […]
2011/ Past Issues/ September 12
Capital Event
Kudos to Maura Clancy and fellow members of the IFNY Board for a stellar cocktail reception on September 7, 2011, at the New York Capital Grille in lower Manhattan. At first, organizers were not sure that the date would work coming as it did 24 hours after the Labor Day break. But, in fact, it was quite […]
2011/ Past Issues/ September 12
Bodily Injury Liability Insurance: It Can Be an Emotional Issue
Jerry Trupin
Exposures and Coverages
ISO defines bodily injury in the CGL form as follows: “Bodily injury” means bodily injury, sickness, or disease sustained by a person, including death resulting from any of these at any time. In response to a posting on RiskList1 questioning the application of the definition, Bill Wilson, insurance maven and Dean of IIABA’s Virtual University, […]
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2011/ Past Issues/ September 26
The Aftermath
Michael Loguercio
Face to Face
When we last spoke, we were chatting about an earthquake, Hurricane Irene, and even a rare sonic boom that all had an impact over the eastern United States, and in the instance of the sonic boom more specifically over eastern Long Island, New York. Although I made light of some of the aspects of those […]
2011/ Past Issues/ September 26
Reflections on the Season
I’ve noticed an autumn chill in the air at my home in the Berkshires … and while I’m sure there’s an “Indian summer” weekend or two left this season, this time of year is always a reminder that we live in a dynamic world! One recent example is the Professional Insurance Agents of New York’s […]
2011/ Past Issues/ September 26
Property Insurer's Issuance of Check to Insured May Have Waived Proof of Loss Requirement
Order, Supreme Court, New York County (Emily Jane Goodman, J.), entered December 1, 2009, which denied the motions of defendants Harleysville Worcester and Alexander Wall for summary judgment dismissing the complaint and all cross claims as against them, unanimously affirmed, without costs. In this action for insurance coverage and damages resulting from a raccoon infestation […]
2011/ Past Issues/ September 26
CONSOLIDATION: OCTOBER 3RD
One of the hallmarks of the first several months of the administration of New York’s Governor Cuomo was the presentation and adoption of his plan to consolidate the regulation of financial services, including the merger of the banking and insurance departments. The new law, The Financial Services Law, was enacted on March 31, 2011, and […]
2011/ Past Issues/ September 26
A Date with DFS
October 3rd marks the date of consolidation of the New York State Insurance Department and the New York State Banking Department into the Department of Financial Services, under the leadership of Benjamin Lawsky. The Insurance Advocate has applauded this consolidation, brainchild of the Cuomo administration, as a cost savings and effectiveness — increasing measure. Nonetheless, as with any […]
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Tumbling: ISO/PCI Results for First Half 2011
Tumbling is the operative word, as insurers deal with several catastrophes’ impact. Private U.S. property/casualty insurers’ net income after taxes fell to $4.8 billion in first-half 2011 from $16.8 billion in first-half 2010, with insurers’ overall profitability as measured by their annualized rate of return on average policyholders’ surplus decreasing to 1.7 percent from 6.4 […]
Get On the Bus or Be Left Behind
The insurance business is in a significant period of transition. The world is changing quickly driven by technology and the influence of the younger generations. The change is very evident in personal insurance and it is starting to effect commercial lines as well. There are many folks in our business who refuse to acknowledge this […]
EZLynx Told Me To Go Take a Hike…
Michael Loguercio
Face to Face
…and WHAT a hike it was! Here, let me explain…the last time we spoke I told you that I am now the Regional Sales Manager for Webcetera, providers of EZLynx. Well, being an old timer in this thing of ours but new to Webcetera, the President of our company thought that it would be a good idea […]
Doctor Liable for Patient’s Jewelry Handed Over Before Scan and Then Lost
Plaintiffs have sued defendant seeking to recover $6,970.00, said sum representing the value of plaintiff, Christina J. Rousseau’s, engagement ring that was either lost or stolen while she was undergoing some medical examinations at the defendant’s place of business. Plaintiffs claim that the defendant failed to safely secure her personal belongings while undergoing tests and […]
Amazing
Crooks are amazing! Just last week a group of thieves taking advantage of New York’s no-fault policies (which pays drivers up to $50,000.00 per person for injuries suffered in car accidents was busted by an antifraud team. Operating in east Flatbush, Brooklyn, and Rosedale Queens, these fraudsters recruited doctors to front as owners of clinics […]
Additional Insured and Hold Harmless Agreements Pose Problems
Jerry Trupin
Exposures and Coverages
Complying with the additional insured requirements imposed on their insureds and reading the hold harmless agreements those insureds have signed increases the agita of insurance agents and brokers. But, as we reach for the antacid, we want to remember that achieving additional insured status and being indemnified by contractors are vital risk management techniques for […]
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Insurance and Dementia
You read that right …and it’s serious. The Geneva Association is co-hosting and organizing a conference with Sun Life on insurance and dementia in Toronto, on 14 and 15 November. The conference will focus on dementia, its current and future costs and the role of insurance in covering this risk. Speakers will touch upon the […]
Lessons learned from Irene (and Lee)
Recently, I played in a golf tournament hosted by Andover Insurance at the Wheatley Hills Golf Course in East Williston, N.Y. Scott Brekne, Regional Marketing Representative at Andover always runs one of the most prestigious outings of the year. In his next life, he should come back as an event planner! It was a nice […]
Visions of the Presbyterian Dissent Encouraging Fraud by Shouting “Gotcha”
The old adage that “today’s dissent is tomorrow’s majority” is a powerful concept – one that sometimes comes to fruition. However, very often a dissent, while not becoming tomorrow’s majority, makes bold predictions of what may become of a majority’s holding. One not too distant dissent – a dissent whose predictions were dismissed by the […]
Health Insurers Agree to End “Secrecy” Insurers with 85% of market agree to make rate increase requests public
Benjamin M. Lawsky, Superintendent of the Department of Financial Services, announced that Aetna Health, EmblemHealth, Empire HealthChoice, Excellus Health Plan and HealthNow joined UnitedHealth Group in agreeing to end the secrecy over requests for increased health insurance rates. After the Department recently notified health insurers that it planned to make the rate increase filings public, […]
Schiff to Receive American College’s Highest Honor
Distinguished graduate and champion of the nation’s leading financial services educator, Albert J. “Bud” Schiff, CLU®, CAP®, has been selected to receive The American College’s highest honor, the Huebner Gold Medal. The ceremony honoring Mr. Schiff will take place during The College’s annual President’s Dinner on Friday, December 2, 2011 at the Smithsonian National Museum […]
Liberty Mutual Boosts Safety Initiative
For the 10th Year in a row, Liberty Mutual Insurance has supported key efforts to improve workplace safety, donating $30,000 to the American Society of Safety Engineers’ (ASSE) Foundation toward the Liberty Mutual Safety Research Fellowship Program. This program encourages research activities in occupational safety and health, and provides a forum for safety professionals to […]
Qualifying For Handicapped Permit: Diabetes not Approved Matter of Jacobson v New York City Dept. of Transp.
In this Article 78 proceeding, petitioner, who undisputedly has type 1 diabetes, challenges the determinations of the New York City Department of Transportation (DOT) and the New York City Department of Health and Mental Hygiene (DOHMH) denying his application for a Parking Permit for People with Disabilities (PPPD). He alleges that the determinations made by […]
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2011/ November 14/ Past Issues
Is Your Producers Agreement Worthless?
By Ed Gaelick, CLU, ChFC What do you do when the trust you place in a carrier is violated? You assume your producer’s agreement is in place to protect you. Think again. When we send carriers a Request For Proposal (RFP), we are trusting them to act in good faith. Sadly, I found out not […]
2011/ November 14/ Past Issues
Insurance Advocate’s AGENCY of the YEAR: Sterling & Sterling
The word “corporate” has many implications, some good, some bad. On the one hand it can mean: stiff, impersonal, lifeless and bloated. On the other hand, “corporate” can refer to the crisp, top level conduct of business, to standards of objective accountability and to the creation of self perpetuating mechanisms for entrepreneurial success. For an […]
2011/ November 14/ Past Issues
Fine Lines
In this issue of the Insurance Advocate we salute Sterling & Sterling as our “Agency of the Year.” There are so many outstanding institutions like Sterling & Sterling in the tri state region that the choice was not easy to make. Yet, on balance, Sterling & Sterling proved itself to be a true champion, defining just how […]
2011/ November 14/ Past Issues
Court of Appeals Expands Scope of Scaffold Law to Objects That Topple Over
CIPARICK, J.: Some New York courts have interpreted our decision in Misseritti v Mark IV Constr. Co. (86NY2d 487 [1995]) to preclude recovery under Labor Law § 240 (1) where a worker sustains an injury caused by a falling object whose base stands at the same level as the worker. We reject that interpretation and hold […]
2011/ November 14/ Past Issues
Acord 25 Certificate of Liability Insurance has Changed-For Better or Worse?
Jerry Trupin
Exposures and Coverages
ACORD has substantially altered form 25, Certificate of Liability Insurance, the most widely used and contentious ACORD certificate form. The new version, ACORD 25 (2010/05), removes some of the unrealistic statements contained in the older forms and prominently emphasizes the limited value of the certificate, but it is still a long way from meeting a […]
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2011/ November 28/ Past Issues
Commerical Modernization Lifts Burdens, Improves Vitality Market
Albany, N.Y.—Legislation for the commercial modernization of New York’s insurance law, which was cosponsored by Senator James L. Seward of Oneonta (R-C-I), Chair of the Senate Insurance Committee, and Assemblyman Joseph D. Morelle of Irondequoit (D-I), Chair of the Assembly Insurance Committee, has been signed into law by Governor Andrew M. Cuomo and becomes effective […]
2011/ November 28/ Past Issues
New York Court Orders Insurers to Provide Defense for Asbestos Claims Under “Joint and Several Liability” Standard
ANew York State court has ruled that an asbestos defendant is entitled to full defense from its primary insurance company for certain asbestos liabilities, with the primary insurance company paying all defense costs for covered claims that are not paid by other insurers. In Travelers Casualty and Surety Company v. Alfa Laval Inc., Hon. Debra […]
2011/ November 28/ Past Issues
As We Move Toward the Year’s End…
More than 400 gathered at New York’s Cipriani’s on Wall Street as the Insurance Federation of New York presented its Free Enterprise award to Joseph Plumeri, Chairman of Willis. Plumeri joins an illustrious line of industry leaders in receiving the award, since IFNY’s inception nearly 100 years ago. The full story appears in this issue. […]
2011/ November 28/ Past Issues
IFNY Featured Speaker Benjamin M. Lawsky Superintendent | Department Of Financial Services | New York State
Benjamin M. Lawsky was unanimously confirmed on May 24, 2011 as New York State’s first Superintendent of Financial Services. In this capacity, he leads Governor Andrew Cuomo’s initiative to integrate the New York State Banking Department and Insurance Department towards a modern unified financial regulator called the Department of Financial Services. Until establishment of the […]
2011/ November 28/ Past Issues
IFNY Free Enterprise Award Recipient Joseph J. Plumeri Chairman and Chief Executive Officer | Willis Group Holdings plc
Appointed to lead Willis in October 2000, when it was privately owned by Kohlberg Kravis Roberts, Joe successfully returned the company to public ownership in 2001. In 2008, he spearheaded Willis’ $2.1 billion acquisition of Hilb Rogal & Hobbs (HRH), the largest insurance brokerage deal in the last decade. During his tenure, Joe has cultivated […]
2011/ November 28/ Past Issues
IIABNY Rebuts State’s Argument to Dismiss Regulation 194 Appeal
The Independent Insurance Agents & Brokers of New York, Inc. (IIABNY) filed its reply brief in response to the New York attorney general’s argument that the Appellate Division Third Department should dismiss the association’s appeal of a previous court decision that upheld Regulation 194. In a 15-page brief IIABNY maintained that the regulation’s requirements forcing […]
2011/ November 28/ Past Issues
Gov. Cuomo Secures Refund of $114.5 Million in Health Insurance Charges
Govenor Andrew Cuomo ordered 11 insurance companies to refund $114.5 million to holders of policies that cover 573,748 people who were overcharged for health insurance premiums in 2010. “In this economic climate, every penny counts and in this case, insurance companies were overcharging New Yorkers to the tune of millions of dollars,” Governor Cuomo said. […]
2011/ November 28/ Past Issues
Paying Homage to Andy Rooney
I have always loved 60 Minutes commentator Andy Rooney’s essays. So, I was saddened to hear of his passing on November 4. Rooney was 92 when he died, and he worked hard right up to the last month of his life, which ended just three weeks after his last television appearance. Many independent agents, including myself, […]
2011/ November 28/ Past Issues
Court Of Appeals Rules On Three “No Fault Threshold” Cases
SMITH, J.: In Pommells v Perez (4 NY3d 566, 571 [2005]), then Chief Judge Kaye described the working of the No-Fault Law (officially the Comprehensive Motor Vehicle Insurance Reparations Act, Insurance Law §§ 5101 et seq.) by saying: “Abuse. . . abounds.” That included, she said, “abuse. . . in failing to separate ‘serious injury’ […]
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2011/ December 19/ Past Issues
Creativity at Rose and Kiernan
Fast on the heels of our Agency of the Year issue, another of New York’s great agencies,Rose & Kiernan, announced a transaction which demonstrates handsomely why this agency is among the top 50 independent insurance brokerages in the U.S. According to our dear friend of longstanding, David Fazioli. Rose & Kiernan has just announced that it […]
2011/ December 19/ Past Issues
Efficient Real-Time Usage Up Among Independent Agents
PEARL RIVER, NY—A recent Real Time/Download Campaign (www.getrealtime.org) survey of independent agents and brokers shows that 63 percent of agency management system users employ real-time rating, including comparative raters and agency management systems, to access multiple carriers at once. This represents an increase of six percentage points over a similar 2010 survey, showing that real-time […]
2011/ December 19/ Past Issues
Insurance Arbitration: Debiasing the Biased
By Richard G. Waterman, CPCU Everyone possesses certain biases and prejudices. These biases are usually not attributable to motivational effects such as wishful thinking or the distortion of judgments by rewards and penalties. Instead, leading research in decision making suggests that in many contexts decision makers employ intuitive, common-sense judgments to guide the simplification of […]
2011/ December 19/ Past Issues
Professional Liability and Personal Injury Liability Coverage
Jerry Trupin
Exposures and Coverages
We Are the Greatest (WAG), a talent agency, is sued by a competitor for slander. The competitor claims that the WAG made derogatory and demeaning statements about it when soliciting clients. Seems like a good example of the need for personal injury coverage provided by Coverage B Personal and Advertising Injury Liability of the CGL […]
2011/ December 19/ Past Issues
Staffing, Competing
The other day I spoke with Bob an IIABNY member with a medium size agency. He and his management staff had just completed several days of planning for the upcoming year. He was really concerned because as a result of the planning he realized there were a number of areas that needed to be dealt […]
2011/ December 19/ Past Issues
Sztuk to Lead Coalition vs Insurance Fraud
Washington—Frank Sztuk of Hanover Insurance was elected co-chair of the Coalition Against Insurance Fraud amid record attendance at the public-interest group’s annual membership meeting in early December. Sztuk is Hanover’s National SIU Strategist and has chaired the Massachusetts Fraud Bureau. He will share Coalition leadership with incumbent cochair Steve Perry, head of the D.C. Department of Insurance, […]
2011/ December 19/ Past Issues
To Stop A Thief…
Michael Loguercio
Face to Face
About a year ago in this column we talked about social media, and how posting on Facebook or Twitter the vacation that you are currently enjoying, or the wonderful dinner in a restaurant that you are eating, or the luxury box that you are sitting in at a ballgame, can cause your homeowners carrier to […]
2011/ December 19/ Past Issues
When the Work Involves Filling a Trench, No Guards Around Trench are Required; 240(1) Suit Dismissed
Plaintiff Raul Salazar was injured in May 2004, while working in the basement of a Brooklyn building undergoing renovations. The property was owned by 96 Rockaway, LLC. Salazar was employed by T-Construction Co., Inc.; the general contractor was Novalex Contracting Corp. The accident occurred in the largest room of the basement, which had a trench […]
