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
Insurance Advocate Cover Story
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 […]
