CIB's Top Three Legislative Issues Passed by Legislature.

NEW YORK -- The Council of Insurance Brokers of Greater New York, Inc. (CIBGNY) http://www.cibgny.com/ , the leading professional independent insurance brokers' association in the New York Metropolitan area, including Long Island and the Lower Hudson Valley, is very pleased to announce that several of its top 2008 Legislative Positions have been passed by the both Houses of the State Legislature in Albany:

Late Notice of Claims

S.8610 (DeFrancisco) / A.11541 (Rules by Weinstein), http://www.assembly.state.ny.us/leg/?bn=A11541&sh=t is a Governor's Program Bill to ensure that insurance carriers are not able to deny coverage under insurance policies solely due to late notice of claim by a policyholder, as long as the insurer is not "materially prejudiced" by such late notice.

This bill provides a great benefit to insurance consumers as it requires that they receive the insurance coverage for which they have contracted and paid premiums, regardless of when they make a valid claim. Oftentimes the first notice of a covered incident or occurrence under an insurance policy is the commencement of a civil action against the policyholder, for an alleged negligent act or omission by the insured. Such actions may be commenced up to three years after the plaintiff has suffered putative property damage or bodily injury. As such, policyholder/defendants that have paid their insurance premiums should be able to expect insurance carriers to honor their contractual policy obligations to defend against such claims and indemnify their insureds when legal liability is ultimately determined by court decision or settlement.

In noting the passage of this legislation, CIB President Peter Resnick stated: "The late notice of claim bill was CIB's #1 Legislative Priority, for the past two years running. CIB is very pleased to have successfully worked with the Legislature and the Governor's Office, to achieve passage of this important consumer protection."

Echoing President Resnick's remarks, was CIB Legislative Co-Chair Anthony Calafiore: "Once the late notice bill becomes law, insurance carriers will no longer be able to deny coverage solely on procedural grounds, thus avoiding defense costs and indemnity payments."

Coastal Insurance Reforms

S.8624 (Seward) / A.11693 (Rules by Morelle), http://www.assembly.state.ny.us/leg/?bn=S08624&sh=t is an omnibus property/casualty reform bill that contains some great protections for New York homeowners in coastal areas of the state.

The bill makes permanent under law, the New York Property Insurance Underwriting Association (NYPIUA), as the state's homeowners (HO) insurer of last resort for hard-to-place coverage, thus avoiding the market uncertainty of past years when NYPIUA's statutory authority to write HO insurance was allowed to expire for political reasons.

The bill also codifies the Coastal Market Assistance Program (CMAP) within the NYS Insurance Department to encourage the voluntary participation of insurance carriers to write HO policies in coastal areas. Such companies will also be encouraged to write meaningful HO wrap-around policies to augment the basic coverage provided by NYPIUA.

The bill also makes permanent the NYS Advisory Panel on Homeowners Insurance Coverage, comprised of insurance industry experts, including brokers and agents.

Finally, the bill restores personal lines flex-rating to automobile insurance writers, who will be able to "file and use" auto rates within 5% rating bands without prior approval of the NYS Insurance Department.

CIB President Peter Resnick praised both Insurance Committee Chairs, Senator James Seward and Assemblymember Joseph Morelle, for their leadership in sponsoring and passing this landmark legislation: "I applaud both Senator Seward and Assemblymember Morelle for their efforts in passing this comprehensive bill to help ease the hardened homeowners insurance market in coastal areas of the state, thus allowing consumers to find needed coverage at a fair price."

CIB Legislative Co-Chair Jeff Greenfield noted: "The restoration of auto flex-rating is an important element in creating a stable personal auto insurance market in New York. Flex-rating encourages competition by enticing more carriers to enter into the voluntary market, since it offers rate flexibility up or down 5%, depending on a company's claims experience."

Messrs. Resnick, Calafiore and Greenfield collectively thanked CIB Legislative Counsel, Tom Faist of Faist Government Affairs Group, for his "persuasive and persistent" lobbying efforts in Albany on behalf of CIB.

For further information about these bills, or background on CIB, its membership or association activities, please contact CIB President Peter Resnick at [phone], extension 315.