Thousands of New Yorkers will reportedly find it much easier to protect their automobiles, homes and businesses now that Gov. George Pataki has signed into law an urgently needed bill strongly supported by the Independent Insurance Agents Association of New York Inc.
IIAANY was reportedly a key player throughout the legislative session and in late-night negotiations when the Senate passed the bill in the early morning hours of June 20. The Assembly passed the bill later that same day. The new law reinstates a critically needed source of property insurance and a key provision for stabilizing the state’s auto insurance market.
The bill (S.5700), signed into law June 26 by Gov. Pataki, reauthorizes the New York Property Insurance Underwriting Association. Coverage through NYPIUA for thousands of homes and businesses has been unavailable since April 30 for new business and for renewal policies effective June 29 and later. The law authorizing NYPIUA sunset April 30 when lawmakers failed to come to an agreement to continue the program uninterrupted. With the Governor’s signature, new coverage was available starting June 26.
In addition to NYPIUA reauthorization, S.5700 also reinstates an important provision in the insurance law (Section 3425) that expired in August 2001. It governs the cancellations and non-renewals of personal auto insurance policies.
“The return of the so-called 2 percent rule to New York State insurance law,” said IIAANY Chair of the Board Maura Clancy, “will greatly improve the availability of personal auto insurance by providing a more stable market for insurers to compete for business.
“IIAANY commends Senate Insurance Committee Chair James Seward (R-Oneonta) for his leadership on this issue. Senate passage and subsequent approval of the bill by the Assembly is a major victory for consumers. It is also a testament to the grassroots efforts of our member agents and brokers who responded to our appeals for action by contacting their Senators and Members of the Assembly and urging their support,” added Clancy.
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