Hurricane Ian’s impact on the insurance industry
Hurricane Ian already is one of the most devastating natural disasters in recent history. The Category 4 storm and its 155-mph winds has wreaked havoc across communities, bringing widespread flooding and catastrophic property damage with it. While the true extent of the destruction has yet to be tabulated, research firms are estimating total loss predictions between $28-$47 billion. That would make Ian the costliest Florida storm since Hurricane Andrew in 1992. When tragedies like this strike, and people’s lives and property are left shattered, the natural response is the need to be made whole again, which is when the insurance industry plays its part. After all, insurance is for worst-case scenarios.
CID: Students and young professionals invited to learn about opportunities in the insurance industry
Do you know a young person who is interested in the insurance industry? Connecticut Insurance Department Commissioner Andrew N. Mais announced the department will host the second annual NextGen Career Academy to showcase the numerous and exciting careers available in the insurance industry. The free, virtual conference on Monday, Oct. 17, 2022, will provide students with an insightful glimpse into the world of insurance through four informational sessions. Attendees will gain valuable insights and learn firsthand from young professionals and industry leaders on why insurance brings many career opportunities, how to navigate educational paths, where to find some of the most rewarding jobs, and what is on the horizon for the industry. Attendees will hear from speakers working in InsurTech, startups, FinTech, regulation, consulting, marketing, and more. PIA Northeast offers tools and resources to help insurance professionals who are new to the industry with their specific business considerations through its Steps to Success tool kit.
N.J. court rules Uber Eats insurer does not have to offer uninsured/underinsured coverage to drivers
In the case of Malzberg v. Josey et al., the Superior Court of New Jersey ruled that Uber Eats, the food delivery company, was not obligated by law to provide uninsured/underinsured coverage to drivers using its app. The court examined the Transportation Network Company Safety and Regulatory Act to decide whether app-based food delivery services—like Uber Eats—were required to follow the law. Or if instead, the law was limited to regulating companies and drivers that arrange and provide transportation services for passengers—like Uber. The court concluded that the Act did not apply to the app-based food delivery services. What this means for you and your clients: Your clients could be in danger of being underinsured if they get into accident with someone with low coverage limits. PIA suggest that you talk to your clients about this possible gap in coverage. Earlier this year, bills (S-486/A-3596) were introduced in the state Legislature that would address this exact issue. This legislation would require delivery network companies to provide at least $1.5 million in liability coverage as well as $1.5 in UM/UIM benefits when a driver is providing a prearranged delivery. These limits mirror what transportation network companies must provide their drivers when they are transporting passengers. The bill has not advanced out of either the state Assembly or Senate at this time.
N.J.: In memoriam: Joseph C. Parisi Jr.
Joseph C. Parisi Jr., chair and CEO of PIANJ-member Otterstedt Insurance Agency Inc., in Englewood Cliffs, N.J., passed away on Oct. 6, 2022. He served as a council member and later as the mayor of Englewood Cliffs from 2008-15. He was active in insurance industry associations and served on advisory panels for several insurance companies. Parisi is survived by his wife of 35 years Gina Paladino Parisi; Joseph III and Thomas (his sons); Deborah Ryan (Terry) and Laura Parisi (his sisters); Geraldine Paladino (his mother-in-law); Anthony Paladino (Dana) (his brother-in-law) and many nieces, nephews and cousins. In lieu of flowers donations may be made in his memory to Holy Name Medical Center Foundation, 718 Teaneck Road, Teaneck, NJ 07666.
PIANJ members work to change step-down provisions, meet with members of the state Assembly
PIANJ volunteers spent August and September meeting with the members of the state Assembly Financial Institutions and Insurance Committee to discuss PIANJ’s top legislative priority: a ban on step-down provisions in personal auto policies. A step-down provision appears in many personal automobile policies. It has the effect of reducing the amount of coverage to which a policyholder would be entitled in the event of a claim. These provisions can manifest in several ways. To combat these hidden traps PIANJ-supports legislation (A-1761) that would protect policyholders by prohibiting the use of step-down provisions in personal auto policies. This would guarantee that policyholders are afforded the coverage limits they purchased instead of being surprised by state minimum limits. At the meetings, PIANJ was represented by PIANJ President Thomas Wilkens; Vice President Andrew Harris Jr., CIC, AAI; Secretary Aaron Levine, CIC; Treasurer Beth Frederickson, CPIA; Directors Lydia Bashwiner, Esq., CWCP, NJWCP, Lisa Hamm, CIC, Christopher J. Powell, Casey Yarger, CIC, CRM; past Presidents Bruce Blum, CPIA, Louis Beckerman, CIC, CPCU, John A. Latimer, Esq.; and NJYIP Director Bart DiMattina. PIANJ volunteers met with the following members of the state Assembly: Robert Clifton, R-12; Joe Danielson, D-17; Kim Eulner, R-11; Victoria Flynn, R-13; Roy Freiman, D-16; Yvonne Lopez, D-19; Carol Murphy, D-7; Ellen Park, D-37; Gary Schaer, D-36; and Jay Webber, R-26. PIANJ will continue to advocate for the passage of this bill. We encourage you to contact your legislative representatives to ask them to support this bill. Watch your PIA publications for updates.
N.Y.: WCB amends regulation to conform to disability benefits law, PIA offers resource to help educate clients
The New York State Workers’ Compensation Board has amended Subdivision (b) of Section 355.4 of Title 12 NYCRR. The amendments allow that in addition to workers’ compensation benefits, each individual domestic worker employed 20 or more hours per week for the same employer must be covered by Disability and Paid Family Leave benefits insurance. Previously, the regulation stated a threshold of 40 or more hours per week, but this has been changed in response to Chap. 740 of the laws of 2021 (specifically, Section 202(2.) of the WC law). These benefits are short-term cash benefits paid to an eligible worker when unable to work due to injury or illness occurring while off the job. These cash benefits are 50% of a workers’ average weekly wage, subject to a maximum of $170 and payable up to 26 weeks during 52 consecutive weeks after a seven-day waiting period has been met. Domestic workers include chauffeurs, nannies, home health aides, nurses, babysitters, au pairs, maids, cooks, housekeepers, laundry workers, butlers, companions, and gardeners working in a private household (12 NYCRR Section 355). For more information about these amendments see, Homeowners as employers in the PIA QuickSource library.
Educating insurance agents
N.J./N.Y.: Perpetuation planning is critical in any type of industry—especially insurance
Do you know when you plan to retire? Do you have a written perpetuation plan for your agency? Do you know how a perpetuation plan impacts an agency’s chances of surviving an ownership transition? If you need to answer these and other questions surrounding agency perpetuation, plan to attend Insurance Agency Perpetuation Planning, which will be held in-person on Wednesday, Oct. 19, 2022, at Selective Insurance Co. of America, Hamilton, N.J. (NJCE: 6 GEN); or Thursday, Oct. 20, 2022, at PIA Northeast Headquarters, Glenmont, N.Y. (NYCE: 6 BR, C1, C3, LA, LB, LSB, PA, PC).
Who’s speaking at PIANY’s Capital RAP
PIANY’s first-ever Capital RAP will be held Tuesday, Oct. 25, 2022, at the Capital Center, Albany, N.Y. It will be your chance to learn from leaders in the insurance industry on how to navigate an ever-changing insurance landscape. Newly elected PIANY President David L. Sidle, CIC, CPIA, will address the crowd, and retired Navy SEAL Darren McBurnett will highlight the untapped potential and never-quit drive that is the cornerstone of Navy SEAL success, and he will share the defining characteristics that promote leadership and sacrifice in the SEAL Teams. During the event, PIA favorite instructor John Fear, CISR, CPIA, will lead two education classes Applying Ethics & Diversity to Risk Assessment and E&O: Recommending At Least Full Coverage. PIANY also will present Edward Gentile III, CPRM, AINS, of Emery & Webb Inc., with its Distinguished Insurance Service award. Don’t miss the trade show and all the chances to network with other insurance professionals. See you at Capital RAP. Register today.
CTYIP Fall Reception, awards celebration
Join CTYIP for its Fall Reception, Thursday, Oct. 27, 2022, at Dockside Brewery in Milford, starting at 5 p.m. During the reception CTYIP will present its 2022 award winners for YIP of the Year, Director of the Year, and MGA of the Year. With two drinks and food included, you can network with your industry colleagues, celebrate with the award winners, and enjoy an evening on the water. Register today.
Wednesday, Oct. 19, 2022: PIANJ Women’s Leadership Alliance Golf Clinic
Tuesday, Oct. 25, 2022: Capital RAP
Thursday, Oct. 27, 2022: CTYIP Fall Reception
Thursday, Nov. 3, 2022: PIWA Fall Reception