Weekly Dispatch: April 27, 2023

April 27, 2023


Managing risks with cyber liability policies

Cyber liability insurance policies will never fully protect a business from a cyberattack or cover all the subsequent costs of maintaining business operations. Yet in a rapidly changing area, they offer comprehensive risk management by proactively forcing businesses to rethink their security systems on a regular basis in ways that can reduce the potential damage of an attack drastically and allow for continued business operations. Thinking about a cyber liability policy as a more comprehensive tool to protect a business could show an organization how to prepare to keep operating and minimize the damage done by a security breach. Protect your agency from cyberthreats. PIA members and every one of their small-business clients must understand and then tackle their cybersecurity weaknesses before they are crippled by them. To protect their sensitive data—and their insureds’ sensitive data—insurance agents should have cyber liability coverage. To determine their unique cyber risks, PIA-member agents can use PIA’s Cyber Risk Assessment. PIA members also can access Ransomware is a real menace in the PIA QuickSource library.

N.Y. unveils new statewide cannabis education campaign

Gov. Kathy Hochul recently announced the launch of “Why Buy Legal New York,” a public education campaign promoting safer, informed, legal purchases of cannabis from licensed dispensaries in New York state. The campaign focuses on three key pillars: protecting public health and promoting social equity and community reinvestment. The “Why Buy Legal New York” announcements explain and emphasize the potential health risks associated with purchasing cannabis products from unlicensed businesses and why regulated cannabis products are safer. It also outlines how buying legal supports the advancement of New York’s social and economic equity goals for communities across the state. PIA National continues to advocate for a cannabis safe harbor for insurance agents, and PIA Northeast offers various resources to help members stay updated on this budding issue.


Conn./N.J./N.Y./Vt.: States urge for a recall of Hyundais, Kias

Attorneys general in 18 states, including Connecticut, New Jersey, New York and Vermont have written a letter to the National Highway Traffic Safety Administration urging for a federal recall of Hyundai and Kia vehicles following the companies’ continued failure to take adequate steps to address the alarming rate of theft of their vehicles. The recent increase in thefts of these cars is due, in part, to two separate but related issues: 1. lack of a key safety feature called an engine immobilizer made by the two manufacturers with the same parent company; and 2. A TikTok challenge. Can carriers blacklist vehicles because of this issue? For the answer, read the related article on PIA Northeast News & Media.

PIANY’s top bill, photo inspections passes Senate, take action

PIANY’s top legislative priority for the 2023 legislative year is passage of legislation that would make important reforms to New York state’s outdated photo inspection law (S.5889). That legislation got a giant step closer to becoming a law as S.5889 passed the New York state Senate yesterday afternoon. The same legislation previously passed the state Assembly in March. The bill’s passage in the Senate comes mere days after it was reported out of the Senate Insurance Committee. Typically, after a bill is reported out of committee it must age before it can be voted on by the full chamber. Tell Gov. Kathy Hochul to sign photo inspection reform today.

PIANY-priority bill reported out of state Senate committee

Another of PIANY’s top legislative priorities for the 2023 legislative session successfully was reported out of the Senate Insurance Committee on Monday: S.5896, which would exempt commercial insurance policies placed by retail insurance brokers through the unaffiliated wholesale excess-line brokers from the diligent-effort requirement when placing business in the excess & surplus marketplace.


Capacity Insurance Co. in orderly runoff

On April 14, 2023, AM Best reported that Capacity Insurance Co., agreed to administrative supervision by the Florida Office of Insurance Regulation, and is in an orderly runoff. Capacity Insurance notified the Office of Insurance Regulation that it would not be able to meet required surplus levels in 2023, and it would be filing an impaired financial statement for 2022. The carrier stopped accepting new business during the summer of 2022.

N.Y.: Payroll cap and maximum weekly WC benefit change

The New York Compensation Insurance Rating Board has announced that the payroll cap under the New York Workers’ Compensation Construction Employment Payroll Limitation Program will be increased from $1,688.19 to $1,718.15 per week for policies with effective dates on and after Saturday, July 1, 2023. According to provisions in the 2007 Workers Compensation Reform Act, this limit is adjusted every year based upon changes in the average weekly wage as calculated by the New York State Department of Labor. For changes to the WC manual, see Bulletin 2578. Also, the maximum workers’ compensation weekly benefit is two-thirds of the statewide average weekly wage, so the maximum weekly benefit will be $1,145.43, effective July 1, 2023 (up from $1,125.46 in 2022).


Conn./N.J./N.Y.: Help a local charity receive $2,500

Want to make a difference to a local charity in your community? PIA is working with the Insurance Industry Charitable Foundation to let agencies know that the IICF is offering 10 grants—worth $2,500 each—to worthy charities in Connecticut, New Jersey and New York. In order for the charity to receive one of the grants, it must be sponsored by an insurance entity—at no cost to you. Ask the charity you are sponsoring to complete an application. Applications are due Thursday, May 18, 2023.

N.J.: PIANJ seeks industry stars—nominate someone today

PIANJ is calling for nominations for its 2023 Distinction of Professionalism awards, and nominations are due Friday, May 19, 2023. 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. Nominations are being sought for these awards: Professional Agent of the Year, Community Service Award, and Company Person of the Year. For a full description of each award, or for a nomination form, click here.

Educating insurance agents

N.Y.: New classes that meet the New York State Department of Financial Services’ new CE requirements are available online and in private on-site sessions.

Conn./N.J./N.Y.: Cyber CE: Protect your clients, your agency

The cyber landscape is ever evolving. Join Tabitha DeGirolano, RPLU, for the webinar Cyber Insurance–Protecting Your Clients and Your Agency, Tuesday, May 2, 2023, starting at 1 p.m. This one-hour course will provide an overview of coverages available under a cyber insurance policy and explain why it is important for businesses to carry the coverage. She also will address errors-and-omissions concerns for agents specific to selling cyber insurance and guidance on protecting your agency from cyber incidents. This course has been approved for continuing-education credits in Connecticut (1 PC), New Jersey (1 GEN) and New York (1 BR, C3, PA, PC).

Conn./N.J./N.Y.: What to do if you’ve been hacked

Cyberattacks are ubiquitous. It’s no longer a question of if, but when. Do you know what to do if your agency is hacked? Join Dave Vener and Jay Yager as they lead a webinar: You’ve Been Hacked: Cyber Security and the Human Element, Tuesday, May 2, 2023, starting at 2:30 p.m. When you have a cyberattack event or when your customers do, do you have a plan? Will you know who to call, and what to do? What will you tell your employees or what will you tell your clients? During this informative session, you can have some fun, and learn what it feels like to be under an attack. This course has been approved for continuing-education credits in Connecticut (1 PC) and New York (1 BR, C3, PA, PC); and it has been submitted for CE approval in New Jersey.


NJYIP Golf Open, join the 32-year tradition

NJYIP encourages you to attend the 32nd Annual Golf Open on Monday, May 1, 2023, at the Galloping Hill Golf Course, in Kenilworth. This event will bring together members and industry colleagues for an 18-hole, scramble-format tournament, and an opportunity to cultivate new business contacts. With extended networking opportunities during dinner, even nongolfers benefit. Raffles and contests will be held thought the day, proceeds of which will be donated to JoAnn Danzis foundation for pancreatic cancer, a charity that focuses on advancing Pancreatic Cancer Research & Awareness through charitable giving. Register today, sponsorship opportunities still are available.

Register now

Monday, May 1, 2023: NJYIP Golf Open

Thursday, May 18, 2023: PIWA Spring Reception

June 4-6, 2023: Annual Conference hosted by PIANJ and PIANY—Register now and save 20%. Want to sponsor, exhibit or advertise?

Tuesday, June 6, 2023: NJYIP Fun Run

Tuesday, June 13, 2013: Save the date: YIP Spring Webinar: From Bud to Table: The Insurance of Cannabis

Tuesday, June 20, 2023: CTYIP Golf Outing

Monday, Aug. 7, 2023: Save the date: NY-YIP Annual Golf Open

Monday, Oct. 2, 2023: Save the date: PIANJ Golf Classic—40th Anniversary

Thursday, Nov. 2, 2023: Save the date: Capital RAP

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